This year the market manipulators ran a simple pump-and-dump scheme with couple of stocks and used CNBC (aka crapvision) and Jim Cramer to voice it. The idea was to take several good companies and push them up to absurd valuations in order to engineer a long and strong market top and use it to silently distribute all the weak and overvalued stocks out there. Btw, don’t think that Cramer on “Mad money” TV show says what he thinks. He says what he is told to say, he’s a showman, not an investor. He has no idea what he will say in the next show until he sees the script 🙂

Those stocks were called “horsemen” and they are: Google, Apple, Research in Motion and Amazon. Somehow they were all labeled “technology”, while it is obvious that Google is in advertisement business and Amazon is a retailer. Mixing them with other technology stocks is wrong and confusing.

The plan succeeded and those four stocks were pushed to about 2x-3x range of what I would pay for them myself. Yes, I like Google as a company and business model. I like it at $200 as a stock and I think it will be there, just give it some time.

So what happens when the scheme ran out of steam:

  • RIMMis 8% down today and 16% below top
  • Google is 8% down in the last 2 days and 10% below top
  • Apple is 11% below top
  • Amazon is 21% below top

That’s only a beginning. Look at another stock, Downey Financial, which was also recommended by Jimbo Crammer few months ago.

It’s 55% below it’s Summer top. This is how pump-and-dump works.

Keep watching CNBC and you will be separated from your money