I have been researching about this SME for a while, and suspect possible fraud. Stock is up 44% since the last two days post earnings. Naturally I was interested to buy 1 lot of share of this Amazing company. But, post due diligence, I decided to drop that idea (maybe short it later), and raise awareness to retail investors who might be invested in this company.
What does the company do?
Provides Digital Audio/Video, Edtech, Internet services.
If you check it on screener, you will see nothing but unbelievable earnings and profit growth, and possible undervalued stonk opportunity.
Why this could be the next BCG?
- Company has announced dividends since last 2 quarters but not actually paid it to many shareholders long after the record date. A simple search online regarding this, on twitter etc will reveal that angry shareholders are filing complaints and waiting for company to respond.
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Management of the company, Harshawardhan Hanmant Sabale was going to invest €75 million in Malta, but backed out on the promise. The company left without paying rent, electricity and other costs of operations and left € 400K of debt.
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They also made announcements of setting up “Edge” Data centers in India in 2018, but again did not actually do it. Harsh Sabale duped renowned politicians in Maharashtra in the process.
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Company changed it’s name from StreamCast to Varanium Cloud just before the IPO’s. Revenue numbers have drastically shot up since then.
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Concall is held, but you are required to submit questions before the call and only favorable ones get taken up.
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Company has filed defamation lawsuit against people who are raising awareness on the misdeeds of the company.
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Earnings discrepancy: https://twitter.com/BeatTheStreet10/status/1685881010414862336
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This is just the tip of the iceberg, I suggest going through the expresspost, company’s twitter handles and articles related to it in detail.
In my opinion, the company is nothing short of a Fraud BPO Call center. They also employ debt recovery agents. Would love the VP community’s thoughts on this company.
Sources
- Streamcast data centre: ‘dead project’ costs Enemalta €400,000
- Express Post – The ‘Streamcast Group’ scam and Rolta: Was it deceitful collusion?
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