Hi Guys,
sorry I'm putting a pessimistic angle on this one. I think you are seeing the first stages of the swan song of ispat ind. i have had the (mis)fortune of having met the promoters and (gasp, worse) their progeny and i can tell without bias 100% these are not serious businessmen, forget their esteemed cousin Lakshmi Mittal. That one quarter/year turnaround that the company posted could by all means be a stock-value/boosting gimmick, and their is no doubt on where fundamentally and financially the company stands... its neck-deep in its own s***.
Bit on the promoters, and totally unbiased... they are NOT even Indian citizens, they have accumulated VAST hordes of white/grey/black personal wealth, and business-wise the two brothers are half of the year partying around in Europe and America. They are already tainted with a half-dozen scams (try their Ispat-personal property scam), and a common streak of unthinking ambition, almost lunatic scams and get personally rich quick history runs through their careers.
the only reason they are going to keep trying to prop Ispat up, is their 50% shareholding giving them more asset value in their books. (i am sure their personal wealth amounts to double that, but why lose that?). but this time it seems like it has gone too far into a mess for them to salvage... i personally feel the co. is going down.
sorry to all the people who are blaming the steel cycle... i dont see TISCO, SAIL, etc in dire straits today... they are fit and fighting hard despite the steel scenario... too many people have been fooled into believing Ispat is a Blue Chip.
My personal advice to investors caught (and again i have a total extreme angle on the co. so take my word on own risk) get the **** out (now it is too late... already suspended)... but when it is back, call it a loss and cash out with whatever miserable amounts you can, i dont think you have a choice.
word to ispat ind and their promoters:-
I hope like hell that the financial instits (and maybe SEBI) take you to the cleaners personally for the mess you created and the public investor wealth you have destroyed of people like members of this forum. I am sure your crooks of CAs and lawyers; and your non-Indian/NRI status would firewall you from a lot of personal damage... but still i hope they get you... get you for the sake of every single investor you have stolen from over the years.
shorttermer
ps - i have absolutely nothing to do with these promoters, and met only once, so i am giving a TOTALLY unbiased viewpoint.
