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Sunday, 10/01/2000 2:53:41 PM

Sunday, October 01, 2000 2:53:41 PM

Post# of 582
Reasons for Bashing

You can short penny stocks in Canada. Is it just a coincidence many of our bashers are from Canada? I think not. Also, we have the privilege of having one other type basher not covered in this post. We have bashers who trash the very stock they own. They buy the stock, trash it, then are irritated that the share price is so low. I have heard the motivation for this is to get back at those who talked them into buying in the first place or the belief that the message boards really don't affect share price all that much and they just wish to vent. (THE BOARDS DO AFFECT THE SHARE PRICE) I believe the average investor in penny stocks does very little research. I believe that the majority will check the message boards, (Raging Bull) being the most popular, and try to establish a feel for the stock based on a limited number of posts they decide to read at the time. These bashers should realize that the people they hurt most are the investors who bought in at a high price, not those who sold at those high prices. For STRU to draw new investors, more posts need to talk about the accomplishments of STRU and less trying to trash it.

This is a long post, but hang in there. For those of you who are rather new to penny stocks or, for those of you who panic easily, let me explain what is going on here. First, as you can see, we have a lot of bashers on the RB STRU thread. First question is, why? Obviously they do not own any shares of STRU, so why are they here? Why are they wasting their time attacking STRU?

Do you believe in coincidence? I do, but only to a point. These current bashers, and the ones who have been here for a while, are not here by coincidence. There is a method to their madness.

There are four basic groups of bashers:

1) Actual Market Makers themselves, signing on with a screen name and bashing a stock that they are a Market Maker for. This has happened quite often in the past. Earlier this year, a guy named Jerome Rosen was nailed by the SEC for bashing a stock. Click on this link to find out who Jerome Rosen is, and who he works for:

http://www.ragingbull.altavista.com/mboard/boards.cgi?board=SYMY&read=1931

This next link is a conversation the CEO of SYMY had with Rosen. At the time, the Market Makers (especially ALEX and Knight) were beating this stock down (manipulating the price), despite great news that kept coming out. The CEO wanted to ask Rosen a few questions:

http://www.ragingbull.altavista.com/mboard/boards.cgi?board=SYMY&read=1884

Here is a link to an article from OTCNN:

http://www.otcnn.com/articles_archive.html?id=960995700

Are you now beginning to understand just how low people will go to beat a stock down? When a Senior Trader for a Market Maker has no problem doing this, what chance do the rest of us have to a fair market? None! By the way, the last I heard, Rosen still works for ALEX. He got a little slap on the wrist. If he were in any other line of work, he would have been fired on the spot. That, in and of itself, should tell you the mentality of the Market Makers. I'm sure the only thing ALEX was upset about was the fact that Rosen got caught. If they had been disgusted about what he did, they would have fired him, yes?

It's all for the money, pure and simple. They don't care about the average investor. When you couple this fact with the incredibly bad market since March, it makes certain groups of people stoop even lower just to make a buck. The Market Makers are suffering during this bad market, too. Volume this year, compared to last year, is down about 85% or so.

2) Then you have the people who are paid by the Market Makers to go onto a message board and tear that particular company apart. It's nothing personal against the stock. They are simply being paid to do this. Last year on the Bobz board, no less than a dozen big time bashers had their IP address tracked by a small group of computer wizards. Every IP address ended up at the same company in Arlington, VA. This company is an ISP (Internet Service Provider). These bashers conducted a boiler room operation and attacked stocks for money. Once this information was posted on the Bobz board, guess what happened? Save one, every one of these bashers vanished -- poof, into the night. The one basher who didn't vanish, actually admitted he was a paid basher. He admitted that he was paid by a Market Maker to crush certain stocks on the message boards. Of course, he wasn't the only one doing this. There was a whole group working together.

3) The third group are the 'shorters'. These are people who bet that the price of a stock will go down, not up. In this bad market, a lot of shorters have made a killing shorting stocks. You can short a stock if you live in Canada. You can also short a stock if you live in The United States. All you have to do is open up an account with a Canadian firm, and trade from that account. Before anyone here says one word, yes, you can do this. Period!

They will attack a stock with a vengeance, and they do it in groups. That's the only way it can work. Just like how investor groups get together for a MOMO (Momentum Play), these shorters get together, go a message board, then start attacking the stock. They also use multiple screen names to make it look like a lot more bashers are here, than there really are. If they can scare the shareholders who are not aware of these tactics, into selling their shares, they have won. Don't kid yourself, there is a lot of money involved here!

With the above 3 groups, bashing a stock with truthful statements is not their concern. These groups don't do a lot of research on any company. They show up, lurk for a while and read a lot of posts in order to get a feel of what is going on, and they zero in on the posters they believe they can attack the quickest. Their main goal is to discredit the board leaders. Take down the leaders, and the rest is easy.

Their main job is to try and raise red flags to the investors. They want and need to create doubt in their minds. Mind games. It's all about mind games, and they are very good at it. When you see all the different typing styles from these bashers, many times, some of these screen names are the same person. They have to change their typing style so as not to get caught. That's why you see some posts that are very neat. Others can't seem to spell anything correct. Others type in ALL CAPS. Others will type their message partially in ALL CAPS, and partially in lower case. It's a game. They can't take the chance that others will compare writing styles of several bashers and figure out it's the same person. They try very hard to avoid this, because quite often, bashers are caught doing this. I have caught them doing this.

However, they also will take any information that comes from the company or, information in their filings, and they will SCREAM IN YOUR FACE! It's all doom and gloom. The company is finished. It's a pump and dump, yada yada yada. These posts are no different on this thread, than they are on just about every OTCBB message board for every stock on the internet. These posts are clones of each other. No matter which stock thread you check out, you will see the same kind of posts.

Notice how the bashers here at STRU jumped all over that reverse split comment? The CEO never said they were going to do it. In fact, he doesn't a R/S. He simply made a statement that "its not being considered at this time'. When you run a business, you always have to 'consider' everything. That does not mean you have to follow through. The bashers must have been drooling at that statement. That was the ammo they needed to jump all over STRU, and what did they do? You know what they did.

4) Then you have your normal bashers: Malcontents; the mentally unbalanced; people who love getting into it with other people, etc. It's hard to deal with this group, because they don't really have a monetary agenda. They are just here to cause trouble. Unfortunately, they somehow managed to gain access to the internet.

The bashers, especially the ones who have something to gain (the first 3 groups), are here for one reason: To get you to sell your shares. It doesn't matter whether it's STRU, or any other stock. To them, they don't care. It's just a job. Whether they are shorters, Market Makers, or people being paid by the Market Makers, that is their goal. Their only goal. Period.

So, for the people who are new to penny stocks, when you continue to see the attacks by the bashers on STRU (or any stock), ask yourself these questions: "Why are they here?"; "for what purpose?"; "to what end?"; "they don't own any shares of STRU, so what gives?" Other than group number 4, they each have their own agenda, and sadly, it comes down to M-O-N-E-Y. Nothing more, nothing less.

If you are comfortable with your investment, and believe STRU will be a winner, then keep your shares. If you are not, then sell and move on. No one forced you to buy shares of STRU. You did it with your money. You made the decision, not us.

Sorry for the long post. Good luck in all your investments.

Special thanks to Dr Crovatt from STRU RB who re-posted this from IFTP board. I modified it and re-posted it here.

Cheers

Cheers

Voluntary Disclosure: Strong Buy : Long and Short Term

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