Pump and Dump Scam Accusations
So I am reading different articles on the web that state how CDIV is a typical P&D scheme with a different name.
Instead of attacking these articles and people that write them I have an answer that should put things in perspective for people that don't know who to believe or have doubts.
OK, so let's start with "dump". It is true! Everybody here intends to dump their shares at one point. Nobody is saying that they will keep investing in this stock in their 401k for the next 10 years because it's the next "big thing". We all know the assets and valuation of this company and we agree - it's not worth the current valuation and it will be even further away from it in the coming weeks/months. So, dumping shares we are buying today for big profits is part of the plan and nobody is denying that.
Once the squeeze starts a lot of day trading and MOMO boards will start pumping it all over the place and some people will hear about it when it's around the peak of the run - those that buy at that point will lose their money. They will be pissed off, call it a pump&dump scam, "we need to call SEC", "these people need to be punished", "that's totally illegal", etc. I've been one of those suckers before and lost my shirt so I know exactly how it feels. Well, life is unfair - I am doing my part by telling everybody I know (interested in stocks) about CDIV but most of them are traditional "old school" people that believe their "financial adviser" who tells them to stay away from penny stocks and invest in "good companies". So...
Now the "pump" part. When I started reading about CDIV here I was actually pretty discouraged seeing a bunch of people pumping this to high heavens. There's no way to prevent that because this is a public board but I would say that the admins need to discourage that as much as the obvious bashers because that kills the credibility of this group. One thing is to answer questions people have and positively encourage them to be part of the play if they want(BTW, I would like to thank all of you who answered a bunch of mine here) but somebody started talking about $20 target and now I see $32 talk!
OK, everybody is entitled to have any target they desire in their head but come on.. that plays right into the ones that are writing articles about CDIV as the biggest p&d scam ever. Why don't we start saying "I am not selling a single share before $300!". Well, it's true - we own the float and MMs eventually have to cover and for that they need shares... so, we don't give them our shares until $100 - simple as that. Yeah right..
"Scam" part.. I own quite a few of "big" stocks in my portfolios (401k, stock portfolio, IRA, etc.) Just today my company's stock got upgraded by a "big analyst" just a few days after another "big analyst" downgraded it. The stock is trading at around $31 and the analyst who downgraded it a couple of days ago set a target price of $21!!! The other analyst set the target price to $31! Do you think they have different agendas!?
We witness scams every day at much higher levels (stocks, real estate, politics, sports, you name it).
Here we are fighting a typical well known scam by MMs so let's call our play "scamming the scammers" :)
So are we pump&dump group? Well, we would certainly like to dump for 1000% profit (or maybe 50,000% or more for some here :).
Pump? Yes, some people here can definitely be qualified as pumpers but then we have bashers showing up here and there so I guess we are a balanced group :)
Happy trading everybody and let's make some money by scamming the scammers!
AI
