FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post



Poll

Can there be another Covid-19 wave in Sri Lanka?

 
 
 

View results

STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



Latest topics

» Sell EXPO Buy EDEN sentiment changed to Exit EXPO Enter EDEN
by Bakkabwoi Today at 12:44 am

» Top Foreign Trading today
by D.G.Dayaratne Yesterday at 11:29 pm

» Maharaja after long time
by Maharaja Yesterday at 10:20 pm

» Try to Avoid Getting Sucked into Any Panic Modes While Looking for Opportunities. Stock market for beginners
by Asoka Samarakone Yesterday at 9:39 pm

» Evergrande agrees deal to avoid default on key bond: Company
by RajapaksaDON Yesterday at 8:15 pm

» Top crossings today
by SAGA Yesterday at 7:27 pm

» LOFC AND CLC Target Price??
by Rational Investor Yesterday at 6:35 pm

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by Equity Win Yesterday at 10:47 am

» CABO -- “ The Investment Company ” under Land & Building Sector
by samaritan Yesterday at 10:45 am

» LOFC lofc
by stockchaser Yesterday at 9:52 am

» TOKYO CEMENT COMPANY (LANKA) PLC
by ADVENTUS Yesterday at 12:14 am

» DIPPED PRODUCTS PLC (DIPD.N0000)
by ADVENTUS Yesterday at 12:11 am

» BROWNS INVESTMENTS PLC (BIL.N0000)
by stockchaser Tue Sep 21, 2021 3:49 pm

» GUYS LOOK IN TO JKH / JKL NOW
by Wickyz Tue Sep 21, 2021 10:54 am

» The stock market can be a great place to make money; it can also be a great place to lose money. Stock market for beginners
by reyaz Tue Sep 21, 2021 7:37 am

» LOFC LOFC LOFC
by stockchaser Mon Sep 20, 2021 7:49 pm

» PEOPLE'S INSURANCE PLC (PINS.N0000)
by LHW Sun Sep 19, 2021 10:14 pm

» KOTAGALA PLANTATION
by reyaz Sun Sep 19, 2021 3:33 pm

» What is "Introductions" in Upcoming listing in CSE?
by Nandun Sat Sep 18, 2021 1:46 pm

» Glove stocks fall after Top Glove posts weaker 4Q results
by ResearchMan Sat Sep 18, 2021 1:37 pm

EXPERT CHRONICLE™

MARKET CHAT


CHRONICLE™ ANALYTICS


ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

LATEST TWEETS

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » EXPERT CHRONICLE™ » Pump and Dump

Pump and Dump

Go to page : 1, 2  Next

Go down  Message [Page 2 of 2]

20111222

Pump and Dump - Page 2 Empty Pump and Dump

sriranga


Co-Admin
Pump and Dump - Page 2 Pump-a10

Pump and dump is a term referred to an investment scheme which attempts to boost the price of a company’s stock through false and misleading promotions or highly exaggerated statements. As long as there have been stocks, there have been stock fraudsters who seek to inflate the price of stocks. Usually the con artist is a third party person who is not in any relation to the company about to be scammed. The only In most cases the company itself is clueless that it is part of a scam. It’s chosen because its stock is selling for pennies a share, making it easy for the scammer to acquire a huge number of shares with a minimal investment. Due to the small float of these types of stocks it does not take a lot of new buyers to push a stock higher. Often the promoters will claim to have inside information about an impending development or to use a great combination of economic and stock market indicators to pick stocks. In reality, they are only thieves who will earn a quick profit by gaining lots of investors. Once the price is high enough they sell their shares and stop inflating and promoting the stock which ultimately ends with a sharp fall in prices and thus investors lose their money. Similar but inverse scam is Short and Distort.

HOW PUMP AND DUMP SCAM WORKS

a) You need a worthless stock, with a tight float and which is thinly traded. Small companies are needed as a precondition. Tight float means that most of the stocks are held by insiders and promoters and not by the general public. The reason for this is that it is much easier to manipulate the price of the stock when there are fewer stocks held by the general public since fewer buying of stock is needed to increase the price. You now buy an otherwise worthless stock at low prices. This sets the stage for to make money when the stock price elevates.

b) You start a promotional campaign to create interest in the stock. You use advertising campaigns, cold calls, newsletters, newsgroups, message boards, chat rooms, emails, seminars and any other media to promote the stock. Information used to promote the stock is said to be a rumor, inside information or your unbeatable technical and economical analysis. Investors are being enticed with visions of making the big score, quickly and without much risk. Your promotions will make investors swim in the water of excitement. Essentially, you are playing on the investors strings of greed to try to make the investors feel that he can’t miss the next great investment play.

c) You now attempt to increase the price of a stock. The stock chosen is thinly traded, so you and insiders can quietly raise the price by buying up the stock. Instead of putting bid offers at lower prices, they take the ask bids out and go up the price ladder. Since there is little public float, it doesn’t take a lot of buying to get the price up.

d) You have increased the price of a stock and now dump it at a higher level. You leave with a high profit, while other investors face a sharp ride to the south.

