In our last issue, the raid at Lifestyle Delivery Systems (CSE:LDS; OTC:LDSYF) in California may prove to be precedent setting. At time of writing, charges have not been laid and you are encouraged to read our detailed covered in our last issue. The change in policy on January 3 hopefully does factor in. Social media boards were filled with bashers and LDS’s paid promoter was quick to dismiss the event. One would be foolish at best to outright dismiss such events as it highlights the importance of full compliance with all laws at all levels of relevant governance. The share price fell to a low of $0.41 (from a $0.67 high) on the news backed by relentless bashing and misinformation, and then rose to a high of $1.21 as at time of writing. That is an ROI of over 195% in less than month. That is how the hucksters work their magic using deviations of the Monty Hall Problem. We saw this in the spring and summer when the worst of these characters went after the Canadian company Cannabis Wheaton Income Corp (TSXV:CBW; OTC:CBWTF).
The share price of CBW fell by more than 50% during their campaign of spreading alleged misinformation and the share price has risen dramatically since rewarding investors. CannaInvestor Magazine was the first and only one at that time that took on these hucksters looking to harm this company as well as retail investors for their own personal gains and bragging rights (think of hackers who get street credit for the big hack – the principle is the same). Identify these con-artists and you will do well in avoiding their nonsense. It may be impossible to “beat them” at the individual level but if you recognize their play you can do well timed entry and/or exit points. But please report such activity to the administrators of the site they are abusing as well as to the appropriate securities exchange. Fortunately, regulators are starting to look into these “short and distort” campaigns and although it is a province in Canada that is taking the lead, one would expect others such as the SEC to adopt a similar policy before long. Much like the bad guys on your favorite TV show, more and more of these scammers will buy “burner” tablets and simply use free wifi at various public locations to work their craft making ISP tracking futile but at least such initiatives are a start. Ever notice on boards how new IDs appear and only post on one stock’s site and only to bash or pump (usually to bash)? Those are what are known as “Burner IDs”.
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Editor
Editor