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<u>Educational Post</u>: Every Penny RUNNER Has These Guys!

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trader53 Member Level  Saturday, 03/03/18 03:34:33 AM
Re: trader53 post# 144250
Post # of 234830 
Educational Post: Every Penny RUNNER Has These Guys!

Paid Bashers / Short Attack

DEFINITION of Stock Basher

An individual, either acting alone
or on behalf of someone else,
who attempts to devalue a stock
by spreading false or exaggerated claims
against a public company

After the stock's price has dropped,
the basher, or the basher's employer,
will then purchase the stock at a lower price
than what he or she believes
it is intrinsically worth.

This is an illegal activity
that can carry significant legal repercussions.

The basher generally benefits
on how effective the negative rumors are,
which can dramatically affect a stock's value.

If an investor believes the false claims,
he or she may sell off the stock
at the higher price before it falls.
The basher will then purchase the stock
and ride out the gains


Market manipulation

Stock Bashing

This scheme is usually orchestrated by
savvy online message board posters (a.k.a. "Bashers" )

who make up false and/or misleading information
about the target company in an attempt to get shares
for a cheaper price.

This activity, in most cases,
is conducted by posting libelous posts

on multiple public forums.

The perpetrators sometimes work directly
for unscrupulous Investor Relations firms

who have convertible notes
that convert for more shares
the lower the bid or ask price is;
thus the lower these Bashers
can drive a stock price down
by trying to convince shareholders
they have bought a worthless security,
the more shares the Investor Relations firm receives
as compensation.

Immediately after the stock conversion is complete
and shares are issued to the Investor Relations firm,
consultant, attorney or similar party,
the basher/s then become friends of the company
and move quickly to ensure they profit
on a classic Pump & Dump scheme
to liquidate their ill gotten shares


Paid Bashers

The shorts will hire paid bashers
who “invade” the message boards of the company.

The bashers disguise themselves as legitimate investors
and try to persuade or panic small investors
into selling
into the manipulation.

This is not every dirty trick that the shorts use
when they are crashing the stock.

Almost every victim company experiences most or all
of these tactics.

The Anatomy of a Short Attack

Abusive shorting
is not a random act
of the renegade hedge funds,
but rather a coordinated business plan

that is carried out by a collusive consortium
of hedge funds and prime brokers,
with help from their friends at the DTC
and major clearinghouses.

Potential target companies are identified,
analyzed and prioritized.
The attack is planned to its most minute detail.

The plan consists of taking a large short position,
then crushing the stock price,
and, if possible,
putting the company into bankruptcy.

Bankrupting the company is a short homerun
because they never have to buy real shares to cover
and they don't pay taxes on the ill-gotten gain.

When it is time to drive the stock price down,
a blitzkrieg is unleashed against the company
by a cabal of short hedge funds and prime brokers.

The playbook is very similar from attack to attack,
and the participating prime brokers and lead shorts
are fairly consistent as well.


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