“The unscrupulous attempt to hype a stock one is holding to get the price to rise, then selling as soon as it does”.
"Pump and dump" schemes, also known as "hype and dump manipulation," involve the touting of a company's stock (typically microcap companies) through false and misleading statements to the marketplace. After pumping the stock, fraudsters make huge profits by selling their cheap stock into the market”. (US Securities and Exchange Commission)
“A scheme that attempts to boost the price of a stock through recommendations based on false, misleading or greatly exaggerated statements. The perpetrators of this scheme, who already have an established position in the company's stock, sell their positions after the hype has led to a higher share price. This practice is illegal based on securities law and can lead to heavy fines. The victims of this scheme will often lose a considerable amount of their investment as the stock often falls back down after the process is complete”. (investopedia.com).
JRV’s share price peaked in the period June-July2008. (See footnote).
Why would someone who has been touting JRV as “could well become the Fortescue of nickel” (that’s good) or “I thought this must be the most undervalued company in Australia”(even better) be selling their shares? Do these statements fit any of the above definitions? They were recommending this stock to their clients as a good ‘speccie’ to buy and at the same time they were selling and stuffing money into their pockets? Good time to sell?? Tell us Tricky, you weren’t selling shares during this period? Perhaps you were also telling your clients to sell? This would seem unlikely as the next question from them would be, “are CRR going to pull out of the deal”. Surely this would not be the case after they had just signed the Framework Agreement. So why sell shares? Did you know something others did not, or was it simply ‘opportunistic trading’. Should you even have been trading at all since you, as an associate of Double Link, were involved in negotiations? Did you think this deal was doomed from the start? Why would you have that view after your glowing comments about JRV in the Eureka Report?
How about this written by you (3/6/2008): ”Jervois has managed to structure the deal so that Jervois shareholders get a free-carried interest in a planned 50,000 tonne a year nickel/cobalt operation reassured by the knowledge that China Rail is expecting Jiaming to Perform(my emphasis), not Jervois”.(RC)
”Mr. Pursell and his team will have a 19.9% partner which has to earn its interest by Fixed Milestones (my emphasis) and once set up as a major shareholder one that can add deals and ideas or potentially take its interest higher by buying on the market”(RC). This sounds all very positive and no doubt your clients bought shares in JRV.
Why,why,why would you be selling? Nobody knows what your shareholding was when you were appointed a Director at the end of July 2008 because you failed to make sure an initial shareholding was lodged (Appendix 3X). This was finally lodged on the 18/12/2008!!!! Your failure to lodge a 3X notice makes me suspicious that all is not kosher. If you did not trade shares after being appointed a Director let us all know.
Instead of swanning around like some sort of Machiavellian caricature, ring your clients you recommended JRV to, and explain to them why you sold shares in the middle of negotiations with CRR. Perhaps as a ‘China expert’ you know how they do business. They owe the rest of the World nothing and to think they do favours in business is naive at best. According to you, CRR are just waiting to step back in after a change in the Board. That view carries about as much weight and substance as fairy floss. Do all of us shareholders a favour and just go away, with Weakest Link, and all your associated cronies. You and your little mates have given JRV nothing of substance to bring Young closer to nickel production. You don’t even have confidence in what you do as your blatantly opportunistic share trading indicates.
Take a good hard look at yourself and apologise to your clients and JRV shareholders if any of the above is true. Is it any wonder you are trying to blame others for the deal falling over. Try this for reasons: read the business section of any paper and you will find the answers.
If you can prove that this post is a malicious set of lies or inaccurate, I will ask the mods to remove or I will post a retraction with a sincere apology.
This writer did not write the ‘Pump and Dump’ definitions or claim that this occurred. Definitions by their nature are open to interpretation and analysis. Others can judge that and make comment.
Footnote: JRV share price history 3 June 2008 - sales @3.8c, Over 26m traded 10 June 2008 – sales @2.4c, Over 17m traded 20 June 2008 – sales @3.2c, Over 50m traded 30 June 2008 – sales @2.7c, Over 5m traded 14 July 2008 – sales @2.4c, Over 1.7m traded 25 July 2008 – sales @2.3, Over 4.9m traded Source: Commsec.
This period coincided with the peak price for JRV shares after the signing of the Framework Agreement, your own publications, and the publication of the Eureka Report article with reference to ‘Fortescue’. This writer does not imply any criticism of the Eureka Report or any of their journalists.
The Eureka Report IMO is a very reputable publication and a very useful reference for investors.
Deepdiver
P.S. JRV IMO is undervalued and the nickel deposit is a beauty which needs a process. Ravensthorpe gave nickel laterites another black eye last week although everyone (?) knew it was doomed from the start. Time for a rethink on nickel laterites and I hope JRV keeps going with their R&D on a viable process. Gee there would even be a benefit for Norm and other shareholders if JRV are successful!!
JRV Price at posting:
0.5¢ Sentiment: None Disclosure: Held
(20min delay)