Time for a reminderBoiler Room Scam Artists
A group of organized posters on a message board spouting innuendoes, insinuations, tidings, etc. Can become extremely abusive, questioning everything, and making personal attacks against anyone with the intelligence, who would dispute them. Rarely, do these types have factual information. When all else fails they often attack the credibility of management...a very old technique.
Note that they often seem to change and morph into new names over time….such as BigM, Keon, rgx, etc.
Typically common techniques:
Create enough doubt to get sells at which time the Boiler-Net Room group accumulates or toss out extreme hype to get buys which time the Boiler-Net Room sells. Boiler-Net Rooms will taint anyone that opposes them. Once this is accomplished the bashers take a break and new touters come to the chat board who disappear when the bashers come back.
A reluctance to provide information about themselves or fundamentals on the investment
Boiler-Net Rooms can have as many aliases depending on the members of the group. They can actually be all the posters on a thread. Both pro and con aliases also depending on what they want the stock to do.
Mumbo-jumbo about Technical Analysis information. No proof, but a charting band or compression wedge or even a saucer says so. With the newest tout vessel of Technical Analysis (Charting), the Boiler-Net Room try to cover themselves for they only interpret (give their opinion) the charting.
Most of the posters are legit private investors that are just giving their opinions. However, the Internet is infamous for secret agendas and IDs.
More……
Boiler Rooms…….. The idea behind my group is to bash the price of a company's stock down low enough to where the group of investors who retained our company's services can buy the stock really cheap.
Three types of bashers:
Beginner-level basher: would attempt to create confusion in the room by distracting other posters with satire, name calling and pointless arguments. The idea was to make sure no serious discussion of the stock could take place. Sometimes, we would throw in a hypster to create the illusion of an argument going on. What was really funny was that …we…. sat next to each other, laughing the whole time.
An Intermediate-level basher: would try to weasel their way into the confidence of longs and create doubt using rumor or innuendo.
An Advanced-level basher: would spread false or misleading information about the company. They would deal in facts, countering every longs post with articles, news reports and opinion surveys that gave a negative impression about the company
Each group (usually five people) was made of three beginners (two who would bash and one who would hype), one intermediate and one advanced level basher.
First, we have to develop a character and stay within that character in order to build a "following."
Next, we had to follow certain guidelines on what we could say. We were urged to have an "answer" to every long's question, but we were to frame that answer in a way that ridiculed the questioner for asking such a question ……
The idea was to get "play," i.e. reaction from other posters. The more play we got, the more the room would be disrupted.
One exception would be the hypsters since they were "defending" the stock against our onslaught, they got a little more leeway. People would side with the hypster because they thought he was real since he appeared to be on their side, but was really on ours, setting us up to disrupt the room..