As per the market buzz there were many stocks in the current scenario which were pumped up purely on Margin Funding and at some point with the intention to dump it !
Many brokers would give 3-4 times margin on the stock or by pledging. Quite a lot of investors were pulled into the stocks by SMS, rumours etc.
As per market-men quite a lot of financers have been ruined in the below stocks. The funding rate was 24-36% per annum for such operations so some point of time this had to end as no stock can continue going up at that rate forever.
In the end it some time seems one needs to have a better filter to cut out such stocks.
Another stock which was ramped up on huge volumes.
the stock did not fall even in worst times of 2008-2009 but one fine day saw a crack after split announcement killing a lot of people. After a few months the same story repeated with a move from sub 10 levels to 50.
Now its back to 8 levels. Its difficult to value an entertainment company but if somebody wants to take a high risk arnd 6-7 one can. Consider it to be a NPA
Market buzz is in next 1 week the margin selling would be over.
Farmax Retail :
The company was one of the smarter ones which actually came out with glossy advertisements on business channels to dump the stock:)
The stock was also received as a sms at 300-400 levels about huge moves etc to dump the stock.
FCS Software :
Had posted about this stock before also !
There are many such stocks which keep outperforming the market with 3-5-10 times move and one fine day back to none. Sometime back had mentioned about Wellpack Papers the stock is down from 110 to 20. !
Some stocks which seem to be a little dodgy on a brief check – Kuvam Intl, Splash Media, Nikki Global Finance, Prraneta Leasing, Shalibhadra Finance, Pasari Spinning, Kanani Inds, lee and nee which may see further moves on operation
The above view is purely based on market rumours and could be entirely fictional or untrue and bears no resemblance to any existing company and i have no idea of what the above stocks may do
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