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The Pumper's Handbook
posted on
Jun 22, 2009 02:08PM
The Pumper's Handbook
Reprinted here as a service to those who doubt this actually exists, or is simply an unfounded urban legend.
Is the "Pumping" of a stock an essential part of the online investment landscape?
Our Constitution guarantees us free speech and we have always valued the lessons gleaned from speculation. When does optimism cross over that imaginary line and become "Pumping"? To often we find well grounded caution capriciously labeled as "Bashing" by over zealous investors bent on protecting a stocks reputation at any cost. The "Pumping" that is addressed on this site is quite different from optimism. The Anatomy of a Pumper strives to look at the calculated escalation of confidence in a given stock. Escalation by means that are, in every sense, void of truth, hinged on deception and innuendo, and motivated by greed at the expense of others. This compendium is offered to aid in identifying the telltale signs of "Pumping", and hopefully provide a counter balance to this heretofore unchecked manipulation of investors hopes for personal gain. IS IT EASIER TO HYPE PEOPLE INTO BUYING THAN IT IS TO SCARE PEOPLE INTO SELLING A STOCK? I have asked some knowledgeable investors this question and the answer is always: "YES, OF COURSE YES!" EVERYONE WANTS TO MAKE A QUICK BUCK!!
WHO PUMPERS PREY UPON Consider the elderly that are investing for retirement, they find their way to the message boards for validation only to see false posts about "GOING TO THE MOON", "LOAD THE TRUCK", and "ANY DAY NOW"... or the head of a "typical growing family", with children to put through college, who is monitoring a message board only to read posts by a "pack of 15 to 20 Pumpers" (probably 5 or 6 under various alias's) posting continuous disinformation... what do you think these new investors will do? It's more exciting to buy the stock with the Promise of huge gains, rather than put the money back in the bank. You've fallen to the whirlwind of "unsupported" postive chaff.
The Internet has lured a whole new class of investor into the market. A new investor is just that - New! This new investor, while learning the basics, is particularly vulnerable to the tactics of professional Pumpers. New investors tend to lurk in the background of message boards, content to form independent opinions based on what they read with their own eyes. Very often, honest, intelligent and cautious people can easily be overcome by a well orchestrated propaganda effort.
You must always remember that there is a lot of money to be made in just the motion of a stock UP or DOWN it doesn't matter! And Pumpers have money at risk just as you do. But they have the edge of hope, lies, and falsehoods to post while preying on the un-initiated. The average investor dose not have the edge of organized deception.
Recent revelations have indicated that even Market Makers (those charged with keeping the playing field level) have been involved in stock manipulation by Pumping on a stock message board. HAVE NO DOUBT THAT THIS IS A REAL THREAT!
Lesson 1: Remember, PUMPERS NEVER Pump A GOOD STOCK. Check the boards for stocks with potential. They never have any Pumpers. Pumpers only go after stocks that are moving down or have potential to do so. Pumpers work to push the price up so they can sell, at the expense of others or help a boiler room MM make their bones.
Lesson 2: PUMPERS ALWAYS BRING UP OLD NEWS THAT YOU HAVE HEARD MANY TIMES. New startup companies always have a few bits of good news. The Pumper will post this over and over again (i.e. "the 43 reasons"). Unsophisticated Pumpers will try to freshen up old news with a new date or by-line in an attempt to fool you into buying.
Lesson 3: PUMPERS POST MANY TIMES A DAY. They try to wear you out. They comment on everything, every other post, and refuse to answer any critical question. They accuse you of "buring posts" just because you challenge their optimism and lies. THEY KNOW IT ALL! There is no negative comment they won't attack. They try to control the board. True concerned investors may have to confront the Pumpers or they will appear to the newbies as being the people with all the information. This is best accomplished by posting truthful, well researched data on the company, repetitively, while trying hard not to engage the Pumpers in direct repartee. REMEMBER - THOSE TAKEN BY THE SCAM... RESIST USING THE PUMPERS ALIAS!
Lesson 4: PUMPERS WILL LIE TO YOUR FACE. Never trust a Pumper. The truth on startup companies is that they make mistakes…some more than others. What new company hasn't? The Pumper will compare your issue to a another companies, financials - deals - management, etc., trying to lure you into making an Apples to Oranges comparison. Remember each company is unique and while it is prudent to seek out established indicators, do so with care and don't take someone else's word for it. Strive to come up with at least a "six-pack" of indicators so your vision of the state of a company is not tied to a single barometer. Not doing so is tantamount to going to a Race Track and betting on the "Pretty Brown Horsey". PUMPERS WANT TO WHISPER IN YOUR EAR - PLANT A SEED OF OPTIMISM, AND HOPE THAT YOU ARE NOT SAVVY ENOUGH TO RESEARCH THE TRUTH ON YOUR OWN. This is how they achieve their greatest success.
OPTIMISM + HYPE + LAZINESS = BUY NOW!!!
