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Shares Trading Below Their Book Value

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  #1  
Old 20th March 2008, 11:34 PM
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Default Shares Trading Below Their Book Value

I have identified that Rajesh Exports is currently trading below its Book Value and i feel there is good opportunity to go long on that stock if the market stabilizes from here.

Would like to know if there are other stocks of fundamentally strong companies which are currently trading below their book value.

Any details would be much appreciated.

Regards

BOLindia
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  #2  
Old 21st March 2008, 12:21 AM
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Smile Re: Shares Trading Below Their Book Value

Quote:
Originally Posted by BOLindia View Post
I have identified that Rajesh Exports is currently trading below its Book Value and i feel there is good opportunity to go long on that stock if the market stabilizes from here.

Would like to know if there are other stocks of fundamentally strong companies which are currently trading below their book value.

Any details would be much appreciated.

Regards

BOLindia

Diamond companies tend to have HIGH book values. In this sector Rajesh exports is a good company.
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  #3  
Old 21st March 2008, 03:21 AM
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Default Re: Shares Trading Below Their Book Value

Control Print (India) Ltd @ 43 is trading below it's book value.

Oswal Chemicals @32.8 is well below its book value (10 times less i guess)
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  #4  
Old 21st March 2008, 03:43 AM
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Default Re: Shares Trading Below Their Book Value

It is a good strategy to accumulate stocks that are quoting below their networth, but wonder what would be the reason for that?

Cheers
VG
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  #5  
Old 21st March 2008, 04:24 AM
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Default Re: Shares Trading Below Their Book Value

Quote:
Originally Posted by gvgs98 View Post
It is a good strategy to accumulate stocks that are quoting below their networth, but wonder what would be the reason for that?

Cheers
VG
Maybe BOLIndia thinks they are crash proof!!! (But reality is different)
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  #6  
Old 21st March 2008, 06:25 AM
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Default Re: Shares Trading Below Their Book Value

I do not think that they are crash proof but i certainly do think that if fundamentally sound companies have crashed below their Book Value than you need to start licking your lips.
If there is certainly no negative change in their business or management or future business plans or earnings or Order Book then what is the reason for them quoting below Book Value..............The answer is liquidation of assets by FII's and some other institutional investors to cover their sorry backsides and sub prime losses.

I hope that makes my Query more clear.

Warm Regards.
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