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Author: KLCI King   |   Latest post: Sat, 4 Aug 2018, 04:32 PM

 

SC warns investors over ‘pump and dump’ schemes (Bonescythe is WANTED)

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KUALA LUMPUR: The Securities Commission Malaysia (SC) has warned investors over the increase use of blogs, forums and social media platforms to spread false and misleading information on certain companies in order to perpetrate ‘pump and dump’ schemes.

In a statement, the SC said perpetrators would accumulate shares at lower prices before posting positive sentiments about the companies, with the intention to spur interest in the shares in order to drive up its price.

“When unsuspecting investors buy the shares, it gives the perpetrators an opportunity to sell the shares they hold at a profit. Investors who have bought shares at the inflated price will suffer losses when the hype eases,” it said. 

The SC and Bursa Malaysia have recently identified a blog ‘Bonescythe Stock Watch’ which was found to have published various articles that contain statements and forecasts that were misleading and deceptive, an offence under Section 178 of the Capital Markets and Services Act 2007 (CMSA). 
 

Following SC’s intervention action, the blog has been removed.

“The SC advises investors to always exercise diligence and verify the legitimacy of information before making an investment decision. Investors are reminded to be cautious of the risk of fraud and when in doubt, to seek advice from persons who have been licensed by the SC,” the regulator said. 
 

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bursagoinglong 178. (1) A person shall not–
175
(a) by making or publishing any statement, promise or forecast that he knows
to be misleading, false or deceptive;
(b) by any dishonest concealment of material facts;
(c) by the reckless making or publishing, dishonestly or otherwise, of any
statement, promise or forecast that is misleading, false or deceptive; or
(d) by recording or storing in, or by means of, any mechanical, electronic or
other device, information that he knows to be false or misleading in a
material particular,
induce or attempt to induce another person to deal in securities.
(2) In a prosecution for an offence under paragraph (1)(d), in relation to the recording
or storing of information, it shall be a defence if the defendant establishes that when the
information was recorded or stored, he had no reasonable grounds for expecting that the
information would be available to any person.
21/03/2018 23:38
cheated How abt those who say HRC TP until RM 42? Why RM 8.4 instead?

Posted by stockraider > Mar 21, 2018 11:11 PM | Report Abuse
WHEN PEOPLE PONDAN U, ALSO CRIME MAH....!!

IT IS CALLED DUMP AND PUMP LOH....!!

HOW LEH ??
WHEN 3iii SAY SELL HENG RM 3.66....THE PRICE WHEN UP INSTEAD...IT IS CONLOH.....!!
21/03/2018 23:44
bursagoinglong The lesson here, for bloggers, is not to promise or forecast a statement that is misleading. If you want to state your opinion, make sure it is backed by credible facts.

Shit like, this company A will take over company B (without basis/false/misleading). Buy buy buy company B!

That stunt will land you in trouble with the law.
21/03/2018 23:44
stockraider 1-Promise of big profits:
Anytime you’re being promised of big profits from a stock you should reconsider. It’s a big red flag because no one really knows when their big profits will come.
We can assume, but we cannot know really for sure of any stock’s outcome.
I do believe you’ve known that by now if you’ve been trading penny stock already, it’s not hard to see that.
TAKE HENGYUAN EPS RM 3.03 HIGHEST PROFIT IN KLSE EVEN HIGHER THAN NESTLE EPS RM 2.75...SO NO FIT BILL LOH...!!

2- Pump and dump stocks are penny stocks
You will never find a stock in a pump and dump list which is not a penny stock. All the pump and dump stocks are penny stocks. This should be your number one rule.
Penny stocks are the ones that are prone to those sort of manipulations. Although it’s illegal and considered to be a crime. It still happens as of today, in order not to fall prey to them you have to conduct your own research.
Don’t rely on what you’re hearing, look for your own information. According to Penny Stock Expert, only a handful of stock traders stay true to themselves when it comes to researching before trading.

It’s almost impossible to be successful trading penny stocks if research are not being done.
ASK YOURSELF HENGYUAN PENNY MEH ?? NO LOH....IN FACT IT IS BLUECHIPS IN THE MAKING MAH....!!
AT THE CURRENT PRICE PE 3X SCREAMING BUY LOH..!!

3- Reverse takeover
Most of the penny stocks that undergo a reverse takeover are usually being pumped somewhere along the way.
What’s a reverse takeover? It’s also known as a merger, you may’ve heard of it being called “Reverse merger” before. It’s a method used by private companies to become publicly traded.
They get this done by acquiring just enough shares to control a publicly traded company. And then those shares are used to exchange in the public company. Once this is done the private company has become a publicly traded one.
YES CHINA FUND DID TAKEOVER HENGYUAN AT RM 1.92 AND THEY USED REAL CASH MAH, ALSO THEY DID NOT SELL OR BUY A SINGLE STOCK, HOW TO SAY HENGYUAN FIT THE BILL LEH ??