This is your money... You worked for it, protect it, so don't buy on the words of very shadowy figure that "has your best interest in their heart". Consider that one factor: Someone you have never met, is not a member of your family, is now, out of the goodness of their hearts - GIVING YOU FREE ADVICE (that you didn't ask for). It's a no brainer. They have motives $$$$$$$$$$$$.
Lesson 5: Pumpers know YOU CAN'T VERIFY THEIR STATEMENTS. That's why they make the vague statements they do. They rely on you being to lazy to research their droppings other than to scan the board for others opinions. This is particularly dangerous when you consider that Pumpers work in packs and often validate and back up each others nonsense with what appears to be "innocuous and unsolicited" verification by comrade Pumpers. Let's face it, we are all conditioned to "believe" everything we see in writing. If others by virtue of their "posts" also confirm this belief, then we are subconsciously doomed to swallow the hook, line and sinker... Pumper - 1 Honest Investor - 0
Lesson 6: The Pumpers PLAY ON YOUR LACK OF KNOWLEDGE. They can lie about information and you won't know the difference (unless you have done your own DD on the company and know the truth and facts). But if you try to present The truth and the facts, be prepared to be attacked viciously.
Lesson 7: Pumpers play on your lack of patience. You have held your money for a while. You knew it will be invested in a big stock someday, but the PUMPER CAN GET TO YOU BECAUSE YOU ARE TIRED OF WAITING FOR YOUR PAYDAY. That's when the Pumper is best. You are tired. You have forgotten the goal for the money was to invest in a solid company. The Pumper is bothersome, so you dump it into a bad stock on a weak moment. Some other susckers also dump their money into it. Then you try to cover for your loss and refuse to admit your mistake. So you join the eternal optimists and forget that you lost your hard-earned money. Then you get labeled a semi-Pumper as well. THE PUMPER HAS WON, AND GAINED A NEW ALLY - YOU!
Lesson 8: PUMP THE PRICE UP. That is the Pumper's job. The truth is not important. Lies are the norm. Post continuously on the board every day. They are trying to trick the newbies that are just investigating a stock. They are trying to wear down the concerned investors on the board and gain free reign and control.
A PUMPER HANDBOOK: Do not underestimate a Pumper's influence on a stock. The Pro's are good at what they do and what they do is profit from your losses. Below is their "hand-book". Learn from it or you will be donating your hard earned money to them!
Rules for Successful Pumping:
1. Be anonymous
2. Use 10% fact. 90% suggestion. The facts will lend credibility to your suggestions.
3. Let others help you learn about the stock. Build rapport and a support base before initiating your Pumping routine.
4. Enter w/ humor and reply to all who reply to you. 5. Use multiple ISP's, handles and aliases.
6. Use two (2) or more aliases to simulate a discussion.
7. Do not start with an all out pump of the stock. Build softly.
8. Identify your foes (skeptics) and the boards "guru" Use them to your advantage. Lead them do not follow their lead. 9. Only Pump until the tide/momentum turns. Let doubt carry it the rest of the way.
10. Give the appearance of being open minded.
11. Be bold in your statements. People follow strength.
12. Write headlines in caps with catchy statements.
13. Pour it on as your position gains momentum. Not your personality.
14. Don't worry about being labeled a "Pumper". Newbies won't know your history.
15. When identified put up a brief fight, then back off. Return in an hour unless your foe is a weak in reasoning powers.
16. Your goal is to spike the stock. Not to limit the company or create a slow move in the stock; be ferocious and consistent.
17. Hype the dreams of profits, as well as the company and the stock.
18. Use questions to create optimistic thinking. Statements to reinforce facts.
19. LIE, NAME CALL and USE PROFANITY.
20. Encourage people to call the company. 99% won't. They'll take your word for claims made. If they do call you can always find something that is inaccurate in how they report their findings.
21. Encourage people to believe in Press Releases..even "fluff" ones. Encourage them to call the company. They won't out of laziness.
22. If the companies history/PR's are negative constantly point to that It was "in the past…this is a "new" company. Compile a list of this data prior to beginning your efforts.
23. If the price drops blame it on the MMs or skeptics, temporary mass reaction, the market, etc. Anything but the stock itself.
24. If other posters share your optimism, play on that and share theirs too.
25. Always cite high volume, even when it's not.
26. Three or four aliases can dominate a board and wear down the skeptics.
27. Bait the skeptics into personal debates putting their focus/efforts on you and not the stock or facts. Divert their attention from facts.
28. Bash other stocks that would-be investors can turn to instead of the one your Pumping.
30. Do not fall for challenges on the "values" of what you are doing, it's a game and you are playing it with your own rules.
Grade 'A' Pumper: If you post lots of old news, respond to all negative posts with a positive side. Never respond to being called a Pumper, never post on another board with same alias. Can spend up to 80 hours a week Pumping a stock.
Grade 'B' Pumper: Very good way with words, always claims to be your "friend" taking the negative poster into confidence, never posts on another board, spends about 60 hours a week.
