Modus Operandi.
1) The stock price is artificially rigged up with volumes to create an illusion of a run up.
2) Volume increases dramatically so people start noticing the stock and punting in it.
3) Send in a SMS to a huge list. Database is available for demat holders for few thousands and sms at 1-4 paise.
4) The sms is attractive mentioning good news to come,bonus , split , orders etc. Inciting small investors to take a risk exposure.Targets are generally 30-50%
5) Take the stock higher by 5-10 % and keep sending the sms.
6) The new additon now is to come out with a buy report !! pdf. This is generally by a dummy research company which is circulated to create more authenticity.
7) The stock has been dumped to the investors and operators keep selling it.
End result the stock is 15-50% down in few sessions.
Farmax Retail was an example of a stock report being published too with a split announcement. Stock is currently down from 145 to 110 !! What is surprising is timing of the announcements by the company clearly suggests the involvement of the management. What is SEBI doing sleeping ?. Jaybharat Textiles and Real estate is still a 10000 crore market cap co What crap !
This has been common with Thinksoft, Texmo Pipes, Syncom Healthcare, Shree Ashta Vinayak, Vishal Info and Anu labs. Many of these stocks were fore-warned on this site. ( Just do a search on the top bar u will get the posts )
Market movement of Aqua Logistics suggests that we should soon be receiving sms. Lets c how it goes.
Bottomline if you like the post pass it to all the people you know 
so they dont make the mistakes of losing their hard earned money to crooks.
Related posts:
- Re-visiting ThinkSoft, Texmo Pipes,syncom healthcare – Pump and Dump technique
- Fineotex Chemicals – Another Pump and Dump :) New Issue
- New IPO stocks – You can make lot of Money or Lose lot of Money
- SMS — New way to pump and dump stocks by market-makers !!
- SEBI bars 7 companies for market manipulation. Cals Refineries Limited, Maars Software, IKF Technologies Ltd, Avon Corporation Limited, K Sera Sera Ltd, CAT Technologies Ltd , Asahi Infrastructures .
{ 10 comments… read them below or add one }
SIR, WHAT U SAY ABOUT VERITAS AND RESPONSIVE INDUSTRY, KINDLY CHECK THE CHARTS AND I THINK THESE ARE ALSO SAME STORY, NOT IDEA BUT CHARTS — WHAT U SAID.
Both seem to be circular trading
BSE stocks pump & dump..512229, 512105, 531398,506971, rossel tea etc…list is long..
Samir,
The stock which u have discussed would come in the circular trading bracket. So nobody loses money in them as of now. Pump and Dump is a different phenemenon
nice work sir…………………….
Hi Nooresh,
Another such message is going around. This time the company is Hydro S&S. The stock has moved up 100% in the last 15 days.
Kindly ask people to beware.
Regards,
Sunny
xcllnt wrk sir
chk out”VERITAS” also on bse frm 130 odd lvls to 7500+
Hi Nooresh.
What is view on Beckons Ind.? Is it in the same catogary?
Hi Nooresh, seems Scrip “Vishal Cotspin” too getting involved in such kind of circular trading. its moved to 190 from single digit in few days only with daily 5% UC…your views/ detailed note on it pls…..
Hi Nooresh, since yesterday getting sms on Sumedha Fiscal..Seems classic pump and dump case ! The Operator sending sms and sms…and also offloading his quantity to retailers !