In a stunning twist that has baffled analysts and alarmed regulators, Information Services Network Limited (ISN), a company mired in losses and paying negligible dividends, has become the stock market’s most improbable fairy tale.
Its share price has nearly tripled in just over three months, turning a Tk 10 lakh investment into over Tk 28.5 lakh, a profit of Tk 18.5 lakh, in 105 days.
Even more astonishing: in just 14 trading days between August 7 and August 27, the stock more than doubled, surging from Tk 42.20 to Tk 96.10 per share, a 127.7 per cent jump.
That means an investor who put in Tk 10 lakh on August 7 saw their portfolio balloon to Tk 22.77 lakh in 20 calendar days.
“It’s like rubbing Aladin’s lamp,” said one retail investor, still in disbelief. “You blink, and your money almost triples.”
But behind the glittering returns lies a murky reality, one that has triggered red flags at the Dhaka Stock Exchange (DSE) and the Bangladesh Securities and Exchange Commission (BSEC).
A loss-making company with a fairytale price run
ISN, listed on the DSE in 2002, is far from a market darling on paper. The company operates in the IT and digital services sector but has struggled for years.
According to its latest financial report (June 2023–March 2024), ISN posted a net loss of Tk 18.07 lakh, or 17 paisa per share, over nine months.
Its dividend history is equally underwhelming: In 2024, 0.50 per cent cash dividend; in 2023, 1
per cent; in 2022, 3 per cent; in 2020 and 2019, 1 per cent each.
Yet, despite these fundamentals, the stock has defied gravity.
From April 30 (Tk 33.70) to August 27 (Tk 96.10), ISN’s share price skyrocketed by 185.16 per cent far outpacing even the most aggressive tech stocks in emerging markets.
Regulators sound the alarm
The Dhaka Stock Exchange issued a public warning in early August, flagging ISN’s “abnormal price movement”, a term used when trading patterns suggest possible manipulation.
The BSEC swiftly instructed the DSE to investigate the surge, demanding transparency from the company and scrutiny of trading data.
On August 20, the DSE formally notified ISN’s management to explain the surge. In response, the company claimed: “There is no undisclosed price-sensitive information behind the recent price increase.”
That answer has done little to calm suspicions.
Red flags everywhere
Stock market experts are sounding the alarm:
Market cap vs. fundamentals: ISN has a paid-up capital of just Tk 10.92 crore (109.2 million), with only 109.2 lakh shares outstanding. This small float makes it highly vulnerable to price manipulation.
Ownership structure: 21.47 per cent of shares are held by promoters and directors, 68.74 per cent by retail investors, and 9.79 per cent by institutions, a high retail concentration that often leads to herd behaviour during speculative runs.
No catalyst: No major contracts, partnerships, or technological breakthroughs have been announced to justify the rally.
“This is not organic growth,” said a senior DSE official, speaking on condition of anonymity. “A company losing money and paying 0.5% dividend trading at nearly Tk 100? That’s not valuation, that’s narrative-driven speculation or worse, organized manipulation.”
The anatomy of a pump-and-dump risk
Analysts fear ISN may be the latest victim, or vehicle, of a pump-and-dump scheme, where a ‘special circle’ of traders artificially inflates a stock’s price through coordinated buying, social media hype, or insider networks, then sells at the peak, leaving retail investors holding the bag.
“This has happened before,” said a market veteran. “We’ve seen stocks like NTC, NDC, or various defunct jute mills spike 200%, then crash 70% in weeks. Small investors rush in late, buy at the top, and lose everything.”
The DSE official warned: “History repeats itself. After an abnormal rise, there’s always an abnormal fall. Investors must be extremely cautious.”
Regulatory watchdog on high alert
BSEC Director and Spokesperson Md. Abul Kalam confirmed: “The DSE has been instructed to investigate the unusual price hike in ISN. A detailed report will be submitted soon. If any violation of securities laws is found, strict action will be taken.”
The DSE is now analysing trading patterns, block deals, and ownership shifts to identify possible market rigging, wash trading, or insider collusion.
What should investors do?
Financial advisers are urging caution:
Avoid FOMO (fear of missing out): Past performance is not indicative of future results — especially in manipulated markets.
Check fundamentals: Revenue, profit, dividend, and growth, not just price momentum.
Diversify: Never concentrate capital in a single speculative stock.
“Remember,” said one broker, “when a stock looks too good to be true, it usually is. Aladdin’s lamp works in stories. In the stock market, it’s often a trap.”
A market in crisis of confidence
The ISN saga highlights deeper issues plaguing Bangladesh’s capital market, including weak enforcement of anti-manipulation laws, a lack of investor education, and an over-reliance on speculative trading rather than fundamental analysis. Until these systemic flaws are addressed, experts warn that ISN will not be the last stock to be turned into an illusory "Aladdin’s lamp," luring unsuspecting investors with false promises of quick riches — and leaving retail investors to bear the brunt when the bubble bursts.
As one trader put it: “They’re not selling shares. They’re selling dreams. And dreams don’t pay dividends.”