Investors chasing FOMO to buy LDG shares of LDG Investment Joint Stock Company last week were stunned when in the first session of July 21, this stock suddenly turned around and decreased by a margin of 7% to VND 6,560/share. Tens of millions of shares were sold on the stock exchange but there were no buyers.
The surprise is that this stock is in a series of 18 ceiling auctions in the past month after former Chairman of LDG, Mr. Nguyen Khanh Hung, suddenly reappeared at the general meeting of shareholders of this enterprise on June 26, 2025, after completing the execution of the judgment related to violations of selling houses that do not meet legal conditions, deceiving customers at the Tan Thinh residential area project (Trang Bom district, Dong Nai at the time of before the merger).
Not stopping there, in mid-2024, LDG was also opened bankruptcy proceedings by the Dong Nai Provincial People's Court after a lawsuit from Phuc Thuan Phat Construction and Trading Joint Stock Company.
In the past, LDG has had a sharp decline in the second half of 2022 with many floor reductions. From the price range above VND 10,000/share, LDG plummeted to the bottom at around VND 3,000/share in November 2022.
Amid the recent strong price increase, LDG has twice published documents explaining the continuous price increase in the ceiling. It all emphasized that the company did not have any impact affecting the stock trading price.
Regarding business results, LDG has reported losses for 2 consecutive years. Of which, in 2024, the net loss was VND 1,505.8 billion and in 2023, the net loss was VND 527 billion.
Regarding actual business performance, in the first quarter of 2025, LDG recorded a sharp increase in net revenue from VND 10.3 billion to more than VND 77 billion, with pre-tax profit reaching more than VND 12 billion (the same period lost VND 125.6 billion). The asset structure is not too promising as at the end of the first quarter of 2025, LDG only had more than 3 billion VND in cash but the total loan debt was up to 893 billion VND.
Also at March 31, 2025, LDG Investment still has a principal debt of VND 443.1 billion and interest of VND 36.2 billion that has not been paid, and there is no plan to receive new capital to restart projects facing prolonged legal difficulties, especially the Tan Thinh Residential Area project related to illegal construction violations when selling to customers.
According to experts, in the context of a fairly good market recovery, speculative cash flow is tending to look for stocks of businesses in the process of restructuring and raising stock valuations. This group of stocks often tends to decrease sharply when it is time to take profits, even decreasing below the increase zone, so it will pose a great risk for investors.
