Why I like a repump

When a company goes down the path of having their ticker pumped (or promoted) there is one reason. The insiders want to sell their shares of the company, shares that they probably issued to themselves at a very low price. So they get a promoter to send out emails, hard mailers etc..Now they do not necessarily want the price of their stock to go up, what they want is someone to sell to and that is what the promoter offers. So after the initial promotion the ticker follows the normal pattern, runs up, stalls, tips down then dumps. Sometimes the run-up and dump might be on a smaller scale, a few cents or it might be a $1. Then there will be a smaller promotion by less experienced and cheaper promoters that the insiders (or just one of them) have done, this could happen anywhere from 1 day to weeks after the initial promotion.

Why do they do this?

They have more shares to sell, again they are not looking to raise the price of their stock, actually they probably do not care about the price of the stock. They only want suckers to sell to. So when a stock is re-pumped that is one reason it appears to be a "bust" and why many times, on a pump or a re-pump, it tanks so fast at the open. Now, the promoter will send out an email saying that there was a problem, something that sounds good but is no where near the truth, like the ticker was attacked by the "shorts" early, to much resistance, the "news" that they promoted was already figured into the price and that this was a correction etc etc..

What really happened was that the insiders (and probably the promoter) sold their shares at the open, probably with market orders and with the traders thinking that they are getting a deal they are buying at whatever level they can get. The stock dumps immediately and then goes to zero or no volume just like it was before the initial promotion started. Bag holders are created and 90% of traders lose 90% of their money.

Why do I like the re-pump? I am a shorter, so many times I have had a short position in a stock and it gets re-pumped and it drops faster than I actually was expecting when I first shorted it!