I. Take this Survey. It's Only Three Questions.
Since XIN is on the cusp between Nasdaq/NYSE listed stocks and OTC/Pinks companies, it's one of the few companies purchased by investors with a Conservative approach (as a high risk option in their lower risk, lower profits portfolio) AND investors with a more Aggressive approach (as a low risk option in their higher risk, higher profits portfolio).
Which view do you agree with?
1. Do Bulletin Board Posts Move Markets?
The Conservative: "Bulletin boards moving markets? Never. Most shares trade tens of millions of dollars every day. A BB post would need to change literally millions of dollars in trades to move the share price. Granted, XIN's on the very lowest end of that scale, and therefore more susceptible to the idea, but even at $500k or whatever traded per day, there's just no way."
The Aggressive: "Bulletin boards moving markets? Naturally. Most shares trade less than $50,000 worth every day. A BB post only needs to change a few thousand dollars in trades to move the share price. Granted, XIN's on the very highest end of that scale, and therefore less susceptible to the idea, but even at $500k or whatever traded per day, surely someone's figured out a way."
2. Do Paid "Pumpers" and "Bashers" Exist?
The Conservative: "Twaddle. Since #$%$ can't move markets anyway, why would anyone waste their money paying "pumpers" or "bashers"? It's also worth mentioning that the practice, if it did exist, constitutes felonious market manipulation, so anyone doing it could end up in prison."
The Aggressive: "Naturally. Since #$%$ move markets, why wouldn't people use their money paying pumpers and bashers? It's not even worth mentioning that the practice is illegal. The markets are big and the SEC is small, so nobody's going to end up in prison."
3. Minimal Acceptable Performance of the IR Department.
Conservative: "I'm outraged. Only half of my emails to the IR department received replies. My other stocks reply all the time. This seems like a real Mickey Mouse operation to me."
Aggressive: "I'm satisfied. Fully half of my emails to the IR department received replies. A lot of my other stocks never reply at all. This seems like a really professional operation to me."
II. Survey Results.
My own answers were Conservative, Conservative, Conservative. What were yours?
@casey, good point that the first two aren't open questions, in terms of their legality.
If market manipulation by bulletin board or by "pumpers" / "bashers" actually worked, it's definitely a crime, but that doesn't stop lots of folks from believing in the phenomena anyway.
1. Depends on the stock. IHCH is a perfect example of how I erm, "people" manipulated a low float low volume security to over 500% gains.
2. Yes and No. Define "paid." I was once offered to write positive things for 4 cents a post.
@peregrine, that's fascinating on your # 2.
Unless it's violating a confidence, do you mind if I ask who made the 4 cents per post offer? (Completely anonymized, of course, maybe something like "someone from a small cap company's PR dept"; or "a jr associate at a small fund," or something like that).
Conservative, Conservative, Aggressive. I have already made clear my position on the first two before, the third I think the IR department can get a mountain of emails, most of them asking ridiculous questions. I think answering half is fair however I never emailed a IR department before but that is my opinion anyways.
1, and 2. I would think conservative but since people have paid fines for both occurrences, reality is aggressive. Stupid, in my opinion, but aggressive..
3. I have expressed my opinion on this issue,