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

#11
Thanks for the update pradosha.

When we talk about Operator driven stocks, we need to keep in mind that in MOST Cases "but not ALL Cases" the operators are hand in glove with the company owners or other Major Shareholders. Otherwise the risk increases a lot for the operators.

Once the SETTING has been done with the major shareholders, then the game of accumulating the FREE FLOAT begins. They try to collect as much free float as possible from the open market at very cheap price levels. A stage will come when they will have complete control over the free float and very tiny percentage will remain left in other people hands. Then they can move the stock according to their plan.

One also need to keep in mind the fact that the % shareholding that shows up in the FII Category, may also belong to Owner/Operator Gang itself. They can easily do that by taking the services of a friendly institutional broker who will do all the arrangements for his commission.
 
#12
The only thing I can say is that when Fundamentals do not improve, rely on technicals, the only reason I can think of is that this stock has time correction to complete which would get over in Feb 2014 and we would see the stock above Rs. 14 only around that time......:)
 
#13
I think its because of too much leverage. Debt equity ratio as high as 2. 97% of the profits spent for paying interest in june quarter. Not to mention 50% of promoter shares is pledged.
 
#15
Pension Fund of Microsoft Employees did invest in this penny stock on 1-2-2013 @Rs. 9.90 and might have sold it subsequently when the it rose to Rs.15 level or may be still holding. Have copy pasted below bulk deal reported in moneycontrol:


01-Feb-2013 Rei Agro (NSE) MICROSOFT CORPORATION SAVINGS PLUS 401(K) PLAN BUY 9498000 9.90
 
#17
sorry but that doesn't prove anything. if x is buying some stock, doesn't mean that stock is a good investment.

Will not disagree with U sir ......but may be buyers profile imparts some credibility to the stock invested.....more so if it is a pension fund of a company of repute.....i do agree this investment by itself MAY not confer the tag of a GREAT stock to REI.....no arguments on that.
 

umeshmandal

Well-Known Member
#18
I bought 2000 shares at an average of 6.40 per share ! Bought after this Thread by Pradosha ! :D
Have given Sell for 1000 shares today at UC ! 8:30 Have done a high of 7.75 today.
Will Sell 500 more on further Up moves and hold 500 as "Lottery" ! :p
 
#19
REIAGRO-UPDATE

Looks like an interesting development to be found in the SEBI SAST Disclosure dt 29th october 2013 made by an FII disclosing acquisition of 1,86,92,301 shares increasing its holding fro 10.33% to 12.29% post acquisition. The consideration amount works out to Rs. 19.499 per share which means that one of the bond holder has exercised the rights reserved in its favour. If that is so it is important for an investor to take note.
Still not very sure.....will verify thoroughly once again and confirm as this is market sensitive infohttp://t.in.com/0DJC
 

umeshmandal

Well-Known Member
#20
Found this data on NSE for REI AGRO LTD trades for last 24 months :

Total 500 trading sessions in last 2 years.
Total traded qty. :642239042
Min qty : 17345 (7th Jan 2012) Avg. Price 16.26
Max : 12263344 (18 Apr 2012) Avg. Price 13.06
High : 22.95 11th Nov 2011
Low : 5.95 on 1st Nov 2013
Average % of delivery : 64.45, Highest 97.79 and min. 27.52
 

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