DIGIVESTASI - Fried stocks is a term used to describe stocks that experience unnatural price spikes due to market manipulation. These stocks usually involve companies whose price increases are not supported by strong fundamentals, but are the result of manipulation by market participants with specific objectives. Despite their high risk, fried stocks are often used by traders to make quick profits in a short period of time.

For novice investors, it is important to be aware of the practice of fried stocks as it often results in huge losses for retail investors. Stock manipulation cases such as those of PT Asabri (Persero) and PT Asuransi Jiwasraya (Persero) are clear examples of the adverse effects of stock trading manipulation in Indonesia.

Here are some characteristics of fried stocks:

1. Included in the UMA (Unusual Market Activity) 

List One of the main signs of a fried stock is its inclusion in the unusual market activity (UMA) list published by the Indonesia Stock Exchange. This occurs when the stock price jumps too extreme in a short period of time, usually more than two consecutive days. The price increase can reach the upper auto reject (ARA), which is the stock's daily increase limit of 20%, 25%, or 35% depending on the stock price.

2. Unreasonable Transaction Volume and Value
Fried stocks generally have a small market capitalization, often in the second or third tier, but their daily transaction volume and value are very high, even matching blue chip stocks. The low market capitalization makes these stocks easier to manipulate by dealers.

3. Thin Bid and Offer
Fried stocks usually have thin buy (bid) and sell (offer) queues. This allows the bookie to easily control the share price as the number of lots offered at each price is very small.

4. Financial Performance is Not in Line with Stock Price
The increase in fried stock prices often does not reflect the company's financial performance. In fact, there are times when companies experience a decline in financial performance by more than 50%, while the stock price continues to surge relentlessly.

5. Difficult to Analyze Fundamentally
Since the stock price is not supported by good financial performance, the valuation of fried stocks tends to be too high compared to its competitors. Financial ratios such as price to book value (P/BV) and earning per share (EPS) no longer make sense, making these stocks difficult to analyze fundamentally.

Technically, the movement of this stock is also very volatile or even rarely traded, making it difficult to perform accurate technical analysis.

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