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.