Source: http://www.bustathief.com
Please read the following ling
http://forum.srilankaequity.com/t14251-short-and-distort-naked-short#92022

Inthikahb M Wazeer and Vishwanarth like this post

http://sharemarket-srilanka.blogspot.co.uk/
Share this post on: redditgoogle

Post Wed Dec 18, 2019 8:57 am by Gajaya

True

Post Wed Dec 18, 2019 4:31 pm by Invest-Wise

Absolutely...if market is only going up then it doesn't give a change to trade. I picked up Tkyo x and PAQ recently as its dropped in then last week or so.  I will keep collecting on drops. :-)

Post Sat Jan 11, 2020 11:13 pm by fireshelter

alien alien alien

Post Sun Feb 07, 2021 4:46 pm by celtic tiger

pump and dump is a form of securities fraud that involves artificially inflating the price of an owned share through false misleading
positive sentiment - that's how  Wikipedia explained pump and dump. I am trying to warn our retailers about PUMP AND DUMP now because CSE has reach that destination. funny enough SEC knows this and try to control without damaging the positive sentiment but I think under pressure from powerful people. It will be interesting to see which SHARES they were talking about in their love letters to brokers . my guess  LOLC ,EXPO AND VONE

KingMaker2020 and Mr. Wayne like this post

samaritan, Kipling and Love Boy dislike this post

avatar

Post Mon Feb 08, 2021 1:35 pm by celtic tiger

bitter truth

avatar

Post Thu Feb 11, 2021 1:18 pm by celtic tiger

I think they did dump most of the VONE,LOLC AND EXPO .It's bad for some but good for the market .

xhunter

Post Thu Feb 11, 2021 2:51 pm by xhunter

I dont have single EXPO share in my portfolio, EXPO market price is backed by its earnings. so definitely it is not pump and dump (EXPO).
real "pump" is started using 2 events.

1. plant an idea that IN and DPs are fighting each other for the 1st position.
2. share split notice for set of DPs shares.

RCL was not in the share split list, but they were able to bring RCL from 220 to 430 only in 4 trading days.
how on earth share split increase the price of a share?
if someone say it become affordable, is this really true? how many of you has give up buying a share because you only have money to buy a half of that share?

but lot people even in this forum said , after share split this will be the price, that will be the price.

Nandun, Wonderer and Gowri123 like this post

avatar

Post Fri Feb 12, 2021 8:30 pm by gamaya

This is too dangerous. Better exit than having a mental breakdown like in 2011. Newbie s this maybe terribly entertaining. But you are safer in a Bamba casino. When you realise it will probably be too late.

Mr. Wayne likes this post

avatar

Post Fri Feb 12, 2021 8:46 pm by MaJa

@xhunter wrote:I dont have single EXPO share in my portfolio, EXPO market price is backed by its earnings. so definitely it is not pump and dump (EXPO).
real "pump" is started using 2 events.

1. plant an idea that IN and DPs are fighting each other for the 1st position.
2. share split notice for set of DPs shares.

RCL was not in the share split list, but they were able to bring RCL from 220 to 430 only in 4 trading days.
how on earth share split increase the price of a share?
if someone say it become affordable, is this really true? how many of you has give up buying a share because you only have money to buy a half of that share?

but lot people even in this forum said , after share split this will be the price, that will be the price.
It s not affordability. It s psychology.
Generally in any market an illiquid share at high rates with a P/E of 10 would trade at a P/E of 12-15 when it s split in to 10 or 20.
Undervalued become a more market rate share.

We as investors should pick what to buy and what not to buy.
A classic example is EBCR and DIPD or HAYC.
EBCR was trading at 1300 with a P/E around 7, with the split it went high to P/E of over 25. This is unwarranted.
DIPD and HAYC were both trading around P/E 5 and with the split went up to 8-12P/E which is more of a market average - or still a bit under valued.
Obviously Other than current financials,need to look at future potential too.
We need to pick which to go after and which not to.
* above shares were picked as examples.

avatar

Post Fri Feb 12, 2021 9:37 pm by celtic tiger

1.Some of this hot favourite  shares showing great results because of government import restrictions, which is not going to last long.
2.Then if you look at some of the quarterly reports, turnover down but net profit sky rocketed .
3.cse volatility is too high(like crypto market)- this is artificial
THIS IS WHY I think some thing is not right here ,may be it does not fit the exact explanation of pump and dump but...??? time will tell you the hole story .

avatar

Post Fri Feb 12, 2021 10:03 pm by THUWA

@celtic tiger wrote:1.Some of this hot favourite  shares showing great results because of government import restrictions, which is not going to last long.
2.Then if you look at some of the quarterly reports, turnover down but net profit sky rocketed .
3.cse volatility is too high(like crypto market)- this is artificial
THIS IS WHY I think some thing is not right here ,may be it does not fit the exact explanation of pump and dump but...??? time will tell you the hole story .

