MESSAGE BOARDS - INSTALLMENT #2
Let's talk about "group plays"...
So why did your hot penny stock go down the toilet? You paid .0325 per share, and it's now at .0014. How could this happen? There were a lot of positive messages for this company and a lot of posters were saying it was gonna skyrocket with the next press release (PR). In fact, some people "in the know" said to expect the PR within the next 10 days. What went wrong?
One possibility is that a group play was in action. In this game:
1. some people get together and start buying some obscure sub-penny stock at dirt-cheap price per share (PPS). Then,
2. they all post messages on stock chat boards, praising this stock. They couch their hype in slick statements and rumors so as not to be so obvious as "pumpers" of the stock, such as "a 10-bagger", "sure to take off when the PR hits", "a can't miss stock", "merger about to take place", "acquisition about to take place", "cash dividend to be announced", etc. All of them are false
3. the buying frenzy begins, driving the PPS upwards along with the volume. The buyers of this POS (piece of $h!t) stock get more excited, talking the stock up even more than the original pumpers. Everyone's going nuts on this one. It MUST be a great stock, as it has now gone from .0014 to .0325 in a matter of a week!
4. the group players now are selling off their shares for a massive profit, selling into the buying frenzy and no one notices.
5. when the group is done selling, the greedy, uninformed bag-holders are left with a virtually worthless stock
On the next installment, I'll post a particularly nasty example of this criminal activity. Until then, do your homework on the stock that interests you and don't pay attention to the chat boards. (although you can make money doing that also. Look for it in an upcoming installment).
So why did your hot penny stock go down the toilet? You paid .0325 per share, and it's now at .0014. How could this happen? There were a lot of positive messages for this company and a lot of posters were saying it was gonna skyrocket with the next press release (PR). In fact, some people "in the know" said to expect the PR within the next 10 days. What went wrong?
One possibility is that a group play was in action. In this game:
1. some people get together and start buying some obscure sub-penny stock at dirt-cheap price per share (PPS). Then,
2. they all post messages on stock chat boards, praising this stock. They couch their hype in slick statements and rumors so as not to be so obvious as "pumpers" of the stock, such as "a 10-bagger", "sure to take off when the PR hits", "a can't miss stock", "merger about to take place", "acquisition about to take place", "cash dividend to be announced", etc. All of them are false
3. the buying frenzy begins, driving the PPS upwards along with the volume. The buyers of this POS (piece of $h!t) stock get more excited, talking the stock up even more than the original pumpers. Everyone's going nuts on this one. It MUST be a great stock, as it has now gone from .0014 to .0325 in a matter of a week!
4. the group players now are selling off their shares for a massive profit, selling into the buying frenzy and no one notices.
5. when the group is done selling, the greedy, uninformed bag-holders are left with a virtually worthless stock
On the next installment, I'll post a particularly nasty example of this criminal activity. Until then, do your homework on the stock that interests you and don't pay attention to the chat boards. (although you can make money doing that also. Look for it in an upcoming installment).
posted by Bob | 9:30 AM
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