One of the features of emergent sectors in the stock market is the ‘pump’. You’ll hear it alot.
psst…I’ve heard that….
It won’t sound like that.
It’ll sound more like: “These guys have it together”. Big gainz ahead”. “I’m comfortable with them”. “Steady hands”. “Weak hands”. “Strong management here”.
You get the idea. It’ll sound whatever it needs to sound like to make a pitch.
It’s the same as getting a tip to box a triactor, or wheeling one to the board.
Don’t know those phrases? I grew up with them in my formative years.
My uncle liked the ponies. A couple of Saturdays a month, we’d spend time together. Which meant going to the track.
He didn’t like the trotters which are also known as ’standardbreds’. This is opposed to thoroughbreds(sometimes called the ‘flats’ in the parlance). Think Kentucky Derby. Triple Crown. Secretariat’. ‘Man o’ War’.
The distinction is that the flats are known as being less ‘predictable’ among horse racing enthusiasts (read: gamblers) than the trotters.
Trotters offer lower odds of course, across the board. Less risk, less reward. Same as investing.
While u/mollytime doesnt do ponies (at least since he was 12), the same chatter that takes place in front of a cage at a track takes place around investing in companies. OTC markets, pink sheets, and the dark urine soaked alleys behind the VSE, are far worse than a race track for getting tips.
A few years ago (like 1998-99), I got a ‘tip’ from a friend about the ‘internet’, ‘Japan’, and grocery shopping. Buzzword bingo. Checked the boxes. Without realizing it, I was in front of a cage at the track, eager to hear about the next race.
Being a young u/mollytime with a few bucks, I bought into a pump and dump company that promised to bring easy shopping to the Japanese housewife’s busy life.
With only a few clicks, she could have all her groceries delivered to her house. Preorder on the net, it will come in only a few hours, delivered by a guy with a smile on their face, and at reasonable prices.
Sad thing was, Japanese women hate the idea of buying stuff online, and not having a reason to get out of the house and maybe go for lunch with a friend. Just like everyone else in the world.
Better yet, the code stream was all in frames, there were no developers, and it was run out of a corner office that had a total of 1 employee who was lucky enough to answer the phones for $25k a year. THE PRESIDENT made more much more than that. And he was called ‘MR. PRESIDENT’.
I can’t remember the name of the wet fart I bought into, aside from losing 10 large in it and using it for capital losses against a home run I happened to hit that year. Lucky me.
What’s this got to do with dope?
Here they come, around the corner….neck and neck.
All the shills looking for marks…and all the hands looking for dips.
Wherever there’s a gold rush, every tagalong, roustabout, wannabe, hope’fer, and ‘as seen on TV’ Ronco live pitch will be out there on the midway speaking cant for the 24 hour man seeking an after-catch. Wanna catch up? Try this.
And they’ll have a few like-minded’s in the crowd making sure the rubes cough up plenty.
“What did you buy today? I picked up some XXXX”. “QQQQ is cheap at twice the price” “Weak Hands, I’m long and strong”
My personal favorite: “…with its wings extended and drying out in prep for an amazing journey”.
My god, that’s a gold medalist.
Aside from opinions on listed stuff….with all of the real stuff so comes the mutts. And their owners want you to carry the bags once theirs has taken a dump. The reality is they will always be there, in every market, ready to pay you out in coupons and stuffed animals rather than cash.
They are at their worst during times of growth and change….because that’s where their promises mean the most.
And it’s really tough sometimes to spot them.
If you are prudent….be wary. There’ll be a ton of folks trying to help you part with your money on promises of previous conquests (that never actually made money, but have a website and an elevator pitch), of accomplished ‘management’ (that’s actually presided over 18 liquidations and are directors of 176 companies), or have a bauble of ‘proprietary’ knowledge that’s ‘gonna be a game changer’.
Don’t hear a lot about Sham-Wow’s now?
It’s ok. They’ve moved on to selling dope.
There’s real companies with real prospects out there. Spot them, before the hustlers on the midway spot you.
tldr ‘Would you like the ‘small’ or ‘medium’? Remember, it’s 3 small for one medium…