Hype: Buy Now! Now! Buy!
EXCLAMATION AND EXAGGERATION are of course the twin pillars of the Hypester's strategy. He routinely hops from one service to the next posting exaggerated, semi-literate, growth claims for the chosen peewee company. With over fifteen million users on the Internet, over one million on Prodigy, and three quarters of a million on America Online, it doesn't take too much noise to get inexperienced investors interested.
ILS, like many other hyped stocks, had a half-dozen bulletin boards raging on Prodigy where investors posted hourly quotes while dreaming out loud about the stock's prospects once the company began supplying the components for millions of pre-fab homes in Africa (though no such deal was announced), after Central Russia.
Invariably, at least one Hypester will have flown to the distant country to view operations, and maintains communication with management on a twice-daily basis. This go-between speaks confidently of his access to inside information, and drops hints (sometimes even correctly) regarding the timing of upcoming news announcements.
Such a go-between is "Spence," below. Spence's intimate knowledge of Interlock's plans may be taken either as consistent and bald-faced prevarication, or public evidence blatantly incriminating the company in the manipulation of its own share price. It has to be one or the other:
"Brian, with all of the buying in the last week, ILS has traded its entire float. The company has the buying coming in at different stages from different investment people. There is another group kicking in next week and should send this one higher. The goal of this company is to get it to 1.25."
"I had a discussion with someone at the company today. This is what we can expect. First announcement to be made on Monday or Tuesday. It will be the first of several announcements on the Russian deal. The company isputting off the private placement at 1.25 because of the way the stock is reacting. They will do it at higher levels, if that tells anyone anything.They have groups lined up to buy and run this to the 1.50 range now.
"With the company starting announcements, they are making several. The first announcement may not even mention numbers but I will know when I get it. But the point is they are going to stretch this one out so they can keep driving the price up. The second announcement will be made in about two weeks, and keep in a cycle like that.--Spence