ZipTel Limited (ZIP.AX) is a revaluation fraud currently masquerading as a lossmaking telecom minnow. Backdoor listed on the ASX in July 2014. the entity previously operated as a lossmaking mineral exploration company, and before that as a lossmaking sportswear company. According to its annual report, ZipTel had $556K in turnover and a $3m loss in the 2014 financial year. Whatever. As a revaluation fraud, operational performance is utterly irrelevant to Ziptel. The primary purpose of ZipTel is to provide a manipulable "market" price, which can be ramped for the benefit of insiders. Since listing, manipulating ZIP has created unrealized profits of around $18m for the investment cartel setting its price.
In July 2014, ZipTel raised $5m at $0.20 per share from an investment cartel including K2 Asset Management. In October 2014, ZipTel was shilled on a notorious pump-and-dump website affiliated with the criminal organization of which Michael Featherstone is a part. The investment cartel then ramped ZIP to $0.45, deliberately manufacturing millions in unrealized paper profits. The criminal operators of K2 Asset Management charge real cash fees based on such fraudulently engineered unrealized "profit". This planned fraud was the purpose of listing ZipTel in the very first place.
According to ASIC, this is not a ramp but a magical market mystery, an amazing coincidence for which there just can be no explanation. Investors just happened to rush in at that moment, the investment cartel led by K2 just got amazingly lucky, and no market manipulation occurred. If you are stupid enough to believe such a preposterous stance, you should invest with the next Nigerian prince that contacts you with a great opportunity.
The ZipTel ramp was sufficiently obvious as to constitute prima facie evidence of market manipulation. In a functioning market, regulators would immediately start investigating this blatant fraud, analysts would publicly deride it, newspaper articles would express outrage over this flagrant scam attempt. In a functioning market, the ramp would never even have taken place. But Australia does not have a functioning market, because every component of a working market has been removed. The media and analysts that in a functioning market are tasked to expose such fraud are either owned or controlled by the criminals. The regulator is a sick treasonous joke, only concerned with covering the tracks of the criminal community of which it has become an integral part.