My father received an sms stating:
"Filatax fashions ltd(532022) post urling the socks industry comes to storm the Ecommerce sector with vogue4all.com ....."
AVOID this company.
This is a classic pump-and-dump scam. You buy high, promoters and market manipulators cash out. You are left holding worthless paper.
What has been going on for the past 2 years:
a)Filatex has been trying to drive up its share price so that its promoters and inside manipulators are able to cash out.
b)One of the ways is to generate some publicity so that it drives up the share price and since ecommerce is the "buzzword", they decide,
c)Filatex would buy vogue4all.
d)vogue4all is some crappy ecommerce site that is not worth even 1cr.
e)Why would a crafty, manipulative Filatex pay 20cr for a website that is not worth even 1cr?
f)They do this because of siphoning away money from Filatex (and reducing the value of the company).
The promoters have removed 20cr in cash from the company. The company's value has gone down.
g)A year later, they see that the market is not biting their bait and sees no traction for Filatex in ecommerce. So what they start doing is,
send millions of sms' like the one my father received.
h)For the next 15 days, 1 month, you will see heavy buying in this script and it will be locked at the upper circuit. If it is not locked at the upper circuit, there will be very few sellers. You see, the promoters and manipulators have cornered all the free shares so that very little is left on the market.
i)Once they have finished sending out the sms' and pumping up the share price, they will start dumping shares in huge volumes. Gullible investors who bought into the sms' and whatever now see the value of Filatex shares going down..and down..and down.
j)And so it will remain for the next 1-3 years until the promoters decide, let us make fools of investors all over again and try some other scheme.
When you see the website, vogue4all.com, do you really believe that this website can be worth 20cr in acquisition cost and the promoters have promised to pump in another 20cr to make it like "flipkart.com". What bullshit.
When you go through the below article, you will realize that every word uttered by Prabhat Sethia is absolute lies.
Consider the quote below:
"the deal would help them lift the sales more than two-fold to Rs 65-70 crore, as against Rs 30 crore it posted in the last fiscal."
See the archives of the website. Do you really think anybody would buy a ecommerce site for 20cr that has a monthly visitor count of 30-35k?
The only people being fooled in this fiasco is YOU, the gullible investor. STAY AWAY FROM FILATAX / FILATEX.