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CHAT ROOMS AND BULLETIN BOARDS My motto on chat rooms and bulletin boards is: "STOCKHOLDER BEWARE". They can be a good source of information, but also can be a place to spread fear and hype. Here is a list of different types of posters you will see on the bulletin boards. DOOM AND GLOOMERS Some reason why Doom and Gloomers post:
Common techniques used by the negative posters number 1 &2 above include:
Never sell because of the "negative poster panic syndrome". Negative posters thrive on the fact that it is easier to scare a person into selling than it is to convince a person to buy. If your stock has performed well in the past and nothing fundamentally has changed with the company or it's competitors, it will probably continue to perform well in the future. Weaker or smaller companies do not automatically mean failure with a certain stock. ETEK was a smaller company that did very well (about 600% gain in one year) even though it was competing against the more dominant JDSU. JDSU ended up buying ETEK and stock price shot up about 70% in a matter of 3 days. The funny thing is 2 months earlier there was a huge amount of insider selling. Sometimes negative posters are correct in their analysis so it is important to research and make your decisions based on the "big picture". HYPE OR "PUMP & DUMP" POSTER Basically does the same thing as the Doom and Gloomer above, except the opposite. I would not worry about the Hype or Pump and Dump poster unless you are short on a stock. Just make sure those posters do not blind you from reality. |
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Please e-mail me if you have any comments or picks you think will be quality performers that have a market cap with at least 200 Million. |