Tuesday, July 03, 2007

The World's First Introduction to the Support and Short

First of all to combat any wise guys out there, we understand GOTTA is not a word but I needed to get your attention. I was reading the press release of a company in which we were communicating. The CEO was very impressive. Recently, a promotional piece was created about the company in which the promoter was paid $500,000 to create and distribute the piece. The company denied any affiliation with the advertising piece. Well, sounds fishy right. Not exactly and we'll explain why.

Someone once told me that shorts are the smartest investors on earth and this may prove that statement after 15 years. It seems that shorts are now employing a new strategy of initiating a short position by actually partnering with a stock promoter. Doesn't make sense, we'll explain.

The short will prey on a small company that's fairly liquid with a perceived inflated market cap. Then, they actually hire a powerful promoter with a big following to go promote the stock. This now creates a very inflated market capitalization with hopefully, large volume at the peak. Upticks, inflated prices, volume ..... everything a short needs to execute a short position. You need to give it to those shorts, BRILLIANT. You heard of the PUMP and DUMP which has been around since Lincoln. Now, let us introduce you to the support and short.

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