4- The flat liners
Some stocks are usually flat lined on their graphing figure. They’re stationed at one place and never make any move. All of a sudden the price start increasing out of nowhere.
Those stocks are the one you should be careful with because prices don’t just start increasing for no reason. Especially for a stock that never show any movement.
It’s considered to be a big red flag. Be very, very careful wit them!
WORLD CHAMPION PROFIT UP FROM EPS RM 1.00 TO RM 3.00, SO SHARE PROFIT UP IN TANDEM, VERY NORMAL LOH...!!

5- Trading surge
Seeing share volume of a stock surges from 0 to over 1 million in one day should tell us something. Either they have some very good promoters out there, or they have a way to increase the volume themselves.
Don’t get fooled by them, their goal is to lose you money while they’re gaining money. They’re becoming rich at the expense of your hard earned money. YES HENGYUAN VOLUME DID PICK UP, IT IS BCOS IB TRY TO PLAY IT DOWN TO REDUCE THE STRIKE PRICE LOH...!!
BUT REMEMBER THIS LOH...U CAN NEVER KEEP A GREAT STOCK LIKE HENGYUAN DOWN FOR LONG LOH...!!

REMEMBER FUNDAMENTAL OF HENGYUAN IS GREAT MAH...!!
WHY HENGYUAN VERY VERY GOOD LEH ???

VERY GOOD BUSINESS?
1. Does it has a history of consistently increasing sales, earnings & cash flow? YES 3 YRS OF SUPERB EARNINGS EXCEEDING EPS RM 1.00 FOR YR 1 & 2 AND EXCEEDING RM 3.00 FOR YR3 OR LATEST YR 2017
2. Does it has a durable competitive advantage (Economic Moat)? YES EVERYONE PUMP PETROLEUM PRODUCTS...IT IS REPETITIVE CONSUMER PRODUCTS AND OLIGOPOLY WITH ONLY 5 PLAYERS LOH...!!
3. What are its future growth drivers? POPULATION GROWTH, CAR GROWTH, NEW USAGE LIKE SHIPS BEGINNING TO USE DIESEL THAN FUEL OIL.
4. Are its debt levels conservative (Long term debt < 3 Net Income)?
THE CASHFLOW TREMENDOUS WITH FREE CASHFLOW EXCEED RM 1.0 BILLION. IT HAS CASH IN HAND ABOUT RM 0.512 BILLION WITH BORROWING RM 1.2 BILLION
5. Is its ROE above average? ITS ROE EXCEED 50%
6. Does it require low or high CAPEX to maintain current operations? CAPEX REQUIRE IS RM 700M AFTER THAT U NEED LESS THAN RM 100M CAPEX TO MAINTAIN THE BUSINESS EVERY YR UNTIL NEXT CYCLE ABOUT 12 YRS TIME LOH..!!
7. Is the management holding/buying the stock? THE CHINA OWNER HOLDING AND NOT SELLING MORE THAN 50%
21/03/2018 23:45
cheated Like that can sue stockraider or not?

Posted by bursagoinglong > Mar 21, 2018 11:44 PM | Report Abuse

The lesson here, for bloggers, is not to promise or forecast a statement that is misleading. If you want to state your opinion, make sure it is backed by credible facts.

Shit like, this company A will take over company B (without basis/false/misleading). Buy buy buy company B!

That stunt will land you in trouble with the law.
21/03/2018 23:45
stockraider WHY HENGYUAN VERY VERY GOOD LEH ???

VERY GOOD BUSINESS?
1. Does it has a history of consistently increasing sales, earnings & cash flow? YES 3 YRS OF SUPERB EARNINGS EXCEEDING EPS RM 1.00 FOR YR 1 & 2 AND EXCEEDING RM 3.00 FOR YR3 OR LATEST YR 2017
2. Does it has a durable competitive advantage (Economic Moat)? YES EVERYONE PUMP PETROLEUM PRODUCTS...IT IS REPETITIVE CONSUMER PRODUCTS AND OLIGOPOLY WITH ONLY 5 PLAYERS LOH...!!
3. What are its future growth drivers? POPULATION GROWTH, CAR GROWTH, NEW USAGE LIKE SHIPS BEGINNING TO USE DIESEL THAN FUEL OIL.
4. Are its debt levels conservative (Long term debt < 3 Net Income)?
THE CASHFLOW TREMENDOUS WITH FREE CASHFLOW EXCEED RM 1.0 BILLION. IT HAS CASH IN HAND ABOUT RM 0.512 BILLION WITH BORROWING RM 1.2 BILLION
5. Is its ROE above average? ITS ROE EXCEED 50%
6. Does it require low or high CAPEX to maintain current operations? CAPEX REQUIRE IS RM 700M AFTER THAT U NEED LESS THAN RM 100M CAPEX TO MAINTAIN THE BUSINESS EVERY YR UNTIL NEXT CYCLE ABOUT 12 YRS TIME LOH..!!
7. Is the management holding/buying the stock? THE CHINA OWNER HOLDING AND NOT SELLING MORE THAN 50%


