Saturday, September 02, 2006

SYNDICATES 1: HOT TIPS MECHANISM

1. Operator collected & cornered a stock dirt cheap (or at discount from Owners)

2. Operator buy/sell from one account to another to create volume and raise the price

3. Operator give 'hot tips' to a 10 'good' friends, who in turn pass news to another 10 and so forth (ultimately 1000 people chased the stock, thats easily 10 mil shares)

4. Operator gladly sell to chasers and make profit

5. Operator pulled out, having distributed the shares for handsome gain

6. Price fell, all 1000 chasers lose money

7. Operator tell 'good' friends that its market forces and 'help' by bailing them out by picking up the stocks for them or pay them cash for their losses

8. Operator and Owner shares profit less the little bit used to 'help' their 'good' friends

9. Collect more stock and go for second killing, this time 'good' friends more supportive cos Operator is so gentleman and helpful when they in deep-shyt

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