Bashers on Yahoo Boards—how big a problem?

STOCKTALK

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Non-Tech
Bashers on Yahoo Boards—how big a problem?

An SI Board Since November 2003

Posts	SubjectMarks	Bans
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Emcee: geoffrey Wren	Type: Unmoderated

Introduction Compact

Bashers on Yahoo Boards—how big a problem?

You see the subject come up frequently, and so I will open this board for discussion. There certainly are bashers: those on the Yahoo boards who pan a stock repeatedly, often using multiple id’s. (Boards like SI, that exercise some control of posts, have limited problems with Bashing.)

There are two aspects to this discussion: theory, and actual evidence. Under theory, one might describe who is behind bashing and for what reasons, using educated guesswork based on patterns of what is seen and an understanding of human nature. Under evidence, there would be legal cases, news, and reports from people who know directly or directly of Bashing in practice.

Here are two posts of some interest:

This is a developed theory of bashing:
Message 19456788

This is a case history of someone caught using the boards for financial gain. Note, though, that in this case it was pumping, not bashing, and that the plot involved setting up a supposed stock-picking site, and trading ahead of the release of stock picks. This was far from a pure bashing action, but is still instructive:
sec.gov

Here are some issues:

1. Are there paid bashers acting in conspiracies, even with market makers, etc? I would suggest:
a. When a board is suddenly beset by bashing, it can be just one or two bashers with multiple id’s, more likely than not acting independently.
b. What might appear a conspiracy may just be multiple shorts coming in because they all see a good short and post unpleasant but reasonably accurate observations. Sometimes they are right. Their posts deserve careful reading, just as a knowledgeable long holder’s posts deserve careful reading.
c. To date, to my knowledge, nothing of this sort has touched an established brokerage house, or even established any conspiracies in general.

2. Is Bashing effective?
a. For what purpose? The usual assumption is that they are short term manipulators.
b. I doubt many people who manage their own portfolio are persuaded of anything by Basher posts, and doubt even more the institutions are persuaded.
c. However, every stock needs new investors to come in replace those who sell. Simple turnover. A message board can be a major source of information and help to gather new investors, especially for small cap stocks. When Bashers overwhelm a board, potential new investors may just decide to go elsewhere, denying the company new blood. This is where I see the most severe effect.

3. Are Bashers often mild or full-blown cases of personality disorder?
a. If you follow Yahoo message boards, you often find complete jerks who post junk, insult people, and generally ruin the board, and yet they are not bashers. They are jerks. I suppose that since most boards are followed by longs (longs being more common than shorts), a good place to be a jerk (or to pretend to be wealthy and smart) is on a Yahoo Board. Unlike polite company, you are never forced to leave. To my observation, many Bashers display in their syntax, spelling, punctuation that they are not well-educated, and their discussion leaves one to believe they are not financially literate, and often their claims of accomplishments are such as to strain credulity. Whether apparent basher, or apparent jerk, the effect can be the same to reduce the utility of the board. In reality the jerks on the boards could be bashers using a different tactic, and the apparent bashers could simply be jerks.

4. What effect to Bashers have on your finances?
As to your wealth, Bashers may have an effect on small-cap stocks, of an indeterminate amount, for an indeterminate period, which will hurt you if you need to sell while the price is down. But if you recognize the pattern, you could benefit, buying more of a good company when the price has temporarily been beat down.

Even if Bashers had no effect whatsoever on one’s investments, they are like Spammers, a crowd of people who certainly waste your time wholesale in small increments, and so should be scorned for that reason.

Go to reply# or date (mm/dd/yy):

Reply	Message Preview	From	Recs	Posted
3	well, it seems that the subject never got going. an active thread that covers t	geoffrey Wren	-	12/19/2004
2	SO WHAT HAVE YOU PROVEN OR COME UP WITH IN THE PAST YEAR?	flint	-	12/19/2004
1	Interesting topic - I've wondered myself. Many thinly traded stocks seem to	rrufff	-	11/4/2003

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