RE: Price MovementYou got it pretty much right on the money. But there is a much more simple way the P&D scams work. Large amounts of stocks are given to stock promotion companies in exchange for promoting the stock. Once the general population thinks its an oppurtunity of a lifetime to get rich quick it causes a run up in price due to the small float. At that point, the stock promotion company unloads their shares they have been compensated and make a mint. Along the way, there is plenty of insider trading.
The stock starts to sink at that point, and the regular sheeple slowly start getting impatient and sell over a period of months. Eventualy the stock goes back to the point prior to any hype. There are always a few bagholders, that hold till the stock is worthless or maybe a penny or two.
This is the same method over and over. Oil and gold exploration are favorites however there are others such as medical breakthroughs and technologies. People who have been investing for a long time, have learned their lessons by being down the road. However, there are always inexpirienced invetors coming on board and more than ever with access of the promotions and the ability to trade over the internet through discount brokers without professional guidence.
Good luck.