The Indian Equity Market Meltdown has exposed some dirty Insider Trading by Promoters of Palred Technologies. Guess Reliance Industries’ CMD & Insider Trader Mukesh Ambani was their role model to look up to but Palred Technologies’ CMD got caught in the hands of SEBI and Mukesh has managed to keep the case subdued.
Ok. Palem Srikanth Reddy of Palred is a Crook as SEBI have caught him Red Handed in Insider Trading Scam but Why don’t we trust the over hyped media savvy Portfolio Management Guru – Porinju Veliyath of Equity Intelligence?
Porinju bought Palred Technologies on 27.05.2015 at Rs. 23.55 per share according to Bulk Deals Data. He however clarified in a tweet that he had accumulated the stock between Rs 15-25 [Tweet Deleted] [Digital Evidence of his Tweet is here PDF File] and his average appears to be around Rs 20. Later when the stock hit Rs 100 in October 2015, Porinju has dumped the same and this was not made public to his loyal followers. However, just couple of days ago Porinju picked up a brawl on Twitter and Confessed that he has sold Plared at Rs 100 [Tweet Deleted] [Digital Evidence of Tweet Confession of Selling by Porinju is here PDF File]
Now if Porinju Veliyath of Equity Intelligence was so Transparent in his dealings of Palred Technologies why did he Delete the tweets ? Obviously, because SEBI will also run behind him. Why didn’t he Tweet when he sold the same to inform his loyal followers ? Why did Porinju BUY such a Shady company in the first place ? Why wasn’t their any disclosure about SEBI investigating Palred insider trading ?
What is the Lesson for Investors ?
Don’t blindly follow media savvy fund managers like Porinju Veliyath as you never know what they do and when they act. It is always the small investors like you who get caught with worthless companies in your portfolio.