The traditional means of distributing penny stocks was of floating rumours, broker, analysts networks etc etc has been replaced by a new system - SMS !!
The new technology has simplified the whole operation for distribution which may also be in collusion the with the company promoters.
Modus Operandi :
1) Get database of mobile nos from Depositories /brokerage houses or from providers of the same. ( DND still doesnt apply to sms it seems ). Mind you sms reaches only people related to stock markets.
2) Take bulk sms from a vendor. The sender remains anonymous as the receiving party just receives a crap 8-9 digit name !!!
3) Send a message giving big targets tempting the gullible small investor to jump into the so called insider news !!!
Although this may not fool the common sense investor but it still sees lot many novices being fooled into the game of temptation.
I had posted a detailed article on the same distribution pattern which i noticed in Anu Labs. Although i felt this was a one of case but the same modus operandi has been used in many stocks.
As you see in the end i have mentioned about getting a similar message on Vishal Info. The stock has since fallen by 30-40% !
The last few SMS received
Veer Energy ( 24 to 11 )
Excel Infoways ( 100 odd to 75 )
Alkali Metals
FCS Software ( just 2-3 days back ) Stock is down 14-15 to 11 🙂
All in all take care when you get such tempting messages. Also the above stocks are in cash segment only so cant take a positional short trade !!! Else this information could have provided monetary gain !!
Pass the word around about the distribution game going on to others so no one gets trapped !!
Best Regards,
Nooresh
09819225396
