Nice story by the Ken on Infibeam. the-ken.com/story/infibeam… by @Vegan_Shakes and Siddhartha Shukla. This stock sure "feels" shady, but I must say the points in the article aren't strong enough.
Like the infibeam sign on the building, the gift city being empty - these are positives, or irrelevantly tiny negatives. The trading volumes and delivery percentages are similar for a lot of stocks including IDEA and MRF.
There are things worth looking at, IMHO. First, the 28 cr. buying of shares by Infibeam's "Employee Welfare Trust" from the market. The company loaned its employee trust money to buy shares from the market. SEBI has banned such practices earlier, though it has weakened stance.
There's also the issue of the recent short squeezes in the stock that point to how operators have a lot more than just 74% in the stock.
The company does real things - I mean, I even order from it. But the revenues of 541 cr. for the software business will require a thorough look into subsidiary balance sheets. They need to reveal that soon.
Overall, there's no point buying an infibeam no matter what. There's things in there we don't know, and it seems tricky. But they say they have 150 cr. cash, and might raise more in a QIP (good for them) - which can change the game, so no point going short either.
Also, check out the Stock Lendign and Borrowing demand for Infibeam in the past. Very fascinating story of the squeeze comes frm there.
