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Blog Wars Continue, With The Opposition Shooting Blanks

Location: Blogs Bob O'Brien's Sanity Check Blog    
Posted by:   bobo 4/13/2006 11:00 PM

‘lil GW has been foaming at the mouth recently, and a buddy sent me his latest dimwitted blog for my amusement. I normally wouldn’t comment on it, but it so spectacularly poorly executed I can’t stop myself. It’s like waving a red cape in front of a bull.

Now, ‘lil GW specializes in several things, from what I can tell. First, he likes to name-call and demonize, yet he lacks the intellect to actually do so in anything but the most clumsy manner – it is frankly embarrassing to have to sit through one of his little rants, in that they invariably make preposterous and unsupported allegations and accusations, and then pepper the nonsense with insults and venom. I have yet to read anything of substance come out of his blog, and this example is nothing new – however he does seem to have a jones for the Easter Bunny and this site, and has made it a recurring theme in his shtick to hurl insults at me – which might be interesting if anyone actually read his site, but given his ratings, they don’t, thus he lacks the capability of even providing us some publicity with his frothing.

This being Easter, however, I thought I would share with everyone some examples of ‘lil GW’s heavy-handed style, and then move on to his kindred, Jeff Mathews, who is every bit as toxic, if slightly brighter and a more polished writer. Not to say particularly awe-inspiring, but at least coherent.

And sooooo….here’s a little shout out to the homies from ‘lil GW:

“Friday, April 14, 2006
The SEC's Unfinished Business

”In all the coverage of the SEC's new journalist-subpoena guidelines, including my item in this blog, nobody mentioned a lingering issue: Just how does the SEC define "journalists" and "news-gathering"?”

Yawn. Then there is more blather.Words words words. Then this:

“When the subpoena morass first arose, SEC chairman Christopher Cox told Reuters that people "masquerading as journalists" are a problem, and that the guidelines would cover just the media and nobody else.”

Uh, ‘lilGW, sweetie, morass? That was as good as you could do? A morass doesn’t arise. It is an area of low-lying, soggy ground. Or something that hinders, engulfs, or overwhelms, such as "a morass of detail." A bog. A quagmire. A metaphorical tarpit, if you will. Maybe you meant hubbub? Or controversy? Or firestorm? But morass? I am insulted reading that. Really. I actually felt a few brain cells implode.

“The problem is that stock swindlers have long posed as "journalists," such as by publishing "stock market newsletters" that are little more than stock-promotion vehicles. More recently, we have the anonymous crackpots of the anti-naked-shorting cult, some of whom are from the world of penny stocks and are well acquainted with stock-scam tactics.”

Now that is more like it – vintage ‘lil GW mudslinging with no embarrassing attempts at alliteration – and wholly lacking in any basis in fact. Bravo. Nicely done. To whit, we are crackpots, members of a cult. Never mind that FOIA requests now show irrefutable proof that there is a major naked short selling problem, or that brokers are being sued by those close enough to the clearing system to know whether the whole thing is fact or fiction – tut tut, why mention that? Because then we aren’t crackpots anymore, and this isn’t a cult – it is called knowledgeable investors armed with solid FOIA evidence showing a system run amok - and large suits being filed by attorneys who have done the research and know the difference between fantasy and reality. That doesn’t play so well with ‘lil GW’s agenda, though, so he prefers to ignore those elephants in the room, and try to paint us as kooks and crooks. Again, rather clumsy, but then again, he is no Steinbeck, is he?

”As I noted in my item last month, the "sanitycheck" website, a favorite of Overstock.com's loopy CEO Patrick Byrne, bills itself as an "independent" website that likes to say that it engages in "journalism." In fact, "sanitycheck" has as much in common with journalism as the anti-shorting "market reform" movement has in common with genuine market reform. In other words, nothing. In fact, its tactics and secrecy make it more a kind of stock market version of the Ku Klux Klan than anything else.”

He really wrote this. I’m not kidding. Maybe a little drinky drinky typey typey? Dunno. But it is pretty lowbrow, even for his audience.

