InDaMoney2

The real danger to seeing manipulative trading is someone may know something you don't..

The majority of stock that run up on news turn out to be over bought.. some.. in fact a good number are sold down by insiders using offshore accounts. If insiders of a stock agree to a financing at 30% below what the stock is trading at then the house involved in the financing knows they can short it to that level with no risk... and they do.

People don't have a clue just how rampant all of this stuff is.

The industry has no protective measures in place. Retailers need to realize this. the industry is for the most part self regulating.. the regulators are basically there for show.. they will chase blatant things as allowing so called lawlessness would disclosure investment and kill the industry.. but the last thing the regulators are going to do is start hammering their own in a meaningful way... and one thing they have never done is intervene on the behalf of investors in time to actually be of any use.

They are like the coroner... except a coroner has a purpose for the common good of society.. regulators are there to make it look like the industry is policed.

A broker will complain the industry is over regulated.. because the regulator keeps the broker from doing things that they want to do.. like steal.. and fraud related things.

But the reality is the exchange is the only real protection you have in Canada.. the TSX has done more to clean up Canadian markets than regulators have ever done.

Canada is getting a new national regulator.. the chair of that body is the former head of the BCSC.. a Mr hyndman.. he is an absolute disgrace in my opinion. The pick ton murders took less time to prosecute than an average offense in his jurisdiction.

If you remember the RIM bacdatingoptions debacle, you'll recall a massive fine was levied.. almost all of it went to the company from Basille for expenses for an investigation.. apparently an internal options record audit at a public company costs $40+ Million... and when quizzed why there was no real punitive measures taken he asserted the OSC is not there to punish..

So you do the math.. they aren't there to police as they only enter the picture after the fact.. and they aren't there to punish.. yet them being there excuses the RCMP or an other body from handling the violations.

People just don't get it.. its a scam.. the regulators aren't there to protect anyone.. except the industry that makes all involved fat at our expense.

They could do away with backdating options.. which in my opinion is indeed securities fraud in fact the SEC has ruled backdating options acts as a fraud on the investor.. they could do away with it by simply making it a criminal code issue.. yet they don't.. they would rather spend a fortune.. waste half a decade.. and see investors the victims of a fraud.. than deal with it effectively.

So when anyone tells you manipulation doesn't happen or the regulators are watching or would intervene etc.. its nonsense.. the regulators aren't on your side.. the rules aren't on your side.. and time and time again.. insiders don't play by the existing rules anyways.. and of they get caught.. the regulators MAY slap a little fineon them and in extreme cases ban them for a few years.

You guys need to adjust the way you think. You need to educate yourself in the reality of how this industry works.

The one rule you must always keep in mind is: "its always about the stock"

By that I mean an insider from the most profitable company will always make much more from the stock than he ever would from a pay package. Insiders from floundering companies that seem to linger on and on are obviously making money on the stock.. ask yourselves how a company that has never made a buck in 20 years get financed over and over again and the insiders rarely ever seem to sell stock.. its because they do it from accounts offshore or in other peoples names.. the reporting rules are a joke.. the CEO of UBS and/or (To this day we don't know the truth) his wife or trustee sold stock from an off shore trust and an IOU was placed in the account.. they sold millions worth and not only never reported as per the rules.. likely never intended to as witnessed by an "IOU" being left in the account.

What do you think the penalty should be for flagrantly going to great lengths to subvert the very foundation (transparency) of the whole industry is/was? A lifetime ban? jail? Millions in fines? Guess again.

You people have to realize these players are sharks.. and you are the prey. Its about generating monies.. for the industry.. for the economy.. for venture capitalism.. for themselves.. its not about fairness or honesty or anything wholesome ..

Its tough to read posts from people who believe manipulation doesn't happen or they call the company and take what they are told as some kind of gospel.. Calling the company and hearing what they have to say is simply a piece of the puzzle .. and unfortunately in a lot of cases shareholders believe in a company or its tech or its management or its gold mine to the point they ignore warning signs..

I often encourage people to read articles by David Baines of the Vancouver Sun.. the reason being is you can develop an "edge" by picking up on what he writes about. Most are too pig headed .. some are just plain not bright enough.. but a few "get it".. the pick up on things.. learn to read between the lines etc.

Someone posted here that the company told them they had no intentions to get involved in a financing etc.. just days after filing the short form prospectus notice. Either the poster was BSing us.. or the company's answer perhaps wasn't beneficial... and thats the point of my post.. learning how to find and decipher the info at hand is the real art of Due Diligence.. understanding the parameters (regulators etc and their true purpose) you are working within is paramount to assessing risk.

If you showed up to play a game of cards or soccer or other against someone who you thought might cheat would you adjust your game plan? Of course you would.. it would change everything.

Anyways.. I'm probably wasting my time.. most never get it .. until after the fact.

If you're interested here's a link to baines articles (Todays was a god read):

http://www.vancouversun.com/columnists/David_Baines.html