avanish said:
Hi,
I am new to this site.
I would like to have your comments on this stock.
Polyplex corporation ltd
I bought 300 shares @ 151 for medium term
Thanks in advance,
Regards,
Avanish
Hi Avanish,
Polyplex is planning new capacities offshore. They have a plant in Thailand and another in Eurpoe has begun trial production. For a medium to long term view based on fundamentals I would suggest a HOLD/BUY at current levels.
Technically it is still in a down trend. Stock rallied from 130 levels to 185 (strong resistance). Followed by a decline to 140. The weekly charts seems to indicate a trend reversal at 140 (kind of bullish engulfing candlestick pattern if the week closes above 149-150). Stock is picking up strength but still has some work to do. Volumes have dried up. For a medium term it is a HOLD with a SL of 130.
Avanish, I do not know all the reasons why you are into this stock. There are better opportunities than Polyplex. For a short term you can put a SL at 140 and remain in this one. Else Exit and enter some other stock.
You can also take a contrarian view. You have purchased the stock at lower levels. If you plan to stay invsted for 1 yr or so, then it makes sense to HOLD. The stock is tradin at a P/E of around 30. Which is higher for a small/mid cap stock. But is justified by Foreign holdings and their business model. Also the company has not turned around as it is still into losses.
All in all, my suggestion would be to wait till the results. If it recovers and breaks the 185 resistance, great !. While if it falls and crosses below 140, then sell and get into another stock. You can buy this one later at a much lower level.
Hope this helps.
Thanks,
Mohan
