BEWARE of Spammers.!!!

Hello Investors once again,

       As I told in earlier post, retail investors need to be aware of the spammers, as when they recommend any stock, the stock will move unusually and unexpectedly. Promoters may offload their stake and many other operators can take advantage of such SPAMS.



Now, How to check whether the stock recommendation is SPAM?

Frankly speaking, there is no appropriate way to check whether the recommendation by anyone is spam or not as everyone has different and contradicting views when asked about a particular share. What we, as a retail investor can do is check on Google whether the info provided in a spam message is true or not. But never be greedy and never listen to an unknown source as you are investing your hard earned money. And ya if you have xtra money, you can always contact me for investment related ideas ;)


e.g. Nowadays, Dolly Khanna is considered among the best investors as her investment in past 1-2 years has earned most than any other big investor. Spammers will post a message on MMB saying that Dollly Khanna is buying this stock. Now we cant judge if the message posted by him was true or not. 

Real Life example: I am bullish on Usher Agro stock. Have been accumulating it on dips and I feel that it is a perfect multibagger. It has showed all the signals that is shown in 'Multibagger in the making'. Someone posted a message that Dolly Khanna has started investing in it. As any normal investor would do, I felt that was a spam as there was no way I could get the right information unless the shareholding pattern for next qtr was rolled out. Shareholding pattern for Dec 2014 was rolled out and investors saw that there was no stake of Dolly Khanna. Some investors bought the stock just because Dolly Khanna invested. Now as Dolly Khanna was not ther in shareholding list, they might have sold the stock affecting the technical and chart pattern of the stock. Thus it creates a wave on uncertainty in the message board.

In another case, I track Asian Granito Ltd company from the levels of Rs 30.00 and have invested in it regularly on dips. I am super bullish on the stock even now. As I track AGL regularly, one day I found that there was one guy who wrote that Dolly Khanna is investing. Again I felt that was a spam as there was no way I could get the right information unless the shareholding pattern for next qtr was rolled out. And there it was. I was surprised as the guy was right and Dolly Khanna held 1.69% of stake in recent Shareholding pattern (Dec' 2014). This doesnt mean I am going to believe each and every boarder.

 Many boarders on MMB have successfully fooled investors and poor investors have lost tons just because of SPAM...

e.g. of such shares:
Via MMB: Syncom Formulations, Madhav Marbles, Jagsonpal Pharma.
Via Personal messages/Whatsapp: NHC Foods,Aurum Soft
    
Having said that, if you are an investor and using MMB service, then you might have noticed that in last week(date 20 Jan-25 Jan), the boards were flooded with the recommendation of BUY on 'Richa Industries'. I am not saying that the company is bad or it doesnt have future but if we have spammers activated like that on particular board, the stock movement becomes unexpected due to which investors might suffer huge loss. 

I tried so many times to warn investors on all the boards on MMB where there was possibility of spamming, but there are so many supporters of the Spammer that noone listened me and criticized me. Most of those who comment are his paid followers only but retail investors are unable to see it. Due to this, even retail investors used to ignore my sincere comments. All of them will regret they didn't listen me before when the quarterly results will be out. Once the results are out and its below expectations, The Spammer who has lot of followers will just leave the board. Check Syncom Formulations, a classic example.




Consequences: The main thing to look out for is that if promoters are not trustworthy, they can sell their stake in such conditions when there are many more buyers available than sellers as they sell in chunk. It has been noticed in many of the shares where the share price is inflated with the help of spammers/operators and when the price is High, the promoters sell their stake. Promoters are even known to hire the spammers for similar activity.


Disclosures: I am not against any particular fellow or group but its the black truth that prevails in our share market. Most benefit for the spammers is due to the practice if investment prevailing in Share Market. The investors even in this age of internet buys share without researching.
A sincere request: Always research the stock and look into its future before buying any share. If you are not smart enough, do consult your investment advisor.

Wanted to write this blog from a long time but was really kept busy with work of investments.