The Logical SuspectSpeculating who is behind the buy side manipulation is an interesting puzzle. There are a few hints. The buy side manipulation has lasted for years and worked best below $3.00. It has occurred on other stocks. You are looking a steady buying power by institutional investors. Buying stock at a depressed price is not illegal. The dirty tricks and collusion can be illegal. Who would post on Stockhouse and spike the stock price? Spiking the stock requires a large holding suggesting an institutional investor. Posting on Stockhouse does not make sense for an institutional investor. Posting to encourage retail investors to sell is hardly sufficient motivation for a money manager. My initial thought was that posts were being made by members of investment clubs. People thinking that they were being clever. It is a stretch to think that they had the money and motivation to maintain posting for the duration of this manipulation.
Who were the long term naysayers? The recent onslaught of new people posting caused me to think in a new direction. The reaction to my message of hold, buy, and consider using margin was strong and different. Some new posters started with reputation ratings of 1. Others have a history of posting but have been dormant for years. Some have crossed over from other stocks where they were pumpers. What institutional investor would have an interest in covering many stocks, be both a pumper and dumper, and a need to manage the stock price. The clues are suggesting a logical suspect, an investment banker. An investment banker can be a pumper in the early days to facilitate raising capital through retail investors. As the development company gains traction and needs larger blocks of new capital, the investment banker looks to friendly institutional investors and the buy side manipulation begins. The investment banker can also be interested in buying in their own name. In this light, Stockhouse is a convenient front for an investment bank.
Retail investors hold onto your shares the April 2009 story of Dendreon, DNDN on the Nasdaq, is going to be repeated with Oncolytics soon. Consider buying and using margin. Institutional investors are wise to recognize the risk of condoning the buy side manipulation and acquire their position quickly.
Here is table showing the trading of Dendreon in April 2009.
| Date | Closing Price | Volume |
| 1-Apr-09 | $4.14 | 3,199,650 |
| 2-Apr-09 | 4.34 | 2,427,867 |
| 3-Apr-09 | 5.99 | 22,497,200 |
| 6-Apr-09 | 6.58 | 19,585,750 |
| 7-Apr-09 | 6.58 | 7,346,062 |
| 8-Apr-09 | 6.37 | 5,392,639 |
| 9-Apr-09 | 6.30 | 4,234,697 |
| 13-Apr-09 | 7.30 | 12,775,310 |
| 14-Apr-09 | 16.99 | 65,120,890 |
| 15-Apr-09 | 17.17 | 19,294,060 |
| 16-Apr-09 | 17.03 | 6,894,881 |
| 17-Apr-09 | 17.99 | 17,799,470 |
| 20-Apr-09 | 19.52 | 17,724,250 |
| 21-Apr-09 | 19.74 | 11,008,510 |
| 22-Apr-09 | 20.12 | 7,358,435 |
| 23-Apr-09 | 20.33 | 6,123,418 |
| 24-Apr-09 | 20.08 | 7,393,327 |
| 27-Apr-09 | 21.55 | 18,569,850 |
| 28-Apr-09 | 11.81 | 28,070,740 |
| 29-Apr-09 | 22.94 | 48,235,790 |
| 30-Apr-09 | 21.20 | 17,468,950 |
| Yesterday | | |
| 7-Mar-11 | $31.85 | 3,360,231 |