"I just want to make one point clear. Ihub has lit
Post# of 22940
couple of points - in theory and practical application - i agree that this should not be a forum to deride iHub. however, that being said - i completely disagree that the forum does NOT have an influence on SP. i would argue that in the short term it has a very MAJOR impact - specifically when convertible debt is being converted.
for those that think it is a bunch of amateurs or low level day traders that make up the site you will be doing yourself a disservice to think that and not fully understand how and why that site operates/exists and how it influences thinly traded stocks - specifically those with high convertible debt and/or highly leveraged. the site is extremely sophisticated in its layout, administration, and coordinated efforts to guide investors and traders to its sites/boards and get them returning. there are many groups that are part of the site and independent that will collude and manipulate to create momentum swings through volume surges and be doing the opposite of what they are posting. new investors/traders that do not understand money flow or how small groups can create big swings can get knocked around pretty quick. again - can this be "proved" by an individual - no. but - doing thorough DD on the site/SEC and then studying the individual posters and some case study stocks - one can draw their own conclusions.
now - one can choose to pariticpate in the discussions and/or just use them as a barometer to when/how the groups are trying to move a stock. THAT is where the pro traders that are NOT affiliated with the site will take advantage. they rarely post. they see where the "chatter" is and who is doing the chattering and then follow the charts religiously. where the site has major influence is shorting the hell out of a stock that is being diluted. they use coordinated attacks and usually done in collusion with MMs that are aggressively shorting naked (again - Google this to confirm for yourself and what the SEC has successfully charged them with).
now - long term - the fundamentals of the company and execution will be the ultimate determiner of success. however, consider how many shares were diluted that had to be bought back and where the share price could be today with the same number of investors without the naked shorting...? so - it DOES have a material affect. but again, understanding the how and why can provide significant leverage as a long term investor if one finds a real company with real potential. the investor can buy a disproportionately larger position in the company as it is being diluted away when there is blood in the streets and a large naked short position that will have to be covered (because the company is not an empty shell that will go away and thus not require covering).
last point today - for those hanging on Twitter every day for an update on POs, news, etc - that is NOT long term investing. if one believes in the company and business plan - than the updates being provided should be adequate to confirm the company is on track. again - using the buy on the rumor/sell on the news adage to increase holdings during the carnage is always prudent if proper DD is done and one understands why a security is moving in any particular way outside of major changes in company fundamentals.