Gujarat NRE Coke - I NEED HELP

Dear Friends,
I entered Guj.NRE Coke at Rs93 (avg). The company is fundamentally strong and has recently entered into a JV with an Australian company. It has announced FCCB of $70m, for which according to the SEBI guidelines, their share prices have to be higher than the current trading levels. (Rs 88-89).
Their 52w high and low has been Rs 160 and Rs 81 respectively. Please advice weather i should stay invested at the current levels, or I should book loss
Some technical advice also required on the same.

Hi Anand,

I hope you havent booked losses already. Yes, the company is fundamentally strong. Recently they have increased the prices by 1500 Rs/ton. Coke prices were around 10,000 Rs/ton for 3-4 quarters. This is when the price was at its peak. Then there was a reduction in the spot prices. It fell from 10,000 to 7500 Rs/ton. This caused the stock to decline from 161 to 81. Now with further increase in prices, Guj.Nre will definately see good times. Also their Australian minbes have started producing.
Add to that the merger with FCGL with a 1:1 swap ratio.

On Technical charts, there are good signs of the stock bottoming out. A trend reversal pattern is forming here.

HOLD if you havent already booked losses.

Thanks,

Mohan

Hey Mohan...
Thanks a lot...your advise has been very valuble. The stock saw an uptrend today. Peaked at Rs100 and closed around Rs99. I have exited from this scrip.
Thanks once again
-anand

looks like exited too early. you could have gone with a proper stop loss. you may miss the BUSS if there is a break out.

Satya

SO do you think at 102 its a good price to enter in this scrip ?

If you have some analysis of current rally target & stop loss would appreciate them.

-Deepesh

Get back in with a stop loss of 93. And this time do not sell it so soon....
I own this stock since 50 and I added when it broke out above 68, so my average price is 67.
I know almost everything about the co, and have met promoters etc.
Real value of the company comes from the value of Australian coal mines.
Expected 2010 earnings are a staggering Rs 50 per share, so co would be fairly valued at Rs 250. Not a time to sell a resource stock in a mining bull...
-H Shah

This stock is in strong resistance levels with expectation of a drop down to 87.50 immediately.

Going by historical data and charts this stock remains rangebound between 100 max and 50 low, with more expectations of 50 low.

Exact drop to 91.03 here

So much for your charts.
Closed at 112 today.
-H Shah

cool, follow murray levels, you will get every target