Ever wonder what kind of people fall for penny stocks?
This board is dedicated to the soft underbelly of the "penny stock" phenomenon, where gullible investors throw their money at companies with questionable financials (or no financials at all) with the expectation to get rich. Unfortunately, most of them lose their shirts.
Know a goofball who's caught up with pennies? Feel free to post their antics here.
My decision to write about the people who get caught up in penny stock pump and dump jobs dates back to 2009 when I encountered a character who was hustling Sedona Corp (symbol: SDNA). In an old post on the Raging Bull boards, this character talked about "Roasting Potatoes" with Sedona's CEO. It's an awesome post. Check it out:
Everyday, you learn more and more of what we knew all along. Everyday, we learn more and more of what we didn't know. But what we all can share is, our total disgust how our own citizens, in positions of responsibility, let us all down in the quest for money and power.
|By: lenofus13820 |
04 Mar 2009, 07:41 PM EST
Rating: Rate this post:
|Msg. 20745 of 24432 |
when you see Levin pounding UBS, or Pitt lamenting naked shorting, know that these people were presented with all the facts years ago. They are politicians at their worst. But, If you're stuck in a burning building, and the only way to get out is to work with someone you have no respect for, that's what you do. They are still there, and we need them. At least, they finally showed up. As a matter of fact, I'm calling Levin in the morning, and having him call the AG in La. I want him to really see who he's dealing with.
One thing I could never understand was a guy like Vey putting up with this nonsense. He really is a tough, no nonsense guy. I've corresponded with him only once, and that was a long time ago. But I know enough people who know him well, and I have a good idea of who he is, and what his values are. But I could never understand why he suffered these fools. I told someone a while ago about the Marx Bros. showing up to meet with Irving Thalberg (http://en.wikipedia.org/wiki/Irving_Thalberg). He stood them up. And when he showed, an hour or so later, there they were, buck naked, roasting potatoes in his fireplace. I said to this person, that, if I were Vey, I would set an appointment with Pitt, have a lunch packed, a bedpan, pot of coffee, and Todd Mason, the Philadelphia Reporter in the hall. I would tell him, "I'm sitting right here until you make the call, and get the monkeys off Sedona. You can call the police if you like. My reporter friend is in the hall to print the story." I still say, that would have worked. The SEC can make one call, and this stops.
Sedona is at the center of all this. Refco, Bawag, Lichtenstein, UBS. All they had to do was survive. And thanks to Mr. Vey, they did! It's been horrible, with so many of us hurt. But we are so much better off than so many. And I still think Vey has it in him. I think he is going to kick butt and take names. He is one tough so and so. And it is so important to everyone in this country that he wins. Down the road, you'll see this "Poster Boy", and the name is catching on, right at the top of the story.
Today, Mary Schapiro appointed Briguiliano to Deputy Director. Patch is spitting flames somewhere. He is the problem. So we have another hill to climb. But we'll toast him on the same spit as the others, because for a lot of us, it's about more than money.
I'll repeat, I think Vey is going to make his statement very soon. He ponied up, as we used to say in the Business, to a "man sized position". He has the same common as us. He's not Warren Buffett and GE, where the common holders get hosed, and Warren has a special preferred. He chose to take maximum risk for maximum profit. I don't know what he's going to do , or what he sees that I don't, but he's no fool, and he's as tough as a Waffle House steak. It appears we are on the throes of a Bear Mkt Rally, which can be vicious in its intensity. That will help us. But this just feels right. I think the big man is ready to kick a door down. I think we are the right side of this trade for a change.
Let's see what he does. It's not too late to roast a potatoe, if he's so inclined. I'll do it, if he asks. It'd be great fun.
This guy "lenofus13820", who I affectionately refer to as "lenotard", has provided an incredible amount of comedic material for my stories about penny stock hustles. He is convinced that the real culprit behind Sedona Corp's problems is "naked short sellers". Of course, he conveniently ignores what Sedona's own management has done to their company, but that's what makes him so much fun.
iHub has a nice collection of characters who mimic lenotard's approach to investing. This is their story.