-Select a dead stock from a booming sector with very low MCap
-Meet promoter. Convince him to invest for 3x returns in a year
-CMP is 5.
Start buying from the market
-CMP 7.
Upper circuit (UPC) every day
-CMP 10.
Circuit opens
-Some bad news for panic.
Most people exit
-CMP 8.
The company clarifies all is well. Stock zooms.
-CMP 12
-Quarterly results.
Sales shoot up, Profit & EPS increase
-Stock is now undervalued at CMP 15
-The promoter is on TV.
-CMP 20
-Brokerage firms prepare projections.
-CMP 25
-Co. announces 1st-time dividend (Maybe 10 paise only)
-SMS / WhatsApp & all noise that fair value is 30.
Public jumps in
-No supply in the market. Series of UPCs.
-CMP 40
-Stk is now a potential multi-bagger.
-CMP 50+
-Distribution starts from 50 to 35
-QUARTERLY results bad. Stock price drops
-The operator gets more than 3x in 1 year
-New search begins for another penny stock
Retailers get fooled & starts cursing Stock Markets.
Avoid getting trapped in a penny stock scam and instead, make money using the intraday trading tips or bank nifty option tips and be out of the market every day with profit.