Pseudo teams manipulating stock prices

(SGI) - The stock market is now flooded with individuals and organizations who are aggressively manipulating stock prices. Many of these individuals are using pseudo names to represent themselves, as they continue to lure gullible investors with enticing offers of high gains.
Illustrative photo.
Illustrative photo.

Driving teams

Currently the stock exchanges have several driving teams with famous figures such as Mr. Tuan, Mr. Ha, Mr. Duc, Mr. Tam, Mr. Lang, Mr. Thin, and Mr. Duong. The most prominent now is the A7 team with the main participants being real estate and securities investors, collectively known as the NIK team. At meetings, A7 introduced himself as Nguyen Manh Tuan, a member of the Board of Directors of L14. In addition to L14, A7 also has many other real estate codes such as SGR, HDC, DTD, DIG, and NHA. These stocks have all increased hot as expected, causing many people to put all their faith in A7 through real estate stocks like 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 of investors who were stuck at high prices. However, on the forums, many members of the NIK team still pressured other members not to sell off stocks. If there is still money to continue buying real estate stocks, it is best to stay away from basic industry groups and buy real estate with the goal of increasing prices. The call to investors to buy shares of NIK stressed that the winner would be someone with great foresight about the coming real estate wave, in a very decisive game.

Equally 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 develop into a multi-industry corporation with four core areas, namely, agriculture, investment, real estate, and industry. With this ambitious target, Louis Holdings has acquired a series of enterprises listed on the stock market, namely, Louis Land Joint Stock Company (BII); Louis Capital Joint Stock Company (TGG); An Giang Import-Export Joint Stock Company (AGM); Vinh Khanh Plastic Cable JSC (VKC); Sametel JSC (SMT); and APG Securities Company (APG). In addition, Louis Holdings also collects shares of listed companies to put its people on the Board of Directors for 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 enterprises have prospered in production and business activities. For instance, TGG in 2021 recorded net revenue of VND 802 bn which is 78 times higher than in 2020, and a net profit of more than VND 99.4 bn, in the same period in 2020 they lost VND 43 bn. The LDP too has seen six consecutive quarters of losses, counting from the second quarter of 2020, but suddenly made a profit of VND 55 bn in the fourth quarter of 2021 after the participation of Louis Holdings. This is the highest profit of LDP since it was established. Due to this result, LDP erased the accumulated losses in the first nine months of 2021 and recorded a net profit of VND 39 bn, but a loss of VND 26 bn in 2020.

Incredible increase

The year 2021 can be considered a sublimation year for the stock market when the stock prices continued to break the ceiling, and many stocks also recorded many times the increase compared to the beginning of the year. However, for stocks in Louis Holdings, the overall increase in the stock market was still quite modest. For instance, the ticker TGG in the trading session on 9 August was only at VND 11,600 per share, but by the trading session on 16 September, this stock went up to VND 56,400 per share, equivalent to an increase of nearly 500%. Similarly, BII also recorded a gain of 300%, from less than VND 10,000 per share to more than VND 30,000 per share, after price increase that lasted for about one month. More impressively, the ticker SMT also increased from below VND 8,000 per share to VND 37,700 per share, equivalent to an increase of 500%, after a series of 17 consecutive ceiling gains.

The stock increases vertically whenever there is the appearance of Louis Holdings, represented by Mr. Do Thanh Nhan, causing investors to ask many questions about the manipulation of stock prices. Investors have more reason to be sceptical because Mr. Nhan locks stocks on his personal page before each price increase. For instance, on the morning of 1 September, Mr. Nhan posted on his personal Facebook page about the stock price prospect of Louis Holdings group. The information said that from now until 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 get 3x, and AGM wouldn't get to 3x, then blamed him. Stocks predicted by Mr. Nhan all jumped up rapidly. DDV of DAP Vinachem JSC increased from VND 15,000 to more than VND 36,000 per share. APG increased from VND 10,000 per share to nearly VND 29,000 per share.

The stocks related to A7 also stormed the stock market when L14 suddenly became the most expensive stock on all three exchanges with the price of VND 470,000 per share on the trading session on 13 January. Not long after L14 reached the historic price mark, the remaining stocks also broke the impossibly high mark. For instance, DIG surpassed the milestone of VND 120,000 per share, CEO surpassed VND 90,000 per share, NHA surpassed the mark of VND 75,000 per share, CII surpassed the milestone of VND 50,000 per share, and NBB reached the milestone of VND 60,000 per share.

Bitter ending

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

Before the Investigation Agency announced their conclusion, the leader of Louis Holdings even asked the state management agencies to investigate the media that questioned stock price manipulation. On 17 September 2021, Mr. Ngo Thuc Vu, General Director of TGG said that there is conflicting information in the media, indirectly suggesting that Louis Capital along with the companies listed above have manipulated the stock market without any proof. Therefore, Louis Captial proposed the management agency check the observance of the law on securities and the stock market for the subjects who posted false information and handle it according to the provisions of the law.