P&D stands for, "Pump and Dump."
"Pump and dump" is a form of microcap fraud that involves artificially inflating the price of a stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme "dump" their overvalued shares, the price falls and investors lose their money. Stocks that are the subject of pump-and-dump schemes are sometimes called "chop stocks."Next time some genius accuses me or anyone else of pump & dump, understand that you are accusing someone of a crime, for which the remedy is a tort called Slander. You might also want to know what the salient elements of P&D are:
While fraudsters in the past relied on cold calls, the Internet now offers a cheaper and easier way of reaching large numbers of potential investors.
(1) False and misleading positive statements;
(2) In order to sell the cheaply purchased stock at a higher price.
Unless both elements are present, there is no "pump and dump" only slander per se (per se because I am an attorney). The fact is, I still own every stock I mentioned in this blog this year and I also have had a huge short position on, so I could withstand a little drawdown on those longs, while cleaning up on those shorts.
As for the poster or anyone else seeking personalized trading advice, call Cramer. I'm here to share my ideas, not to give advice.
On a brighter note, my readership has grown exponentially in the past six months and I continue to get welcome appreciation of so many of you, through emails, donations and positive comments. Those of you with your heads on straight should take away from this Blog a wealth of insight and newly found skills in trading your own accounts. Clearly, that is representative of the vast majority of my readers and I hope that I continue to be worthy of your praise and support as this year rolls on.
Be forewarned that there is a major low coming and we will all spend much of 2009 building wealth on the Long side of the investment arena. We just aren't there quite yet. So be prepared for the ride of a lifetime, but only when the market says, "Buy, buy, buy."