Aliran Ihsan: What's Up Doc?

Posted on the Star Business on the 14th June 2007. Aliran Ihsan price surge leads to talk of takeover

• Aliran Ihsan price surge leads to talk of takeover
  
  By C.S. TAN
  
  PETALING JAYA: Shares in Aliran Ihsan Resources Bhd (AIRB) rose 36 sen to RM1.09 while its loan stock, AIRB-LA, climbed 10.5 sen to 99.5 sen in active trading yesterday.

Highlighting a hot stock? Ok, the reporting is perhaps trying to give an idea what's happening to the stock.

• That led to market talk the company could be taken private by its major shareholders, which are reportedly linked to Tan Sri Syed Mokhtar Al-Bukhary.

Market talk? That's pure speculation, yes?

And as usual, such speculation published on our local financial news is denied by the company mentioned.

• We refer to the query from Bursa Malaysia Securities Berhad dated 14 June 2007, pertaining to an article appearing in the Star, Starbiz Section, page B3, Thursday, 14 June 2007.
  
  After making due enquiries with all the Directors and major shareholders of the Company, we wish to inform that the Company is not aware nor has any knowledge of the proposed exercise as stated in the said article.
  
  This announcement is dated 15 June 2007.

So for whom does such reporting serves?

Are we now living in a society in search of hot stocks that we condone news based on "market talk" or as highlighted in blog postings, More Reporting Woes: Surely They Are Unaware! and If Accounting Woes is Bad, what about Reporting Woes? , financial news based on baseless SOURCES?

Back to Aliran Ihsan.

Article was published on June 14th.

Have a look at Aliran Ihsan stock market data below.

On the 13th, this stock came alive. Up a whopping 36 sen.

Now thanks to the article, the stock SURGED to its all time high of 1.35!

The stock chart depicts the impressive flight of Aliran Ihsan.

Last evening, AS EXPECTED, Aliran has denied this MARKET TALK.

How?

If Aliran Ihsan tanks on Monday, how?

And what about the role that the reporter has played in all this? Did that news report helped propel Aliran much higher?

So do you think that it is right that a news report should be used to help promote and help propel a stock higher?

How?