Where do I start? Well, let’s see – he gets the name of the site wrong, no doubt deliberately, lest his dozen or so readers rush over here to see what all the fuss is about. He then tries to claim that this site is not independent – of course, he lacks any evidence that it isn’t precisely what I say it is – an independent site which I pay for, with no assistance from anyone. He tries to suggest it isn’t in a sort of overtly inept way that is obvious to even the most dim, so I won’t belabor it, but note that so far he has yet to cite a single fact or data point to support anything he says. This is a recurring theme with ‘lil GW. Facts? Don’t need ‘em. This is underscored by the use of rather strident hyperbole wherein he misstates our mission statement (“anti-shorting”, which we are not – we are anti-stock manipulation and naked short selling – an illegal practice that has nothing to do with legal shorting other than a similar name), and goes on to declare that our goal - to increase transparency in the markets and put an end to an illegal and manipulative practice - has nothing to do with market reform. Huh. I seeeeee. Yessss. What would market reform look like, then, I wonder? We aren’t told. But cleaning up the markets and ensuring that the 1934 Securities Exchange Act is adhered to isn’t his idea of doing it – that much is clear.

And then he proclaims my personal favorite absurdity in a paragraph filled with silliness, by claiming that this site is the equivalent of a racial hate-crime group.

Now that is unbiased, factual journalism at its best. No wonder he has such a wide audience, and is taken so seriously by so many. End market manipulation = cross burning/lynching of minorities. Got it. Very nice – subtle.

Oh, and he backhands Dr. Byrne, a financially successful CEO whose breaking of the naked short selling scandal is clearly a major step in exposing a systemic crisis that threatens our equities markets. ‘lil GW says he is “loopy.” ‘lil GW, who I think we can agree is not exactly a household name, or noted for excellence in anything I’ve come across, thinks Dr. Byrne, who has run companies for Buffet and has built Overstock into a genre-defining online retailer, is loopy. OK. Check. And that Einstein was kooky, too. What a bunch of whack jobs. Hey ‘lil GW? Babe? Maybe you can write another apologist screed proclaiming that there is no naked short selling problem, even as more suits are filed by industry heavyweights over exactly that issue being real and pervasive, and more FOIAs demonstrate that huge chunks of SHO companies trade in fakes every day? Could you get on that? Churn it out with a minimum of literary gaffs and logical blunders?

At what point do you hang your head in shame? Or do you even care that you are getting so much, so wrong, so regularly?

”"Sanitycheck" (note yet another run at misspelling it - Bobo) is run anonymously by an individual who hides behind a phony name ("Bob O'Brien") while he serves as a shill for Overstock and publishes drivel on "stock counterfeiting." One of the site's primary functions is to slander and intimidate journalists who fall afoul of Patrick Byrne and the naked-shorting cultists…”

So now we have the shocking revelation that I am anonymous (cleverly hidden under the “Who’s Bob O’Brien” section of this site), and the insistence that I shill for Overstock. How, is unknown. I mean, I would think that a competent shill would advocate buying the company’s stock or something, which I don’t do. So again, way off base. Now, given that ‘lil GW is incapable of intelligently rebutting any of the factual information at this site, or indicating what, if anything, is incorrect, he simply calls it drivel, hoping that by calling it drivel, everyone will read it and arrive at that conclusion. What, precisely, is drivellish, or drivellesque, remains unclear. Same with the slander bit – how are journalists being slandered? And why are those that oppose an illegal manipulative technique “cultists?” Sort of like all those anti-murder and anti-rape “cultists”, I guess. Again, who knows what goes on in ‘lil GW’s noggin? I can’t even begin to imagine, or care.

”The SEC needs to investigate the funding, tactics and secret ownership of "Sanitycheck" and similar sites, without being deterred by the misimpression that such phony, crackpot websites are part of the "news media." Some kind of formal guidelines defining the media (perhaps simply excluding anonymously-run sites run to push a particular "cause") are clearly needed.”

Ha ha ha ha ha. Yes. Clearly, the SEC, chartered with regulating the securities markets, should be looking into my blog, which recommends no stocks, and acts as a commentary area for breaking news involving illegal market manipulation, hedge fund misbehavior, and regulatory lapses. Why they should do so is unclear, and under what authority is unknown. But this site and the message are obviously a threat to ‘lil GW and his backers/fans – although why, nobody knows – and somebody should silence us, rather than the poor victims of persecution that ‘lil GW has decided are innocent of any wrongdoing – again, lacking any facts to support his view. At least he is consistent.

Why would a website dedicated to exposing crooked journalists, stock manipulation, clearing and settling scams, and the like, be such a threat to ‘lil GW? Who can possibly imagine an explanation? Can it be that he is somehow, well, beholden to folks that engage in those sorts of activities? Nah. I’m sure it is all innocent as it appears. Exactly as innocent as it appears.

