Continuing from where I left…
Doing due diligence now after there are suspicions never helps. There is no point in visiting their kendras and trying to figure out if there is genuine business going on there or not - one needs a decent enough sample size to take this approach. Unless 30-40 ppl here get together, visit a total of say 300 kendras and then exchange notes and views, this approach will not yield any information that can be insightful enough to enhance the view you already have
In stories that unravel like this one will see rumours floating around that company may do buyback, hire a new auditor, director etc. The stock price then reacts to this with a UC for 2-3 sessions trapping people before the downward journey resumes. Case in point - see how the Treehouse saga unraveled over a period of almost 6 months
Once a stock falls 50% operators will game this further since they know there are enough gullible people out there who think the stock can bounce back 50% from the lows in a matter of weeks. Any volume information that you track needs to be adjusted for this possibility, once cannot see 2-3 random transactions and assume that some big buying is going on
On the face of it this has the makings of yet another sorry saga, I might be completely wrong on this but the trend so far suggests that one needs to be very cautious here since no one knows how deep the muck is. Investing for business reasons is easier and more logical, the moment one needs to cut through promoter intent and action it becomes very hazy
I once again repeat, be very careful. The behavioral bias documented as WYSIATI (what you see is all there is) can play very convoluted tricks, I have seen one very smart and successful investor lose his shirt and shorts in Treehouse because of this bias.