Who Is Value Trading Stocks (VTS on BCHP)?
Q: The Value Trading Stocks (VTS) newsletter has been glamourizing BCHP recently. I read a Dow Jones report that basically said BCHP went up because of a mention in VTS homepage. Who is VTS? Are they market maker for BCHP? The wording in VTS newsletters are fully of 'glory' and I noticed some of the e-mail from various other individuals are full of 'glories' also. I wonder whether these individuals are employees, or paid by VTS to send similar emails to glorify BCHP. What do you think?
A:
The continuous, excessive postings describing the movements of BCHP
(and the pleas to put more orders in) have become quite annoying. The
danger is that everyone who wants to 'hype' a stock will now think it's
OK to post 20 msgs/week that contain only about 2 messages worth
of info. If merely 10 people do that for 10 stocks, this group wi
go from being difficult to read, to being pointless to read.
I agree with the point about the problem of receiving too much extraneous info, though
much of it is somewhat humorous. My problem seems to be that I am receiving
most of their e-mails twice. This doubles the number of letters that I
have to sort through.
However, a stronger point that should be stressed is that of focus.
The strength of VTS is the ability to select on sound fundamentals, and
then give it the recognition and coverage that it deserves, but often doesn't
get through the current system. The current situation with BCHP is a
remarkable example. Here's a stock that had a average daily volume of
100,000 shrs, which rocketed to 400,000 shrs, the first day of VTS coverage.
The next day, it jumped to 1.3 million shrs; the next to 2.1 million shrs.
This brought the stock from .90 to 1.68 (right?), and has now settled back
to 1.25. I don't see much more of a down side to this, as I think that most of
the profit takers are gone, and likely have rebought at lower prices.
VTS finally received recognition from Dow Jones for doing the same that
market makers do with other stocks. They push it, and try to build
momentum in the price. I have no problem with this as long as the
companies that are covered are fundamentally sound. Hell, how many of us
have been cold-called by brokers who are trying to sell shares in some company or
another, claiming that the stock is going to some price or another?
This is nothing more than the market maker trying to raise the price of a
stock, right?
