Sure...very common place in the OTC, and we're one of today's targets. 1) A large group of investors get together and plan an attack on a stock. Sometimes MMs and their computer algorithms will do this as well -- and there's no way to beat an algorithm. 2) The investors communicate with their leader to drive the price of a stock down, usually in 10K share buys...this is called "walking it down." If you can take a stock, like ours, down from .003 say to .0023, you can buy millions of shares then walk it back up (10K share and other small buys), simulating a run...especially to those trading blind...no L2. Many will see this as an opportunity to "load cheapies"...and it can be, but it also facilitates the flippers in walking it back up. Once they get to say .0028, they all sell...or as many as can dump. This yields a 15-20% profit. If you buy a million shares at .0023 and sell it at .0028, you net $500 on the day; if all works at that rate, they make $10k per month, $120K per year. The sell-off is then walked down again (usually lower), and then the process repeats. The run is facilitated by hundreds of posters on iHub, etc. saying... "The run has started!" and they appeal to greed by saying, "Pennyland coming!" "Copper and silver on its way!" etc. Then they dump and leave, usually quickly and with the pps deflated. With no volume the next day or two after, everyone wonders what happened. Hit and Run. It sounds easy, and it actually is...but you have to be willing to have no ethics and be willing to engage in illegal collusion. In the OTC, where enforcement is light at best, this happens every single day. You can ride their coattails for less money (and get caught and lose sometimes, as I just did with PKGM), but you'll never make as much, and you'll often get caught on that last run up. The game is rigged, and no one but those acting illegally -- and the MMs --can make that much money regularly, legally, IMO. I possess those ethics and won't engage in that kind of activity. At most, I ride coattails...to mixed results. Hope that helps! If you don't have L2, get it and watch these things play out on a daily basis with many OTC tickers.
(5)
(0)
Trans-Pacific Aerospace (TPAC) Stock Research Links