Heard on the Street- (1-Feb-08)

Lows prompt players to bottom fish in Hexaware

With shares of Hexaware very near their 52-week low, several smart players have been bottom fishing in the stock.

An arm of the ADA Group is steadily accumulating shares of the Mumbaibased company, as per published information on the BSE. As per a recent disclosure to the exchange Sonata Investments (an ADAG subsidiary) bought around 1.2% of the company to hike it stake to around 6%.

Hexaware holds a leadership position in HR IT, PeopleSoft (PSFT) implementation and the airlines space. PSFT is the dominant practice in Hexaware contributing about 30% of revenues. Oracle (the acquirer of PSFT) has gone on record saying that it would provide ongoing enhancements to PSFT till 2010. Stock of the company fell 2.4% to end at Rs 67.

Multi-bagger prospects firm up Filatex India

Textile fibre manufacturer Filatex India is beginning to be seen as a multi-bagger by investors and brokers. According to equity analysts, the company is expected to do well in the coming months as demand for polypropylene filament yarn (PPFY) continues unabated in domestic market.

The company is also enjoying substantial reductions as far as its debts are concerned. However, all is not so rosy as far as Filatex is concerned.

A section of the market believes the stock is being propped up by either an operator or a brokerage to offload their positions in the stock. Filatex India ended 5% higher at Rs 43 on the BSE on Thursday.

The stock has appreciated 20% over the past one week.

source:ET