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Latest Comments60 Comments
Switching from Momentum to Micro Cap Companies
www.billcara.com/archi...
<b>I wonder if "Karl from Brazil" is related to "Aleksey from Latvia" who was also a Microcap stock specialist?</b>
"Aleksey Kamardin reaped $13,158 in just 104 minutes buying and selling penny stocks.
The 21-year-old bought 43,000 shares in a small Wisconsin equipment company that makes, among other things, potato harvesters. He sold the shares less than two hours later at nearly double the investment.
Kamardin, allegedly part of an East European ring, repeated this scheme on 13 other occasions in July and August, defrauding investors of $82,960, according to a civil complaint filed yesterday by the Securities and Exchange Commission.
The complaint is one of the first the SEC has brought in response to an emerging trend of the digital era: a modern version of the old pump-and-dump stock scam.
"You wake up in the morning and all your blue chips are gone, and instead you own a microcap stock that is virtually worthless," said John Reed Stark, chief of the SEC's Office of Internet Enforcement. Stark added that he expected more complaints in the coming weeks, saying, "This is an area where we've become increasingly concerned."
www.washingtonpost.com...
Switching from Momentum to Micro Cap Companies
"The lack of reliable, readily available information about some microcap companies can open the door to fraud. It's easier for fraudsters to manipulate a stock when there's little or no information available about the company.
Microcap fraud depends on spreading false information. Here's how some fraudsters carry out their scams:
<b>E-mail Spam</b>
Fraudsters distribute junk e-mail or "spam" over the Internet to spread false information quickly and cheaply about a microcap company to thousands of potential investors. Spam allows the unscrupulous to target many more potential investors than cold calling or mass mailing.
<b>Internet Fraud</b>
Fraudsters often use aliases on Internet bulletin boards and chat rooms to hide their identities and post messages urging investors to buy stock in microcap companies based on supposedly "inside" information about impending developments at the companies.
<b>Paid Promoters</b>
Some microcap companies pay stock promoters to recommend or "tout" the microcap stock in supposedly independent and unbiased investment newsletters, research reports, or radio and television shows. Paid promoters are generally behind the unsolicited "junk" faxes you may receive, touting a microcap company. The federal securities laws require the newsletters to disclose who paid them, the amount, and the type of payment. But many fraudsters fail to do so and mislead investors into believing they are receiving independent advice.
<b>"Boiler Rooms" and Cold Calling</b>
Dishonest brokers set up "boiler rooms" where a small army of high-pressure salespeople use banks of telephones to make cold calls to as many potential investors as possible. These strangers hound investors to buy "house stocks" — stocks that the firm buys or sells as a market maker or has in its inventory.
<b>Questionable Press Releases</b>
Fraudsters often issue press releases that contain exaggerations or lies about the microcap company's sales, acquisitions, revenue projections, or new products or services. These fraudulent press releases are then disseminated through legitimate financial news portals on the Internet."
More here:
www.sec.gov/investor/p...
Cara may think that being in Canada, he is beyond the jurisdiction of the SEC. He would be wrong.
AMD Is In Real Trouble
US Gold May Be the Best on the Board
UXG closes today at 6.24, down almost 7% from the time Cara recommended buying it two days ago.
*POOF!* The "Trader Wizard" makes more of your money disappear!
US Gold May Be the Best on the Board
www.billcara.com/archi...
Now he recommends buying it again at 6.70.
Interestingly, on February 7, he was down on UXG, when it was trading at 5.03.
www.billcara.com/archi...
From this set of conflicting recommendations on UXG, Cara has perfectly articulated a "Buy High, Sell Low" strategy. The perfect way for people to lose their money, which is something at which Cara apparently excels.
Beware of the Data Underlying the Economy
Gold Fields Follow-up
A stopped clock is right twice a day.
And even Mario Mendoza got a base hit once in a while.