If you write like this, our patriotic in this forum will attack you by connecting you with diaspora, LTTE and minority community political parties



Last edited by THUWA on Fri Feb 12, 2021 10:10 pm; edited 1 time in total

Mr. Wayne likes this post

xhunter

Post Fri Feb 12, 2021 10:05 pm by xhunter

@MaJa wrote:
@xhunter wrote:I dont have single EXPO share in my portfolio, EXPO market price is backed by its earnings. so definitely it is not pump and dump (EXPO).
real "pump" is started using 2 events.

1. plant an idea that IN and DPs are fighting each other for the 1st position.
2. share split notice for set of DPs shares.

RCL was not in the share split list, but they were able to bring RCL from 220 to 430 only in 4 trading days.
how on earth share split increase the price of a share?
if someone say it become affordable, is this really true? how many of you has give up buying a share because you only have money to buy a half of that share?

but lot people even in this forum said , after share split this will be the price, that will be the price.
It s not affordability. It s psychology.
Generally in any market an illiquid share at high rates with a P/E of 10 would trade at a P/E of 12-15 when it s split in to 10 or 20.
Undervalued become a more market rate share.

We as investors should pick what to buy and what not to buy.
A classic example is EBCR and DIPD or HAYC.
EBCR was trading at 1300 with a P/E around 7, with the split it went high to P/E of over 25. This is unwarranted.
DIPD and HAYC were both trading around P/E 5 and with the split went up to 8-12P/E which is more of a market average - or still a bit under valued.
Obviously Other than current financials,need to look at future potential too.
We need to pick which to go after and which not to.
* above shares were picked as examples.
unfortunately you have picked all those examples from CSE. so it is obvious that CSE investors behavior (which i can not understand).
But you said it is psychology and it is common for all markets.
if it is the case, i agree with you about psychological behavior. anyway then share split will just inflate the share price and people accept that inflated price because their mind fool them  (for how long?).

even though i agree with you about psychological behavior because i don't know about other markets, but still this behavior is something i can not understand.
If i gave a piece of cake to a person and then i take back it and cut it into two in front of him and give again, so he think that he got more (that is our psychological behavior?). i am just trying to understand because i don't feel it.

anyway as a conclusion i say you might be right.

CHRONICLE™ likes this post

avatar

Post Sat Feb 13, 2021 1:09 am by celtic tiger

@THUWA wrote:
@celtic tiger wrote:1.Some of this hot favourite  shares showing great results because of government import restrictions, which is not going to last long.
2.Then if you look at some of the quarterly reports, turnover down but net profit sky rocketed .
3.cse volatility is too high(like crypto market)- this is artificial
THIS IS WHY I think some thing is not right here ,may be it does not fit the exact explanation of pump and dump but...??? time will tell you the hole story .

If you write  like this, our patriotic in this forum will attack you by  connecting you with diaspora, LTTE and minority  community political  parties
Thank you for your concern.  My genuine  concern here is the retailers and new comers. I  was their when this happened In 2011 and we did warn members of the old forum  that time. 
By the way Celtic Tiger is a term referring to the economic  boom Ireland had from 1990s to2000s .

avatar

Post Sat Feb 13, 2021 2:11 am by AmateurTrader001

@celtic tiger wrote:
@THUWA wrote:
@celtic tiger wrote:1.Some of this hot favourite  shares showing great results because of government import restrictions, which is not going to last long.
2.Then if you look at some of the quarterly reports, turnover down but net profit sky rocketed .
3.cse volatility is too high(like crypto market)- this is artificial
THIS IS WHY I think some thing is not right here ,may be it does not fit the exact explanation of pump and dump but...??? time will tell you the hole story .

If you write  like this, our patriotic in this forum will attack you by  connecting you with diaspora, LTTE and minority  community political  parties
Thank you for your concern.  My genuine  concern here is the retailers and new comers. I  was their when this happened In 2011 and we did warn members of the old forum  that time. 
By the way Celtic Tiger is a term referring to the economic  boom Ireland had from 1990s to2000s .
Interesting post. I was always wondering if the market is a genuine bull running on steam, or if there is something more to it considering the super gains.....

avatar

Post Sat Feb 13, 2021 11:20 am by samaritan

@celtic tiger wrote:1.Some of this hot favourite  shares showing great results because of government import restrictions, which is not going to last long.
2.Then if you look at some of the quarterly reports, turnover down but net profit sky rocketed .
3.cse volatility is too high(like crypto market)- this is artificial
THIS IS WHY I think some thing is not right here ,may be it does not fit the exact explanation of pump and dump but...??? time will tell you the hole story .
The expected improvement in economy this year will alleviate your concerns. So, don't worry.

