Your Stock Support Budget

Written by William Cate


Your Stock Support Budget By William Cate Published November 1999 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

It costs money to create share buying. Every public company must findrepparttar buyers for their shareholders' stock. You must haverepparttar 112463 buyer when your shareholder sells. If your company fails to findrepparttar 112464 buyers, your share price will collapse.

To maintain your present share price, your float will trade four times annually. Your float isrepparttar 112465 stock held by your public shareholders. If your company's float is one million shares, you must expect to find four million shares of buying inrepparttar 112466 next year. If you keep your present shareholders, you'll cut your stock support costs by 100%. If your insiders can't sell and thus add torepparttar 112467 company's float, you'll reduce your future stock support costs by fourfold for every unsold insider share.

The annual supply and demand for your company's stock isn't constant inrepparttar 112468 Market. You get a favorable write-up. Demand for your stock temporarily jumps up. A major shareholder liquidates their position. The supply of your stock temporarily increases inrepparttar 112469 Market. You need to levelrepparttar 112470 supply/demand curve. You can often do it by working with your shareholders. Your goal should be to maintain a sustainable share price. Your share price should trade within a narrow range.

There's a silver-lining about bad news. If your shareholders hear it from you, you'll gain credibility. If they hear it from you, it won't sound as bad as hearing it from their broker, a newspaper article, or inrepparttar 112471 Shareholders' Annual Report. Budget money to spread bad news. It's a sound long term strategy.

A Stock Support Rule of Thumb for OTCBB companies is that it costs a dime to create a share of buying, when your share price is below one dollar. For a share price above one dollar add five cents for every dollar ofrepparttar 112472 share price above one dollar. This means that it costs a quarter to support a four-dollar share price. Multiply this share cost by your float and then by four and you have an annual budget for stock support.

CyberHype 101

Written by William Cate


CyberHype 101 By William Cate Published February 2001 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

Hire 2-3 Boiler room salesmen. Former stock brokers, who have lost their license, are best. Your cyber-hypsters can each register as scores of phony stock investors at each Internet Stock Chat Board (SCB), like Raging Bull or Silicon Investor. There are over 200 SCBs. You'll need to spend about $60,000-$100,000 on your computer hardware and software. However, you've created over 1,000 investors to hype stocks.

The cyber-hypsters can control any stock board. They appear to be 10-20 or more enthusiastic stock investors. They claim to be long in that stock. They tellrepparttar Board thatrepparttar 112462 share price will go torepparttar 112463 moon. Critics ofrepparttar 112464 stock are called "Bashers." They are insulted, ridiculed and their issues are ignored. The cyber-hypsters post support messages to these attacks, using other names. It appears that every investor atrepparttar 112465 Board strongly favorsrepparttar 112466 stock. The critics soon shut up and move on. Ifrepparttar 112467 critics comments, againstrepparttar 112468 stock had merit,repparttar 112469 cyber-hypsters complain torepparttar 112470 Board Sponsor and haverepparttar 112471 critics posted comments removed.

Nowrepparttar 112472 goal is to gather pigeons torepparttar 112473 Pump & Dump (P&D) Board. This can be done with spam. It can be done with free online investment letters. It can be done as an adjunct to a traditional boiler room stock promotion. It can be done with a direct mailing. Whatrepparttar 112474 promoters want is to putrepparttar 112475 pigeon into an environment where they are told to buy, buy and buy more of whatever worthless stock is being pumped.

Getting pigeons torepparttar 112476 Board can be done by pooches. The Canadian word "pooch" refers to a pigeon who will helprepparttar 112477 hyster by bringing other pigeons torepparttar 112478 slaughter. The pooch supplies friends, family, and business associates as buyers ofrepparttar 112479 stock. A "pigeon" is anyone who puts their hard earned money into a stock scam.

It can be done by movingrepparttar 112480 pigeons from one Board to another Board. There are cyber-hypsters who post on all Boards spam that encouragesrepparttar 112481 pigeons to subscribe to a free newsletter, visit their website or visit another Board.

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