Thread by @CseJunkie

#Colombo #golf club and #swimming club.
It is a cartel of HNWIs and senior Brokers and few fund managers who get together, use their connections and contacts and invest in selected counters at low levels. @CSE_Media @SEC_SriLanka @BullsAndBearsSL @nimalhperera @BuhardeenImtiaz

These counters are either illiquid or has already performed well and solid invest opportunities for anyone. Then the fabricated news is spread through brokers, SM and other means so the retail interest is created.
@CSE_Media @SEC_SriLanka @BullsAndBearsSL

Then, with the retailers following the news get in those share. Price of those shares go up rapidly. To boost confidence few crossings would be done at higher levels by the people who invested at initial levels to their "proxy" accounts.@CSE_Media @SEC_SriLanka @BullsAndBearsSL

More retailer come in. When sell comes few HNWIs or broker firms support and absorb the selling. Seeing this support more retailers get in. By share would have gone up by 20%-30%. Initial investors sell part of their positions.
@CSE_Media @SEC_SriLanka @BullsAndBearsSL

More news and rumors spread with new information. Financial forecasts with higher fair values presented. Get more retailers in. Increase margins allowed for those few counters. So more buying power is given @CSE_Media @SEC_SriLanka @BullsAndBearsSL @CapitalTrustRe

More retailers come in use their margins. Brokers spread the rumors of price pushup targets. Retailers with their paper profits hold on to their positions. Prices move to rumored levels. Initial investors get out. @CSE_Media @SEC_SriLanka @BullsAndBearsSL

This can happen in cycles. Depends on the market sentiment and the strength of the news and misinformation. Now most of the initial HNWIs move out. Brokers earned their commissions and who had the information have exited.
@CSE_Media @SEC_SriLanka @BullsAndBearsSL

The investors who are now in are on thin air. No buying support. Moment buyers realise this ..you know the rest.
☝just the summary. Cartel almost always use their exit strategy as retail investors or some "big" fund.
@CSE_Media @SEC_SriLanka @BullsAndBearsSL

Regulators well.. if they push too much against the cartel ..well i have seen "heads" moving from "head positions". you can almost always see the pattern. @CSE_Media @SEC_SriLanka @BullsAndBearsSL

Back to the match. 😂😉

*Moment retailers realise this.