Questions 1 to 7 sieve out the GREAT businesses.
If you find such a business, then go on and determine its intrinsic value. If not, don't bother with the valuation: look for another stock to analyse.
RAIDER SAYS LONG TERM FAIR VALUE RM 22.00 TO RM 42.00 LOH...!!
WHY? BASED ON PE 10X COMPARE WITH NESTLE PE 50X MAH...!!


GOOD PRICE?
8. Is it undervalued, that is, its share price < intrinsic value?
AS ABOVE ANALYSIS UNDERVALUE...FURTHERMORE HENGYUAN DID NOT REVALUE ITS PROPERTY FOR THE PAST 30 TO 50 YEARS LOH....!!

9. Is the stock breaking out of consolidation or on an uptrend AND above the 20 or 50 Day moving average? IT IS ON CONSOLIDATION PHASE...BOTTOMING OUT NOW LOH....!!

DO NOT MISSED THIS WONDERFUL OPPORTUNITY LOH...!!
21/03/2018 23:47
qqq3 In a statement today, SC said the commission and Bursa Malaysia recently identified a blog 'Bonescythe Stock Watch' that published various articles containing statements and forecasts that were misleading and deceptive, an offence under the Capital Markets and Services Act 2007.


any difference between this raider and Bonescythe?
21/03/2018 23:48
stockraider I APA TAKUT LEH ??

WARREN BUFFET PHILLIP 66 REFINERY INVESTMENT...I HENGYUAN REFINERY INVESTMENT PE 4X ALSO NO SCARED LOH....!!

THE WORLD BEST INVESTOR INVEST IN REFINERY PHILLIP 66 PE 22X...RAIDER FOLLOW INVEST IN HENGYUAN REFINERY PE 4X MAH...CANNOT BE WRONG LOH..!!

IF WRONG....WARREN BUFFET ALSO MUST BE WRONG LOH....!!
W.BUFFET WORLD BEST INVESTOR, CAN HE BE WRONG LEH ??
IMPOSSIBLE MAH......!!
THATS WHY TP RM 22.00 TO RM 42.00 LONG TERM NO ISSUE MAH...!!

SO HAVE CONFIDENT ON HENGYUAN LOH...!!

Posted by dragonslayer > Mar 21, 2018 11:00 PM | Report Abuse

Aoyo Tibet Monk..do youbknow..you too sweet talk about HY..not scare meh...wakakaka...kikiki
21/03/2018 23:48
tutut1 the burden is to prove that the guy indeed knows his forecast is misleading. he is likely to say he does not know. on contrary, all forecasts are proven to be false anyway because nobody can predict the future. you want to prove in court all the big words above in paragraph 175, best of luck! you will be wasting time and money just on legal fee alone .. there is no merit or solid ground to charge the guy
21/03/2018 23:48
bursagoinglong If it is officially announced that Company A will take over Company B for RM X per share, you wouldn't have a brush with the law if you deduce that the shares of Company B will increase, based on the offer by Company A.
21/03/2018 23:50
qqq3 In a statement today, SC said the commission and Bursa Malaysia recently identified a blog 'Bonescythe Stock Watch' that published various articles containing statements and forecasts that were misleading and deceptive, an offence under the Capital Markets and Services Act 2007.


any difference between this raider and Bonescythe?
21/03/2018 23:50
stockraider LU DENGAR BAIK BAIK MAH....!!

LONG TERM HENGYUAN TOWARDS BLUECHIPS LOH....!!

1 TO 2 YRS TP RM 22.00 TO RM 42.00 MAH....!!
u promote & talk big on world champion hengyuan....nothing to worry mah....!!