Hey, I know, maybe the SPCA should look into me, or maybe PETA, or the NBA? Maybe a nice SLAPP suit would defend everyone ELSE’s right to free speech, and protect us all from the crackpots!

Is it just me, or at this point has he lost his mind?

”Now one might think that the SEC would know the difference between a crackpot website and a genuine online journal like, say, Slate. However, judging from its recent witch hunt against journalists, I am not so sure.”

Golly, ‘lil GW, are genuine online journals the ones that use stolen bank records and cell bills to harass bloggers that threaten to expose their hedge fund buddies? Oh no, wait, that would be the WSJ and Jesse. Huh. Would they be the ones that extort money from folks they think they can bully with ugly articles? No, that would be the NY Post’s page 6 guy. How about on-air personalities who engage in what looks suspiciously like insider trading? No, that would be our favorite gibbon. How about reporters who lie about when and how they got research reports, and who target certain hedge funds’ short picks? Ringing any bells? No?

I do love how ‘lil GW is still touting the party line that the SEC’s investigation of a stock manipulation scheme involving research reports and crooked journalists is a witch hunt. Nothing like a little KKK and witch hunt rhetoric to improve one’s credibility. I really have to hand it to him – I thought we had seen it all with Mathews’ anti-Semitism BS, but ‘lil GW manages to out-absurd that cretinism with a minimum of effort.

As I write this, I realize that any upright biped over the age of 4 who can’t see through ‘lil GW’s gibberish is likely incapable of reading, thus I am wasting my time. And it is sort of like critiquing The Gong Show or Jerry Springer; it is so bad, that anything you say about it fails to denigrate it any more than its own existence does. In that spirit, I press on to Jeff’s contribution to the NY Time's dealbook blog, which is basically a good old fashioned booty smooching of David Rocker.

I won’t go into a whole lot of detail, but it basically spends about 3000 words proclaiming Rocker as a great fellow, and compares him to other greats like his mentor Michael Steinhardt – who Jeff fails to mention was fined around $50 million for engaging in manipulation in the treasury market. Details, details. What’s a little manipulation – a few broken eggs while making a centi-million dollar omelette? The point is these are great men, whose tireless philanthropic efforts and important work short selling companies has made America safe for our children. They are great defenders of free speech (when they aren't suing posters and attempting to stifle their free speech), apparently - their own free speech, that is. And apparently the NY Times is joining the rest of the NY Financial press in proclaiming that the nation is celebrating short sellers as heroes - ignoring the recent polls that showed 89% of respondents supporting the SEC going after the journalists. And yet paragraph after paragraph of this dreck spews forth, ignoring any facts that show it to be poop, and reveling in revisionist history.

That’s about the gist of it.

As I read paragraph after fawning paragraph, I was struck by how self-serving all of this is. And how transparent.

Does anyone wonder if the whole retirement thing is nothing but a vehicle to allow the investors to pull their cash out?

My read on the way the hedge funds work is if there is a material change in the fund’s structure or management the limited partners can pull out their cash in advance of the 1 or 2 year lockups – never mind that it would probably be considered to be fraudulent conveyance if the allegations of potentially felonious activity are true. Would that be bad, to have made a bunch of money by engaging in what appear to me to be illegal acts, and then distribute that ill-gotten cash while you are being sued for those acts? Is that the investors’ money at that point, or is it the money of those you screwed with your illegal behavior? I’m not an attorney, but once a suit is in play, how does that work? Can one distribute the lion’s share of the cash, leaving a virtually empty bag should the plaintiffs prevail? Any lawyers know the answer to this?

I’m getting tired, and having to read these two is better than a fistful of valium and a half gallon of Jack Daniels to put one to sleep, so I’ll stop here. But I am curious about the legal question.

Anyone know the answer?

Copyright ©2006 Bob O'Brien
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Comments (7)
Re: Blog Wars Continue, With The Opposition Shooting Blanks By robelita on 4/15/2006 11:28 PM
"In fact, its tactics and secrecy make it more a kind of stock market version of the Ku Klux Klan than anything else.”

I think he borrowed this from Clarence Thomas whose Supreme court nomination was in serious jeopardy when Anita Hill showed up to testify that our now current Associate Justice had engaged in a bit of sexual harassment while working at the Department of Education and the Equal Opportunity Employment Commission. Calling the hearings "a high-tech lynching for uppity blacks" it successfully diverted attention from the man to the gutless committee members-who rollled over. All-in-all a rather successful tactic which GW is "attempting" to emulate here. The only problem is people have wised up (a bit) to the shifting spotlight offense/defense and GW doesn't posess the mental acumen to pull it off.

