Stocks
Emerald Oil’s Stock Soars by an Astounding 190% Despite Heavy Debt Load
Emerald Oil Industries Limited, Listed on the Stock Market, Witnesses Rapid Surge in Share Prices Over a Month. Market Analysts Blame the Company’s Poor Management and Financial Mismanagement for the Share Price Increase, Failing to Deliver Returns to Investors for Six Years.
According to Reliable Sources, the Food and Agro-based Company’s Share Prices have Increased by two and a half times within Just 22 Trading Days. The Dhaka Stock Exchange (DSE) data reveals that on April 11, Emerald Oil’s shares were valued at Tk 32.70, while on May 21, the share price stabilized at Tk 95.10. Consequently, the company’s shares have witnessed an astonishing growth of Tk 62.40 or 190.82% during a span of 23 trading days.
It is worth noting that Emerald Oil Industries Limited was listed on the country’s stock market in 2014. The company’s outstanding debt surpasses its paid-up capital. As per the DSE data, the company’s paid-up capital in the Z category stands at Tk 59.71 crore, while the total debt as of 2016 amounts to Tk 93 crore 40 lakh, with a long-term loan of Tk 62 crore 81 lakh and a short-term loan of Tk 30 crore 59 lakh. Additionally, the company owes Tk 81 crore to Basic Bank and BRAC Bank, which has now accumulated to nearly TK 100 crore including interest.
According to sources, since its listing in 2014, Emerald Oil Industries Limited has provided dividends to investors for only 3 years. In 2014 and 2015, the company offered a 10% cash dividend to its shareholders. The following year, in 2016, a 10% bonus dividend was given. However, no dividends have been provided to investors in the past 6 years.
In the latest financial report of 2016, Emerald Oil recorded its highest revenue. That year, the company earned Tk 3.33per share (EPS). The company has published financial reports for the years 2017, 2018, and 2019 in the food and agro sector. Unfortunately, the company has been experiencing losses in all three years. The closure of production in 2017 had a significant impact on Emerald Oil. In that year, the company incurred a loss of Tk 34.34 per share. The following year, in 2018, the amount of loss decreased to Tk 1.97 per share. Even in 2019, the company reported a loss of Tk 1.14 per share.
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When asked about this, capital market analyst Professor Abu Ahmed told Orthosongbad, “No matter what we say, there is no profit. Some people exist who do not consider the company’s performance or whether the business is good or bad. They are the ones who are active in the market. Once the share prices of a company rise, they are the ones behind it.”
He said that these are known as “serial trading” or “syndicate trading,” as per the Bangladesh Securities and Exchange Commission (BSEC). In the past, the prices of many shares have increased in this manner. Essentially, there is no value for good shares in the market. The value of good shares is not recognized beyond the floor price; it remains stuck at all floor levels.
Regarding all these matters, the Secretary of Emerald Oil, Sadia Afrin, did not agree to speak to ORthosongbad. She mentioned that she was busy communicating with the company’s Chief Regulatory Officer (CRO). However, it has not been possible to establish communication with the company’s CRO.
Dhaka Stock Exchange DSE, Bourse on the last working day of the week, 16th May, ended with a drop in Indices and hike in Turnover from the previous working session. This information is known from DSE sources.
676 crore 79 lakh taka shares were traded on this day. 150 crore 46 lakh more tradings were done in DSE today compared to the previous workday, 15th May , Shares worth Tk 526 crores 33 lakh shares were traded last time, Wednesday.
The benchmark DSEX lost 9.98 points or 5,517 The Shariah-based index DSES dropped 0.80 points or 1,212, and the blue-chip index DS30 decreased by 3.79 points or 1,973.
Of the issues traded, 122 advanced, 215 declined and 57 remained unchanged.
MBL 1st Mutual Fund ranked top gainer on DSE, the share price increased by Tk 0.50 paisa or 10 percent. On this day, the share was last traded at Tk 5.50 paisa.
Sonali Paper & Board Mills Limited ranked top loser on the DSE, the share price dropped by Tk 11.80 paisa or 3.00 percent. On this day, the share was last traded at Tk 382.50 paisa.
DSE topped on trade is Asiatic Laboratories Limited 46 crore 23 lakh takas of company shares have been traded.
A total of 43 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 3 crore 22 lakh 1 thousand 792 shares of the companies were traded. The financial value of which is 49 crore 85 lakh taka
Dhaka Stock Exchange DSE, Bourse on the fourth working day of the week, 15th May, ended with a drop in Indices and Turnover from the previous working session. This information is known from DSE sources.
526 crore 33 lakh taka shares were traded on this day. 138 crore 3 lakh less tradings were done in DSE today compared to the previous workday, 14th May , Shares worth Tk 664 crores 36 lakh shares were traded last time, Tuesday.
The benchmark DSEX lost 58.22 points or 5,527 The Shariah-based index DSES dropped 12.79 points or 1,212, and the blue-chip index DS30 decreased by 14.14 points or 1,977.
Of the issues traded, 61 advanced, 301 declined and 33 remained unchanged.
Reliance One the first scheme of Reliance Insurance Mutual Fund ranked top gainer on DSE, the share price increased by Tk 1.50 paisa or 8.77 percent. On this day, the share was last traded at Tk 18.60 paisa.
Bay Leasing & Investment Limited ranked top loser on the DSE, the share price dropped by Tk 0.30 paisa or 3.00 percent. On this day, the share was last traded at Tk 9.70 paisa.
DSE topped on trade is Alif Industries Limited 19 crore 21 lakh takas of company shares have been traded.
A total of 45 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 68 lakh 31 thousand 91 shares of the companies were traded. The financial value of which is 37 crore 38 lakh taka
Dhaka Stock Exchange DSE, Bourse on the third working day of the week, 14th May, ended with a drop in Indices and Turnover from the previous working session. This information is known from DSE sources.
664 crore 36 lakh taka shares were traded on this day. 17 crore 86 lakh less tradings were done in DSE today compared to the previous workday, 9th May , Shares worth Tk 968 crores 2 lakh shares were traded last time, Monday.
The benchmark DSEX lost 81.14 points or 5,585 The Shariah-based index DSES dropped 15.76 points or 1,225, and the blue-chip index DS30 decreased by 26.04 points or 1,991.
Of the issues traded, 31 advanced, 343 declined and 25 remained unchanged.
Reliance One the first scheme of Reliance Insurance Mutual Fund ranked top gainer on DSE, the share price increased by Tk 1.50 paisa or 9.55 percent. On this day, the share was last traded at Tk 17.10 paisa.
Union Insurance Company Limited ranked top loser on the DSE, the share price dropped by Tk 4.00 paisa or 9.32 percent. On this day, the share was last traded at Tk 38.90 paisa.
DSE topped on trade is eGeneration Limited 28 crore 18 lakh takas of company shares have been traded.
A total of 45 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 74 lakh 95 thousand 900 shares of the companies were traded. The financial value of which is 34 crore 92 lakh taka
