Bloggers and How They Can Crater a Company
It is interesting how small or micro cap stocks can be under attack by bloggers who post false stories, make outrageous accusations or claims and never are liable or accountable for their actions. Take Nighthawk Energy (HAWK.L) and Nostra Terra (NTOG.L) as prime examples. Both companies were under attack on blog sites called ADVN and iii in the UK. Finally in utter frustration and tired of the assaults, management of both companies petitioned the courts and won verdicts to get email addresses, names and IP addresses. Both companies had operations in Kansas and it was discovered during the investigations that a member of the Kansas Corporation Commission (KCC), in the financial section, was responsible for passing on confidential info to various other bloggers who then published the information. The KCC’s response after being shown evidence and informed that the person responsible was using a governmental computer and IP address was total “hands off” and “sue us!!” The FSA in London, their SEC, refused to do anything. Meanwhile the stock was driven up and down by these rumors. It was clear the bloggers were shorting the stock during the false rumors. This specific person within the KCC released confidential information and caused financial harm with no consequence. Both companies have new management who now take a different approach and basically are strictly adhering to all news discussed is the same as the news release. Meanwhile the bloggers have moved on to other prey to make their monies.
