Long-term private Investors, investing in businesses with high volumes of share trades and significant price fluctuations are a feeding ground for unscrupulous manipulators of share prices.
Quindell is such a business.
Manipulators of the share price have the sole aim of transferring any potential profit from the pockets of Quindell’s private investors to their own.
The following table highlights some of the manipulators methods and why Quindell has been targeted.
|Consider and Remember||Why|
|Start-up companies like Quindell targeted as a young company growing quickly.||Normally young companies never make a profit initially.
Derampers try to convince investors all start-up companies make a profit.
Young companies whilst growing, will make mistakes with structure, process, people etc.
These are easy to twist to make appear to be major issues.
|Quindell has been targeted because it is a good share.||Manipulators of the share price want to make money as the share price goes down as well as when the share price increases.
If they targeted a poor business their scope to make profit is reduced.
|Old news is constantly regurgitated||This is because they have limited ammunition.|
|Multiple negative posts and blogs every day||Puts doubts in investors’ minds. Why else would the same information be posted over and over again?|
|Negative bloggers are experts about everything and have the ability to refute any positive posts?||They want to control sentiment.
In reality it’s impossible to be so knowledgeable.
|Blatant lies and twisting of the facts||By the time these have been investigated and proved to be false the damage will have been inflicted on the share price|
When consuming knowledge from bulletin boards, newspapers, blogs etc. it’s worth remembering the fundamentals of the business are better now than in April when the attack on the share price commenced.
Why therefore is the share price so low? In my opinion it’s to transfer value from genuine to unscrupulous share holders.
Indisputable information from the PwC review, board changes and a year-end performance update will in my opinion result in manipulators moving to pastures new.