Question on SesaGoa?

K

kunal.singhal

Member
#1
#1
Hi Members,

I have read on the MOneyControl message board that SESAGOA has announced a bonus and spilt.

Sesagoa has declared share split of 10:1 that is 1 share will be split into 10 shares.

Sesagoa has declared bonus of 1:1 shares. so if I hold 1 share of sesagoa will become 20 shares. The record date is august 8th. and exsplit exbonus date is august 18th.

Now I am still learning the markets and would like to understand:

- Is the above information CORRECT???
- Can I still buy SESAGOA now before August and be eligible for the SPLIT and BONUS
- so If I buy 10 shares tomorrow after the split and bonus they will be 200 shares?
- what will be the price the share will be trading after SPLIT and Bonus??? (approx price?)


As i understand, if this information is pUblic, there will be heavy buying on this stock?

How true is this? can you please share your expert views on this please?

Thanks again all!
Kunal
 
SavantGarde

SavantGarde

Well-Known Member
#2
#2
Your Information Is Correct Regarding Split & Bonus.

The Price As On 7th Aug Close Will Be Divided By 20...This What It Will Open At On 8th Aug.
For Example If The Price On The 7th Is 3000 Then It Shal Open At 150 On The 8th Of August.

Any Shares Bought On 7th & Before Will Be Eligible For Split & Bonus.

Hope The Above Clears Your Query

Happy & Safe Investing

SavantGarde

kunal.singhal said:
Hi Members,

I have read on the MOneyControl message board that SESAGOA has announced a bonus and spilt.

Sesagoa has declared share split of 10:1 that is 1 share will be split into 10 shares.

Sesagoa has declared bonus of 1:1 shares. so if I hold 1 share of sesagoa will become 20 shares. The record date is august 8th. and exsplit exbonus date is august 18th.

Now I am still learning the markets and would like to understand:

- Is the above information CORRECT???
- Can I still buy SESAGOA now before August and be eligible for the SPLIT and BONUS
- so If I buy 10 shares tomorrow after the split and bonus they will be 200 shares?
- what will be the price the share will be trading after SPLIT and Bonus??? (approx price?)


As i understand, if this information is pUblic, there will be heavy buying on this stock?

How true is this? can you please share your expert views on this please?

Thanks again all!
Kunal
Click to expand...
 
K

kunal.singhal

Member
#3
#3
Hi Savant,

Thank you soo much for the prompt reply...! really appreciate it! Thank you! :)

Purely In your opinion.... do you think this is a good buy at 2900 levels??

Do you think the price will pick up quickly after the Split and Bonus and this stock may give high returns compared to other stocks??

Thanks again!
 
SavantGarde

SavantGarde

Well-Known Member
#4
#4
Hi Kunal,

While The Stock Is Very Good....It Is Advisable To Accumulate Below 2643
Chances Are You Will See It Go Down Before The Ex-Date...Therefore Be Patient.

After Ex-Date It Will Consolidate For Sometime Before Starting An Upmove.

Happy & Safe Investing

SavantGarde

kunal.singhal said:
Hi Savant,

Thank you soo much for the prompt reply...! really appreciate it! Thank you! :)

Purely In your opinion.... do you think this is a good buy at 2900 levels??

Do you think the price will pick up quickly after the Split and Bonus and this stock may give high returns compared to other stocks??

Thanks again!
Click to expand...
 
SavantGarde

SavantGarde

Well-Known Member
#8
#8
Freakin,

To Kunal, I Earlier Told Him To Wait For Entry, But The Way Things Are Happening I Don't Want Him To Loose Maybe 600-800 Bucks Till Friday....That Is Why I Changed My Mind & Told Him To BUY It Today.

Entry 5 Minutes After The Market Starts So That It Will Retrace A Little After The Massive Gap-Up We May See In The Morning, The Only Thing That May Have Played The Spoil Sport Was The U.S. Markets But DOW Has Closed +135 Points....So We Should Be Able To Do Pretty Well.

Happy & Safe Trading

SavantGarde
freakin said:
hey Savantbhai,

is it good for Short-term???

and after 5 mins means within 5 mins of market opening or in the remaining day???


Thnx,

Regards.
Click to expand...
 
K

kunal.singhal

Member
#9
#9
Thanks a ton Savant! Your inputs are really valuable!

I missed the opportunity to buy at 2900 levels, tough I had bought a sml quantity yesterday at 2875 approx.

Now I have read some posts on the Money Control message board, that look a little unrealistic to me...

I am pasting the post below from that website... do you think that this post is even close to being true on estimates??

Sorry asking a little stupid questions... just that I am still in a learning mode and want to understand the rationale behind the explanation of that money control post.


POST as picked from Money COntrol:

hi investors.

sesa fy08 Q1 EPS was 33
now fy09 results are out and EPS for Q1 is 163

PAT has shown a growth of 450%.
yes!!!!!!!! 450% .....difficult to believe??

now new annualised EPS for the stock would be something like 550 taking only Q1 into consideration.

in fy08 Q1 eps was 33. but anualised eps after Q4 was 379. so u can se the difference.

so at the end of this fiscal year minimum sesa can do is someting like an EPS OF 750-800.

and sesa is now trading at a PE of 7.5

so that makes the current value of stock = 7.5 * 550 = 4125.
that is even if the stock doest gain a single rupee today onwards on account of declared split and bonus, its inherent value itself is 4125 rupees according to new eps and p.e

now a company like sesagoa can easily quote a p.e of minimum 12 (whihc is bare minimum)

at p.e of 12 ,

p.e 12 and eps 379 (till now) = 4548 rs
p.e 12 and eps 550 (Q1 res) = 6600 rs

at fair p.e of 12 and eps of 800 (ater Q2-Q3 .....) fair price = 9600 rs

even at 10 p.e and eps 800 = 8000 rs


xo guys at this price of 2800 , sesagoa is like buying an acre of land in delhi in 1980 for long term investment.


before august 8th , sesagoa should reach 5500.

in one year time target is rs 400-500 explit and bonus. that is 8000-10000 rs


Thanks again sir!
Kunal
 
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