Welcome to Stocklemonaide!
Howdy. Welcome to the wonderful world of Stocklemonaide! What is Stocklemonaide for heaven's sake? Long story, but hopefully I can get all of this information out there for everyone, because I find it VERY important!!!
So, you know what to do when life hands you lemons, right? Well, it isn't always that easy, especially in the stock market. You see, there is a website out there called Stocklemon.com. I can't tell you what kind of service they claim to be, because on their website, they don't really claim to be anything. When you go to their website, you see the current 'report' on whatever company they have their sights on at the moment, a link to see their 'scorecard', and a bunch of archived reports. They don't have a mission statement, and they don't post any information about the 'investigators' .
The funny thing is, they have a startling success rate. When you check out their report card you will notice that they report to have investigated 54 companies.
Here are the results according to that reportcard:
- 24 Grade A+: Company delisted, subject of regulatory action, stock halt and/or shareholder class action suits, stock collapse
- 18 - Grade A: Massive share price collapse of 75% or more since stocklemon report
- 9 - Grade B: Substantial share price drop since stocklemon report - 30% or more (But wait, isn't 75% more than 30%? - are they double grading these?)
- 1 - Grade F: Stock price appreciation
- 2 - Grade I: Incomplete
Holy Cow!! Wow, these guys never miss!!! LOL.... For the purpose of getting ready for what I am about to teach you, I want you to do the following before proceeding:
- Get up and go to the person nearest to you
- Tell this person 'I am psychic'
- When the person asks 'How are you psychic?", Respond "You are going to have a really bad face-ache"
- As they stand there, looking confused, punch them AS HARD AS YOU CAN in the face.
- Say "I told you I am psychic" and walk away.
- Come back and read some more about stocklemon.com
I guess I could have just said that Stocklemon creates self-fufilling prophacies, but that was a better visual of what seems to be the stocklemon business model. You, see, I am fully convinced that stocklemon is the Public Relations arm for either a single large hedge fund, or a network of them. These hedge funds perform a vicious "Bear Raid" on a stock by short selling the stock, and crushing the share price at the same time. This causes panic in investors, who sell out, assuming the worst. It also causes a lot of investors 'stop losses' to get triggered, and their stock is sold automatically when it goes below a certain price. This is especially bad, because if that order is a 'market order', and the stock is under the full attack of a large hedge fund, those orders may very well get filled at the low of the day. For more information on 'bear raids', check out this link http://www.resourceinvestor.com/pebble.asp?relid=12062.
Here is the current disclaimer on the stocklemon website, if you bother to read that far:
"At any times the principles of Stocklemon.com might hold a position in any of the securities profiled on the site. Stocklemon.com Will not report when a position is initiated or covered. Each investor must make that decision based on his/her judgment of the market."
Another ploy that Stocklemon is accused of is using the various financial message boards to create 'FUD' among investors. 'FUD' = Fear, Uncertainty, and Doubt. I will chronicle the startling relationship between Stocklemon's most recent target, Home Solutions of America, and the sudden appearance of numerous posters on the Yahoo Finance message board for that company. These posters, out of the goodness of their own heart, showed up just in time to 'warn' everyone of the pending doom, and the stellar track record of the Lemon. LOL, real humanitarians, no doubt. I'm sure they didn't hold a short position in the stock either, wink wink.
So, I am guessing that some of you are thinking 'Isn't this illegal'? Well, it seems that there is no clear answer to that question. Stocklemon.com Seems to have at least one active lawsuit against it at almost any time. Here is another blog that details a lot of the lawsuits against the Lemmonheads: http://search.netscape.com/ns/boomframe.jsp?.query=stocklemon&page=1&offset=0&result_url=redir%3Fsrc%3Dwebsearch%26requestId%3Dbd81eca091de2ab3%26clickedItemRank%3D15%26userQuery%3Dstocklemon%26clickedItemURN%3Dhttp%253A%252F%252Fsocialize.morningstar.com%252FNewSocialize%252Fasp%252FFullConv.asp%253FforumId%253DF100000005%2526convId%253D172120%26invocationType%3D-%26fromPage%3DNSCPResultsB%26amp%3BampTest%3D1&remove_url=http%3A%2F%2Fsocialize.morningstar.com%2FNewSocialize%2Fasp%2FFullConv.asp%253FforumId%253DF100000005%2526convId%253D172120
And here is another article that details the legality of short selling, in this case when a lawsuit is filed in conjunction with a short sale: http://www.legalreforminthenews.com/Reports/WLF-2-24-06-MAYahya.pdf
This is just a beautiful situation. Stocklemon.com Proves a trackrecord by attacking mostly pink sheet and otc stocks. They generate a following of opportunistic short sellers impressed by their 'results'. They sit behind a mask of anonomyous and thrash away at companies, while that the stock is shorted without mercy. The company then has to defend itself, is distracted from operations, and their ability to hit future goals could be compromised (i.e. the loss in market cap may prevent future M&A activity). And the law seems to be on their side, or at least ambivalent about it. What a country, eh? How did you make your 50 million today?