/biz/ - Business & Finance

>>56949239
Here's a current example:
Western Exploration (WEX.v) is running out of cash and needs to raise soon. It has hired Robert Sinn (a.k.a. @Goldfinger) and Shad Marquitz (a.k.a. @Excelsior) to write glowing recommendations of the company. Their function is not to raise the share price in order to decrease the cost of capital in the forthcoming private placement, but to provide liquidity for insiders to dump shares from their offshore accounts prior to reloading in the financing and acquiring warrants at no cost. They will apply a portion of the proceeds from the offshore sales to make public purchases in the financing, the result of which will encourage private equity managers like Matt Paul (a.k.a. @KilconaVC) to reassure his heavily underwater clients that the company insiders believe their own bullshit. (Paul has been selling this shit to his clients since the stock was over $2 and now sits at $0.66.)
In the end, the pumpers make a handsome fee, the insiders collect nice profits from their cheap founders and seed shares which are safely stashed in offshore nominee accounts, and dumb retailers are left holding the bag.
Promoters aren't your friends, and they certainly don't act in your interests.