Also, please note that we have a Central Bank Governor whose knowledge, experience coupled with high integrity deserves many accolades.

http://www.dailymirror.lk/business__main/CB-expects-marked-improvement-in-economy-this-year/245-205723

avatar

Post Tue Feb 16, 2021 12:08 pm by celtic tiger

@samaritan wrote:
@celtic tiger wrote:1.Some of this hot favourite  shares showing great results because of government import restrictions, which is not going to last long.
2.Then if you look at some of the quarterly reports, turnover down but net profit sky rocketed .
3.cse volatility is too high(like crypto market)- this is artificial
THIS IS WHY I think some thing is not right here ,may be it does not fit the exact explanation of pump and dump but...??? time will tell you the hole story .
The expected improvement in economy this year will alleviate your concerns. So, don't worry.

Also, please note that we have a Central Bank Governor whose knowledge, experience coupled with high integrity deserves many accolades.

http://www.dailymirror.lk/business__main/CB-expects-marked-improvement-in-economy-this-year/245-205723
I hope your right because we are here to make money not to loose it but look at the turnover, 12-14 billion down to 5-6 and you expect ASPI to reach 10000 ???

judecroos likes this post

avatar

Post Tue Feb 16, 2021 12:49 pm by ADVENTUS

We shouldn't forget that after all, Gotabhaya Rajapakse and Ajith Nivaad Cabraal are corrupt people. We might have to be watchful.

agentnrox, judecroos, geesura, Mr. Wayne and Bakkabwoi like this post

avatar

Post Tue Feb 16, 2021 12:49 pm by RJ1010

Turnover is down because
1. Big players are waiting in the sideline watching to jump in at deeper discounts ... most of them would have taken profits last month. They know lot of companies posted profits so they will evaluate which set of companies to target for the next run. They will be back soon to pump the market.
2. small retailers used all their cash when market was running so now have no buying power and hopefully having the patience to hold and wait during this down time
3. Small retailers who bought on credit and didn’t settle on time losing out due to settlements when market is down and no more money to buy

I believe foreign buying increasing comparative to previous months. Anyone who have the foreign buy/sell records can check this and confirm.

Above is what I’m thinking.

agentnrox and ADVENTUS like this post

avatar

Post Tue Feb 16, 2021 12:52 pm by ADVENTUS

@RJ1010 wrote:Turnover is down because
1. Big players are waiting in the sideline watching to jump in at deeper discounts ... most of them would have taken profits last month. They know lot of companies posted profits so they will evaluate which set of companies to target for the next run. They will be back soon to pump the market.
2. small retailers used all their cash when market was running so now have no buying power and hopefully having the patience to hold and wait during this down time
3. Small retailers who bought on credit and didn’t settle on time losing out due to settlements when market is down and no more money to buy

I believe foreign buying increasing comparative to previous months. Anyone who have the foreign buy/sell records can check this and confirm.

Above is what I’m thinking.
This makes a lot of sense. Thanks.

avatar

Post Tue Feb 16, 2021 12:53 pm by RJ1010

@ADVENTUS wrote:We shouldn't forget that after all, Gotabhaya Rajapakse and Ajith Nivaad Cabraal are corrupt people. We might have to be watchful.

Generally most Sri Lankan’s are corrupt since we are a poor country. Everyone likes to get rich quick. No ethics. CSE is a good place to do that for players. They will time the market and manipulate it to their advantage. We small timers need to understand the cycle and ride those waves.

samaritan, ADVENTUS, Mr. Wayne and Mahavidane like this post

avatar

Post Sun Feb 21, 2021 12:06 am by celtic tiger

Can you remember  the monkey  story  . One of the you tuders recently published  it . In 2011 we did talk about it when that  famous  chicken run happened. It shows  the cyculer nature of share market.

avatar

Post Sun Feb 21, 2021 9:05 am by RajapaksaDON

@RJ1010 wrote:Turnover is down because
1. Big players are waiting in the sideline watching to jump in at deeper discounts ... most of them would have taken profits last month. They know lot of companies posted profits so they will evaluate which set of companies to target for the next run. They will be back soon to pump the market.


Pumped and dumped and jumped over the wall of CSE  and got awayVery Happy

Post  by Sponsored content

Back to top  Message [Page 2 of 2]

Go to page : 1, 2  Next

Permissions in this forum:
You cannot reply to topics in this forum