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Monthly SMS Frauds Exposed!!



Hello friends, the motive of this post is to expose the monthly sms frauds going in the stock markets these days. Every month bulk sms are being sent to to retail investors to trap them in garbage stocks, the stocks which are having no business at all, which are trading several times of their book value and which are purely manipulated by the operators.

So how they do they do it? First of all they pick up any garbage company, most of the times which exist on paper only with no business of any sort, they slowly and slowly accumulate massive holdings in the company at lower price and once they have good amount of holdings in the company they start pumping up the price upwards. Pumping is done buy placing buy orders themselves given the majority stake is with them how can any one sell them? so the price moving up and up.

Once the price has moved to a substantial levels which is generally 50-60 times the actual worth of the stock, they start sending bulk text messages to retail investors which generally claim some sort of insider information saying that this share will go up soon, retail investors especially the ones with no knowledge of fundamentals and technical s check the stock and they see it moving upwards believing the information was right rush and buy. This is the point where these operators offload their holdings to the retailers and go away and guess what unlimited lower circuits and losses losses and losses. The stock start coming down with no buyers and ultimately reaches its true worth which is negligible comparing to the amount at which retailers got it.

Here are some of the latest frauds done using this methodology:

1) Naisgirk Agritech
This is a recent example of sms fraud. Bulk sms were sent to retailers at 150-160 levels the stock moved to 170-180 levels temporarily, which was of course operators play and then retailers believeing the information to be true jumped into buying this garbage and the stock slipped to Rs. 3.88 within 5 months with continuous lower circuits and no buyers giving no chance to anyone to exit. Can you imagine how painful it can be for a investor from Rs. 184 to Rs. 3.88 wipping away 98% of the capital. This is not the only example of such frauds these are common in the indian stock markets look at the chart of naisagirk how it slipped from Rs. 184 to to Rs. 3.88 in no time

2) Tilak Finance Ltd.: With Tilak Finance we will understand how this pump and dump is done, its not a gradual process the pumping is done over months and sometimes years as can be seen from the charts of tilak finance ltd.

Let's go in flash back August 2012, the stock was trading at 9.71 and all of a sudden it started hitting non- stop upper circuits and we know who was behind these circuits, its a fact that its really difficult for any stock to hit more than 3 upper cirucits in a row that to is a rare instance and possible only in case of micro caps but this one was hitting circuits non stop, they got it at lower levels and they were pumping the price upwards the upside movment continued till december 2013 taking the stock from 9.71 to 300 and then sideways movement started and the stock remained more or less at 300 for entire year 2014. This was the time when the operators started offloading there holding slowly and slowly and then in november 2014 bulk sms started reaching to investors asking them to buy tilak finance in massive quantities many got trapped and within a month the unlimited lower circuits started to flow as can be seen from this chart and this

one is still hitting lower circuits and i am preety sure it will go to Rs. 9 which is its actual cost from where it started moving up, the operators have offloaded their holdings and got many times of the money they put in leaving the retailers to cry for believing an unknowns sms.

3) Kausambi Vanij: This is the latest one in the town where sms were sent and it has started to wipe off the capital of innocent ameteur investors who don't do any homework before buying any stock. The data about the company before september 2015 is not available but is started moving up from 50 and reached to 310 with non stop upper circuits and then sms started reaching the retail investors to buy this stock, I got the information about it and a simple look at the charts and fundamentals i was able to guess what was going to be next I issued caution alerts on my facebook and mmb handles and the next day proved to be dooms day for the ones who got trapped in the call, lower circuits started, although this is the third lower circuit in a row but I can assure you right now this going below Rs. 10 within a few months without giving any chance to anyone to exit. Here is the chart:

Even if someone have followed general common sense he can save himself from such frauds, first of all sending bulk sms includes a cost and no one is so great that he will incur cost out of his pocket to give you free tips and insider information without  subscribing or signing up for any trial. Secondly even if you receive any information you should atleast take some efforts to note down where you are putting your hard earned money. First of all if the charts show continuous upper circuits or lower circuits you should avoid that stock completely as they are operator driven most of the time secondly to analyze such stocks when you receive such sms simply go to, that's my favourite site for basic fundamental analysis. Go there and search for your stock, Following are some facts and figures which are common in these garbage stocks manipulated for pump and dump scheme:

1) They will be trading at PE of 1000s, yes thousands to interpret PE Ratio is simply the number of years it would take a company to cover its market price with the present earnings, PE ratio of latest fraud Kausambi Vanij is 10328. Sounds funny the company will take 10,328 years to cover its present market price. Had someone known this he or she would not even think of investing in such a garbage company

2) They trade several times of their book value, Book value of the company is simply its asset minus liabilities, kausambi's book value is 9.98 and is trading at 217.90 thats over 21 times, although its ok for bluechips to trade more than its book value but for a unknown company which is trading at pe of 1000s this itself is a signal for upcoming disaster

3) No business at all, most of the times such companies don't post quarterly results because they have nothing to show up. The sales and profit figures in yearly and quarterly results are negligble this itself shows what it is.

4) Negligible promoter holding, the promoter holdings in such companies is negligible infact 0 most of the time operator holding is full too which is not reflected anywhere because it is done using multiple accounts from multple locations using collective collusion.

Having known these simple stuff and taking the simple fundamental check-up you can at very first instance know what it is and what is the future of these garbage companes which the fraudsters are planning to offload using massive bulk sms and other methodologies.

Hoping that in future when you receive such sms you will know the intention behind them and the future of the stocks they are asking you to buy.

Happy Investing
Multiplier Wealth

Write comments
  1. Abhishek, your technical view on Sahyadri Industries

  2. Thank you sir,very informative.

  3. Technologies was another fraud SMS story .... High of Rs 527, now 18 bucks and still on lower circuits :-(

  4. There will be many friends kabra drugs in an live fraud going on yet retail investors are running to buy it.................

  5. Excellent Abhishek, extremely well put and educative. Gr8 Awareness creator article. Can't thank you enough :) God bless:)

  6. sir i have bought kausambi 200@229/- so please suggest me what to do to exit

    1. soory to say broo but you are on verge of loosing your capital as kausambi is pure operator stock with no fundamentals exit immediately if you get any chance anywhere you can also try placing sell order at lower circuit in pre open sessions to get your shares sold..........................