How would you run a stock up?

Grinder · Jan 3, 2012

I've always wondered why the pumpers on the message boards are so bleeding obvious. It's like there trying to attract the complete morons instead of the masses, if they wen't about it in a different way they could really clean up.

Slave2Market · Jan 3, 2012

Quote from Swan Noir:

First and foremost you pick a stock with a tight float -- relatively few shares in public hands/weak hands. Pros refer to those shares as what's "against them". Many years ago -- pre-Nasdaq -- my partner and I owned the control block of a tiny public oil and gas company. We owned nine million shares which I had in my desk drawer. Those shares represented the entire float except for 9,853 shares which were in the hands of the public. The stock was quoted in the "pink sheets" at 3.50 x 4.00 "valuing" the entire public float at under $40,000.

Granted it was a different regulatory environment at the time ... in fact it was a different world. Yet the concept remains the same. If you are going to "peg" a bid it is important to know how much stock will hit that bid and important to know that you can afford to buy what hits you and then move the bid up while absorbing affordable quantities on the way up.

Once the "easy' stock finds its way into your hands the PR begins -- WILL THIS GOLD FIND KICK OFF THE MADDEST RUSH SINCE CALIFORNIA IN 1849!!! -- and you are off to the races.

If you can find a long out of print copy of THE MIDAS TOUCH you will have not only have the course Stock Promotion 101 you will have it through the post doctoral level. At the time most of the great small company stock promoters were Canadian and amazingly many of them came from a few block area in Montreal.

A well capitalized promoter without much stock against him and a feel for strong PR appeals can take a stock through the roof on increasing volume and liquidate an astonishing large position as he turns from being the bid to hitting the bid. And, as Livermore points out, he sells most of it on the way down.

Hey ... the public loves a bargain!
More...

Gee, this sounds a lot like most of the IPOs in 2011!

Another common method is when unscrupulous operators buy what is called a "Stock in a Box". This is basically a defunct company that is still listed on some exchange. They then perform a reverse merger with the new "Hot" company and as a result control the stock. The PR campaign then runs up the stock and the rest is as Swan Noir described. A lot of the Chinese stocks followed this well tested model.

flatbush · Jan 26, 2012

Who wrote the book mentioned, THE MIDAS TOUCH? Thank you.

Quote from Swan Noir:

First and foremost you pick a stock with a tight float -- relatively few shares in public hands/weak hands. Pros refer to those shares as what's "against them". Many years ago -- pre-Nasdaq -- my partner and I owned the control block of a tiny public oil and gas company. We owned nine million shares which I had in my desk drawer. Those shares represented the entire float except for 9,853 shares which were in the hands of the public. The stock was quoted in the "pink sheets" at 3.50 x 4.00 "valuing" the entire public float at under $40,000.

Granted it was a different regulatory environment at the time ... in fact it was a different world. Yet the concept remains the same. If you are going to "peg" a bid it is important to know how much stock will hit that bid and important to know that you can afford to buy what hits you and then move the bid up while absorbing affordable quantities on the way up.

Once the "easy' stock finds its way into your hands the PR begins -- WILL THIS GOLD FIND KICK OFF THE MADDEST RUSH SINCE CALIFORNIA IN 1849!!! -- and you are off to the races.

If you can find a long out of print copy of THE MIDAS TOUCH you will have not only have the course Stock Promotion 101 you will have it through the post doctoral level. At the time most of the great small company stock promoters were Canadian and amazingly many of them came from a few block area in Montreal.

A well capitalized promoter without much stock against him and a feel for strong PR appeals can take a stock through the roof on increasing volume and liquidate an astonishing large position as he turns from being the bid to hitting the bid. And, as Livermore points out, he sells most of it on the way down.

Hey ... the public loves a bargain!
More...

Swan Noir · Jan 26, 2012

It's 35 or more years ago and I don't recall. I'm sure it was a pseudonym. You're not out of Chicago by any chance? I see you are a recent joiner of ET. Welcome to the brawl ... lol.

Quote from israe:

Who wrote the book mentioned, THE MIDAS TOUCH? Thank you.
More...

flatbush · Jan 26, 2012

I'm in Brooklyn and THANK YOU!

(If you can offer any hint about the book (othen than >25 old) send it...)

Quote from Swan Noir:

It's 35 or more years ago and I don't recall. I'm sure it was a pseudonym. You're not out of Chicago by any chance? I see you are a recent joiner of ET. Welcome to the brawl ... lol.
More...

flatbush · Jan 26, 2012

(Because it seems to be a popular title for books on related subjects.)

tradewiz50 · Jan 26, 2012

Fade the opening gap.

Swan Noir · Jan 26, 2012

Beyond the title I can't really be of much help. Are you considering stock promotion as a trade?

Quote from israe:

(Because it seems to be a popular title for books on related subjects.)
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flatbush · Jan 26, 2012

No, or at least, not yet. I am reading a variety of books relevant or peripheral to these topics and trading. Your approbation made me want to read this one.

Quote from Swan Noir:

Beyond the title I can't really be of much help. Are you considering stock promotion as a trade?
More...

bwolinsky · Jan 26, 2012

A real pump and dump scheme is the Financial Analyst getting paid $20 million to put a buy rating on a stock like Enron. Think that was Morgan Stanley doing that, but basically the issuer paid them to do that.