Reazul Bashar
bdnews24.com Senior Correspondent
Dhaka, Oct 8 (bdnews24.com) – Even as the share market has been on a slope in the recent past, the prices of Tallu Spinning Mills (TSM) shares have seen an increase of 42 percent in the last one month.
According to Dhaka Stock Exchange (DSE) website, on Sep 8, the price of each unit of share was Tk 584.50, while it was last traded for Tk 830 on Oct 5.
In other words, the unit price of each share of the company increased by Tk 245.50, or 42 percent, within 49 working days.
During the period, the company also did not publish any price sensitive information.
In the last one month, DSE index has seen a fall of 352.51 points or 5.80 percent.
Dhaka University's Economics teacher Abu Ahmed told bdnews24.com, "I don't want to say much about these shares. There are some shares in the market that 'Gamblers' play with."
The current price-earning (PE) ration of Tallu Spinning Mills' share stands at 142.78.
Former finance advisor to the caretaker government A B Mirza Azizul Islam told bdnews24.com, "The expected PE of any share is 15, while up to 20 is tolerable. But if it is beyond that, it is risky..."
Banks do not provide any loan to buy shares of those companies whose PE ratio exceeds 40.
'BD Capital market', a fan page on Facebook, advised to buy and hold shares of Tallu Spinning mills. The page was liked by 2,905 people.
The administrator of the fan page posted on Wednesday on its site, "The rise in Tallu Spinning price started…enjoy and profit! Don't sell before it reaches Tk 1,200.00."
"It is confirmed that the sellers of Tallu shares will be out of market within Oct 11. Must hold it. If sold once, you wouldn't be able to buy it again."
Writing comments on the administrator's notes, Newaz Kamal, a fan of the page wrote, "Boss, is Tallu Spinning doing any magic? You are really 'Super'."
On Nov 23 last, the Securities and Exchange Commission (SEC) temporarily suspended all transactions of Tallu Spinning Mills. In the last one year, the prices of Tallu Shares varied from Tk 262 to Tk 1,273.75.
According to its financial statement for nine months, it was found that Tallu Spinning Mills started profit making.
From July 2010 to March 2011 – in nine months' time, the company made profits worth Tk 8.1 million. In the same period, before the previous year, the company posted losses worth Tk 4.1 million.
Tallu Spinning Mills Limited, listed in the stock market in 2007, saw losses for consecutive three years before it made profit first time in 2010.
In 2010, it was promoted to category 'A' from category 'Z'.
The paid-up capital of the company was Tk. 1.86 billion and total number of shares 1,860,892, of which sponsor directors' holding 53.74 percent, institutional holding 24.50 percent and the rest 12.67 percent stayed with public.
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