Stock manipulation: Amforge Industries

The stock rallied by as much as 756% and, from that level, stock fell 58%. A perfect example of a pump & dump

 

A mforge Industries was into metal forging business and catered mainly to the automobile industry. In December 2008, the operation of its Chinchwad plant was suspended “due to recession in the automobile industry,” according to the company’s annual report. A lock-out was declared in May 2009 due to unrest among workers. With almost no business activity over the past financial year, Amforge reported negligible revenues from operations. The only income was in the form of interest income and income from trading of equity investments. However, the stock rallied by as much as 756%, to Rs4.28 on 9 July 2014 from Re 0.50 on 1 January 2014. From that level, the stock fell 58%; but; over the past 17 months, the stock is up nearly 226%; to Rs1.63 on 18 May 2015 from Rs0.50 on 1 January 2014. This is a perfect example of a pump & dump operation. The company has over 17,000 individual shareholders; yet, the regulator does not seem to be concerned.
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    Stock manipulation: Galada Power & Telecommunication

    In less than a year, the stock price of Galada Power & Telecommunication shot up by 813%. Astonishing for a company which has been declared sick

     

    Galada Power & Telecommunication (GPT) manufactures electrical conductors and related products. In 2001, Galada’s bankers initiated legal proceedings for recovery of debts. GPT had defaulted in the payment of dues to its lenders and was declared a sick company by the Board for Industrial & Financial Reconstruction (BIFR) in September 2007. The order for winding up the company was stayed by the Andhra Pradesh High Court. Over the past year, a couple of lenders agreed to a one-time settlement of dues. GPT has generated revenue of just about Rs2 crore-Rs3 crore in each of the past five quarters with a net loss in a couple of quarters. Yet, the stock price shot up by 813%, to a high of Rs30.85 as on 27 February 2015 from Rs3.38 as on 26 March 2014, i.e., an investment of Rs1 lakh would have grown to Rs9 lakh in less than a year. From the peak, the price has fallen by nearly 25% to Rs23 on 5 May 2015. Despite the steep fall, it is still nearly 580% up compared to a year ago. The regulators, as usual, do not find this suspicious. 
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    COMMENTS

    V ganesan

    5 years ago

    Today cairn india announced merger with vedanta which is pucca fraud and cheating.In india people are ready to take business risk and currency risk and political risk.But they are not re3ady to take promoters whichare cheating the investors.eVEN AFTER ANOTHER CENTURY RETAIL IN INDIA WILL STAY AWAY FROM EQUITY MARKET.tHEY ARE SATISFIED WITH GOLD AND FD AND REAL ESTATE.

    Stock manipulation: Rudraksh Cap-Tech

    With just around 250 retail shareholders, the share price of Rudraksh Cap-Tech shot up a stupendous 1182% in just a year

     

    Rudraksh Cap-Tech (earlier known as Jolly Leasing & Finstock) deals in financial services. Though ostensibly it has a varied list of service offerings, no details of contracts undertaken, contract values or even the number of clients are mentioned either on the website or the annual report. Over the past seven quarters (June 2013 to December 2014), it has generated revenues of just about Rs2 lakh-Rs3 lakh each quarter. Net profit averaged just around Rs60,000 each quarter. This did not hamper trading in the stock which has only 242 retail shareholders. The share price shot up  a stupendous 1182%, to Rs85.90 in April 2015, from Rs6.7 in May 2014. In the nine-month period, from 6 May 2014 to 12 February 2015, the stock was consistently hitting the upper circuit, rallying 1400% to Rs100 from around Rs7. Since then, trading has been volatile. In March 2015, the stock had an average trading volume of Rs23 lakh a day, up from about Rs2,000 a day in May 2014. Rudraksh was hauled up several times in the past for regulatory non-compliance issues, but no strict action has ever been taken against the management. Will this blatant price manipulation go unnoticed as well? 

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