Rei agro----a mysterious stock to understand.

it may be rectification of an earlier discosure.....not able to make out.....hence ignore the inference drawn in the post

No such entry on BSE site for SAST !!! ?????

Copy pasted from moneycontrol:Rei Agro Ltd has submitted the disclosures under Reg.13(6) of SEBI (Prohibition of Insider Trading) Regulations, 1992
http://t.in.com/0DJC

Please find here the draft of the letter suggested for being adressed to the Company Secretary of REI AGRO, found in moneycontrol portal, in the context of the stocks performance in the bourses:


"Dear Mandan Mishraji,


We have invested in Rei Agro impressed impressed by its excellent performance year after year.The continued promoter buying and the strong SHP has put us in strong conviction that Rei Agro is an Investment grade stock that will give good returns in the long term.The Chairmans speech at the prevoiuos AGM, when he spoke of "Joy of Performance" says it all.

However,the performance of the stock on the bourses since the last four months, which is totally in divergence with the reported numbers, is causing concern and anxiety in the minds of investors. This has lead to all kinds of rumors being spread on leading finanvial portals like moneycontrol about, manipulation of price and movement of the stock, numbers being cooked-up, financial scam etc.we are aware that the REI management does not control and also can not be expected to control the open market buying/selling of its stock and the market determined stock price, which is making new lows continuously.Nevertheless we also beleive that the management can not simply ignore the battering of its stock on the bourses.

Under these circumstances, we request you to bring to the notice of the Audit Committee of the Board which would be discussing the Q2 results on 14th August 2013 that the CMP of Reiagro negates the companiy`s performance as per reported numbers and that this needs to be kept in view while considering the Q2 results and discussion with Company Auditors to re-affirm that the CMP of the stock is not a reflection of any deficiencies in in operational or fundamental factors,which are as robust as the numbers indicate and the exceptional performance of the company need not be doubted.

Perhaps it would be great if the management comes out with a clear statement in this reagrd while announcing the Q2 results. This will certainly demonstrate the company`s professed commitment to Corporate Governance."

So it seems the rise on 3rd Nov 2013 was only an operator stunt after all. Despite payment of dividend@50 paise per share(50%) and good numbers in Q2 with annualised EPS of Rs.7+, the stock continues to languish at Rs. 6.50 level.......with retail holding at just 5.14%, cant make out who is selling and who is buying. There are disclosures of promoter buying couple of lakh shares, now and then, not comparable to huge quantities traded though. Nobody is in a position to throw light on what is happening with this stock which exhibits so much divergence between its price and performance coupled with continued accumulation by promoters over the years.

The guess and debate in a financial portal elsewhere is that there is a lot of FII holdings in the company funded by dubious means which are now being palmed off to the entities owned by the real beneficiaries or their nominees facilitated by operators who have created an ideal situation for the purpose. Essentially it seems to be the process of round-tripping of illicit money stashed abroad using FIIs as conduits. Otherwise there is no credible explanation for a company with Revenues of Rs. 10,000cr,Profit of Rs 700cr and EPS of around Rs.7 trading at Rs.6(FV Rs.1).

REI's un-explainable reverse slide continues and the puzzle too. Don't see that anyone is interested in this stock, as there is hardly any input, and I only keep posting. Intend continuing this thread hoping that some one will throw light or the unfolding events may give some clue to resolve the puzzle.

Incidentally, here is some development which carries this report in ET dtd 12/12/2013:http://articles.economictimes.indiatimes.com/2013-12-12/news/45123090_1_indian-firms-overseas-investment-november. On further check from RBI site(http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=30173, it appears that this could be" Corporate Guarantee" issued/to be issued by REI for borrowings of its wholly owned overseas subsidiary Ammalay Commodities in UAE for US$ 22.7 million(about Rs.1400Cr).

I have made this post also to ensure visibility of the thread in the first page anticipating some knowledgeable member studying this company and posting useful comments to understand what is happening with this stock.

Explains a lot!!

REI seems to be inching upwards.....will this be a sustained up move and reversal of the down trend?

REI made good move today. Up 12.58% reaching Rs8.65, closing at Rs.8.50 and that's a pretty long way up from the all time low of Rs.5.55 that it touched on 26/11/2013, despite the improved performance and strong SHP. But it is still a long way to go for the 52 weak high of 15.25 on 29/05/2013.What is in store for this stock that has exhibited such irrational movement is to be seen. Those interested need to take note of SHP changes in Q3 about to be notified in about a weeks time. Hopefully, some one will analyse the SHP changes and comment on who bought and who sold(I mean the SHP categories), an understanding of which can help one to get a perspective on this stock and the mystery about its behaviour. The view in blogs elsewhere, some are saying promoters manipulated the downward movement but why no clear answer is forthcoming. Some are saying performance numbers are fudged and there may be some scam and that is the reason for the fall. What is true the stocks movement now should throw some light, although there is no reason to say that manipulation if it existed has stopped.