Reliance Comm. Why not moving?

[Class]

I'm looking at Reliance communications for a long term investment. If it can return to it's highs, it has a lot of upside. Any reason why it isn't moving as fast as other companies in this last run up? Brokers are recommending it as a strong buy, is it that sales are down? Profit seems to be up anyway.

Gone from 362 down to 253 in 2 months. What is the bad news driving this if any?

I thought that the 3G auctions were happening this month, will Rel comm get involved, will this drive the price up, or in the short term down due to costs?

Thanks in advance.

 

[zippy]

Even eagerly I am waiting for it. Can anybody suggest?

 

[sreeramy]

Its mostly to do with their disclosure policy and frequent change in accounting policies.. Cant help it.. part of reliance group.. will move up along with other reliance scrips only

 

[bunny]

There is strong resistance(supply hotspot) at 266.10 (and its today's intraday high was 266.40). Most probably, the professional are testing if there still exists resistance at 266, hence todays loss. Mostly, it will lose even on Monday, and then only volumes will tell us whether it is ready to move upwards or not. Even if it moves up, there is another resistance at 280 which will be tested.

 

[SCION]

Bharti is a better pick.

 

[rajeshn2007]

Telecom sector is beginning to saturate. Apart from Rcom, bharti is also beginning to lag. Rcom has got some accounting issues, which they haven't clarified.
Telcos would underperform the market.

 

[amanj86]

there's a similar trend across ADAG co's. may be the septmeber 1 judgement. though nothing in direct relation for rcom, but seems to be the possible reason to me.

 

[Class]

Hi all,
Thanks for the inputs and advice.

I did take the advice about B Airtel and with the MTN deal it has given me some profit already and looks like a good longer term earner with 3G being discussed on August 27th.

Haven't hit stops on Rcom yet so may stay in and see if I can get out on a bit of a profit.

Thank again.

 

[rajeshn2007]

Telecom sector is beginning to saturate. Apart from Rcom, bharti is also beginning to lag. Rcom has got some accounting issues, which they haven't clarified.
Telcos would underperform the market.

posted 15 Aug2009

 

[Sunny1]

I think all communication depended on 3g auction which will boost the profits whoever get the license to operate.