Nova Law

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    • Switching from Momentum to Micro Cap Companies [view article]
      <b>Cara announces today that "Karl from Brazil" is in charge of developing his recommended list of 100 microcap stocks</b>:

      www.billcara.com/archi...

      <b>I wonder if "Karl from Brazil" is related to "Aleksey from Latvia" who was also a Microcap stock specialist?</b>

      "Aleksey Kamardin reaped $13,158 in just 104 minutes buying and selling penny stocks.

      The 21-year-old bought 43,000 shares in a small Wisconsin equipment company that makes, among other things, potato harvesters. He sold the shares less than two hours later at nearly double the investment.

      Kamardin, allegedly part of an East European ring, repeated this scheme on 13 other occasions in July and August, defrauding investors of $82,960, according to a civil complaint filed yesterday by the Securities and Exchange Commission.

      The complaint is one of the first the SEC has brought in response to an emerging trend of the digital era: a modern version of the old pump-and-dump stock scam.

      "You wake up in the morning and all your blue chips are gone, and instead you own a microcap stock that is virtually worthless," said John Reed Stark, chief of the SEC's Office of Internet Enforcement. Stark added that he expected more complaints in the coming weeks, saying, "This is an area where we've become increasingly concerned."

      www.washingtonpost.com...       May 08 08:18 AM
    • Switching from Momentum to Micro Cap Companies [view article]
      So Cara wants you to switch to his preferred microcap stocks? Let's review what the Securities and Exchange Commission has to say about this:

      "The lack of reliable, readily available information about some microcap companies can open the door to fraud. It's easier for fraudsters to manipulate a stock when there's little or no information available about the company.

      Microcap fraud depends on spreading false information. Here's how some fraudsters carry out their scams:

      <b>E-mail Spam</b>
      Fraudsters distribute junk e-mail or "spam" over the Internet to spread false information quickly and cheaply about a microcap company to thousands of potential investors. Spam allows the unscrupulous to target many more potential investors than cold calling or mass mailing.

      <b>Internet Fraud</b>
      Fraudsters often use aliases on Internet bulletin boards and chat rooms to hide their identities and post messages urging investors to buy stock in microcap companies based on supposedly "inside" information about impending developments at the companies.

      <b>Paid Promoters</b>
      Some microcap companies pay stock promoters to recommend or "tout" the microcap stock in supposedly independent and unbiased investment newsletters, research reports, or radio and television shows. Paid promoters are generally behind the unsolicited "junk" faxes you may receive, touting a microcap company. The federal securities laws require the newsletters to disclose who paid them, the amount, and the type of payment. But many fraudsters fail to do so and mislead investors into believing they are receiving independent advice.

      <b>"Boiler Rooms" and Cold Calling</b>
      Dishonest brokers set up "boiler rooms" where a small army of high-pressure salespeople use banks of telephones to make cold calls to as many potential investors as possible. These strangers hound investors to buy "house stocks" — stocks that the firm buys or sells as a market maker or has in its inventory.

      <b>Questionable Press Releases</b>
      Fraudsters often issue press releases that contain exaggerations or lies about the microcap company's sales, acquisitions, revenue projections, or new products or services. These fraudulent press releases are then disseminated through legitimate financial news portals on the Internet."

      More here:

      www.sec.gov/investor/p...

      Cara may think that being in Canada, he is beyond the jurisdiction of the SEC. He would be wrong.       Apr 26 08:42 AM
    • AMD Is In Real Trouble [view article]
      Let's review. Cara slams AMD on April 20, when it closed at 14.16. In the premarket this morning it's trading at 14.80, up almost 5%. Yet another blown call by Cara - one of many. He'd rather have you chase near-penny mining stocks. Bre-X anyone? Apr 26 08:21 AM
    • US Gold May Be the Best on the Board [view article]
      See what I mean?

      UXG closes today at 6.24, down almost 7% from the time Cara recommended buying it two days ago.

      *POOF!* The "Trader Wizard" makes more of your money disappear!       Apr 17 06:19 PM
    • US Gold May Be the Best on the Board [view article]
      Cara recommended buying UXG (then USGL.OB) back in July 2006 at 8.75.

      www.billcara.com/archi...

      Now he recommends buying it again at 6.70.

      Interestingly, on February 7, he was down on UXG, when it was trading at 5.03.

      www.billcara.com/archi...

      From this set of conflicting recommendations on UXG, Cara has perfectly articulated a "Buy High, Sell Low" strategy. The perfect way for people to lose their money, which is something at which Cara apparently excels.       Apr 16 06:14 PM
    • Beware of the Data Underlying the Economy [view article]
      Paul, I bet you're the first guy to trumpet bad numbers when they're released, but any good numbers are "rubbish," eh? Apr 10 03:25 PM
    • Gold Fields Follow-up [view article]
      Cara gets one right for a change! Woo hoo!

      A stopped clock is right twice a day.

      And even Mario Mendoza got a base hit once in a while.

      Still waiting for Cara to explain what people should do with their UXG (formerly USGL.OB), which has dropped by nearly half since he suggested loading up on it as a safety vehicle in July 2006:

      www.billcara.com/archi...

      When you lose half your safety money on an astonishingly bad recommendation, making up nickels and dimes on risky options trading seems cold comfort.       Apr 05 09:27 AM
    • Gold Reserve, Crystallex Jump on Government Permits [view article]
      I'm going to do something that Cara never does, which is admit a mistake. In my previous post I erroneously ascribed the "dead to me" quote to Bill Cara. It was actually made by a poster using the handle "Big Bill." My mistake.

      But Cara's real quote was almost the same thing - on March 13 Cara said "I have written my last blog on Crystallex because I am not going to join the circus."

