Pumping: the real problem
I'm always amazed at the way those who claim to care about stock price manipulation only care about it when stocks go DOWN. Stock drops, everything is suspicious. Must be naked shorting! A journalist cabal! "There on taek from teh hege fundss!"
Where are these people when there's OBVIOUS evidence that the real problem is naivity and complacency about upward manipulation of garbage stocks?
One case in point, Manchester, Inc. (MNCS.OB)
I've written about this company a couple of times.
That second article is about the paid pumping going on on Manchester's behalf, pumping that continues today with another bogus press release supported by a $30,000 payoff from some outfit called "Blue Chip IR" out in Vegas.
Remember, the guys who run this Manchester went on yet another penny-stock promotion site (one where Patrick Byrne recently gave another classic interview) and blamed naked shorting for the stock's recent fall. Not a word, however, on how a stock with no business to back it up (before recently) had managed to have a price that did nothing but go up for months...
And now that there's clear evidence of paid pumping for Manchester? We hearing anything about that from management?
You can get an idea of the quality of the wire service carrying this latest Manchester pumping by looking at its website, a penny-stock promotion extraordinaire: http://www.wallstreetnewsalert.com/
How does THIS outfit make its money? Cash handouts AND by pumping stocks in return for shares, which it may sell WHILE IT IS PUMPING the stock -- read its own admission here: http://www.thenewssvc.com/LTDN112806.html
Also pretty interesting that it puts up these releases as graphic files, not text. My guess is they're worried about these schemes being indexed by search engines.
The real problem with stock manipulation is the pump up. The inevitable crash is merely the result.