Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : S. I.'s Most Wanted Bad Guys -- Ignore unavailable to you. Want to Upgrade?

To: AuldDruid who wrote (27)	7/8/1998 11:15:00 PM
From: K A Anderson	Read Replies (1) \| Respond to of 157

I forget where I read it, but I was reading an article about how these Market Makers are exploiting both the investors and these business's, on the OTC market. Basically the MM's and in some cases less than reputable investment bankers go out of their way to "recruit" small companies to "go public" on the OTC market. Most of these companies really have no business being public, simply because they have not the operations sales, management experience or expertise in their field. The company will then hand over a set amount of stock on a "consignment" or a best effort sale, (the underwriter gets what ever price they can for the stock). Then "sales" the stock to the MMs under the same terms. What you have is a bunch of free stock on consignement, the MMs may initially buy a few shares for their inventory, and then start shorting the stock on consignment, while offering to sell to the public in the "best effort" to get the best price on behalf of the company that gave them the stock to sell. Basically in the long run the MMs are betting this new business and its stock will flounder if not just out right failure. These Investment Bankers and MMs know they are dealing with an inferior or weak company, and present these companies as something better than what they actually are, then continue shorting the stock long after they have sold it. Just another legal way to rip off investors. I hardly ever buy a NASDAQ or OTC stock any more, simply because of the MM manipulation. I mainly search for high risk stocks on the AMEX. KAA

To: AuldDruid who wrote (27)	7/8/1998 11:17:00 PM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 157

I have communicated with Mr. Forthright many times since I became an SI member in March. I find him to be as his alias implies, forthright. I'm not familiar with the poster gwolf, but I'm sure that his alias is synonymous with something unintelligent, which is how I view his post. Can you imagine anyone stupid enough to think that the best source of information is the company itself??? It just boggles the mind. Pennies are risky enough without having to read the hype and drivel (the word is drivel, not dribble) that guys like this post. Give some people a sixth grade education and all of a sudden they're experts on the pennies. I'd suggest he learn how to write and spell properly if he expects anyone to take him seriously. I've often seen people referred to as hamburger flippers, but this is the first time I've actually read a post written by one of them, IMO. KJC