Thursday, April 7, 2011

The other way the Casey frontrunning scam works

And so begins another tale of Casey Research frontrunning and general ripping off of its plebeian subscribers for your education and edification.
Yeah owly, really. On February 25th Louis Lobito James, the senior metals analyst at Casey Research with no formal degree in geology or metallurgy to his name, decided to call buy on Gold Bullion Development Corp (GBB.v), a small Quebec junior gold explorer. That's fair enough, but the problem is that he only told a fraction of the people who subscribe to Casey Research that it was a buy. Here's the start of what he wote at the time:
Gold Bullion Development Corp. (V.GBB, C$0.52, 158.5M SO, 188.1M FD, C$82.4M MCap, C$6M Cash)
BUY (First Tranche, on Spec)—The CEO here is Frank Basa, whom I was (continues)

At the time, the stock was 52c, but Lobito didn't pronounce his positive conclusions on GBB.v far and wide, because this information only went to the privileged few that pay extra money for the A-list "alert" Casey Research 'Alert' service (they call it something else I think, but what it boils down to is "pay more and frontrun the cheap seats"). GBB.v then made a small upmove on improved volume due to buying from his privileged A list before....well, it dumped hard straight afterwards, in fact and bottomed out a full 26.9% lower than his buy reco price at 38c before floating on for a month or so in the low 40s.

But there's always good news when it comes to being a Casey A-lister, because if you manage to find yourself in a dog stock you can rely on Lobito and his gormless B-listers to bail you out. How so? Simply, if the reco doesn't work out he'll then reco the same stock to the B-list that gets the monthly International Speculator publication at a later date, they'll wade in like the sheep they are and those who bought in badly earlier have a neat and voluminous exit point...no harm done, on the to next

And sure enough, in this month's Intl Spec GBB.v was featured as a new buy and...


...sure enough, the volume surge saw it bought up to 51c (see the above chart)...all the out you could have wanted from this stale pick. Ain't that lucky?

One of the things I like most (well, 'like' in a rather perverse way) is the sheer barefacedness of the way these serial price manipulators go about their dirty work and to that end I've made sure that clipping from the Casey rag includes their "disclosure". In essence what they're saying iwith that disclosure you see there is "We're frontrunning you AGAIN and now that you know you're getting front-ran it's perfectly alright and we can carry on ripping you off...thank you for not noticing our little scam". For sure it's probably not illegal (note the word 'probably' there, because one of these fine days, if there's enough moolah involved I reckon there's plenty of room for an ambitious lawyer to have fun with these guys) but what this crowd of crudballs do on a regular basis sure is morally despicable. Under normal circumstances the three-card trick they play will prime a stock for an A-lister easy win, with the later Intl Speculator reco giving the tipped-off buyers a volume-laden exit point and easy percentage gains, but even if the whole thing goes wrong on Lobito and his pick turns out to be a dud, there's always the "palm it off on the sheep" exit for the A-listers....and the poor saps on the B-List who bought today will just have to learn the hard way (or not at all)

To round off, IKN would like once again to make the case for the Casey Research 'A List' expensive "hear it first" service and we're doing Casey Research a favour by marketing its expensive subscription for them all. Really, if you get the Intl Speculator but not the A-listers service, you're not doing yourself any favours whatsoever and you're also THAT clsoe to finding a real way to beat the market and rig the whole game in your favour. Why are you still on the cheapseat B List when 1) you're getting reamed by the A-listers every single month and 2) you too can sign up for the expensive Casey service and frontrun the poor saps that only get the Intl Speculator, too? So if you're a morally bankrupt piece of shit with zero scruples who enjoys making money at whatever cost, the boys at Casey will suit you down to the ground. Give them a bell today...and ask for that A-listers' thing, yeah?