Case Study: Stock xxx -- Operators live and kicking

Case Study: Stock xxx -- Operators live and kicking

 

Stock xxx : Look at the way this stock is being operated effortlessly without any fear of the regulator. There are only about 0.72% shares with ordinary retail investors.  The stock moved up by 12% today at a time when real estate shares are taking a pounding.

Today on BSE the shares marked for delivery is a measly 3.8% i.e. 13,000 shares only!  In the derivative segment (both Aug fed series) the no of shares traded is more than 8 lakhs!!!

Now the game here is to corner all the free float shares and play around in the derivative segment.

Now there are talks on the street that SEBI is looking in to this.. is it??

Another game begins few days before expiry. The shares are propped up and huge quantity of Open Interest is left to expire. On the day of expiry, this creates huge difference between the 1^st Month contract expiry price and the 2^nd Month running price. Almost 10-15%... ie the 1^st Month expiry price is 10-15% above the 2^nd month contract running price. This 10%-15% is pocketed and the game starts once again the next month. Now, this month, it has started couple of days back. This is why the Sept month contract is trading at a 25-30 Rs discount to the Aug month contract price already.

Why is the regulator sleeping on the switch when this is happening for the past so many months. Look at the charts and you will know. 

These things prove time and again that we have a hopeless regulator in place.

The same thing was happening with Stock YYY few months back.. once again because of its low free float.

Also, remember the way IPOs behaved on the day of listing and afterwards.

To caution and get you feeling of the market,

Regards