Gulf Keystone Petroleum bulletin board ramping
Over the last few days, thanks to stock like Gulf Keystone Petroleum [GKP], and to a lesser extent Chariot Oil and Gas [CHAR], we have seen what is a perfect example of bulletin board ‘ramping’.
Small investors frequent bulletin boards such as iii, ADVFN and many others looking for advice on what, when and how much to invest in a stock. But they fall, victim to ’share rampers’. These guys spend hours talking up the prospects of a particular share like Gulf Keystone Petroleum in the hope that misguided investors, who have not done their own research, get caught up in the hype and start buying shares in a panic.
The result of this ramping process in one share, such as Gulf Keystone, then infects all the other shares in the same sector, it’s like a bulletin board fever. Overnight the boards go from the half a dozen or so messages a day to complete pandemonium. On closer inspection of the actual trades going through during this process, we find they are from small investors jumping in at a price that is already too high. A classic rookie mistake. Take care.
Since Friday morning a small group of bulletin board gurus have been frantically trying to talk the price up beyond 100p. As a virgin trader I prefer to ignore the bull**** and look for real news about a stock. At the end of the day after all the ramping subsides so will the price. You decide when a stock is at a good price to buy or not, don’t make expensive decisions purely based bulletin boards they can be a shark pit.
Now to put my comments in perspective, I think [GKP] is a great stock and I bought some myself last week at a higher price than I would have liked. The point I am making is not that it is a hyped share; it is that rampers serve no purpose but their own.
A Virgin Trader