1. EPS rm 3.03 even higher than Nestle Eps Rm 2.75.
2. Freecash flow Rm 4.00 per share better than nestle Rm 3.00.
3. PE 4.5x better than nestle 50x.
4. 3 yrs of latest positive consistent sustainable strong eps exceeding Rm 1.00.
5. Valuation of hengyuan refinery cheap compare to Petronas pengerang and Petron new propose refinery cost of investment mah!.
6. Crack spread still historical strong high & sustainable loh...!!
7. Sales increases loh....!!

So no worry mah....bcos backed up by fundamental mah...!!

People say share price don good up why leh ??
U ASKED WARREN BUFFET LOH...HE SAYS SHORT TERM SHARE PRICE VOTING MACHINE.....LONG TERM WEIGHING MACHINE MAH...!!
longterm hengyuan will perform if fundamental good mah...!!

BTW...W.BUFFET REFINERY INVESTMENT PHILLIP 66 PE 22X COMPARE TO HENGYUAN PE 4.5X LOH....!!

ALWAYS INVEST LONG TERM LOH...!!
HENGYUAN TOWARDS BLUECHIPS STATUS MAH....!!

BLUECHIPS PE 12X NOT EXCESSIVE MAH....!!


Posted by dragonslayer > Mar 21, 2018 09:54 PM | Report Abuse

Aiyo Tibet Monk..dun have pe12 for HY lah..PE 4.0 lah..wake uo..later kena tangkap masuk lokap...aiyoyo...kikiki

Posted by qqq3 > Mar 21, 2018 11:50 PM | Report Abuse

In a statement today, SC said the commission and Bursa Malaysia recently identified a blog 'Bonescythe Stock Watch' that published various articles containing statements and forecasts that were misleading and deceptive, an offence under the Capital Markets and Services Act 2007.


any difference between this raider and Bonescythe?
21/03/2018 23:53
qqq3 Post removed. Why?
22/03/2018 00:13
Ricky Yeo Enforcement will be costly and do little to protect anyone. Just as things like pyramid scheme has survived hundred of years, losing money will continue be a norm in the stock market.

A better tool is between your ears - learn how to think for yourself, you will never fall for all these BS.
22/03/2018 06:11
cheoky Bonesythe did it crudely. Grandpine did it implicitly saying it helps generate multiplier time return in short span of time. Showing only his student winner, stimulating human greed. Both is in same category.
22/03/2018 06:20
bloodborne some people should understand that when SC resorted to took down the blog..they could already have a concrete evidences that such pump and dump scheme has took place. Pump and dump is just not purely promoting positive sentiments on the targeted stocks. It involve the perpetrators collecting the shares before he posted such misleading articles and then once the share price gone up. He would then sell to the market to the fooled buyers. This are different to analyst or IBs where they only just published their research reports (TP) on their covered stocks. Theres no way the accumulate the same shares before they publish such reports as this will also can be consider pump and dump. And also for the one who said that EPF also dump..i think u r dumb cause they dont mislead people!!
22/03/2018 08:53
KLCI King This comment sound like stockmanmy

qqq3 who is the coward deleting my posts?
22/03/2018 00:13
22/03/2018 09:49
3iii >>>
bloodborne some people should understand that when SC resorted to took down the blog..they could already have a concrete evidences that such pump and dump scheme has took place. Pump and dump is just not purely promoting positive sentiments on the targeted stocks. It involve the perpetrators collecting the shares before he posted such misleading articles and then once the share price gone up. He would then sell to the market to the fooled buyers. This are different to analyst or IBs where they only just published their research reports (TP) on their covered stocks. Theres no way the accumulate the same shares before they publish such reports as this will also can be consider pump and dump. And also for the one who said that EPF also dump..i think u r dumb cause they dont mislead people!!>>>



Probably the case.

Was bonescythe an analyst himself?
22/03/2018 09:54
bloodborne 3iii dont know worr..could be or not we never know. But based what has he published before on his blog..it looks like he is an analyst of which own method of analysis..no proper valuation methodology..just pure puzzle solving of different infos and then wallaa this is the target price. analyst
22/03/2018 10:23
3iii Several common manipulative activities of stock market syndicates
Market syndicates have been around for many decades and their stock manipulative activities have been felt in the United States, Singapore, here and every other market around the world. Their objective has always been to push up share prices and then unload the high-priced shares on punters.


There are several common aspects of stock manipulators, brokers said, and these are some of them:


Scenario one: The IPO route

These stock plays are pre-planned even before the shares are listed on Bursa Malaysia. As the major shareholder may be imposed with a moratorium from selling any of their shares, he would park some of his shares under nominees. The shares in the names of nominees would not come under the moratorium.

The major shareholder would then place out a block of the new shares issued under the initial public offering (IPO) to a stock operator. Let's say the operator gets the shares at 50 sen a piece.

