Hanung Toys gets investor interest on overseas acquisition buzz

Uncertain market conditions don't seem to have deterred operators from targetting lesser known small and mid-cap companies to create some buzz around them and speculate stocks to mislead gullible retail investors.

Hanung Toys & Textiles is one company which, some brokers feel, may have become the victim of such practice as rumours are being floated in the market that it is in talks to acquire a mid-sized textile company outside India.

Company officials could not be reached for a comment while an email sent to the company failed to elicit any official response. Analysts also are clueless about the company's acquisition plans. Hanung Toys & Textiles, however, is planning to enter the US market in an aggressive manner, a Mumbai-based broker said. The company acquired controlling stake in US-based home-furnishing marketing company Cody Direct Corp last year. Shares of Hanung Toys gained over 17% from intra-day lows touched over the past one week.