I don't know many stock investors who haven't pumped a stock, from time to time. We all want the price of our stocks to go up. When it does, so does our net worth, and so we tend to give our stocks a little push or "pump".

A pump can be as subtle as posting to the message boards that you bought a million shares of the stock and you recommend others to buy also. A pump can be as blatantly obvious as posting a message in ALL CAPS to "BUY NOW! DON't MISS THE BOAT!!!"

As I watch the stock discussion boards, I notice that even those who bashed the stock for weeks suddenly finds a moment of affection for the stock and begins a crusade to get others to buy into it. When this happens, it is usually a sign that the basher has succeeded in buying huge volumes of the stock at low, low prices and is now seeking to drive the stock's price upwards so that he can dump his shares at a hefty profit and begin the cycle of bashing all over again.

Then, there are those pumpers who would not bash the stock, but who watch for signals from those they know to be bashers. When the bashers begin their rounds of bashing, the pumpers readily dump their shares on the market - they realize huge profits from their pumping operations and cash in on the efforts of the bashers. This, of course, often results in the price of the stock falling and lends credibility to the claims of the stock's impending failure made by the bashers.

So, how do you spot a pumper? That is to ask, how do you spot a pumper who is pumping the stock for a quick exit, to leave the other shareholders in fear for the future of their investments?

• Like bashers, pumpers attempt to instill a sense of urgency in investors to buy the stock NOW! Don't worry about the fact that the stock's price has already risen 35% for the day. It will continue to rise!

• Pumpers will work aggressively towards getting good news out about the company, but they will constantly neglect to provide links to authoritative sources to validate their claims.

• "TO THE MOON!", they will proclaim. They will say anything to get you to buy the stock, but they provide no factual information to back up their claims.

Since pumpers apply themselves towards the increase in share price, most investors sit by and allow them to pump the stock. The problem comes into play when pumpers "realize that they were mistaken" and they announce their exits from their positions. Like I said, this usually happens about the same time that bashers begin their assaults on the stocks.

When this happens, the best advice that I can give any stock investor is to reflect back upon his reasons for investing in the stock. Are you ready to trade out and buy back in at a lower price, or are you going to hold firm to your beliefs in the company and ride out the bumpy road ahead?

Personally, I just buckle up for the ride. When the stock's price appears to have reached the lowest that it will go to before beginning a recovery from the dump-and-bash, I stock up on more shares and take the roller-coaster back to the next dip.

My personal investing theory is that if all serious investors were to hold firm to their shares of stock when pumps turn to dumps and bashers begin bashing, our companies would become stronger, our share prices would hold truer, and the manipulators would eventually leave for other battle-grounds.

Tags: Pumpers Bashers Stocks

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