It s really difficult to understand the reality of GQ Ballpen Company, a plastic product producer plagued by various problems including declining demand for ballpen, investment in new products, reconstruction of factory building after fire and lastly construction of new office buildings on 13 acres of land in Uttara.
According to the company’s intrim-financial report, the company sold about Tk 8 crore in the third quarter of 2020, but lost Tk 1.3 crore and EPS stood at Tk -1.49 per share.
Big news is that share of such a poor performing company was sold at Tk 231.60 each on Thursday, September 10, 2020 of the at Tk 10 face value.
Stock market expert Atiqul Islam told Business Mirror that there are several organized gambling groups operating in the stock market that unreasonably raise share prices by targeting low-paid-up holding companies. “GQ Ballpen is one of those gambling items,” Atiqul said.
Mr Islam said gamblers would sell shares of such small portfolio companies to themselves and sell them to ordinary investors at a high price, artificially creating demand.
The chairman of the company’s board of directors Salma Huq told about the company’s business that “During the year we were able to reduce the slow moving items and launched some new items and getting a positive reply from the market. As a result sales growth has gone upwards from the previous year which will be reflected in the coming years. In order to ensure a continuous supply of quality product we have decided to import a few of new moulds. We hope that in the coming years our sustainable growth will be improved.,”
She said in the directors report that after the fire hazard on 19 April, 2017; factory reconstruction has been mostly completed. The installation of the imported machineries has been completed and required machineries will be imported subsequently. Now we are running a trail production of plastic items.