      But the circus is back in town, and the carny named Cara is back at work.

      www.billcara.com/archi...       Mar 29 08:50 AM
    • Gold Reserve, Crystallex Jump on Government Permits [view article]
      Holding this stock is no better than going to the casino and putting down your money on "Red" or "Black." In fact, there is much more transparency in a casino than in this stock, which has fired its senior management and had its auditors quit in the past month, all of which are terrible signs that some kind of malfeasance is at work.

      The fact that KRY bounces around on speculation and rumor shows the lack of any true value. Next week Chavez can give a speech about nationalizations, and the stock will drop by a third. This is not investing, it is gambling, pure and simple.

      On March 13, Cara announced that he would have nothing further to say about this stock: "all I am saying is this company is dead to me." When it blips up on rumor and speculation, as it did yesterday, he's back to his old trick of pumping it and trying to take credit. A typical dishonest Cara move. I believe that he's doing this in order to give himself a "track record" to attract business to his newly-announced Bahamas-based investment advisory service. If you're sucker enough to entrust this man with your money, then be prepared to lose it all. Give it a nice party before you ship it across the Florida Straits, where it can finance a retirement lifestyle for a blogger with a history of bad financial and market calls.

      The "dead to me" quote:

      www.billcara.com/archi...       Mar 29 08:45 AM
    • Constellation Brands Vs. Diageo: A Good Stock Picking Study [view article]
      And I should hasten to add that when Cara claims to have recommended a purchase of DEO "when I see an RSI-7 down below 30, I look for the next point of reversal, i.e., a rising RSI-7, before I’d buy," this is yet another lie. His April 8, 2005 post about DEO and STZ said absolutely nothing about purchasing DEO when the RSI-7 was "down below 30." He simply didn't say anything of the sort.

      His current suggestion that he called for the purchase of DEO when it had such criteria is another lie - a fabulous construct which shows that Cara's intention is to deceive about his track record, not to give us an honest assessment of how his call turned out. If you doubt this, go back and read the initial post, and see if you can find anything even resembling today's RSI analysis:

      www.billcara.com/archi...

      Rather than honestly taking credit for calling for a sale of STZ, he insists on adding on an entire fabrication about how he called a bottom in DEO. This is a typical Cara tactic which we have seen before and will doubtless see again.       Mar 27 08:06 AM
    • Constellation Brands Vs. Diageo: A Good Stock Picking Study [view article]
      Cara claims: "[On April 8, 2005] I recommended a purchase of DEO and sale of STZ; I didn’t want to pick on Cramer, I simply wanted to explain to readers how I pick companies."

      A bald faced lie. Yet again, Cara dishonestly takes credit for a call which he did not make. If you go back and read his April 8, 2005 post, he had this to say about DEO:

      "Diageo, in fact, makes the Cara Global Best 100. You'd have read that before except the price of the stock at $59.59, is too high."

      www.billcara.com/archi...

      He was correct in his assessment of STZ, recommending a sell, but if you review his own words, he did not advise buying DEO, as the price was "too high."

      I am fully prepared to give Cara credit where credit is due. But in today's case, his current post consists of one part truth with one part lie.       Mar 27 08:00 AM
    • Is There A Golden Leak At The Fed? [view article]
      Malkiel, I actually know some staff members at the Fed in DC. Certainly none of the members of the FOMC, of course. In social conversations one thing that always struck me was just how conscious of security the institution is, and how conscientious about their work that these people are. Their financial lives are literally an open book for the Inspector General to review should there ever be any hint of misuse of inside information. Yet Cara casually paints them all with the unsupported allegation of insider manipulation.

      Cara's allegation of criminal misconduct is indeed the same kind of "crying" that he is wont to do when his predictions prove wrong, as they so often do. Here we are at the end of March, and back in January Cara predicted that we would be at $750 an ounce in the metal. As usual, he was wrong. His excuse? That the Fed is selling its gold reserves!

      www.billcara.com/archi...

      With Cara, it's always somebody else's fault, it's always a conspiracy, and as always, he produces NO facts to support his opinions.       Mar 23 05:38 AM
    • Is There A Golden Leak At The Fed? [view article]
      Proof please? You accuse the staff of the Federal Reserve of criminal misconduct. Such a charge requires proof, not simply an allegation.

      Otherwise your statement is nothing more than libel which deserves to be ignored, if the people you wrongly accuse don't choose to exercise their civil remedies against you.       Mar 22 04:38 PM
    • What Readers Say About Seeking Alpha [view article]
      Agree with your assessment on your photo. Smile, baby, show us some teeth. Life is good! Mar 15 06:05 PM
    • Crystallex on the Regulator’s Radar [view article]
      What I find amusing in Cara's original posting is his present claim that the "one reason, and one reason only" that he began to tout KRY was because of now-fired CEO Todd Bruce. Cara ascribes truthfulness and purity of intent to his friend, which excoriating present KRY management for the "tricks of leading people on with respect to the timing of the environmental permit."

      Todd Bruce was one of the worst offenders in making empty claims about that ever-elusive environmental permit. Here is an interview Bruce gave in June 2006 where he promised the KRY is "in the final administrative stages of being issued the final environmental permit."

      www.twst.com/ceos/AEF6...

      Yet Cara dishonestly gives his friend a pass, while implying that the lying over the environmental permit is a fault only of current management.

      New news today - KRY's Chief Financial Officer quit or was fired. Yet Cara still refuses to rescind his "buy" recommendation. Which leads to the question: What kind of malfeasance on the part of KRY would cause Cara to change his buy recommendation?       Mar 15 05:49 PM
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