Pseudo-teams manipulating stock prices | Sotck exchange

Illustrative photo

Driving teams

Currently, the scholarships have several steering teams with famous personalities such as Mr. Tuan, Mr. Ha, Mr. Duc, Mr. Tam, Mr. Lang, Mr. Thin and Mr. Duong. The largest now is the A7 team, whose main participants are real estate and securities investors, collectively known as the NIK team. During the meetings, A7 introduced himself as Nguyen Manh Tuan, board member of L14. In addition to L14, A7 also has many other real estate codes such as SGR, HDC, DTD, DIG and NHA. These stocks all rose as expected, leading many to trust A7 through real estate stocks such as CII, NBB, CEO and LDG.

It is worth mentioning that after the hot gain sessions, the above codes all fell into a state of decline due to selling pressure to cut losses from investors stuck at high prices. However, on the forums, many NIK team members still pressured other members not to sell shares. If there is money left over to continue buying real estate stocks, it is best to stay away from the core industry groups and buy real estate in an effort to raise prices. The call for investors to buy shares of NIK highlighted that the winner would be someone with great foresight about the property wave to come, in a very decisive game.

Just as famous as the A7 driving team is a very Western name called Louis Holdings. Starting from the food sector with rice exports, Louis Holdings Group Joint Stock Company aims to become a multi-sector company with four main areas, namely agriculture, investment, real estate and industry. With this ambitious goal, Louis Holdings acquired a series of publicly traded companies, namely, Louis Land Joint Stock Company (BII); Louis Capital Joint Stock Company (TGG); An Giang Import-Export Joint Stock Company (AGM); Plastic cable Vinh Khanh JSC (VKC); Sametel JSC (SMT); and APG Securities Company (APG). In addition, Louis Holdings also collects shares of listed companies to register its employees on the board of directors of Thu Duc Housing Development Joint Stock Company (TDH); or Hoang Quan Consulting-Trading-Service Joint Stock Company and Real Estate (HQC); and the Lam Dong Pharmaceutical Joint Stock Company (LDP).

It is remarkable that after the presence of Louis Holdings, the above companies flourished in production and trading activities. For example, TGG recorded in 2021 a net income of 802 billion VND, which is 78 times more than in 2020, and a net profit of more than 99.4 billion VND, during the same period in 2020, they lost 43 billion VND. The LDP also had six consecutive quarters of losses, starting in the second quarter of 2020, but suddenly made a profit of VND 55 billion in the fourth quarter of 2021 after the participation of Louis Holdings. This is LDP’s highest profit since its inception. Thanks to this result, LDP erased the losses accumulated during the first nine months of 2021 and recorded a net profit of VND 39 billion, but a loss of VND 26 billion in 2020.

Incredible increase

The year 2021 can be seen as a year of sublimation for the stock market when stock prices continued to break the ceiling, and many stocks also recorded several times the increase compared to the beginning of the year. However, for Louis Holdings shares, the overall stock market increase was still quite modest. For example, the TGG ticker in the August 9 trading session was only at 11,600 VND per share, but in the September 16 trading session, this security rose to 56,400 VND per share, a increase of nearly 500%. Similarly, BII also saw a 300% gain from less than VND10,000 per share to over VND30,000 per share, after a price rally that lasted about a month. More impressively, the SMT ticker also rose from less than VND 8,000 per share to VND 37,700 per share, equivalent to a 500% increase, after a streak of 17 consecutive cap gains.

The stock rises vertically with each appearance of Louis Holdings, represented by Mr. Do Thanh Nhan, leading investors to ask many questions about stock price manipulation. Investors have more reason to be skeptical as Mr Nhan locks stocks on his personal page ahead of every price rise. For example, on the morning of September 1, Mr. Nhan posted on his personal Facebook page the outlook for Louis Holdings Group’s share price. The information said that by the end of the year, if BII would not be 3x; or that from now until the end of the year, BII wouldn’t get 3x, TGG wouldn’t get 4-5x, APG wouldn’t get 2x, SMT wouldn’t get 3x, DDV wouldn’t wouldn’t get 3x and AGM wouldn’t get to 3x then blamed him. The shares predicted by Mr. Nhan all jumped quickly. DAP Vinachem JSC’s DDV increased from VND 15,000 to over VND 36,000 per share. APG went from 10,000 VND per share to almost 29,000 VND per share.

Shares linked to A7 also took the stock market by storm when L14 suddenly became the most expensive stock of the three exchanges with a price of 470,000 VND per share during the January 13 trading session. Shortly after L14 reached the historical price, the remaining shares also broke above the incredibly high level. For example, DIG exceeded the milestone of 120,000 VND per share, PDG exceeded the milestone of 90,000 VND per share, NHA exceeded the milestone of 75,000 VND per share, CII exceeded the milestone of 50,000 VND per share and NBB reached the milestone of 60,000 VND per share. .

bitter end

According to the announcement of the Investigation Agency, from January 4, 2021 to October 6, 2021, Mr. Do Thanh Nhan, Chairman of the Board of Louis Holdings, colluded with others to use many accounts securities trading to buy and sell and attract other people. to buy and sell securities to manipulate the price of stock codes in TGG and BII, illegally earning hundreds of billions of dong.

Before the Investigative Agency announced its conclusion, the Louis Holdings executive even asked state management agencies to investigate media that questioned stock price manipulation. On September 17, 2021, Mr. Ngo Thuc Vu, Managing Director of TGG, stated that there were conflicting reports in the media, indirectly suggesting that Louis Capital along with the companies listed above manipulated the stock market without any proof. Thus, Louis Captial proposed to the management agency to verify compliance with the law on securities and the stock market for subjects who have submitted false information and to deal with them in accordance with the provisions of the law.

Kim Giang

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