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Monday, 11/03/2008 10:39:49 AM

Monday, November 03, 2008 10:39:49 AM

Post# of 515
SCAM: A fraudulent business scheme; a swindle.

Swindle: To cheat or defraud of money or property.


Anytime a company refuses to disclose material events while they continue to sell stock they are cheating people out of money. Share increases, misleading PR's, overpromise and underdeliver are all elements to a scam. If 1 is going on you can bet more than one is going on.

For example, rapidfire PR's about "potential" aquisitions, contracts or agreements is normally a sign of share increases. The hiring of stock promoters is a signal that either the company or an associated third party will be selling a large block of shares and needs the volume to do so.

It isn't rocket science it is common sense. And inaccurate forward thinking is what causes investors to lose money on the pinks. The fact that they can't distinguish between what is real and what is contrived makes them perfect targets for the scammers and the scalpers who know how to trade the pennies.

Bottom line is there has to be a group of dumbed down suckers to buy at the top. I believe what we do is try to limit that pool tho those who have accepted their role in the pump and dump cycle and who vigorously defend their right to be victimized. It's the unknowing folks we try to reach with a little dose of common sense. The ones who, even they were lucky to get in at the bottom would be convinced to hold it all the way back to zero. Some you can help and some you have to let go.


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