Following last week’s tumble in the Ekso Bionics stock, it turned out to have been subject for a short and distort-case by The Pump Stopper who published a vicious case against Ekso on the webpage Seeking Alpha. In an article by Keith Fitz-Gerald’s, a frequent guest on CNBC and Fox Business according to his website, he lays down the bullet points of how to spot a ”short and distort” case as it shows up. It’s a good article so I recommend you to read it.
Pump and Dump according to Wikipedia:
””Pump and dump” (P&D) is a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme ”dump” sell their overvalued shares, the price falls and investors lose their money. Stocks that are the subject of pump and dump schemes are sometimes called ”chop stocks”.”
Short and Distort according to Wikipedia:
””Short and distort” is a type of securities fraud in which Internet investors short sell a stock and then spread negative rumors about the company in an attempt to drive down stock prices. Cell phones and text-based messaging are the primary tools for the people committing ”short and distort” as they tend to hide the source of the information.”