On the listing day, the stock operator will whack up the price of the shares to say RM1 and a day or a few days later, start selling the shares. He won't be able to unload all his shares at the top, but could achieve an average price of say, 70 sen.

If the major shareholder and stock operator manage to distribute (the industry term for unload) 30 million shares, they'd get to share a profit of RM6mil.




Scenario two: Sell pricey stocks to fund managers

In this kind of scheme, the syndicate will push up the share price from say, RM1 to RM3. The syndicate will then place out (industry term for selling sizeable blocks of shares) to fund managers. The fund managers would be induced to buy the shares with a commission secretly paid to them by the syndicate. If the commission is say, 20 sen on five million shares, the fund manager gets RM1mil.

Placing out shares to fund managers has the advantage of holding up the share price for a longer period of time. There would be an understanding with the fund manager that he should not immediately sell the shares into the market.

The syndicate would then continue to ramp up the share price. Inevitably, however, the syndicate will sell off his shares and they usually leave in a hurry. The fund incurs a loss but the fund manager has personally profited with the commission.




Scenario three: Sell pricey stocks to punters

This is the stock manipulation scheme that punters are familiar with. A syndicate gets a block of shares of say, two million from a major shareholder and churns a daily trading volume of say, five million shares. This is done by buying and selling the same shares over and over again by syndicate members and their nominees.

The churning is done in such a way that the share price goes up every day, irrespective of sentiment on the market.
The trading activity and rising price momentum gets the attention of punters. The more experienced punters usually recognise the share price is being ramped up. Nonetheless, they pile in to make a fast buck, and hopefully get out before the syndicate withdraws support for the share price.

There will be, however, punters who are newer to the game or have more greed and they stay too long in the stock. When the syndicate sells out within a day or two, usually causing the stock to trade limit-down, punters lose their shirt.

The profits of the syndicate are shared with the company's major shareholder. Usually, this involves companies that are loss-making in their business. Ramping becomes the only way the major shareholder can make a profit.
22/03/2018 10:28
3iii Scenario three: Sell pricey stocks to punters

For this, I recall Patimas being played up before it was subsequently delisted.
22/03/2018 10:29
bloodborne and investors should understand that stocks doesn't simply move up and down without any reason justifying such price movement. It could either someone collecting/selling because they perceived the share price is under/over value fundamental/technically, because of leakage of an inside info positive/negative, because of speculation arising from rumours (which are not mean to mislead) such as oil price are on the rise trajectory. If none of this cannot be find to justify the price rise..then there is high possibilities that the stock is being manipulated (i,e pump and dump or etc)..from my opinion
22/03/2018 10:31
bloodborne 3iii yeah i still remember patimas where peoples in the market receive msgs buy unknown number willing buy the shares at specific price
22/03/2018 10:33
3iii >>>>Patimas (7042) ~ TP 30 cents - Malaysia's Biggest Investment Forum
www.investlah.com › ... › Bursa Malaysia › Equities › Patimas (7042) ~ TP 30 cents
Re: patimas. Demon promotes, INSIDER SELLS .... « Reply #1314 on: January 22, 2013, 05:19:33 PM ». Quote from: demonlsy on January 22, 2013, 05:07:35 PM. that's why i said, i don't mind how people "view" him but i know he has something for Patimas. This is a company with negative equity. Its revenues tanked and it ...<<<<
22/03/2018 11:18
apolloang anzo is one of them.....hahaha
22/03/2018 11:52
John_Lee Why you guys talk until like Bonescythe got arrested and charged? His blog got shut down only. I do agree with that action as that blog does give the impression that he has ulterior motives in writing
22/03/2018 12:11
JamesPond They shouldn't shut down Bonescythe blog. That blog shut down quite awhile ago. I always go there for some comedy entertainment and laugh at the things written there. So sad that now one avenue lesser for entertainment.
22/03/2018 13:04
mamakspecial YEAH...HY RM42...COMING RIGHT UP..faster tell kyy to dump JAKS and buy back HY...OPPPS..HAVE i just committed a crime...argghhh..dont shut me down...
DISCLAIMER..BUY AT YOUR OWN RISK..IN STOCKS..THERE IS NOT CERTAINTY...ONLY CERTAINTY IS UNCERTAINTY....EVEN YOUR GF..WONT MANJA YOU EVERYDAY LIKE YOU EXPECT HER TO DO SO...
22/03/2018 13:22
Is HY Dead? SC is very useless. Only know how to talk and warn investors of this and that. If SC is so professional, why don't they go and find out whether is there anyone who is doing the "pump and dump".

