The so called value pick bloggers gurus and stock recccomendation

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by Tilak Sharma, Jan 4, 2016.

  1. Tilak Sharma

    Tilak Sharma New Member

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    I just want to start this thread in order to understand the impact of retail investors because of this so called gurus valupick blog ace investor and now even dollybestpick
    If we observe all there stock recccomendation over a two three time one think is clear they do recommend a good stock with some fundamentals but they clearly mention in there blog all are long term bets with 3 yr time horizon and mention they don't recommend a buy it is only discussion
    They do some disclosure norms to escape SEBI regulations but there is clear pattern emerging in all the stocks before recommendation there will unusual delivery volume but within 20% of the day's volume by particular individual and after recccomendation the is sudden jump in volume because of the herd mentality of there followers and the price jumps 45% in some cases above 80% within a week time then these guys get a chance to off load there positions but even there they maintain the selling within 15% of the overall volume in order to avoid SEBI attraction now they will average this stock at a much lower price and some of the retail investors who bought it at lower price would have made money in this process these guys will start praising them that is published in there blog which creates further investors. And after one month the price of the stock cools down and some even go down below the recccomendation price in medium term. But by now the so called intelligent blogger has started is next accumulation and next month he will give another stock to keep the frenzy up.

    They will publish the results of the recccomendation after one year and show that there recccomendation has made a decent 30/40% gain for all there stock suggestions and 40% would have made even loss or average 8%

    Recently I don't want to name a blog in famous investors name is suggesting a stock and even advising them to place AMO order to buy and the herd followers is not understanding the simple principle it is this frenzy of there is being used to build the price in near term and even if some body suggest some stock why can't they think that just by waiting are seeing the next quarterly result they would be in better position.
    Nethier SEBI nor any market regulator can pluck this only the retail investors should excise some caution
    Please do post your comments and also I would like state I am not against any individual recccomenders of stock they may good there intentions may be good but if we watch the past record it clearly indicates some operator play enabling some body to make a quick buck and volume pattern indicates that correctly.
     
    Biju, TANUJ and bullinindia like this.
  2. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

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    Sir, Nice to see you on this blog. Very critical point raised by you but unfortunately small investors/ traders have more greed factor than intelligence. Public is very innocent and naive. They easily and quickly put their trust on just anyone who is famous. Whether a politician, an actor, a self proclaimed Godman, a blogger etc. Hence they become an easy prey for devils.

    Don't expect intelligence from the small investors. Everyday new investors come to the market to check their luck and we can't teach each one of them. If they were 'intelligent' they would not be 'small'. You may wish to bring the issue before the market regulator and tell them about those blogs/ bloggers.

    Report to SEBI
    https://scores.gov.in/Complaint.aspx?flag=n
     
  3. Guru Vachaal

    Guru Vachaal Let's discuss the fundamentals..

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    With direction of SEBI, if new comers get 'words of caution' on a paper pamphlet inside Demat/ Trading account opening kit or Online Cautionary Emails or Cautionary Tips/ Notifications inside the trading account , it will certainly protect the small investors to some more extent.

    I remember when I had entered the stock market, I used to think that its a standard practice to trade on Hot Tips but it only damaged my finance.
     
  4. bullinindia

    bullinindia New Member

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    I agree to each and every point raised by Tilak. I have even commented on that blog which was asking to put AMO order on Monday on a stock not to make scapegoats of small investors, but as expected my comment is not published.

    Really pity. I also think the small cap is getting bubble valuations, you take any stock, it is going up by 50% in few weeks/months. There is going to be a crash in low quality very small caps soon.
     
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  5. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Good analysis this problem is there in every bull market when ordinary people get attracted to stocks and so-called gurus exploit them by recommending junk stocks. SEBI is helpless in matter. SEBI also not acting against fraud SMS then where is the question of proceeding against websites?
     
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  6. BombayBoy

    BombayBoy Well-Known Member

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    Tilak & Guru - aren't you guys also from MMB recommending stocks to your followers? Make hay while the sun shines. Enjoy the "sir", "thank you", etc which the fanboys keep posting. It's a free market. Let em have their share of fame and money.

    And lol this advice of asking the sheep to place AMO is something new. That modus operandi is not just these new gen gurus with blogs or other social media profile but even the old players that exist in the market. You or me can't help it if, like Srouta says "ordinary people'' "आम आदमी" are attracted to such avenues. Nobody is forcing them to trade right?And SEBI acting on such things is a pipe dream.

    Was watching Ramesh Damani on Bloomberg TV or ET Now, he was "selling" the stock stories with the same old markets have compounded over the last 30 years and blah blah while his body language was something else - yawning, looked disinterested. Now if you believe in human psychology and can read body language, it doesn't go well together. The only difference between a Damani and these bloggers is that he has a corner office at Dalal Street and wears a suit.

    That's just my view of things. It will certainly offend many, so my apologies in advance.
     
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  7. SURENDRA BABU

    SURENDRA BABU New Member

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    Dear tilak you have raised a valid issue which needs to be addressed seriously by the competent authority
     
  8. darth

    darth Active Member

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    Oh come on Bombayboy since when have you started getting bothered about the offence tht othrs may take at your posts?

    And yes a few in here will have to be satisfied by just the 'sir', 'thank you' 'likes' etc. For now no additional crowns or stars being bestowed by the administrators :(
     
  9. Tilak Sharma

    Tilak Sharma New Member

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    Mr Bombay boy first of all I am not the Tilak Sharma who has recommended shares in Mmb board that is a different gentleman who is now cleverly started a paid service and now moderator has regulated his message even in the forum I have discussed about stocks but never recommended
    Secondly I don't hide under nickname this thread was created just for the awareness of the new retail investors even now if you see the dolly pick recccomendation of Kothari petro now unnecessarily many retail investors burnt there fingers and one who made recommendations made money even after repeated warning about the rain effect and bad qtr results for Dec the dollypick blog went on defending and advising people to buy it never suggested them to wait and buy irony is now that guy must have sold all his holdings at higher price and retail investors are in pain
    The same has happened even to the other suggested stocks and every time they had the audacity to advise the investors to wait for the next reco which will be much better than the earlier one and still I think there enough followers blindly waiting to make the same mistake over and over neither SEBI nor anybody can do anything because of this herd mentality of the so called followers
     
    Srouta Mukherjee likes this.
  10. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Good warning for investors to be careful about guru recommendations.
     
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