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nodummy

07/03/11 4:06 PM

#12565 RE: hedge_fun #12562

I think you are taking my post a little bit out of context.

There is a big difference in doing something because you just want to help others and doing something for your own selfish reasons.

A person that puts together a bunch of research pointing out all the bad things about a company just to use the information to the manipulate the shares price and then short the stock to make money for themselves is a person that is profiting off of the very dirty corrupt system that currently exists in the lower exchanges.

There is a big difference between taking advantage of the corrupt system by posting research and posting research in an effort to change the current system.

Whether a group is taking advantage of the system by manipulating the price up by spreading misleading information so they can profit off the price increase or they are manipulating the price down by spreading truthful information so they can profit off the price drop it is not doing much to help change the current problems with the lower exchanges.

Don't get me wrong. I think people exposing the truth behind a lot of this corruption then using that information to manipulate the price so they can profit by shorting the stock are infinitely better than the people spreading lies or false information to manipulate the stock upwards so they can profit off the people buying into that misleading information by selling their shares to those suckers. No question about that.

Here is the difference though. When I post my research or report my findings to the regulators I am doing so because I want to help others and I want to see the entire system changed and the corruption and fraud done away with. I want to make sure investors have as much information as possible when making their investment decisions and that they aren't falling victim to pump&dumps or fraud. I don't like seeing investors get burned because they were the victims of some kind of price manipulation. Since I don't trade stocks I have no other reasons for what I do.

I think there should be other ways to profit off of doing good research. Maybe it's just me and you are right, but I'd personally feel guilty if I was making money thanks to scam companies existing. It wouldn't feel right for me to make money because somebody else is breaking the law. If fraud was completely done away with on the US stock exchanges I'd be a very happy camper. Something tells me that some people that make all their money shorting stocks wouldn't feel the same way.

I don't understand how your Warren Buffet example even relates to this discussion. I am not talking about people who are paid for giving investment advice. I'm only talking about the manipulation of penny stock prices to profit off of the trading of those stocks.