I just thought it might be timely to raise the issue around Pump & Dump schemes particularly with penny stocks on the ASX.
There has been a greater proliferation of this type of behaviour on the ASX and at the end of last year there has been a lot of press (see below links if published by HC) about ASIC and the ASX beginning to take action and prosecute individuals and companies for this type of illegal behaviour.
As investors, we must also understand that the ASX has come down and is coming down hard on what and how listed Companies advise the market re announcements. This played out for CRO in the middle of last year as we all know.
In my portfolio, CRO is the most talked about stock on social media platforms and on message boards like HC.
CRO management are more fluid with their company updates outside of standard ASX announcements. This could be a good or bad thing depending on how it is done, time will tell.
I know, everyone has an opinion as to the value of what Adrian has to say in his social media postings and interviews but it is clear that the ASX do not want investors mislead by comments and I am sure they are watching CRO closely.
For the passionate supporters here, I am not saying what Adrian does or says anything misleading. What he has spoken about has come to fruition but not necessarily in the time frame he suggests and or in the manner he thought it might take. In doing so, he adds to the psychology of the stock price and thus its volatility. Greed and fear are normal humans behaviours that play out on the stock market daily.
There is too much emotion by investors around this stock and that will cause unstainable runs on the SP from fear of missing out and greed. Then the inevitable retracement takes place as day traders take their profit. It is a frustrating process. Slow and steady based on real revenue and profit outcomes is always preferred by long term investors like myself. Don't mind a rerate if it is sustainable with some inevitable profit taking as is the process of the market. There is no becoming a portfolio stock while speculators are invested of which there seems to be many in CRO at this time.
For what its worth, the articles below show that ASIC and ASX are coming for Pump & Dumpers (finally) and the associated behaviour of companies and individuals that add to this mayhem.
https://www.*.com.au/asic-pump-dump-asx-bets-warning
https://www.copyright link/markets/equity-markets/asx-sharpens-focus-on-stock-pumping-promotion-20220106-p59mdudo not advertise external links.au/companies/news/963301/this-week-asic-cracked-down-on-pump-and-dump-schemers-while-the-asx-could-finish-it-in-the-green-963301.htmlCheers Ian
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