There is a new-old game in the stock market. The whole point is to get the stock moving up and down, with people jumping in and out of the stock. This way, the brokers and market makers make money. Bash a stock bad to the press or create ‘leaks’ of information, let the stock take a large hit and then buy in after 30 or more days of it being low. Too many people don’t do their DD and just jump when some news pundit opens their mouth.
Remember that Jim Cramer stated that there was no real problem in the housing market before it really tanked. It was only after the banks started having real problems that he said anything. Also remember that Jim Cramer admitted to using the above mentioned method when he was in his hedge-fund days.
