I am writing this based on years of experience of being fleeced by silver tongued lizards that have been running asx listed companies and how I avoid it from happening. There are some tech stocks on the asx that have the investing public under a spell, well some of them. This is how asx scams work, this is by backtracking though what transpired after the event. Let’s say that a person has an idea or has contact with a very small company that has a very small but good sounding idea. Example, a radio location and monitoring company gets onto the asx, puts out lots of announcements that move the shareprice up, during this time I discovered that were not paying their bills but that’s not the best bit, makes a market release on the asx that it has secured $380 million dollar deal to supply the Beijing Olympics with rfid technology. The shareprice goes shooting up while all the directors family friends and others are dumping huge amounts of stock. These was never any deal, it was all bs and the company was delisted but no one was ever prosecuted and the insiders walked away with millions. Case 2 , a high security company specialising in atm security, puts out announcements of working with a big US company, walks the walk and talks the talk, puts out an announcement on ground breaking technology, but they put the name of the company over in the UK that they did this multi million dollar deal with, me being untrusting rang the company in the UK, it was dad and his son that worked from home, I asked them about the deal and they both were gobsmacked and burst out laughing, I was informed the announcement was a total fabrication and they had written three lines of code. What about the selfie drone company, a huge following and I knew it was going to fail, no one listened and it’s currently at 0.001 cent. There are plenty of guys in back rooms that dream up crap to list just to fleece punters and get rich doing it. Beware if it sounds too good, it has a bunch of serial promoters that talk in riddles and big numbers with no supporting evidence. You will never pick them unless you really do the hard yards researching, just trusting these money hungry rip off merchants can cost you your whole investment. There are plenty of operating scams going on around the world on various stock markets, the usual trick is make the project so high tech that there are no people in an oversight position to call it out. Does the asx and asic employ virologists, scientists, or Astro physicists? So it’s easy to bamboozle the overseers as well as the uneducated public. Beware the con men.
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