JM is still trying to spin spider silk into gold leaf but lacks the pharmaceutical skills to whip up a malt-let alone a credible defense.

These guys should be sitting on the bench or serving gatorade to teammates-they're not even "B" team material.

Ah well bunnymeister, we all have our crosses to bear-yours is finding worthy opponents. But-hey-it's YOUR day so go do some fun bunny things today-hide some eggs, break out the white Easter suit and thank God for keeping his promise as we celebrate his triumphant return.

Now if only He'd tend to his miscreant sheep..........

Happy Easter bobo!

HASSENPFEFFER
Re: Blog Wars Continue, With The Opposition Shooting Blanks By InTheKnow on 4/16/2006 9:27 AM
One of your best pieces yet and on Easter no less.

GW uses the paid basher template as a basis for devaluing the people who are fighting the market manipulation and fraud:

The Basher's Handbook
Reprinted here as a service to those who doubt this actually exists, or is simply an unfounded urban legend.

Is the "Bashing" of a stock an essential part of the online investment landscape?

Our Constitution guarantees us free speech and we have always valued the lessons gleaned from dissent. When does dissent cross over that imaginary line and become "Bashing"? To often we find well grounded dissent capriciously labeled as "Bashing" by over zealous investors bent on protecting a stocks reputation at any cost. The "Bashing" that is addressed on this site is quite different from dissent. The Anatomy of a Basher strives to look at the calculated erosion of confidence in a given stock. Erosion by means that are, in every sense, void of truth, hinged on deception and innuendo, and motivated by greed at the expense of others. This compendium is offered to aid in identifying the telltale signs of "Bashing", and hopefully provide a counter balance to this heretofore unchecked manipulation of investors fears for personal gain.

IS IT EASIER TO SCARE PEOPLE INTO SELLING THAN IT IS TO SCARE PEOPLE INTO BUYING A STOCK? I have asked some knowledgeable investors this question and the answer is always: "YES, OF COURSE YES!"

WHO BASHERS PREY UPON

Consider the elderly that are investing for retirement, they find their way to the message boards for validation only to see false posts about "SEC Violations" and "Class action suits"... or the head of a "typical growing family", with children to put through college, who is monitoring a message board only to read posts by a "pack of 15 to 20 Bashers" (probably 5 or 6 under various alias's) posting continuous disinformation... what do you think these new investors will do? It's safer to not buy or even sell the stock, put the money back in the bank than to deal with all this whirl wind of "unsupported" negative chaff.

The Internet has lured a whole new class of investor into the market. A new investor is just that - New! This new investor, while learning the basics, is particularly vulnerable to the tactics of professional Bashers. New investors tend to lurk in the background of message boards, content to form independent opinions based on what they read with their own eyes. Very often, honest, intelligent and cautious people can easily be overcome by a well orchestrated propaganda effort.

You must always remember that their is a lot of money to be made in just the motion of a stock UP or DOWN it doesn't matter! And Bashers have money at risk just as you do. But they have the edge of fear, lies, and falsehoods to post while preying on the un-initiated. The average investor dose not have the edge of organized deception.

Recent revelations have indicated that even Market Makers (those charged with keeping the playing field level) have been involved in stock manipulation by Bashing on a stock message board. HAVE NO DOUBT THAT THIS IS A REAL THREAT!

Lesson 1: Remember, BASHERS NEVER Bash A BAD STOCK. Check the boards for stocks with no potential. They never have any Bashers. Bashers only go after stocks that are moving up or have excellent potential to do so. Bashers work to bring the price down to either increase their position at the expense of others or help a Short make their bones.

Lesson 2: BASHERS ALWAYS BRING UP OLD NEWS THAT YOU HAVE HEARD MANY TIMES. New startup companies always have a few bits of bad news. The Basher will post this over and over again. Unsophisticated Bashers will try to freshen up old news with a new date or by-line in an attempt to fool you.

Lesson 3: BASHERS POST MANY TIMES A DAY. They try to wear you out. They comment on everything, every other post, and can answer every question. THEY KNOW IT ALL! There is no positive comment they won't Bash. They try to control the board. True longs may have to confront the Bashers or they will appear to the newbies as being the people with all the information. This is best accomplished by posting positive, well researched data on the company, repetitively, while trying hard not to engage the Bashers in direct repartee. REMEMBER - LONGS... RESIST USING THE BASHERS ALIAS!

