Such was the case today, with the pump of Indo Global Exchanges PTE, Ltd. (IGEX), a scam conveniently based out of untraceable Indonesia and with absolutely no assets or prospects.
For days, BMM teased his audiences that his KKA would be released today at 10:30am, but in reality his email subscribers received the "pick" last week.
|King Kong Alert Email of March 12, 2015 <click to enlarge>|
The stock spiked on the email and at this morning's open in anticipation of the 10:30 am alert to BBM's Twitter followers. But the sell off began just a few minutes into the day and got more aggressive once the anticipated tweet appeared. As the dust settled, IGEX shares dropped 66% of their value from the day's opening trade and 51% from the initial email alert of last Thursday. $351K worth of stock exchanged hands and it was evident that there was a major seller. T-trades reported after the closed, indicated that a total 5 million shares were sold through two sell orders, netting that seller(s) $44K.
In the meantime, BBM attempted to lie his way through the debacle, while encouraging his flock to get on board. At 2:11 PM, he tweeted that he had already purchased a total of 8 million shares of IGEX today and was still buying more. He was lying of course, because at the time he issued that tweet, only 14.8 million shares had traded. Considering the massive amount of flipping/day trading that goes on in active issues like IGEX, BBM would still have you believe that he accounted for 55% of the volume. If that was even remotely true, the stock would have been way up not way down. It's more likely that BBM was a major seller into the hype having front loaded shares through the market or acquiring stock in some illicit transaction with the company or an insider.
BBM then furthered the ruse with a follow-up tweet just 29 minutes later that claimed that he had now purchased another million shares of stock. At the time, 16.5 million shares had traded, an increase of 1.7 million shares, meaning that BBM would have had to have been involved in 59% of the trades that took place in the previous 29 minutes.
The company itself tried to help BBM along in his scam with an attempt at a face saving press release, issued just 30 minutes before the close that contained very little substance. The obvious intention of the release of so-called news was to give shares a late boost which might hopefully extend into the morning. The ploy failed miserably, as little to no new interest was created.
It looks like BBM will have an easy time to make good on his vow to buy 9 million shares of IGEX per day between now and Christmas.