I’ve explained this term to TIMalert subscribers and I’ve touched on it in recent posts about buying penny stock breakouts and in this post featuring the best and worst performing stocks of 2009, but this is an important concept, one I don’t believe has been addressed by anyone…so it’s long past due.
Merriam-Webster Dictionary defines racism as:
Main Entry: rac·ism
Pronunciation: \ˈrā-ˌsi-zəm also -ˌshi-\
Function: noun
Date: 1933
1 : a belief that race is the primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race
2 : racial prejudice or discrimination
— rac·ist \-sist also -shist\ noun or adjective
Stock racism can be defined as:
Main Entry: stock rac·ism
Pronunciation: \ˈstäk\ ˈrā-ˌsi-zəm also -ˌshi-\
Function: noun
Date: 2010
1 : a belief that exchange and price are the primary determinants of stock traits and capacities and that differences produce an inherent superiority of a particular stock/s
2 : stock prejudice or discrimination
— stock rac·ist \-sist also -shist\ noun or adjective
Make no mistake; racism and stock racism are taught by the narrow-minded and passed on generation to generation. As President Obama proves, it can also gradually be untaught.
And yet in this era of racial enlightenment, there exists an even greater divide in finance: those with wealth and power who discriminate against the smallest, most speculative stocks in the world: penny stocks….what makes it a little different is that the rich and powerful get compensated by and advertise penny stocks even as they teach and warn against them.
All of which serves to hurt retail investors financial and knowledge-wise as they are fed misinformation from “trusted” media sources…when lose big based on this misinformation, they blame the “randomness” of penny stocks when in fact they should be blaming those “trusted” media sources…corrupt organziations like StreetInsider.com (see how they took a $4,000 penny stock bribe), Motley Fool, & Seeking Alpha (they allowed a wannabe stock promoter to promote 2 pump & dumps just days before each collapsed)
99.999% of the civilized world has been taught in schools, books, magazines, newsletters, TV, websites, everywhereeeeee that penny stocks are dangerous, random and risky so they should focus on stocks of more secure-and-complex companies (as in waaay too many moving parts for retail investors to ever have great odds of success) like Bank of America Corporation (BAC), Wal-Mart Stores Inc. (WMT) and SIRIUS XM Radio Inc. (SIRI)…
Since penny stocks are my specialty, people look down on me too: there is a reason why after getting tons and tons of press 2006-2008, I stopped trying: because nobody will let me talk about penny stocks, especially in a brutally honest fashion (as I discovered while giving a keynote speech at the corrupt (yes, they get paid-to-promote-penny-stocks EQUITIES magazine conference a few years back)
You want more examples: how about Motley Fool refusing to publish a review of my book An American Hedge Fund because it casts penny stocks in a positive light (even though my book serves as a warning not to trust anything related to penny stocks and that I became a millionaire by doing hardcore research and cutting through the BS…yes you can short sell penny stocks)
Ironically enough, as I’ve pointed out, Motley Fool spams the internet with articles titled “The Next Million Dollar Penny Stock” luring people into believing they can hit the jackpot and then doing something far worse: renting out their readers’ emails and adspace to penny stock promoters for ridiculous sums of money…
Despite my being the #1 trader out of 40,000+ on Covestor, my strategy, my instructional DVDs and I offend a great many people, as evidenced by one of my most successful calls buying, yes buying, Pink-Sheet listed Infinity Energy Resources Inc. (IFNY) (as I said in my initial alert to TIMalert subscribers and blog post, I don’t believe a word they say, but I am not a stock racist and I go where the opportunity is…IFNY was clearly breaking out and their hourlong conference call foreshadowed positive news in the next week…I mistimed my trade, but I was dead on about it breaking out with the stock surging 60% within a few days after my buy alert, announcing the positive news which I expected and TIMalert subscribers earned $4,000+
Despite me being dead on after doing hours of research, a trader I once respected and proud stock racist, Lionmaster, said this:
Again, Tim had the weirdo DD to call IFNY, pink sheet a buy on Friday, probably a paid pump/dump stock, I no longer endorsing his paid newsletter, no real DD at all, everywhere and subs getting spanked. Not until he sticks to his old shorting of paid pump dump stocks, no value for his subs newsletter, prob more negative utilility now, a one man paid gang site.
later this stock racist posted:
just banned timmy for posting pink sheets, again, stop posting that paid pump dump pink fraud
The problem with his thesis is that I didn’t post the Pink Sheet stock–I knew full well Lionmaster is a stock racist, but when he attacked my pick and said I no DD (due diligence), I corrected him…no different than a black man defending himself against white attackers and then the white attackers accusing the black man of assault.
The fact that I did extensive research on IFNY, warning my subscribers that I didn’t believe the company, but acknowledging that any positive press would probly spike the stock to $3 (which I absolutely nailed), just enrages me further….little different than a black man being convicted fo a crime he didn’t commit based on the color of his skin due to the jurists’ racism.
I don’t know if this Lionmaster stock racist was drunk or what (he shut his site down yesterday for an hour when one of his site’s own commentators disagreed with him…little tiny baby prefers his ilk to be warmed up before bedtime or he gets cranky), but he seems to have forgotten that I made my first $1 million BUYING pumps…not believing the hype but PIGGYBACKING it…and that my instructional DVD packages teach exactly this…basically I stuck to my strategy, made a great call and now I am banned from the stock racist site TheLion.com, a site I formerly respected, despite what many people say…(see his site reviews)
Let’s forget entirely about me for a second and focus on the single best performing stock of 2009, a Pink-Sheet-listed company…Briefing.com came out with their list and totally ignored it due to it being a Pink Sheet-listed stock…blatant stock racism.
These are just a few examples out of thousands…stock racism rears its ugly head each and every day in too many forms…people are right to be wary of illiquid speculative stocks, but to stereotype them, despise them, look down on them and to automatically write them off is dead wrong.
Achieving equal rights for all stocks will be a long and hard battle, but fighting for the rights of poor penny stocks is a worthy cause, especially since those delivering the racist messages do so because their business and credibility depends on maintaining such widespread ignorance.
I promise you this: I will burn every stock racist financial media company to the ground as I am deadset against stock misinformation and racism. I am not against stock promotion (creates many great trading setups), but what I do have are a very particular set of skills; skills I have acquired over a very long career. Skills that make me a nightmare for people like you. If you stop the bribery and misinformation now, that’ll be the end of it. I will not look for you, I will not pursue you. But if you don’t, I will look for you, I will find you, and I will kill you (kill your misinformation that is).
And if I get stopped, others will follow in my footsteps because I’ve created an army of people who have bought a ton of instructional DVD packages and the truth is a powerful weapon.
As evidenced by the early success of Investimonials.com, a new financial world full of transparency is upon us. Stock racists and scams represent the past, not the future. Join or die.
Posted in Analogies, Lionmaster, Stock Racist