Have you ever wondered how a stock like AIOM can have such a perfect and steady uptrend chart pattern? How is this possible? How can a chart pattern be so perfectly consistent over a large number of trading days?
If you have been trading stocks for a while you know that typical stock charts are anything but consistent. However, it seems like these stocks are immune to the daily fluctuations that most stocks endure. It is almost like someone is controlling the price of the stock on a daily basis, and in fact, that is precisely what it is.
To get a better idea of what is going on with stocks like this we need to look back at the historical filings on OTCmarkets.com. Back on August 17th of 2015 the principle shareholders of the company Michael Hay and Jake Martin, sold their 10M shares of stock in a private transaction to Chua Seong Seng, LimWei Lin, and Low Tuan Lee. The 10M shares owned by the trio gives them a 58% share in the company, which is crucial for the next phase.
Less than 30 days after obtaining their 10M shares and majority ownership the trio vote to change the name of the company to Axiom and raise the authorized shares of the stock to 3 billion! The next step is the trio authorizes a 20 for 1 split of the stock which makes their 10M shares now 100M. At this point they own the majority of the public trading float and this gives them the power to control share price. Back in November of 2015 there was only 13 registered shareholders of AIOM.
What is the goal of the manipulation and how do we profit from it? The trio’s goal is to sell their new 100M shares to the public at the highest price possible. For that to happen they need to keep the stock price artificially inflated and they need to create buyer interest. One way to create buyer interest is they create a very steady uptrend that looks enticing to other traders. A lot of times this will coincide with paid promotions from penny stock promoters. They will gradually unload their shares until they are all gone, and when that happens the stock will collapse.
We can profit from this type of manipulation only if we find the trades early. As long as the insiders still have shares to sell they will do anything they can to keep the stock price high and rising which means that if we find the trade early enough we can ride the wave up with them. However, look at the SWRM chart to see what happens when these stocks collapse.