Turning Back Time on a Pump and Dump: What Happened with Avalon GloboCare (AVCO)

Steve Kanaval  |

I was alerted to Avalon GloboCare Corp.  (AVCO) ()by a novice trader who was learning to invest and was asking my advice on how he could become a day trader. I asked what stock he was looking at and he gave me the stock symbol “AVCO”.

So, I bought the dip at $9.50, and then again at $6.00 before I realized it was a pump and dump.

https://www.equities.com/companies/avco

Often, in these cases the company has zero idea, it is some blackhat rogue shareholder who realizes they can futz with the share price catching everyone off guard.I am an experienced trader, and whoever these short-sellers were they were very good.

They made it look inter-day like it had more upside.

How I Got Sucked In

To disguise their hand, they bought shares quietly knowing the company had no news pushing shares up 125% to get attention. Then, they reversed the position and started shorting (illegally), and today they were still shorting it.

It was a masterpiece of a blackhat hit and run, and I got sucked in. It wasn’t much, but I felt so silly when I realized what was going on. It made me feel sorry for the novice investor. It makes me feel sorry for stock trading in general, and it makes me mad that there is no way to stop them.

I emailed the company, but I suspect they also have no idea, they were speaking at a conference today and I’m sure the CEO was getting many questions he could not answer.This has nothing to do with what the company does, this is only about the tools of technology and the lack of regulation occurring in the greatest markets in the world.I really don’t care about dropping a few thousand dollars, the lesson is more important in the long run.

I just want to apologize to that young trader who got clipped driving him away from investing and going back to cutting lawns or shoveling snow thinking the Nasdaq is a fair and balanced playing field.

Steve Kanaval will be writing on the abuse of short sellers in his weekly column

Other articles

https://www.equities.com/news/avalon-globocare-avc...

Portfolio Manager/Writer/ Market Analyst

Can be reached at stevek@equities.com

Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80's. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90's managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio's in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets.


DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AVCO Avalon GloboCare Corp. 3.68 -0.27 -6.84 174,876 Trade

Comments


Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

Can the Media Solve the Partisan Conflict?

Andrew McCarthy, Contributing Editor, The National Review; Michael Zeldin, CNN Legal Analyst; Celeste Katz, Senior Political Reporter, Glamour; Silvia Davi, SVP, Contributing Editor, Equities.com; and Doug Simon, CEO, D S Simon Media discuss how the media’s role has shaped the landscape for communicators and what the media is trying to do to reduce discord in society.

Emerging Growth

Investview Inc

Investview Inc is an investor technology and education company. It provides products that allow the individual investor to find, analyze, track, and manage their portfolio.