Rama Newsprint

#1
This stock was stopped trading at 9.30 Rs for quite sometime and it's re-listed again on 22 Sept. From that time it has gained more than 100%. Everyday it's hitting 20% gain. Today it's closed at 27.64 Rs. It's BSE Code is 500356. Any idea why it's going up so rapidly and what is it's target ?

Regards
Ashish
 
#2
This stock was stopped trading at 9.30 Rs for quite sometime and it's re-listed again on 22 Sept. From that time it has gained more than 100%. Everyday it's hitting 20% gain. Today it's closed at 27.64 Rs. It's BSE Code is 500356. Any idea why it's going up so rapidly and what is it's target ?

Regards
Ashish
Have a look at the attachment ... maybe that will explain the surge. (Newsprint business economics seems to have picked up ... anyone knows why and whats the outlook ?)

Hope also that u are aware of the reduction in capital (record date Jul 06) when 75 % of the paid up equity was 'extinguished' against accumulated losses of the co . All shareholders saw their holdings get adjusted in consequence to one fourth in terms of no of shares.

AGILENT
 
#3
Thanks Agilent. I didn't know about it, but I could see it reducing from 200 to 50 shares in my account :( So it surge was not really a surge, it was only price adjustment. I bought 200 stock @14 Rs one year before and now it went till 57-58 and my stock remain only 50. So I am at same place, where I was one year before. Now it's falling down and today it closed @48. Any outlook about this stock ? Is it a hold or sell ?
 
#4
Thanks Agilent. I didn't know about it, but I could see it reducing from 200 to 50 shares in my account :( So it surge was not really a surge, it was only price adjustment. I bought 200 stock @14 Rs one year before and now it went till 57-58 and my stock remain only 50. So I am at same place, where I was one year before. Now it's falling down and today it closed @48. Any outlook about this stock ? Is it a hold or sell ?

Good question ... I think the financial trend looks good ... see attachment

also , with aan EPS of around 10 (annualised) it looks undervalued now ... but suggest u buy on a correction , which may come soon

AGILENT
 
#5
I have one more question about this. If there was a stock merge( 4=1 ), then why did it take 4-5 session to reach it's original price. Why din't it show 4 times of it's last traded value on the day when it was re-listed.

Ashish
 
#6
I have one more question about this. If there was a stock merge( 4=1 ), then why did it take 4-5 session to reach it's original price. Why din't it show 4 times of it's last traded value on the day when it was re-listed.

Ashish
Good question ... I don't have a convincing explanation.

But I do know that capital reductions (like Rama did) are very rare, so price discoveries following such events could see some uncertain sessions

AGILENT
 

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