Grade 'C' Pumper: Spends less time than the others but is somewhat effective and gets a C grade due to not getting excited when Pumper rules say to get excited, spends about 40 hours a week.
Grade 'D' Pumper: Needs to learn the basics about being convincing when making a positive statement. Spends a good amount of time working the stock, maybe 20 hours a week.
Grade 'F' Pumper: A complete idiot, most readers are not convinced he knows anything about stocks in general. The type that says a stock "will fly, soon", but gives no rationale, shows up every so often but no regular schedule.
LEARN ABOUT HOW PUMPERS WORK: For instance: did you know that some Pumpers are paid?
Golden Rule: IGNORE THEM ...learn how professional Pumpers are paid: When you REPLY to Pumpers you give them an opportunity to earn appox. 5-7 dollars. The service agreement they enter into with their employer states their messages will be monitored for content, profanity, lies, etc. but Overseers and the like don't have the time to check all their Pumpers messages. Only occasional spot checks are done. Those who manage the Pumper will generally read the headlines to see if a Pumper is replying to other posters by name. That tells them the Pumper isn't just "posting blindly" or repeating the same message over and over since they won't pay for those..but some post irrelevant information repeatedly anyway.(True to form a Pumper will put the bite on anyone, even their unscrupulous employer). A Pumper will attempt to milk three to five replies per post at one to two dollars each. This way the Pumper spreads positive influence to as many stockholders as possible. A Pumper will create this discussion thread because it takes less time reading more messages than is necessary. This ultimately allows the Pumper more time to post and make money. In general, NEVER ENGAGE A PUMPER. Make them read all the posts and think up ways to enter the discussion. NEVER ENGAGE A PUMPER; if you do so then YOU BECOME THE PUMPER'S AID! If you feel compelled to challenge a Pumper do so without mentioning his/her true alias in your response. This will make it hard for the Pumper to use your post as a revenue stream. Read the news, do your own homework and make your own decisions. Get real time quotes and follow the stock for a couple of weeks. Due Diligence is key here. Collect accurate financial information to Counter their hype.
Know that there will be a time when the stock falls which will be followed by the Pumpers and those that lost a lot of money. The Pumpers will hype the stock by saying such things as "it's a BUYING OPPORTUNITY" and "I hope it falls MORE so I can load up" and deceiving. Their goal is to suck in newbies and potential new investors by "duping" you out of your money. Take the time to confirm your DD ,trust your own judgement and believe in yourself, pick your point of return or loss and live with it. Don't listen to hype or Pumpers trust your own judgement. Live by the rules you have created.
HOW TO IDENTIFY A PUMPER
1. Check the "Born on Date" Pumpers create identities on a regular basis. Rarely do you find a Pumper with older "Created On" date. So click on the Identity icon for more details.
2. Take the time to look at the Pumper's history of Posts. Go to other boards and see if their is a pattern to the theme of the posts. Pumpers rarely waste time trying to blend in with other critical posts, unless they are cultivating a new uninformed assistant. They are focused, and their objective is to pump the stock to highs, then exit with a profit.
3. When did the Pumper show up. Pumpers usually show up when activity is in at a Lull, but they can show up anytime when activity up/down.
4. Pumpers never answer direct questions except with another question.
5. Pumpers do work in teams (sometimes themselves as a team). So be suspicious of someone showing up and automatically having a Shadow to converse with who supports their argument.
6. Pumpers rarely select "an argument" that can be resolved by research.
The Pumper 'Pack' Mentality Pumpers love to work in packs. It provides the quintessential cover to achieve supposedly "independent" validation of an argument. It is neither independent nor validating.
Pack Structure: Pumper Packs can be comprised of any number of Pumpers. They can be purposely formed within an organization or they can be "ad hoc" formed during a conclave on a particular board. In fact a pack mentality can be achieved by an ambitious "party of one" with a few select aliases.
Once a pack is formed, a leader emerges. This leader is usually acknowledged by other Pumpers because of 1. Knowledge of the stock. or 2. Recognition by current board Longs (high visibility). Once established the Leader will usually work the Pack members up in to a posting frenzy. Constantly changing themes and even occasionally biting the ear of another pack member (this earns instant credibility), and it doesn't offend the bitten Basher because he/she knows it is all part of the effect. Quite sophisticated. Packs will disband and slink away without notice. Usually this is the call of the Pack Leader who is adept at recognizing overplay. More often than not, Pack members must move on because they have other Pumping commitments to fulfill. They will return to the site of a good hunt over and over again, until hamstringing is achieved.
What calls a pack together. The Cry of the Leader. Certain Pumpers love to work together. They know each others bite, how to feign in and out, it is a well choreographed Pump when pack members have worked together before. They constantly check their "Sites Du Jour" for signs of Pack activity. Occasionally they will throw out a "Nibbler" Pump to see if the pack responds or if not they can work the site themselves. It's all about effectiveness, time and earning money.