To all ROI longs and those considering buying thisI actually took this from the V.SXL board. I think this article is very relevant to our board, which has been taken over by you-know-who. Us longs and experienced investors would do best to simply ignore and not directly engage any of this bashing, as aggravating as it may be.
Is the"Bashing" of a stock an essential part of the online investment landscape?
Our Constitution guarantees us free speech and we have always valued thelessons gleaned from dissent. When does dissent cross over thatimaginary line and become"Bashing"? To often we find well groundeddissent capriciously labeled as "Bashing" by over zealous investors benton protecting a stocks reputation at any cost. The "Bashing" that isaddressed on this site is quite different from dissent. The Anatomy of a Basher strives to look at the calculated erosion of confidence in a given stock. Erosion by means that are, in every sense, void of truth,hinged on deception and innuendo, and motivated by greed atthe expense of others. This compendium is offered to aid inidentifying the telltale signs of "Bashing", and hopefully provide acounterbalance to this heretofore unchecked manipulation of investorsfears for personal gain.
IS IT EASIER TO SCARE PEOPLE INTO SELLING THAN IT IS TO SCARE PEOPLE INTO BUYING A STOCK?I have asked some knowledgeable investors this question and the answer is always: "YES, OF COURSE YES!"
WHOBASHERS PREY UPON
Consider the elderly that are investing for retirement, they find theirway to the message boards for validation only to see false posts about"SEC Violations" and "Class action suits"... or the head of a "typicalgrowing family", with children to put through college, who is monitoring amessage board only to read posts by a "pack of 15 to 20 Bashers"(probably 5 or 6 under various alias's) posting continuousdisinformation... what do you think these new investors will do? It'ssafer to not buy or even sell the stock,put the money back in the bankthan to deal with all this whirl wind of "unsupported" negative 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 vulnerableto the tactics of professional Bashers. New investors tend to lurk inthe background of message boards,content to form independent opinionsbased on what they read with their own eyes. Very often, honest,intelligent and cautious people can easily be overcome by a wellorchestrated propaganda effort.
You must always remember that their is a lot of money to be made in just the motion of a stock UP or DOWN it doesn't matter!And Bashers have money at risk just as you do. But they have the edgeof fear, lies, and falsehoods to post while preying on theun-initiated.The average investor dose not have the edge of organized deception.
Recentrevelations have indicated that even Market Makers (those charged withkeeping the playing field level) have been involved in stockmanipulation by Bashing on a stock message board. HAVE NO DOUBT THAT THISIS A REAL THREAT!
Lesson1: Remember, BASHERS NEVER Bash A BAD STOCK.Check the boards for stocks with no potential. They never have anyBashers. Bashers only go after stocks that are moving up or haveexcellent potential to do so. Bashers work to bring the price down toeither increase their position at the expense of others or help a Shortmake their bones.
Lesson 2: BASHERSALWAYS BRING UP OLD NEWS THAT YOU HAVE HEARD MANY TIMES.Newstartup companies always have a few bits of bad news. The Basher willpost this over and over again. Unsophisticated Bashers will try tofreshen up old news with a new date or by-line in an attempt to fool you.
Lesson 3: BASHERSPOST MANY TIMES A DAY. They try to wear you out. They comment on everything, every other post, and can answer every question.THEY KNOW IT ALL! There is no positive comment they won't Bash. They try to control the board.True longs may have to confront the Bashers or they will appear to the newbies as being the people with all the information. Thisis best accomplished by posting positive, well researched data on thecompany,repetitively, while trying hard not to engage the Bashers indirectre partee. REMEMBER - LONGS... RESIST USING THE BASHERS ALIAS!
Lesson 4: BASHERSWILL LIE TO YOUR FACE.Never trust a Basher. The truth on startup companies is that they makemistakes. What new company hasn't?The Basher will compare your issue to aanother companies, financials- deals - management, etc., trying to lureyou into making an Apples to Oranges comparison. Remember each companyis unique and while it is prudent to seek out established indicators, doso with care and don't take someone else's word for it. Strive to come upwith at least a "six-pack"of indicators so your vision of the state of acompany is not tied to a single barometer. Not doing so is tantamount togoing to a Race Track and betting on the "Pretty Brown Horsey". BASHERS WANT TO WHISPER IN YOUR EAR - PLANT A SEED OF DOUBT, AND HOPE THAT YOU ARE NOT SAVVY ENOUGH TO RESEARCH THE TRUTH ON YOUR OWN.This is how they achieve their greatest success.
DOUBT+ FEAR + LAZINESS = BAIL OUT!
This is your investment... work for it, protect it and don't panic on the words of very shadowy figure that "has yourbest interest in their heart". Consider that one factor: Someone youhave never met, is not a member of your family, is now, out of thegoodness of their hearts- GIVING YOU FREE ADVICE (that you didn't askfor). It's a no brainer.They have motives $$$$$$$$$$$$.
Lesson 5: Bashers know YOU CAN'T VERIFY THEIR STATEMENTS.That's why they make the vague statements they do. They rely on youbeing to lazy tor esearch their droppings other than to scan the boardfor others opinions.This is particularly dangerous when you considerthat Bashers work in packs and often validateand back up each others nonsense with what appears to be "innocuous andunsolicited" verification by comrade Bashers. Let's face it, we are allconditioned to "believe"everything we see in writing. If others byvirtue of their "posts"also confirm this belief, then we aresubconsciously doomed to swallow the hook, line and sinker... Basher- 1 Honest Investor - 0
Lesson 6: The Bashers PLAY ON YOUR LACK OF KNOWLEDGE.Theycan lie about information and you won't know the difference (unless youhave done your own DD on the company and know the truth and facts).
Lesson7: Bashers play on your lack of patience. You have held a stock for a while.You knew it will be a big stock someday, but the BASHER CAN GET TO YOU BECAUSE YOU ARE TIRED OF WAITING FOR YOUR GAIN.That'swhen the Basher is best. You are tired. You have forgotten the goal forthe stock was to hold it for one year. The Basher is bothersome,so youdump it on a bad day. Some others also dump. Then you get mad for yourloss and return to let everyone know how mad you are. Then you turn into asemi-Basher as well. THE BASHER HAS WON, AND GAINED A NEW ALLY - YOU!
Lesson 8: BRINGTHE PRICE DOWN.That is the Basher's job. The truth is not important. Lies are the norm.Post continuously on the board every day. They are trying to scare thenewbies that are just investigating a stock. They are trying to wear downthe faithful longs on the board and gain free reign and control.