Over the period of a good year, one sees quite a few stocks double / triple from the lows they started the move from. But the unique feature of many BSE listed stocks with little ink to show on their Balance Sheets is their ability to generate returns in excess of 1000% in a given financial year.
For example, check out this stock – BSE Code: 531769. The company’s December quarter results showed it making a profit of 0.85 Million Rupees giving it at the current price a PE ratio of just under 1100 (One thousand one hundred). And no, this is not the first time the stock has moved to such extreme levels either. As can be seen in the chart below, the stock touched its all time high of 800 in late 2011 before plummeting down to sub 50 levels from where it has risen once again.
Of course, this is not the only stock to list on the exchanges and attract mind boggling valuations. Most persons associated with markets know that many of these do not belong to the pump and dump category either. They specialize in another area – Washing. Now, let me not expand on that, but I do believe that you will know how washing can turn dirty black clothes to sparkling white – and all this without having to pay the taxman a cent.
It amazes me no end that people are still stuck in the 80’s when belief was that black money was invested / saved in Swiss Accounts. Who nowadays in the right mind would want to do that when you have opportunities in plenty to clean it up right here at home and at the same time make some moolah too 🙂