Lesson 4: BASHERS WILL LIE TO YOUR FACE. Never trust a Basher. The truth on startup companies is that they make mistakes. What new company hasn't? The Basher will compare your issue to a another companies, financials - deals - management, etc., trying to lure you into making an Apples to Oranges comparison. Remember each company is unique and while it is prudent to seek out established indicators, do so with care and don't take someone else's word for it. Strive to come up with at least a "six-pack" of indicators so your vision of the state of a company is not tied to a single barometer. Not doing so is tantamount to going to a Race Track and betting on the "Pretty Brown Horsey". BASHERS WANT TO WHISPER IN YOUR EAR - PLANT A SEED OF DOUBT, AND HOPE THAT YOU ARE NOT SAVVY ENOUGH TO RESEARCH THE TRUTH ON YOUR OWN. This is how they achieve their greatest success.

DOUBT + FEAR + LAZINESS = BAIL OUT!

This is your investment... work for it, protect it and don't panic on the words of very shadowy figure that "has your best interest in their heart". Consider that one factor: Someone you have never met, is not a member of your family, is now, out of the goodness of their hearts - GIVING YOU FREE ADVICE (that you didn't ask for). It's a no brainer. They have motives $$$$$$$$$$$$.

Lesson 5: Bashers know YOU CAN'T VERIFY THEIR STATEMENTS. That's why they make the vague statements they do. They rely on you being to lazy to research their droppings other than to scan the board for others opinions. This is particularly dangerous when you consider that Bashers work in packs and often validate and back up each others nonsense with what appears to be "innocuous and unsolicited" verification by comrade Bashers. Let's face it, we are all conditioned to "believe" everything we see in writing. If others by virtue of their "posts" also confirm this belief, then we are subconsciously doomed to swallow the hook, line and sinker... Basher - 1 Honest Investor - 0

Lesson 6: The Bashers PLAY ON YOUR LACK OF KNOWLEDGE. They can lie about information and you won't know the difference (unless you have done your own DD on the company and know the truth and facts).

Lesson 7: Bashers play on your lack of patience. You have held a stock for a while. You knew it will be a big stock someday, but the BASHER CAN GET TO YOU BECAUSE YOU ARE TIRED OF WAITING FOR YOUR GAIN. That's when the Basher is best. You are tired. You have forgotten the goal for the stock was to hold it for one year. The Basher is bothersome, so you dump it on a bad day. Some others also dump. Then you get mad for your loss and return to let everyone know how mad you are. Then you turn into a semi-Basher as well. THE BASHER HAS WON, AND GAINED A NEW ALLY - YOU!

Lesson 8: BRING THE PRICE DOWN. That is the Basher's job. The truth is not important. Lies are the norm. Post continuously on the board every day. They are trying to scare the newbies that are just investigating a stock. They are trying to wear down the faithful longs on the board and gain free reign and control.

A BASHER HANDBOOK:
Do not underestimate a Bashers influence on a stock. The Pro's are good at what they do and what they do is profit from your losses. Below is their "hand-book". Learn from it or you will be donating your hard earned money to them!

Rules for Successful Bashing:


1. Be anonymous

2. Use 10% fact. 90% suggestion. The facts will lend credibility to your suggestions.

3. Let others help you learn about the stock. Build rapport and a
support base before initiating your Bashing routine.

4. Enter w/ humor and reply to all who reply to you.

5. Use multiple ISP's, handles and aliases.

6. Use two (2) or more aliases to simulate a discussion.

7. Do not start with an all out slam of the stock. Build softly.

8. Identify your foes (Longs) and the boards "guru" Use them to
your advantage. Lead them do not follow their lead.

9. Only Bash until the tide/momentum turns. Let doubt carry it the
rest of the way.

10. Give the appearance of being open minded.

11. Be bold in your statements. People follow strength.

12. Write headlines in caps with catchy statements.

13. Pour it on as your position gains momentum. Not your personality.

14. Don't worry about being labeled a "Basher". Newbies won't
know your history.

15. When identified put up a brief fight, then back off. Return in an hour unless your foe is a weak in reasoning powers.

16. Your goal is to limit the momentum of the run. Not to tank the
company or create a plunge in the stock; be subtle and consistent.

17. Kill the dreams of profits, not the company or the stock.

18. Use questions to create critical thinking. Statements to
reinforce facts.

19. DO NOT LIE, NAME CALL or USE PROFANITY.

20. Encourage people to call the company. 99% won't. They'll take your word for claims made. If they do call you can always find something that is inaccurate in how they report their findings.