My experience dealing and complaining to SC regarding China Automobile Parts Hold. Ltd 5229 CAP, the directors of this company had obviously breached the securities law, but SC has not take any actions against the directors of the company or to help investors who got conned by fake financial statements to recover their financial losses.

SC only know how to talk and show off their regulatory power but not doing anything.

BOLEH LAND!
22/03/2018 14:47
Is HY Dead? SC IS RECKLESS!

SC IS RECKLESS!

SC IS RECKLESS!
22/03/2018 14:51
Is HY Dead? SC IS RECKLESS!

SC IS RECKLESS!

SC IS RECKLESS!
22/03/2018 15:00
qqq3 the difference between raider and Bonescythe is that Bonescythe had been more effective......
22/03/2018 15:02
PotentialGhost This sohai sc , who pump and dump? Najix umnx black money private fund lar o0o
22/03/2018 22:27
VenFx Institutions the biggest shark in market,they are legitimate to do so.
Bone didnt do anything wrong, just he not obtain such licence.

Sharks are going to make their biggest move Prior Ge14... they have indeed.
Press down first prior ge14, pump after ge14.

Bilis buy back at much higher cost ... Thats how shark taking bilis as their fuel.
22/03/2018 23:04
VenFx Bone just unlucky ...
Syndicaye who goreng spg xox anzo aturmaju nwp jetsons no action taken....
Even share activity at extremely volatile like iwc malton ekovest SC not even date to investigate .... pui dia.
22/03/2018 23:09
KLCI King Bone is just another sweet talk shark, don't try to beautify bone, Venfx.
23/03/2018 01:14
brightsmart ven...the pump in pump and dump refers to the pumping of fake news and fake forecasts , not the pumping of money.
23/03/2018 01:36
brightsmart who else guilty of pumping fake news and fake forecasts.?

please contact SC.
23/03/2018 01:38
3iii Securities Commission Malaysia - 82pc offences involve insider trading, mart manipulation

13 March 2014
82pc offences involve insider trading, mart manipulation

KUALA LUMPUR: THE SECURITIES COMMISSION MALAYSIA (SC) SAID 82 PER CENT OF ITS 56 ACTIVE INVESTIGATIONS INVOLVED SUSPECTED INSIDER TRADING AND MARKET MANIPULATION OFFENCES.

The rest of the investigation cases comprised of securities fraud, intermediaries misconduct, unlicensed activities and matters of corporate governance.

A total of 16 referrals were received from sources like market surveillance and investor affairs and complaints departments and other regulatory bodies.
SC said a majority of the whistle-blowing cases - 75 per cent - were attributed to suspicious trading activities like market manipulation and insider trading.

Breaches in corporate governance practices and illegal conduct of regulated activities also figured in the referrals that the SC received, it said in its 2013 annual report released yesterday.

The SC's various enforcement measures in 2013 had resulted in 34 criminal charges filed against six individuals and five against directors in public-listed companies, for offences relating to false financial reporting.

It also filed a civil suit in the High Court against a former licensed asset management company to claim RM13.3 million for losses caused to 63 investors. Regulatory settlements from this case amounted to over RM2.7 million, with steps taken to provide restitution to impacted investors.

The body also imposed four administrative sanctions on licensed intermediaries and as a bond trustee for their failure to comply with regulatory obligations.

A total of RM1.35 million in penalties were collected through such actions and 70 infringement notices were issued for other various breaches of securities laws and guidelines.

The SC used its investigation powers to obtain evidence from various sources like professional companies, financial institutions, public-listed and private companies, regulated entities, investors and various individuals. Oral evidence was gathered as formal recordings of statements from witnesses.

Last year, 246 witnesses' statements were recorded and these individuals comprised of professionals, advisers, company directors, senior management teams from listed companies as well as licensed persons.

As the trend in cross-border transactions is becoming common in many of the SC's investigations, the SC continues to cooperate with its foreign supervisory counterparts through the IOSCO's multilateral memoranda of understanding on consultation and co-operation and exchange of information.

In this regard, the SC made 24 requests to seek assistance from seven foreign jurisdiction to obtain evidence. The places include China, Hong Kong, British Virgin Islands, Singapore, Switzerland, United Kingdom and the United States.

On the other hand, the SC received 11 requests for assistance from foreign supervisory authorities of seven jurisdictions.

http://www.nst.com.my/business/nation/82pc-offences-involve-insider-trading-mart-manipulation-1.509938
23/03/2018 06:33
VenFx Posted by KLCI King > Mar 23, 2018 01:14 AM | Report Abuse 
Bone is just another sweet talk shark, don't try to beautify bone, Venfx

ME: I NEVER BOUGHT ANY OF THE BINE'S COUNTER, FOR WHAT U ACCUSSED ME OF BEUTIFYING BONE .... ???
I LOOK DOWN ON SC FOR THEIR VERY EFFORTLESSLY TO THE BIG GUN .
SIMPLE IS THAT , NOT HARD TO SEE MY POINTS.

