Doubt Relief !!
- Thread starter karthikmarar
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Hi Karthik,
One article regarding IFCI is really making me more nervous,
http://news.moneycontrol.com/backends/News/frontend/news_detail.php?autono=190465&sr_no=1
Please advise me on this..so that I can make exit or hold if there is some hope
Regards
sjoshi
For inspat ind please go thru this link
http://www.traderji.com/equities/4652-ispat-industries.html
Regards
sjoshi
Joshi
Sorry for the delay in replying. Normally I dont track such stocks and had to collect some info.
As of October 11 there was a news about LIC showing interest in taking over IFCI. However the chairman of IFCI said in a interview that he was not aware of any such thing. The government is keen for IDBI to take over IFCI whereas IDBI is very reluctant to take it.
The accumulated loss of IFCI is about 4700 cr against a capital of 1700 cr. IFCI is currently concentrating on recovery of NPAs only and is not concentrating on any new exposure.
Things may change for better. Finally IDBI may be forced to take over. But I dont see it happening in the near future. Of course Chances of liquidation is also looks unlikely because it is a public sector enterprise. So currently the situation is not as grim as made out in the article.
However considering all the above I feel there is no point in holding on in the hope of recovery. Your money could be better invested elsewhere. I suggest to exit at the next possible rise. You could also put a stoploss to curtail your losses.
I always bang my head on the wall trying to figure out why people put their hard earned money in loss making and BIFR companies. Please do look into the company you are putting your money into. It is always better to invest in sound companies.
regards
Dear Karthik,
Can you help me in Sujana Metal Products? This company is in the business of Transmission Tower. The results as available in BSE site are good ---- showing profit growth in the recent quarters. Company is aiming to be leader in transmission tower business. Company has raised FII limit. The scrip was previously in Z-group, then shifted to B2 group. I took position at a price of 86 ---- after it came down from a high of 106. But during recent market fall, price went down to 54 and now moved up to 65 and seems getting consolidated at this range. Should I hold it?
Trading learner
Can you help me in Sujana Metal Products? This company is in the business of Transmission Tower. The results as available in BSE site are good ---- showing profit growth in the recent quarters. Company is aiming to be leader in transmission tower business. Company has raised FII limit. The scrip was previously in Z-group, then shifted to B2 group. I took position at a price of 86 ---- after it came down from a high of 106. But during recent market fall, price went down to 54 and now moved up to 65 and seems getting consolidated at this range. Should I hold it?
Trading learner
Dear Trading learner
Normally I do not track the BSE shares. Since I do not have the data for this stock I am unable to give good TA of this one. Here is what I have gathered.
Technically the short term trend is bearish as the 3 day ma moved below the 13 day. The long term is also bearish. The medium term trend currently looks ok. Yes.. it touched 52 during the recent correction and then made a higher pivot low at 55. Then it moved up further to 65 and currently correcting. If it falls below 55 then it will go down further. So it is better to exit if it takes out 55. On the upside if it takes out 70 then you will see upward movement.
The company is a profit making company and its last quarter results is better compared to the same period of 2004. Of course the previous quarter result were much better. But we can discount this because the very good results were because of some other items added to the profit. But there has been consistent improvement in the result in the last several quarters. Also the company has issued 85 Lakh preferential shares at a rate 62 Hence 62 may provide a good support level. The money will be used for their facilities in AP and setting up a new plant in Chennai. Also the debt restructuring agreement with IDBI should help the company. Considering all this and the fact that you have let your losses run you may hold it for now. But do exit it if it goes below 55.
Hope this info is helpful. We will evaluate this again after some time. In future do work with stop loss. If you had worked with stoploss then you would have been stopped out say 80 and you could have invested it elsewhere and may be sitting on a good profit today. Now you are sitting on a much bigger loss more painful to accept. Anyway learning the hard way is part of this game..
warm regards
Karthik
Normally I do not track the BSE shares. Since I do not have the data for this stock I am unable to give good TA of this one. Here is what I have gathered.
Technically the short term trend is bearish as the 3 day ma moved below the 13 day. The long term is also bearish. The medium term trend currently looks ok. Yes.. it touched 52 during the recent correction and then made a higher pivot low at 55. Then it moved up further to 65 and currently correcting. If it falls below 55 then it will go down further. So it is better to exit if it takes out 55. On the upside if it takes out 70 then you will see upward movement.
The company is a profit making company and its last quarter results is better compared to the same period of 2004. Of course the previous quarter result were much better. But we can discount this because the very good results were because of some other items added to the profit. But there has been consistent improvement in the result in the last several quarters. Also the company has issued 85 Lakh preferential shares at a rate 62 Hence 62 may provide a good support level. The money will be used for their facilities in AP and setting up a new plant in Chennai. Also the debt restructuring agreement with IDBI should help the company. Considering all this and the fact that you have let your losses run you may hold it for now. But do exit it if it goes below 55.
Hope this info is helpful. We will evaluate this again after some time. In future do work with stop loss. If you had worked with stoploss then you would have been stopped out say 80 and you could have invested it elsewhere and may be sitting on a good profit today. Now you are sitting on a much bigger loss more painful to accept. Anyway learning the hard way is part of this game..
warm regards
Karthik
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