21. Discourage people from believing Press Releases.
Encourage them to call the company. They won't out of laziness.

22. If the companies history/PR's are negative constantly point to that. Compile a list of this data prior to beginning your efforts.

23. If the price rises blame it on the hype or the PR, temporary
mass reaction, the market, etc. Anything but the stock itself.

24. If other posters share your concerns, play on that and share theirs too.

25. Always cite low volume, even when it's not.

26. Three or four aliases can dominate a board and wear down the longs.

27. Bait the Longs into personal debates putting their
focus/efforts on you and not the stock or facts. Divert their attention from facts.

28. Promote other stocks that would-be investors can turn to
instead of the one your Bashing.

30. Do not fall for challenges on the "values" of what you are doing, it's a game and you are playing it with your own rules.


Grade 'A' Basher:
If you post lots of old news, respond to all positive posts with a negative side. Never respond to being called a Basher, never post on another board with same alias. Can spend up to 80 hours a week Bashing a stock.

Grade 'B' Basher:
Very good way with words, always claims to be your "friend" taking the positive poster into confidence, never posts on another board, spends about 60 hours a week.


Grade 'C' Basher:
Spends less time than the others but is somewhat effective and gets a C grade due to getting excited when Bashers rules say not to get excited, spends about 40 hours a week.


Grade 'D' Basher:
Needs to learn the basics about being convincing when making a negative statement. Spends a good amount of time working the stock, maybe 20 hours a week.


Grade 'F' Basher:
A complete idiot, most readers are not convinced he knows anything about stocks in general. The type that says a stock "sucks", but gives no rationale, shows up every so often but no regular schedule.

LEARN ABOUT HOW BASHERS WORK: For instance: did you know that some Bashers are paid?

Golden Rule:

IGNORE THEM ...learn how professional Bashers are paid: When you REPLY to Bashers you give them an opportunity to earn appox. 5-7 dollars. The service agreement they enter into with their employer states their messages will be monitored for content, profanity, lies, etc. but Overseers and the like don't have the time to check all their Bashers messages. Only occasional spot checks are done. Those who manage the Basher will generally read the headlines to see if a Basher is replying to other posters by name. That tells them the Basher isn't just "posting blindly" or repeating the same message over and over since they won't pay for those.(True to form a Basher will put the bite on anyone, even their unscrupulous employer). A Basher will attempt to milk three to five replies per post at one to two dollars each. This way the Basher spreads negative influence to as many stockholders as possible. A Basher will create this discussion thread because it takes less time reading more messages than is necessary. This ultimately allows the Basher more time to post and make money. In general, NEVER ENGAGE A BASHER. Make them read all the posts and think up ways to enter the discussion. NEVER ENGAGE A BASHER; if you do so then YOU BECOME THE BASHER,S AID! If you feel compelled to challenge a Basher do so without mentioning his/her true alias in your response. This will make it hard for the Basher to use your post as a revenue stream. Read the news, do your own homework and make your own decisions. Get real time quotes and follow the stock for a couple of weeks. Due Diligence is key here. Know that there will be a time when the stock runs up which will be followed followed by the Bashers and those that missed the boat. The Bashers will trash the stock by saying such things as "it's a Pump and Dump" and "the company is lying" and deceiving. There goal is to scare off newbies and potential new investors by "shaking" you out of your shares. Take the time to confirm your DD ,trust your own judgement and believe in yourself, pick your point of return or loss and live with it. Don't listen to hype or Bashers trust your own judgement. Live by the rules you have created .

HOW TO IDENTIFY A BASHER

1. Check the "Born on Date" Bashers create identities on a regular basis. Rarely do you find a Basher with older "Created On" date. So click on the Identity icon for more details.

2. Take the time to look at the Basher's history of Posts. Go to other boards and see if their is a pattern to the theme of the posts. Bashers rarely waste time trying to blend in with "positive" posts, unless they are cultivating a new uninformed assistant.

3. When did the Basher show up. Bashers rarely show up when activity is in at a Lull. They show up when activity up/down..

4. Bashers never answer direct questions except with another question.

5. Bashers do work in teams (sometimes themselves as a team). So be suspicious of someone showing up and automatically having a Shadow to converse with who supports their argument.

