Bursa do have a Surveillance Unit monitoring all the activities done by listed entities, institutional and retailers. It is not exhausted from the share price only. It is inclusive of blogs, sharing groups and all sorts of online communications. So all your posts or comments might reach Surveillance Unit someday somehow.

Then how to differentiate between speculation and manipulation?

Trading base on news/rumors speculation is allowable. The limitation is until the extend if there are some party/group cornering/pumping and dumping the stocks to the late comers after it as reach their target price, it will be a valid case to Bursa. FYI Bursa is able to see all the trading activities done real time basis and they can connect the dots.

Manipulation in the other round is a valid case for Bursa to step in and take action. No news, no projects, nothing happen but the share price continues to goes up. Volume is high. Why it is high? It is due to rollover activities to keep inflating the share price. If genuine buyers, generally T2 and T3 will pick up hence the volume should be lower.

How the Modus Operandi work in spreading the rumors?

The group will buy at low price, it is called accumulation period. When the tickets are enough, all the cyber troopers planted in famous investment blogs, forums and especially nowadays under telegram and watsapp group will keep shouting buy and buy. 1 cyber trooper can join 50 to 100 investments groups and u imagine what 20 cyber troopers can do?

How to detect the potential red flags?
Case study:

A company share price is 0.10 and Market Capital is 25m. The group started to accumulate with average cost around 10 to 15 cents.

Do you need a lot of money? The answer is no. You put RM5m cash in trust account entitle you for minimum RM15m line. In the event you are good with the remisiers, you may get limit until 5x multiple of cash.

By the time you are able to collect the share price up to 20 cents, your return might reach near to 100% with the cost of 10 cents. if you are not aware, his wealth doubled already. For the more group greedier it will go further abroad until lets say 0.40. Market Cap has grown from 25m to 100m. His initial 5m cash with the minimum 3x multiple of 15m has grown to 60m value.

From there all the retailers have come join the party at 30 to 40 cents average. Distribution comes. Newbies get burned and the punters is stuck. The story never goes old. Losers are the retailers again.

There is a reason why BBO does not favor market rumors trading and syndicated counters. The stocks are too penny and easily to be manipulated. But year after year, 80% of retailers still punt penny stocks hoping to make a kill in the market.

BBO favorable shares selection are base on above 80 cents and market cap is above RM100m preferably.

Reason?

You and me both can't manipulate the shares. So it is a fair game for all. Its about stocks selections and trading skills basis.

In a nutshell:

BBO is a house for Traders/Investors. We trade base on skills and knowledge.

Disclaimer: My coments are irrelavent to any of the listed shares in Bursa. Do not link my comments to spur any discomfort news against certain listed entities. It is purely base on sharing on info.

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