An Extract from a private News Letter
KALPAVRUKSHA
Business and Investment Daily
6 MAY 2008
Stock trading is playing mind game
Do not try to predict the market. Simply follow the market
Nobody ever believed that SANDUR MANGENESE will report these kind of numbers and the stock will fire to Rs 721! Stock had a run from Rs 70 when we found it to Rs 800 non stop and then it corrected to as low as Rs 280 before recovering back to Rs 721. By the time it crosses Rs 800 its previous high all petty holders will be out and only who can digest the bullet will remain invested and stock will cross Rs 5000 in coming 3 years. With annual PBT of over Rs 200 crore on equity of just Rs 8 crore…bonus, split, placement to FII at Rs 3000 to 5000 range all will become reality. It will become another NMDC.
If you can’t dare to enter this stock as it has become costly for you then there is another stock now waiting in the wing is VISHNU CHEMICALS. It is a very low profile chemical company from Hyderabad with equity base of Rs 10 crore. It has set up another plant at Vishakhapattanam which started commercial production. It is all set to report EPS of Rs 35 in FY 0809 which should give a fair value of the stock at Rs 400 at least. CMP is just Rs 90. Look at the pattern of movement of this stock. From Rs 40 to Rs 180 non stop and then correction to Rs 45 and now back at Rs 91. The said stock is cheap on even current earnings. The very interesting issue which is required to be noticed by all of you before you enter this stock in a big way is that in last two quarters very quietly the promoters have diluted their stake from 91% to 75% and yet the identity of the buyers is not known. The stock has gone into very big hands generally looking for appreciation of at least 15 to 20 times once they enter. Off course you have a right to visit the company’s office and ask for shareholders list and check who the large shareholders are. Its products are absolutely proprietary like Kemrock.
No comments:
Post a Comment