6. Bashers always select "an argument" that can never be resolved by research.

The Basher 'Pack' Mentality

Bashers love to work in packs. It provides the quintessential cover to achieve supposedly "independent" validation of an argument. It is neither independent nor validating.

Pack Structure: Basher Packs can be comprised of any number of Bashers. They can be purposely formed within an organization or they can be "ad hoc" formed during a conclave on a particular board. In fact a pack mentality can be achieved by an ambitious "party of one" with a few select aliases.

Once a pack is formed, a leader emerges. This leader is usually acknowledged by other Bashers because of 1. Knowledge of the stock. or 2. Recognition by current board Longs (high visibility). Once established the Leader will usually work the Pack members up in to a posting frenzy. Constantly changing themes and even occasionally biting the ear of another pack member (this earns instant credibility), and it doesn't offend the bitten Basher because he/she knows it is all part of the effect. Quite sophisticated.

Packs will disband and slink away without notice. Usually this is the call of the Pack Leader who is adept at recognizing overplay. More often than not, Pack members must move on because they have other Bashing commitments to fulfill. They will return to the site of a good hunt over and over again, until hamstringing is achieved.

What calls a pack together. The Cry of the Leader. Certain Bashers love to work together. They know each others bite, how to feign in and out, it is a well choreographed Bash when pack members have worked together before. They constantly check their "Sites Du Jour" for signs of Pack activity. Occasionally they will throw out a "Nibbler" Bash to see if the pack responds or if not they can work the site themselves. It's all about effectiveness, time and earning money.
Re: Blog Wars Continue, With The Opposition Shooting Blanks By moronicweisstales on 4/16/2006 9:30 AM
Here is a story about the type of things these great shorts get involved in. Lil GW and NY Time's dealbook's time would be better spent writing about this type of fraud than patting a jackass on the back. http://www.bioworld.com/servlet/com.accumedia.web.Dispatcher?next=bioWorldHeadlines_article&forceid=38772 Renovis CEO: Beware Short Sellers' 'Shadowy' Influence



By Randall Osborne



West Coast Editor
CHICAGO - The president and CEO of Renovis Inc. spoke out strongly at BIO 2006 on the subject of the company's mysterious "Pearl Harbor"-style stock plunge last spring, which came despite positive Phase III data with the company's stroke drug and a handsome deal with Pfizer Inc. for other research.

Corey Goodman blamed "intentional manipulation of the market" by short sellers, and walked his listeners through his firm's ordeal step by step, before co-panelists talked further about an insidious practice that may draw increased attention from the SEC.

In the first part of 2005, Renovis and partner AstraZeneca plc were on the verge of reporting data from the first of two Phase III pivotal trials with the neuroprotectant drug Cerovive against ischemic stroke. The SAINT I study involved more than 1,700 patients in Europe and other areas.

The brink situation made South San Francisco-based Renovis a perfect target for short sellers, investors who legally borrow stock from holders in hopes the price will go down, so the shares can be bought back at a profit and returned to their original owners.

In January, speaking at a dinner with colleagues, an analyst not named by Goodman called Renovis his "No. 1" candidate for short-position buying. The analyst admitted that, like most of the world, he knew nothing yet about the Cerovive data, but said he did not need to see the figures - he only needed to know that the trials were conducted in the failure-strewn area of stroke, and that London-based AstraZeneca, which had problems with other trials previously, carried them out.

"The shorts clearly made a big bet [in the following weeks]," Goodman said, "and that big bet did what market forces would do - it drove us from $14 dollars per share down to $6.50 per share on May 3. That's the lowest our stock has ever been. Perfectly fine. The only problem was that the shorts were on the wrong side of the fence."

On May 4, Renovis and AstraZeneca disclosed top-line data showing Cerovive had met its endpoints. That trading day ended with Renovis' shares (NASDAQ:RNVS) almost doubled in price, closing at $13.17, up $6.38, or 94 percent. (See BioWorld Today, May 5, 2005.)

Short investors "lost about $100 million in value in one moment on May 4," Goodman said, noting that they "had a tremendous incentive to try to do some gaming, to try to see if they could pull our price [back] down."

Near the end of the month, the head of the trial's steering committee, Kennedy Lees, detailed the Cerovive data at the European Stroke Conference in Bologna, Italy. On Saturday, May 28, company officials were "feeling pretty good," Goodman recalled. The presentation of "beautiful" data went well, and "not only were all the world's stroke experts there, you also had analysts covering us, major shareholders. It was a really big event for people involved in Renovis."

