Replies to post #26005 on Kraig Biocraft Laboratories Inc (KBLB)

[ZincFinger]

You conveniently ignore the critical question of whether there is solid information behind the "pump" or not. For example, if KBLB ever announces that their worms have produced pure spider silk you can bet your bottom dollar it will be "pumped" to the skies. But you can also bet your bottom dollar that the SP will never again (barring some unrelated major disaster) get anywhere near as low as the point it takes off from (probably with a gap up that never closes).

IMHO this whole concern about "pumping" thing is a "guilt by association" approach. What it does is make even good news appear to be somehow a problem because "pumping" is occurring. "Pumping" always occurs when a penny stock has good news. Are you trying to say that good news is bad for the company/stock?

The question is not whether or not "pumping" is going on, but what information is being put out about the company and how valid it is and what the implications are. IMHO, concern about "pumping" is just a diversion.

Your approach (trading around the pump)also has the same basic flaw that chain letters do.

The early ones make money. The ones that follow lose.
In the trading business the individual investor is playing at a considerable disadvantage. Level II is the best you can get. The insiders (market makers, those with fast trunk direct connections to the exchange computers (so that their orders get there before yours and get the trade even when made at the same time) etc., get Level 3. And much better charts (ones that show all the data so they can read the pattern and compare it to similar ones months or years ago (can't do that when all you get earlier than last week is daily figures).

Someone has to lose in this game and guess who it usually is.

Just like a chain letter, those who have just joined (i.e. sold hoping to buy back cheaper) have a large interest in getting others to follow them (so someone else can be the late one that loses money).
IMHO.

PS I also find it very amusing that some of the same people who express great concern about "pumping" going on also advocate trading around it.

[kblbpatience]

Great post. I agree you can't do anything about it. There are only 2 points I'm making, of importance to me anyhow.

1) I think it's important to know what's going on with your investment. Whether you can do anything about it isn't my point. Just understanding all this makes it much clearer to me what is happening to the stock price. Instead of making me paranoid or jumpy, it actually calms me because I now understand what I'm seeing.

2) I AM NOT MAKING ANY ACCUSATIONS HERE. It is important to know whether Thompson is a party to this or not. AGAIN, I'M NOT SAYING HE IS, BUT IF IT WERE TO COME TO THAT......RUN LIKE HELL. If this is the best financing he can get, then that's fine. Even if he knows the lender's game, and has to stomach it, that's fine. We just don't want him to participate. We want him to build our company.

[mfefree]

Right! Well put! Those are our options. Everybody needs to live with it or get out, but please stop talking about it because it doesn't help those who want to use it to our advantage. So can we just remember that there are a thousand newsletters out there pumping what they think are companies that will make their readers money . . . and just leave it at that?