Still waiting for Cara to explain what people should do with their UXG (formerly USGL.OB), which has dropped by nearly half since he suggested loading up on it as a safety vehicle in July 2006:
www.billcara.com/archi...
When you lose half your safety money on an astonishingly bad recommendation, making up nickels and dimes on risky options trading seems cold comfort.
Gold Reserve, Crystallex Jump on Government Permits
But Cara's real quote was almost the same thing - on March 13 Cara said "I have written my last blog on Crystallex because I am not going to join the circus."
But the circus is back in town, and the carny named Cara is back at work.
www.billcara.com/archi...
Gold Reserve, Crystallex Jump on Government Permits
The fact that KRY bounces around on speculation and rumor shows the lack of any true value. Next week Chavez can give a speech about nationalizations, and the stock will drop by a third. This is not investing, it is gambling, pure and simple.
On March 13, Cara announced that he would have nothing further to say about this stock: "all I am saying is this company is dead to me." When it blips up on rumor and speculation, as it did yesterday, he's back to his old trick of pumping it and trying to take credit. A typical dishonest Cara move. I believe that he's doing this in order to give himself a "track record" to attract business to his newly-announced Bahamas-based investment advisory service. If you're sucker enough to entrust this man with your money, then be prepared to lose it all. Give it a nice party before you ship it across the Florida Straits, where it can finance a retirement lifestyle for a blogger with a history of bad financial and market calls.
The "dead to me" quote:
www.billcara.com/archi...
Constellation Brands Vs. Diageo: A Good Stock Picking Study
His current suggestion that he called for the purchase of DEO when it had such criteria is another lie - a fabulous construct which shows that Cara's intention is to deceive about his track record, not to give us an honest assessment of how his call turned out. If you doubt this, go back and read the initial post, and see if you can find anything even resembling today's RSI analysis:
www.billcara.com/archi...
Rather than honestly taking credit for calling for a sale of STZ, he insists on adding on an entire fabrication about how he called a bottom in DEO. This is a typical Cara tactic which we have seen before and will doubtless see again.
Constellation Brands Vs. Diageo: A Good Stock Picking Study
A bald faced lie. Yet again, Cara dishonestly takes credit for a call which he did not make. If you go back and read his April 8, 2005 post, he had this to say about DEO:
"Diageo, in fact, makes the Cara Global Best 100. You'd have read that before except the price of the stock at $59.59, is too high."
www.billcara.com/archi...
He was correct in his assessment of STZ, recommending a sell, but if you review his own words, he did not advise buying DEO, as the price was "too high."
I am fully prepared to give Cara credit where credit is due. But in today's case, his current post consists of one part truth with one part lie.
Is There A Golden Leak At The Fed?
Cara's allegation of criminal misconduct is indeed the same kind of "crying" that he is wont to do when his predictions prove wrong, as they so often do. Here we are at the end of March, and back in January Cara predicted that we would be at $750 an ounce in the metal. As usual, he was wrong. His excuse? That the Fed is selling its gold reserves!
www.billcara.com/archi...
With Cara, it's always somebody else's fault, it's always a conspiracy, and as always, he produces NO facts to support his opinions.
Is There A Golden Leak At The Fed?
Otherwise your statement is nothing more than libel which deserves to be ignored, if the people you wrongly accuse don't choose to exercise their civil remedies against you.
What Readers Say About Seeking Alpha
Crystallex on the Regulator’s Radar
Todd Bruce was one of the worst offenders in making empty claims about that ever-elusive environmental permit. Here is an interview Bruce gave in June 2006 where he promised the KRY is "in the final administrative stages of being issued the final environmental permit."
www.twst.com/ceos/AEF6...
Yet Cara dishonestly gives his friend a pass, while implying that the lying over the environmental permit is a fault only of current management.
New news today - KRY's Chief Financial Officer quit or was fired. Yet Cara still refuses to rescind his "buy" recommendation. Which leads to the question: What kind of malfeasance on the part of KRY would cause Cara to change his buy recommendation?