In the #WhoaDudeNiceTrade Department... A THREAD

A company called Industrial Asphalts (Ceylon) PLC offers bitumen emulsions, surface coatings, mastic fillers, underbody protective coatings, bitumen primers, aluminum reflective paints, roof sealants, clay emulsions, etc exists

It is small, illiquid, and had burped along at a price of LKR 280-300 for most of the first few months of this year, falling briefly below 260 in March. On March 20, they announced a stock split decided a couple days prior. The exchange shut down on the 20th.

Just before the market reopened, the company announced the record date would be a week hence.

So far so good.

If your price is LKR 300 and you split 4500:1, your new equivalent price is 0.0667

That's the trick.

The minimum tick size in Sri Lanka is LKR 0.10.

So this meant when the market re-opened, it could not trade lower than 50% up.

And the next trade higher would be double that.

Gosh I love EMs.

[h/t J Jeyakumar who found this gem]

The other neat trick? It's now trading LKR 0.10-0.20, with some tiny volume changing hands at 0.20.

Granted, this stock is so small it doesn't even register in the minds of punters in Colombo, but that is a cool trick.