YuuZoo’s 40% Rise in under 3 Days Raises Doubts
This week, in less than three days (Nov. 24-26), the price of Singapore-listed YuuZoo rose by more than 40% to 0.625 cents a share. This prompted questions from SGX (Singapore Stock Exchange), and subsequently there was a trading halt yesterday afternoon.
It looks like someone in SGX has this exciting job of monitoring which stock is running too fast and then shooting out a template questionnaire to the company.
The SGX task perhaps ends there, as I am left with no information on whether a thorough investigation was done into the circumstances leading to the spike.
My hunch is that there may have been some heavy insider trading — how else will a stock go up by more than 40% in less than three days? Any spike without some positive news can be dismissed as speculative activity. That was not the case with YuuZoo.
So, what was the purpose in a trading halt after the stock had run its course?
The halt was to make an announcement about a deal with Etisalat that gives it the ability to target the telco’s 20 million subscribers in Nigeria.
YuuZoo, incidentally, is believed to be “the world’s first third-generation social e-commerce company”.
According to a YuuZoo press release, Nigeria’s e-commerce market is currently worth over US$500 million with an annual potential of US$10 billion.
YuuZoo resumed trading this morning, triggering heavy profit-taking!
Looks like SGX will have to review its strategy on halting trades and apply greater controls on insider trading!
G Joslin Vethakumar