Educomp was recently in news over allegations that its profits were inflated and promoters had made big
profits by trading their own shares and diverting funds to unlisted subsidiaries (published in The Pioneer magazine).
The result was 22% plunge in the company stock (satyam effect?) and the company instead of going PR route, has launched an online advertising campaign (using Google Adwords).
Interestingly, Educomp’s stock has now gone up by ~16%! (owing to whole lot of claims made by founders..but I am sure online ad campaign must have played an important role here).
The interesting part here is using advertising route to come clean – instead of doing it via the traditional means etc.
Interesting! Isn’t it?
What’s your opinion?
There is Big Fight between Stock Brokers and Educomp Promoters. Brokers have short position @ 1200 and Promoters are not letting it down below 1500.
Brokers made a single group and passing False Information on Biz Tv’s to bring scrip value below 1200 to square off the short position.
promoters raised more then 314 Crore via FCCB and encased huge money.
regulators are very very weak in controlling battle between them
“10:15 AM – Exit from Educomp Solutions as it is a weak stock, says Ashwani Gujral, technical analyst, on CNBC TV18. If it breaks Rs 1500 level, it could go down to Rs 1200, he adds. The stock is currently trading at Rs 1726, down 3.2% on the BSE”.
makes so much sense.. Imagine your response being made available right at the place where people are getting more info on the educomp news… (google search)
It’s a very creative and effective strategy. I hope interactive agencies will learn from this kind of stuff and come up with such ideas for clients. Creativity is needed to realize the potential of the Indian Web opportunity. The numbers are now there!
So…since when did people start believing what’s said in advertisements.