BTW, I LIKE TO READ BONE ARTICLE, DOESNT MEAN I WILL BUY THEM.
23/03/2018 08:22
KLCI King What is this, VenFx?

VenFx Bone didnt do anything wrong, just he not obtain such licence.
22/03/2018 23:04
23/03/2018 10:43
KLCI King I never bought bone's recommendation too, too good to be true and never talk about downsides.
23/03/2018 10:43
3iii It is difficult for the authorities or regulators to supervise and monitor every wrong doers (perceived or otherwise). However, it is not uncommon for a case or two to be prosecuted, to warn others who maybe thinking of doing the same.
23/03/2018 13:16
TAFA just watch out on the timeline..when the stock is accumulated, when the promoting begin and when the stock is dumping..
23/03/2018 15:11
qqq3 Bones did a fantastic job ( but illegal ) job on DPrep.
23/03/2018 15:17
3iii Dataprep


Pump and Dump activities of the market operators in Bursa
Saturday, 25 March 2017
What’s cooking in penny stocks
BY TEE LIN SAY



Bursa Malaysia saw overall turnover hitting a staggering 6.01 billion shares on March 20 – the biggest one-day volume since August 2014.


BURSA Malaysia has underperformed for the past three years, largely due to the outflow of foreign funds.

The foreign funds started coming back five weeks ago and subsequently trading volumes on the exchange picked up. Bursa saw its overall turnover hitting a staggering 6.01 billion shares on March 20 – the biggest one-day volume since August 2014. Total turnover was valued at RM3bil.

Unfortunately though, the good always attracts the depraved. Sure, foreign funds are here, but so are the much dreaded “pump and dump” operators.

The presence of the operators who churned out the volume was so immense that it prompted Bursa to come out with a warning to brokerages to not facilitate such activities. The exchange particularly mentioned about social websites that promote these stocks.
So just what are these “pump and dump” operators all about?

Well, they are perhaps a group of people who operate on creating hype and building up fevered excitement around a (usually) small company, where insiders can subsequently unload overvalued or worthless shares to unsuspecting investors.

So let’s say these pump and dumpers identify a cheap stock. Typically it has no earnings but rides on offering big “potential” for upside.

What they do is to cheaply acquire a large position in a company.
Then they begin informing the public about this company via e-mail and Internet stock sites.
They also start trading shares of these companies,
Combined together, these activities create the perception that something big is brewing in that fledgling little company.

So the share price skyrockets, doubles, triples or quadruples even. Along the way, the operators dump their stock and make a fat profit for themselves.

That is more or less the modus operandi.

In the last few weeks, stocks that have hogged the volumes and gainers list are those in the sectors of construction, property, technology, logistics and e-commerce. The themes play out every few days before rotating to the next sector.

Brokers say it is more likely that the pump and dumpers are in some of the fintech stocks.
“The majority of the construction stocks, all said and done, have fundamentals and orderbooks to back their earnings. Furthermore, there are real construction contracts to be dished out this year and next.

“The same cannot be said for the tech stocks, where a lot of it is going up purely on potential and speculation,” said one broker.

Caution by the authorities

The authorities are vigilant of the current situation, and over the week, cautioned that “pump and dump” activities are circulating through the social media.

In a circular to the heads of dealing and compliance of stockbroking companies, the stock exchange said it discovered certain groups of market participants using the social media and Internet trading to carry out manipulative activities, which included “pump and dump” schemes.

The circular said that the operators of the “pump and dump” schemes, which are transacted through the social media, would typically begin by spreading false or misleading statements, news or rumours in investor blogs, chat groups – such as Telegram, WhatsApp, WeChat, electronic bulletin board postings or online newsletters – to entice or recommend unsuspecting investors to buy stocks which are touted as “hot” picks.

This, it said, was to facilitate the disposal of the stocks that they had accumulated earlier at higher prices.

Bursa said operators would often post their own researches and make unsubstantiated statements, promotional news or hearsay to gain the confidence of their followers and lure them into following their stock tips.

Bursa said the operators were persuasive in the chatrooms to entice people into buying the stock with the end goal of running up the prices.

When the stock price is pumped up due to an increase in trading volume, the operators behind the schemes will sell their stocks before the hype stops.

