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I would like to take the opportunity to explain how big fishes/company directors setting up a honeypot to trap the small traders to pick up their unwanted shares. i will take DSCSOL as a real case study because today is the last day when they 'release' the final trap and i believe thousand if not million of victim traders fell into their intentionally designed trap.

Let's assume the big fishes have RM 300 000 of cash.

By referring the the chart above, during the consolidation or accumulation period, let's assume they have accumulated 1.1 millions of shares at an average price of RM0.09 which is equal to approx. RM100K.

Next, on 1 Oct 2013, the big fishes started using their remaining cash to push up the price to get attention from the public. From the first arrow till the second arrow they might only used a small portion of the cash to push up the price. Let's assume they used only RM50K to accumulate 454K of shares at an averaged price of 0.110.

At this moment, they have accumulated 1.554 million of shares at an averaged price of RM0.096525. 
( The calculation is Rm150K/1.554)

Next , on the second arrow till the last day, the big fishes push the price more aggressively and more and more traders coming in. The victims that fallen into this trap has helped to push the price even further making the big fishes who has accumulated at low price earning big chunk of paper profits now.

 Let's assume the big fishes have bought another 500K of shares at an averaged price of 0.3 which costs them RM150K

So the final shares they have accumulated were 1.554 million + 500K which is 2.054 million of shares. The new averaged price was RM300K/2.054m = RM0.0146. 

But the question is, why they choose to cash in their profit today? Because today , 28 Nov 2013 is their company Q3 quarterly report announcement date and they (as a directors) have already known they are making losses!

So, on the final day, they have earned enough and start disposing their shares. Let's assume they dispose all shares at an averaged price of RM0.40. Ermm....how much they have earned?

Amazingly , 2.054m X RM0.40 is RM821 600. 
After minus the cost , their net profit is RM521 600.

And don't forget i am just using a conservative calculation for you to understand easier. They might have accumulated more during the consolidation period :-)

Now the question is, if you have fallen into the trap today? What should you do? i personally think that it won't go up again anymore.

Here is the daily chart for 28 Nov 2013







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