Crazy Infotech:Another dubious company attracting abnormal valuations

Scripscan:Crazy Infotech
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[Crazy infotech news/analysis/penny stock/dubious management/avoid and exit asap]

Being an ardent newspaper reader i regularly follow the business ones and recently a company which am gonna discuss, has become a known name in charting the biggest mover/biggest losser aspect of a renowned english daily.The company called "Crazy Infotech" made everyone crazy by moving from 4rs to 27rs within an year before nosediving to a mere 2rs only to recover and quote around 8rs today.

I am just trying to makeout the type of company that people are dealing within the stock markets.

The company claims to be a proactive organization based in Chennai, specializing in customized software development, web development & website design with interactive flash & multimedia animation, system integration, networking solutions, corporate training, web promotion and consultancy services.

I am going to open the website of crazy info now.Done and surprise surprise,the company ridiclues and humiliates each and every IT solution provider by proclaiming itself to be the 'most mature “Total IT Solutions” company in India'.I mean the company had no business till march 06 it was always in losses and look at the comment they are making.

The company acquired a firm named Aanjaay Software Limited based at Chennai in the year 2006 for 3cr rs.I glanced through the management team and found out 2-3 directors of crazy info as the owners of that aanjay software.Its anyones guess that aanjay proved to be a failure and therefore to meet both ends the company acquired it.So at one end the company to get stronger acquired a "growing company with rich credentials" and at the other end aanjay software-the failure rather than getting ruined became a part of the company.The equity more than doubled to 5.89crs due to the acquistion as the company made a preferential allotment to the owners of aanjay softwares.So who are the owners guys?

The company splitted its shares to FV 1 in view of increasing the liquidity of the company.I have got no words to express my gratitude towards the promoters.Comeon guys,why not?the only way thats there is to lure investors by having the worth to a single digit with heightened price activity.Everybody knows simple gullible investors have got a great votary towards the penny stocks.No matter what the business are the fraternity would always get swayed away chasing these stocks.

Pathetic balance sheets,Dubious management,Sun-setting business model,nothing commandable at all to speak of, defines the company perfectly.Mind you folks it has got nearly a marketcap of 50crs.So will you buy such a horrendous company attracting a mind boggling valuation?