“The exit of the operators will cause the price to plummet while innocent investors who bought high and sold low will lose their money,” it added.

Bursa said it wanted to share the observations with brokers so that they become aware of such activities and alert their representatives and clients to exercise caution and diligence.

So what’s cooking?

Now, the latest batch of stocks being “peddled” by financial blogs and social media are those perceived to be beneficiaries of the Digital Free Trade Zone (DTFZ) where Jack Ma’s Alibaba will have a presence.

Prime Minister Datuk Seri Najib Tun Razak and Ma launched the DFTZ on Wednesday, which is expected to generate trade worth US$65bil (RM286bil) by 2025. It is expected to double the export growth of small
23/03/2018 16:41
3iii Dataprep


Prime Minister Datuk Seri Najib Tun Razak and Ma launched the DFTZ on Wednesday, which is expected to generate trade worth US$65bil (RM286bil) by 2025. It is expected to double the export growth of small and medium businesses by 2025 and create 60,000 jobs. It will also create a new Kuala Lumpur Internet City to house 10,000 Internet firms and 25,000 tech professionals in Bandar Malaysia.

Using these big numbers and the China factor, blogs have started talking up the likes of Dataprep Holdings Bhd, GHL Systems Bhd, Rev Asia Bhd, Cuscapi Bhd, Malaysia Airport Holdings Bhd, AirAsia Bhd, DKSH Bhd and Tropicana Bhd, among others.

The share price of Malaysia Airports Holdings Bhd (MAHB) going up isn’t all surprising.
MAHB will be teaming up with Cainiao Network, the logistics arm of e-commerce giant Alibaba Group where both companies will develop a regional e-commerce and logistics hub in the KL International Airport (KLIA) Aeropolis, as part of the DFTZ initiative.

This is not to say that all the thematic stocks that have moved up sharply are absent of fundamentals, but certainly the element of speculation is huge.

One of the sharpest rise was seen in business process outsourcing solutions provider Efficient-E Solutions. Its share price went up 72.41% or 21 sen in one day to 50 sen on Thursday. It was also the most actively traded counter of the day with 208.04 million shares being traded.

While it is true that Singapore Post Ltd is the largest shareholder in Efficient E-Solutions with a 20.8% stake, and in turn, Alibaba Investment Ltd has a 14.41% stake in Singapore Post, nonetheless fundamentally wise, nothing appears to be happening within the company.

It remains a loss-making company, posting RM10mil loss for its financial year ended Dec 31, 2016 from a previous net profit of RM44mil.

Meanwhile, companies like Cuscapi Bhd and Rev Asia Bhd are riding on the DFTZ wave by virtue of connections.

For Rev Asia, the link is through its parent company Catcha Group, which has been chosen to be the master developer for the Kuala Lumpur Internet City, a component of DFTZ.

It is also uncertain how software solutions provider Cuscapi, which is primarily involved in business management solutions software for the food and beverage industry, will benefit from DTFZ.

The company, however, posted a widening loss of RM36mil for financial year 2016, from a loss of RM24mil the year before.

Perhaps the most drastic of all moves are that of little Dataprep, which has seen its share price run from 25.5 sen on March 15 to reach its high of 65 sen on March 23. It has also been on a phenomenal run. At its last price of 62 sen, the stock still only has a market capitalisation of RM259.2mil.

The main reason being touted for Dataprep’s rise is because its owner, Tan Sri Lim Chee Wah, the son of Genting founder Lim Goh Tong, is a major shareholder of the 20 billion yuan (RM13bil) Genting Secret Garden Resorts project in China.

Genting Secret Garden Resort is an all-season holiday and skiing resort, which will be an important venue for the Beijing Winter Olympics 2022. It is located at the outskirts of Zhangjiakou city in Hebei Province.

The price is rising because Dataprep is Lim’s only Malaysian-listed company. His other private vehicle, VXL Group, is also a major investor in Secret Garden. There are now rumblings in the blogs that there could be a potential transfer of assets and Dataprep could be a beneficiary.



Read more at http://www.thestar.com.my/business/business-news/2017/03/25/whats-cooking-in-penny-stocks/#ISQLBq8rX8xBO8Xe.99
23/03/2018 16:43
Koon Bee Haha...SC only shut down bone recently? I already detect bone is a P&D scam years ago.
24/03/2018 18:44
Is HY Dead? SC is very useless.....
Not updating anything of their investigations against China based company like MSPORTS, XINGQUAN, CSL AND CAP, that conned many Malaysian investors hard earn money.
03/04/2018 21:20
apolloang if jibby lose,MBI the 1st to tutup.....hahaha
03/04/2018 21:41


 

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