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In recent years, EJH stock has employed a meticulously designed scam to attract unsuspecting investors. Unfortunately, many realized the truth only after suffering significant losses. This article details EJH’s fraudulent tactics and aims to warn investors to steer clear of similar traps in the future.

Scheme 1: Pumping the Stock to Attract Retail Investors

The manipulators behind EJH employ large-scale purchases to artificially inflate the stock price, creating the illusion of a “bull run.” This price surge entices retail investors, who mistakenly believe it is driven by positive fundamentals or favorable news. In reality, this is a deceptive tactic meant to lure funds into the market, setting the stage for the next phase—dumping the stock to trap investors.

Scheme 2: Dumping the Stock, Leading to a 99% Crash

Once the stock price reaches a peak, the manipulators suddenly dump their shares, causing the stock price to plummet by up to 99% within a very short time. Retail investors, caught off guard, have little time to react, resulting in catastrophic financial losses.

For example, on certain trading days, EJH’s stock price crashed by over 90% in mere hours, wiping out most investors’ capital. While the manipulators often attribute these crashes to “market fluctuations” or “external factors,” the reality is that these are premeditated moves designed to enrich themselves at the expense of retail investors.

Scheme 3: Reverse Splits to Remove Retail Investors

After crashing the stock price to near-zero levels, EJH frequently resorts to reverse splits, further exploiting investors. A reverse split consolidates multiple shares into one, artificially raising the stock price while drastically reducing the number of shares held by investors.

Many investors find their holdings reduced to a point where they can no longer trade, effectively forcing them out of the market. Meanwhile, the manipulators use the reverse split as a way to reset the stock price and attract a new wave of unsuspecting investors.

This cycle allows EJH to repeatedly execute its scam, drawing in new funds and systematically eliminating earlier victims.

Repeated Scam Cycles

A review of EJH’s historical stock performance reveals a consistent pattern of “pump-and-dump” followed by reverse splits. Despite the stock crashing to near-zero multiple times, the company has been able to restart its scheme each time, thanks to its lack of transparency and tight control over information.

Many investors fail to access reliable financial or operational data about EJH, leaving them vulnerable to deception until it’s too late.

How to Avoid Falling for Such Scams

1. Avoid Low-Cap Stocks with Abnormal Price Movements

Be wary of stocks that exhibit extreme price surges over a short period, especially when accompanied by low trading volumes or a lack of substantial news or fundamentals.

2. Watch Out for Companies with Frequent Reverse Splits

Companies that repeatedly perform reverse splits often have underlying issues with their fundamentals and could be concealing financial problems.

3. Monitor Public Disclosures and Regulatory Warnings

Stay informed by reviewing announcements from regulators and the company’s financial reports to avoid falling prey to misleading promotions.

Call for Regulatory Action

Companies like EJH, which manipulate stock prices through pump-and-dump schemes, severely undermine market fairness and investor confidence. We urge regulatory authorities to intensify their oversight and crackdown on such fraudulent activities. At the same time, investors should enhance their risk awareness and steer clear of stocks with dubious practices.

Conclusion

EJH’s stock manipulation is a blatant scam, involving pumping the stock, dumping it for massive profits, and using reverse splits to squeeze out investors. We hope this article serves as a cautionary tale for investors, reminding them not to be swayed by short-term price surges and to avoid falling into similar traps in the future.