undercurrents in GujNRE..stock is flying !!!

NewTrader_DeepakJ · #1 20th February 2008, 11:25 PM

Hi Guys,

Guj NRE is skyrocketting from last 3 trading sessions... I know that its fundamentally very very strong scripts which undervalued at the moment but still i m feeling that there are some under currents in this script which is taking it too new highs... If anyone of my fellow boarder know about any positive news on this counter,please share.

My guess is that news could be one from following-

1)It has been included in Group A stocks.. May be as per internal news its going to be part of F&O segment as well.If it goes in F&O segment price will boost due to increase in liquidity.

2)Company has found some new resources.

3)Block Deal ?

4)Any new development in its subsidiary in Australia?

Cheers !!
Deepak

moneyshah · #2 21st February 2008, 10:55 AM

hi deepak,
i would also like to buy this stock. awaiting advice from the 'gurus'.if anybody has any information regarding this scrip , please share.
regards
moneyshah

fire_gun · #3 21st February 2008, 12:33 PM

completed inverted head and shoulder pattern on daily charts. at 155....which is the closing of perivious day

sudoku1 · #4 21st February 2008, 04:02 PM

ITS SAID THAT STOCK PRICES FOLLOW COMMODITY PRICES.....true...
thermal coal prices in the intl market have shot up to 150$ from around 100 $ & hence the spike......

NewTrader_DeepakJ · #5 21st February 2008, 10:56 PM

Excerpts from Ashwini Gujral's interview on CNBC TV18:::::

Q: How are metals and IT looking on the charts?

Gujral: These are two positives spaces. Commodities are going up. Steel, aluminium, as well as iron ore companies are doing well. Once Hindalco crosses Rs 190, it should head towards Rs 230. Rs 230-235 is strong resistance on SAIL, Rs 275-280 is also possible. Rs 780-785 is support for Tata Steel. It could go back up to Rs 950.

In technology, Infosys is looking to head back up to Rs 1,750. It is a similar story with Satyam. Once it can cross Rs 461, it can slowly head to Rs 500. I am particularly positive on stocks like Sesa Goa that could head back up to Rs 3,900 and Gujarat NRE Coke where we could see Rs 210. If one remains in these select spaces, only then you can make money on the upside, but otherwise most stocks remain choppy.

NewTrader_DeepakJ · #6 21st February 2008, 10:58 PM

Excerpts from a report on Moneycontrol website :By Shravan Sreenivasula/CNBC-TV18

Reason why GujNRE is flying.....

he first leg of the run-up from Rs 30 to almost Rs 100 was because of the P/E valuation of its assets. The current run-up from Rs 100-150 is because of P/E valuations of its contract orders. Most orders are taken on spot prices, which are pretty high at around USD 450 per tonne, whereas the contract prices are around the range USD 200-250. So, investors are expecting that by March, contracts will be made depending on spot prices, which should give a fillip to the company’s bottomline. That is the reason why the stock is making such a run.

The financial performance of this company is actually stupendous if one takes Q3 results YoY revenue growth of about 40% and EBITDA growth of about 300%. Even if one considers other parameters like RoE and RoA, they are very exceptional.

The one-year forward P/E ratio is around 10 times while is less than 6 times. All in all, the parameters look good. That is the reason why most investors are buying into this particular stock. The stock has gained about 50% over the last month or so. Delivery volumes, which are about 90 lakh for January, has also gone up, crossing the 1 crore figure in terms of trading volumes and about 60-65 lakh in terms of delivery volumes. That is an increase of about three times over that of January. Today, it has traded about 1.2 crore shares, which is about 5-6 times the 10-day average. Trading wise and fundamentally it looks good. There is no reason why people should be thinking about hooking on to it.

NewTrader_DeepakJ · #7 21st February 2008, 10:59 PM

Quote:

Originally Posted by moneyshah

hi deepak,
i would also like to buy this stock. awaiting advice from the 'gurus'.if anybody has any information regarding this scrip , please share.
regards
moneyshah

Hi,

Don't be late in entering this stock..It has taken very sharp upward journey.Short to medium target will be 200-225.Board the rally before its too late.

Cheers !!
Deepak

sunilm02 · #8 22nd February 2008, 10:53 AM

I don't think there is any point in buying this stock now. It has already gone up a long distance. Let it correct a little (reach its 20 DMA) then only think of buying it.

SUNIL (a novice trader)