Novagold Petro-Resources shot up by 691% between February 2015 and February 2016
Novagold Petro-Resources Ltd (NPRL) trades in shares and provides other financial services, according to its annual report of 2015. NPRL was earlier known as Osian LPG Bottling. As the name suggests, it was engaged in the business of bottling LPG. In January 2008, NPRL decided to venture into other business activities. This micro-cap stock reported revenues of Rs1.03 crore for the year ended December 2015, compared to revenues of Rs23 lakh in the previous year. NPRL reported a humungous net loss of Rs5.84 crore for the year ended September 2015 compared to a loss of Rs22 lakh for the year ended September 2014. The terrible financials have not deterred market manipulators from rigging up its stock. It shot 691% in just about a year—from Rs0.34 on 11 February 2015 to Rs2.69 on 3 February 2016. On most days, the trading volume remained under Rs1,000 per day. However, trading volume increased between March 2015 and August 2015, averaging a trading turnover of Rs3,000 per day. The stock price consistently moved up 3%-4% on each trading day. NPRL has just about 2,000-odd shareholders. In February 2011, the Securities and Exchange Board of India imposed a penalty of Rs1 lakh on NPRL for submitting incorrect information on shareholding pattern for the quarter ended December 2004. However, the regulator seems oblivious to the rampant price-rigging in NPRL.
Dynamic schemes had a high allocation to long-term debt that led to sub-par returns over...
Regulators can benefit from positive engagement with informed bloggers on corporate shenanigans