STOCK MANIPULATION-SHORTING (article)
The Short & Distort Scheme
Stage I: Monitoring: In stage I of a Short & Distort scheme, Short groups Monitor spikes in volumes on stocks with no rumors.
Stage 2: Flagging: Shorts Flag stocks that run up then sits back and wait patiently for their time.
Stage 3: Preparation: The Shorters research the company and develop their Distortion of the rumors to be used later.
Stage 4: Actual Shorting: The shorts step in, selling on every possible up tick. This is the Reverse of front loading. Preparations are made to attack the guy who had earlier written positively about the company and take out, discredit, any new long-term champions or messengers.
Stage 5: Distortion Campaign: The shorts step in and increase selling on every possible up tick. Just as with the pump, newsletters, e-mail, PR firms against P & D, etc. are simulated. Expertise in the field is recruited for credibility. Any possible twist using POS (Purposely Omitted Syntax) and PAS (Purposely Added Syntax) is conveniently used on every possible angle. If the POS/PAS is discovered then attack the messenger.
Above all control the message boards. The group clutters the message boards so no positive information can be readily found. Justification is the Value of the Company in the market. Projections of $0.00 worth and loss projections of 100%.
Note: The market manipulator will do everything in his/her power to keep buyers OUT OF THE STOCK. Cut your losses is touted to stimulate fear. You bought higher but now they need you to sell lower.
Stage 6: Pressure: The shorts have taken it too far. The volume is increasing and the price is not effectively dropping. A stalemate occurs. Personal attacks increase. Threats of legal action, SEC involvement, and yes even death threats increase. Increased secret IDs are employed to increase the cluttering, personal attacks and the distortion. So begins a string of lies that run for as long as one's stomach can take it. Desperately playing on the "you have been had" scenario. Any new news will be hit hard by Shorters to kill any interest.
Note: Watch the volume not the share price. A market manipulator will have various brokers buying and selling the stock to give the APPEARANCE of increasing volume but the price goes down. Thus stimulating the story the company is selling or an off shore Reg S or other convenient scenario. Watch for large blocks that show up but have an MM special code, crossovers, etc.
Stage 7: The Cover: Without warning, the buying pressure is too much and the short begins to cover. Short covering combined with new investors buying into the stock causes the stock to go up. Often the whole thing starts again. Just a vicious cycle sometimes.
Comment: While all questionable MM activities may not be able to be stopped, widespread knowledge of their modus operandi may discourage some of their more blatant behavior. They know the investing public is aware of what they are doing and looking over their shoulder, while they fight to reform a system corrupt enough to permit such widespread MMM in the first place.
