Teledata?

sgtapadia · #1 23rd August 2005, 02:11 PM

Hi all
I am holding teledata. i bought it at 41. now i want to know what sould i do with it. hold or sale. i was told that it will hit 80 to 100 during oct. its yearly figures r also good. but the stock is not showing upward trend.

can anyone help.

kkz59 · #2 23rd August 2005, 04:40 PM

This is operator driven stock - this is my analysis from the way the Share price refuses to move up despite superb and excellent financials.

A regular and good management posting the type of results Teledata had posted, the share price should have been in excess of a few hundreds.

I am also holding 2500 shares bought at around 33/- levels and my friend who recommended it says, that I should not watch the prices on a day to day basis. I think, he is right and I suggest the same to you. Please try to look at the price not regularly.

I am also in the same "well" as you are, but probably with more part of my body above water than yours.

evijayrao · #3 23rd August 2005, 04:51 PM

It is a steal at CMP so definite hold for now I think. Target nothing less than 150 (Very conservative P/E of 10 on projected EPS of 15) in one year. Besides how many shares in IT sector are quoting below book value ? Has good 150 cr reserves ie Rs 20 per share in cash so you get the business for Rs 10 if you buy now. Not only that dividend of 15% it means a yield of 5% so as good as an FD

. If you sell this whatever you buy with that money in this bull market would definitely be a riskier investment.

kkz59 · #4 23rd August 2005, 05:05 PM

Hi sgtapadia

This post I found later on and am reproducing the same for you.

Quote:

Originally Posted by vikasdewan
Hi Saint,
Could you please comment on the prospects of Teledata Informatics? It gave a breakout to around 35 levels around 10 days back and is currently hovering at 32-33 .

I do some very ( very) basic level chart study and the 20 day EMA and 50 day EMA are on the verge of crossing . This should signify a medium term upmove ??? ( Please confirm this )

Thx an reply awaited.

Vikas

Hi Vikas,
Very nice find.......TELEDATA INFORMATICS broke out on Aug 4th after which it has formed a nice tight sideways consolidation.Buy the breakout above 35 with a stop loss of 32 with a target of 42.Only as a short term trade.There's a lot of reistance at the 42 levels.

Happy Trading!!
Saint

esveepee · #5 23rd August 2005, 05:17 PM

Oh yes! I too have 100 shares of Teledata at Rs. 54.00! Have been wondering if I should pick up more at today's price (32.00) or just write it off as a bad joke!

valueinvestor · #6 23rd August 2005, 08:35 PM

Hi sgtapadia,
short term trend is upward but long term trend is still in the down ward only.
presently support & resistance are @ 28 & 43 . when it closes very strongly above 43+ then only it is a bullish share for long term.
Best wishes
Reddy

SSM · #7 23rd August 2005, 10:19 PM

HI everyone
Iam not convinced about all those rosy EPS and Reserves figures. The books appeared to be cooked nicely
Regards

evijayrao · #8 24th August 2005, 12:18 PM

Lot of rumours about cooked books and crooked promoters doing the rounds. Does anybody have any concrete information ? No

Some facts :
1) T. Rowe Price Associates ( FII ) hold 5.66% purchased last week at 31/-
Kotak Contra fund rumoured to have picked up shares recently.
June end shareholding pattern shows :
Karvy Associates and IndiaBulls Financial hold more than 1% each.

Are all these investors incapable of looking through cooked books ? Would they purchase shares of a company run by tainted promoters knowingly ?

2) Promoter stake now at 7.87% is almost constant for past 2 years if equity dilution is factored in which means at least promoters have not profited so far.

3) Corporate governance seems to be poor hence share quotes at low P/E like HFCL , etc. Is it much better in other Indian companies ? I think 90% of Indian companies would not pass muster if strict corporate governance guidelines are applied to their accounting standards, disclosures , etc.

4) Scores of loss making companies are now quoting at 10 times their par value despite having negative net worth ? Are they really more worthy of investment compared to a healthy and profitable company with positive net worth , good products and high margins ?

Anyway thats my 2 cents worth on this share.

Disclosure : I hold it at 29/- and wait for the market to acknowledge it's worth. If it sinks then it is a risk I take knowingly.

kkz59 · #9 24th August 2005, 01:50 PM

SSM

I too hold your view that the results do not appear to be the true results - otherwise why should the stock lie so low.

I think there should be a regulatory body or some NGO overlooking manipulations in the Stock Market. SEBI is overloaded with a few thousand companies. And wherever some action is taken by SEBI, it is either inadequate or a bit late.

Let's (all TELEDATA shareholders) hope that this Company really performs.

Bye the way, has anyone received the Annual Report of the Company?

kkz59 · #10 24th August 2005, 01:55 PM

envijayrao

Nice analysis.

I remember having read some months back that T. Rowe Price Associates ( FII ) had sold a few million shares of the Company. They seem to have purchased back.

Promoters low holding also probably suggests that they do not have much faith in the Company, else, why have they not used the Creeping Acquisition route to enhance their holding in the Company. Or are they holding shares in some benami.

Big people doing some thing does not make it correct. Indiabulls and Kotak have no attachment to any scrip. In fact, one never knows, they might have exited by now.

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