In a bull market retail investors are not bothered about the quality of stocks but looking only into the price movements.Only in the following bear phase they realize what they really owns. Lot of promoters are really making money in such a market by selling their own shares . Cost for this is only some amount spent for advertisement about never happening projects and some commission to the operators.
Let us go through the story of the promoters of one such company BECKON INDUSTRIES.In their earlier avthar its name was AGK COMPUTER SECURE PRINT Ltd which promoted for making computer stationery.Later it diverted the business into a number of fields according to the market fancy in stock market. They are announcing lot of plans time to time in each of these fields like education, bio fuel ..etc.About two years ago Beckon announced a warrant issue to some parties(most probably someone related with promoters). But later market crashed and they made an announcement on March 07,2009
As per this announcement they have planned a meeting on March 16, 2009 to take decision to refund the initial amount paid for the warrants to the applicants(then 10% of the total amount) . Even a lay man having some connection with the stock market knows,in any circumstances the initial amount can't be refunded and it should be forfeited ,if they are not paying the balance amount.This is the knowledge of the company secretary of this company in corporate matters. after this announcement I have contacted with the company and got a reply as follows
"We have sought the legal opinion on the matter and in the light thereof the board will decide whether to refund or not the money received before conversion of warrants."
After few days of this incident company through another filing to BSE informed that they have adjourned the said meeting due to non availability of quorum. It is clear that when the market crashed they tried to take back the money even by violating rules. Thereafter company has made a lot of announcements even on a daily basis .Before entering into this scrip just check anyone of their previous projects materialized so far. They are showing mind boggling results.But I really feels that these results are fabricated and by showing such results and great announcements they are offloading shares to the poor retailers.I cant say share price will not rise ,because even manipulators can do something in a market like this.BUT ONE SHOULD KNOW THE RISK INVOLVED IN INVESTING IN SUCH SCRIPS BEFORE ENTERING INTO IT.
CMP of Beckon Ind is Rs.11 /-
Let us go through the story of the promoters of one such company BECKON INDUSTRIES.In their earlier avthar its name was AGK COMPUTER SECURE PRINT Ltd which promoted for making computer stationery.Later it diverted the business into a number of fields according to the market fancy in stock market. They are announcing lot of plans time to time in each of these fields like education, bio fuel ..etc.About two years ago Beckon announced a warrant issue to some parties(most probably someone related with promoters). But later market crashed and they made an announcement on March 07,2009
As per this announcement they have planned a meeting on March 16, 2009 to take decision to refund the initial amount paid for the warrants to the applicants(then 10% of the total amount) . Even a lay man having some connection with the stock market knows,in any circumstances the initial amount can't be refunded and it should be forfeited ,if they are not paying the balance amount.This is the knowledge of the company secretary of this company in corporate matters. after this announcement I have contacted with the company and got a reply as follows
"We have sought the legal opinion on the matter and in the light thereof the board will decide whether to refund or not the money received before conversion of warrants."
After few days of this incident company through another filing to BSE informed that they have adjourned the said meeting due to non availability of quorum. It is clear that when the market crashed they tried to take back the money even by violating rules. Thereafter company has made a lot of announcements even on a daily basis .Before entering into this scrip just check anyone of their previous projects materialized so far. They are showing mind boggling results.But I really feels that these results are fabricated and by showing such results and great announcements they are offloading shares to the poor retailers.I cant say share price will not rise ,because even manipulators can do something in a market like this.BUT ONE SHOULD KNOW THE RISK INVOLVED IN INVESTING IN SUCH SCRIPS BEFORE ENTERING INTO IT.
CMP of Beckon Ind is Rs.11 /-
