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Re: Rewind2grace post# 11076

Wednesday, 02/17/2010 12:41:43 PM

Wednesday, February 17, 2010 12:41:43 PM

Post# of 157003
Dravic,

You quite obviously misunderstood what is meant by the slang term "pump."

A "pump" is a dishonest attempt to artificially inflate a stock beyond what it would normally do.

This can be an orchestrated publicity barrage combined with buyers lined up to force the stock upwards, or it can be some random idiot on a message board or a chat room shouting things like "SKGO GO GO GO to the MOOOOON!! WEEEE!!! 10 BAGS THIS WEEK!!"

- If you go on "The hunt for the next 5-10 bagger" you will see many, many pumps and pumpers.
- If you look on Stock Hideout's chat room, you will find the same, although they attempt to regulate it there (I have my opinions on this).

However, THIS:
[www.thestreet.com/story/10681530/1/something-for-nothing-djsp-hear-usa.html]
...is NOT a pump. It's an example of a perfectly legal and ethical opinion piece given by someone with advanced degrees in finance and theoretical mathematics. Even though he says "I anticipate 100% return in the next year," he can back that up with technical and fundamental indicators that help him form his opinion.

Mike's site is very similar. Never is his opinion stated as if it is a fact without qualification. Also, you are wrong -- price targets are very key to pump qualification. A price target can be "to .02 by Friday" or "to the moon today powerhour." It is different to say "I believe this stock to be worth .02 cents by the math I have below, the figures for which I have taken from the company's press release and crunched by hand," and not a pump. Get the difference?

It's also important to notice that oftentimes Mike's site includes caveats like "the price is too high for right now and the stock will likely dip tomorrow. I am selling." Is that a pump? No.

BK

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