The following Monday was Memorial Day, with stock trading closed. On Tuesday, "the minute the market opened," Leerink Swann & Co. hosted a conference call with neurologist Marc Fisher and two "statistical experts," Goodman said, none of whom had attended the meeting in Italy or seen the widely hailed data.

"They just ravaged us," he said. "They claimed everything was wrong."

Renovis' stock tumbled 22.8 percent, or $3.90, to close at $13.20, despite word disclosed at the same time that the firm had signed a preclinical research deal with New York-based Pfizer Inc. worth up to $187 million or more for products that inhibit the vanilloid receptor. Targeted are pain, inflammation and urinary incontinence. (See BioWorld Today, June 1, 2005.)

Leerink could have "gotten any one of a hundred neurologists who were at that meeting, [but] they found the one guy back in a sleepy corner who hadn't gone to Europe. All he knew were some rumors he had heard from another colleague or two."

Goodman speculated that "the shorts are the ones who set this up" before, during and after the stroke meeting. "These guys live in the shadows," he said.

Peter Flynn, senior managing director and general counsel for Leerink in Boston, declined to comment on Goodman's claims.

"He's entitled to his opinion, and God bless him," Flynn told BioWorld Today.

Fisher, when he saw the Cerovive data the day after the conference call, recanted his opinion and called the trial's design the best he had ever seen, Goodman said.

"Many of our other shareholders and [Renovis officials] asked Leerink Swann, once the guy actually saw the data and changed his tune, 'Why don't you do another call? Why don't you have Marc Fisher and these guys once again get up and answer the questions?' Leerink Swann said, 'No, we don't want to have anything to do with it anymore.'"

What they meant was, "We've already done our dirty work. We've already dropped your price," Goodman alleged, adding that the conference call included "intentional lie after intentional lie."

The panel - titled "Short Selling: How Can the Biotech Company Cope?" - also included John Huber, attorney with Latham & Watkins LLP in Washington, who provided pointers for avoiding such problems with short sellers, counseling more disclosure to gain shareholder trust. Goodman urged company officials to listen to tip-off "noise" and "chatter" from Wall Street, as he failed to do the weekend before the Leerink call.

In December, Renovis said its second Phase III SAINT trial with Cerovive will continue as planned following an interim safety review. The trial's interim analysis followed AstraZeneca's decision to expand its size from 1,700 to 3,200 patients.

Re: Blog Wars Continue, With The Opposition Shooting Blanks By robelita on 4/16/2006 6:51 AM
Interesting little dity on Reliable Sources on CNN this morning about "gossip" columnists and journalistic integrity (Page Six was mentioned) and surprise-the troops rallied around their profession-even comments from the National Enquirer-the stalwart of chump media. Worth a look if they replay-for entertainment purposes only.

Now-where are all those yummy eggs-to the hunt!
Re: Blog Wars Continue, With The Opposition Shooting Blanks By n-tres-ted on 4/16/2006 9:10 AM
bobo,

The current plaintiffs could ask the court for a preliminary injunction prohibiting any distribution of assets to the defendants' investors, so as to preserve assets necessary to answer any judgment of the court rendered in the future. Plaintiffs would have to show a likelihood of success in their claims and a size of judgment that would likely be uncollectible if the injunction is denied. Short of getting the injunctive order, all the plaintiffs could do after they win an uncollectible judgment is file another suit against the investors who got their money and ran before judgment day.
Re: Blog Wars Continue, With The Opposition Shooting Blanks By TheresASpyInTheHouse on 4/16/2006 7:33 PM
I don't know Bob, 'lil GW's coming awfully close to invoking Godwin's law (http://en.wikipedia.org/wiki/Godwins_law). I think we will have to declare you the winner...
Re: Blog Wars Continue, With The Opposition Shooting Blanks By aldigit01 on 4/18/2006 8:02 AM
Bobo, while not able to confirm your thought that a material change in the hedge fund management makeup allows investors to pull out their investments and "profits", here's some very interesting timing. HedgeFund Intelligence (aka AbsoluteReturns) just put out a big puff piece on our favorite Rocking soon to be ex-hedge fund manager. http://www.hedgefundintelligence.com/ar/current.htm . Don't have access but I've heard that it touts a gain of 46% in 2005 and assets now up to $1.3B.

Pump and dump? Pumping Rocker's funds so the assets don't decrease too much as long time investors are given the opportunity (warning?) to pull their money out. Some new retail millionaires being pulled in as bag holders?

The timing appears to be very interesting..

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