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ckbaby

08/05/10 3:22 PM

#1782 RE: dolamite #1781

Pump and dump. Classic game that companies do. They pay stock promoters to spread 'good' news about the stock (this is the pump). The price typically starts to rise as it peaks traders attention. Then the companies and/or promoters turn around and quickly sell more shares than there are buyers (dilution) and the price drops aggressively (this is the dump).

Yestureday we had the highest volume in like a year with lots of promotional good news leading up to it and the price drops 15% ... thats the dump occuring. If you have level 2 ... watch a Market Maker named ARCA, I believe they are diluting the stock for the company.

Watch these OTCBB's and Pinks, most CEO's are crooked and 'steal' money from investors/traders. Do lots of homework if your playing down in this area.

I have only found one stock in the last 2 years that I invested heavy in because there is no dilution, a stand-up CEO and they have revenue and profits (TDGI is the symbol) ... other than that, zippo.