Stock manipulation: GR Cables

Stock manipulation: GR Cables
16 September 2015
Why is the loss-making GR Cables generating such humungous gains and displaying extreme volatility? GR Cables supposedly manufactures telecom cables. In its annual report for FY13-14, the management states that, due to non-availability of sufficient working capital facilities, it was unable to execute any business. They further mention that they are exploring various options to raise the required funds through additional equity and debt. In FY13-14, GR Cables reported revenue of just Rs4.78 lakh and a net loss of Rs30.01 lakh. In FY14-15, the Rs2-crore market-cap company reported negligible sales and a net loss of Rs27.88 lakh. It has reported a net loss in each of the past 18 quarters. Yet, over a period of about 18 months, the stock rallied 305% to Rs0.77 on 8 September 2015, from Rs0.19 on 26 February 2014. Over this period, on most occasions, there have been just one or two trades a day. Much of the gain came between 6 April 2015 and 1 June 2015. In this two-month period, the stock shot up 197%, from Re0.31 to Re0.92. By the end of June 2015, the stock declined 27%, to Rs0.67, before rallying again. Why is a loss-making company generating such humungous gains and displaying extreme volatility? Will the regulators investigate?

The Serious Fraud Investigation Office or SFIO is probing alleged mismanagement of over Rs 8,000 crore of funds since 2005, when liquor baron Vijay Mallya’s UB Group-controlled Kingfisher Airlines and United Spirits

United Spirits Falls on Inquiry Over Vijay Mallya’s Kingfisher Airlines
NDTV
16 September 2015
United Spirits shares traded down for a second consecutive session, falling as much as 1.6 per cent against 0.8 per cent gain in the broader markets on Wednesday. Traders attributed the selling in United Spirits – India’s biggest liquor company- to the ongoing investigation in former group firm Kingfisher Airlines over alleged diversion of funds.

The Serious Fraud Investigation Office or SFIO is probing alleged mismanagement of over Rs 8,000 crore of funds since 2005, when liquor baron Vijay Mallya‘s UB Group-controlled Kingfisher Airlines and United Spirits, according to media reports. Continue reading

Pressure to show a profit led to Toshiba’s accounting scandal; Toshiba auditors say being investigated by Japan regulators

http://www.japantimes.co.jp/news/2015/09/18/business/corporate-business/pressure-to-show-a-profit-led-to-toshibas-accounting-scandal/#.Vf05ovmqpBc

Pressure to show a profit led to Toshiba’s accounting scandal

BY KAZUAKI NAGATA

STAFF WRITER

SEP 18, 2015

Manufacturing giant Toshiba Corp.’s president and seven other directors were forced to resign when an investigation revealed in July that the firm had doctored the books and had padded its profits over the past seven years to the tune of hundreds of billions of yen. The case is one of Japan’s biggest corporate scandals in years. The 140-year-old company is set to make a fresh start on Sept. 30 when it holds an emergency shareholder meeting to approve a new management team. But what was going on with Toshiba and why was it inflating its profits? Here are some questions and answers about Toshiba’s accounting problems. Continue reading

Will YuuZoo’s new funding deal wreck its share price?

http://www.businesstimes.com.sg/opinion/will-yuuzoos-new-funding-deal-wreck-its-share-price

Will YuuZoo’s new funding deal wreck its share price?

anita gabriel

18 September 2015

Business Times Singapore

IT may come across as a simple deal, but YuuZoo Corp’s recently announced S$30 million funding facility from US-based fund GEM Global is by no means heartening for investors saddled by the anaemic showing of its stock since its debut on the Singapore Exchange a year ago. Continue reading

Accounting Rife with Estimates Haunted Toshiba

Accounting Rife with Estimates Haunted Toshiba

David M. Katz

9 September 2015

CFO.com

The Japanese conglomerate’s woes may have much to do with percentage-of-completion accounting.

Toshiba’s ongoing accounting scandal, which reached a peak on Monday, when the company announced a reported $1.9 billion earnings writedown involving fiscal periods reaching back seven years, has spotlighted a broader financial reporting problem that has bedeviled standard setters for years: how to keep fraudulent earnings management out of revenue recognition. Continue reading

Amtek Auto, Castex plunge on Sebi probe

Amtek Auto, Castex plunge on Sebi probe

10 September 2015

Press Trust of India

Mumbai, Sep 10 (PTI) Shares of Amtek Auto plunged 9 per cent, while that of its subsidiary Castex Technologies lost 5 per cent today after market regulator Sebi began a probe into alleged manipulation of the latter’s stock price. Sebi has begun a probe into alleged share price manipulation at Castex Technologies through forced conversion of foreign bonds. Continue reading

Stock manipulation: Asya Infosoft

Stock manipulation: Asya Infosoft

2 September 2015

Moneylife

The share price of Asya Infosoft jumped 1085% in just about 17 months despite negligible profits

Asya Infosoft (Asya) has been involved in several failed business activities in the past. Formerly known as Saya Housing Finance, it was into providing home loans. In 2008, Saya was suspended for not complying with the listing agreement. In the following year, the name of the company was changed to Asya Infrastructure & Tourism. A few years later, in 2013, after acquiring Ideal Systems, the company decided to pursue information technology (IT) services. As per its website, Asya undertakes software development, web designing and web development for its clients. However, it had revenues of less than Rs1 crore in each of the past 12 quarters and negligible profits. But the share price of such a company has jumped 1085% in just about 17 months. From a low of Rs7.80 on 10 March 2014, the price shot up to Rs92.45 on 21 August 2015. Asya is trading at a PE (price to earnings) of 159 times (past four-quarter trailing earnings). Are the investors extremely bullish or is this another pump & dump operation? Asya had an average daily trading turnover of about Rs1.49 lakh in CY2013, with about 53 trades each day. In CY2014, the average trading turnover jumped to Rs3.69 lakh and the average number of daily trades increased to 94. From January 2015 up to mid-August 2015, the trading volume averaged over Rs11 lakh a day with nearly 160 trades each day. It has just about 2,000 shareholders. At the time of going for printing, the stock got suspended on BSE for penal reasons.