PHDC Short LOL, have you heard about the latest offers from Palm Hills Developments? They’ve launched a massive advertising campaign, offering apartments and villas with only a 1–3% down payment for properties that usually cost anywhere between 7 and 19 million EGP. Then, they’re allowing customers to pay very low monthly installments over 10 to 12 years. And guess what? This offer is only valid for 30 days.
Doesn’t seem logical, right?
Guess what else is happening in 39 days? The company’s earnings report—LOL. This is how such companies and “whales” manipulate the market.
According to the chart, the stock is extremely overbought, and it also appears that investors are unwilling to pay higher prices. The company notices this decline in investor interest and, anticipating a negative earnings report, they try to boost their earnings (to produce a higher-than-expected report) so investor interest spikes back up and the stock price doesn’t start trending down.
Spotting this sort of market manipulation should raise all sorts of red flags, which strengthens my idea of shorting this stock.
When it comes to technical analysis, the stock is overbought, and I think there’s a good chance for a correction. I would also expect other market participants to notice the manipulation and potentially short the stock as well.
If the first trendline breaks, wait for a retracement, then make an entry and set TP (take profit) at TP1. Move your stop-loss to breakeven. If it breaks the second trendline, then target TP2 and close the trade if the price reaches TP2.
