PDF File Download 09-11-06-SW-Abhishek Ind.
Stock |
ABHISHEK Industries |
Sector |
Mixed |
Market |
India | ||
Ref No |
09-001 |
Symbol -NSE |
ABSHEKINDS |
BSE at |
16,158 |
NSE at |
4,760 |
Date |
9-Nov-09 |
CMP (6Nov09) |
14.60 |
Target ST |
21.00 |
Target LT |
43.50 |
Year High |
17.00 |
Year Low |
5.25 |
ST Hold |
6 months |
LT Hold |
18 Months |
Current PE |
9.13 |
% Down Peak |
14.11% |
Downside |
-15% |
Upside |
+198% |
PE 2010* |
5.00 |
Div Yield% CMP |
0.00 |
Buy Range |
Up to 18 |
Sell Range |
>36 |
Comments |
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Links |
Company Web: http://www.tridentindia.com Financial Data: MONEYCONTROL | ||||||
Stock Behavior |
In a way, this is a tricky stock. The stock trades relatively small volume of 60K to 80K shares. The stock used to rise in higher turnover of 800,000 to 900,000 shares. It will be a momentum buy when it rises on stronger volume. If it falls on higher volume, it will be sign to sell or reduce position. See the last 10 months Price/Volume Data (Jan-Oct 2009)
The stock is up by over 50% since July 2009 in tandem with the market. Buying now will result in entry at higher price. However, for small priced stock, this is inherent risk. If you have strict discipline, wait for major correction when you can buy probably 30% cheaper than now. Due to weak market overseas, best entry level could be less than Rs 10, more preferably Rs 8 to 9.20 levels. However, I would not wait for that level. The stock is still within my Buy range. The company could suffer severely if FOREX losses (mentioned below) mount. Some irresponsible banks in India, notably ICICI, Axis Bank appear to have sold lot of Forex derivative products to their customers. Many sued the banks unsuccessfully.(result not known) Forex derivative loss is the only major negative feature for this company. Since the amount is not ascertainable, we can not form any judgment. Not much will be known in immediate future. This is why if you make solid gains in the stock due to better numbers on other side of balance sheet, be a seller with a view to buy back on 30% fall from sale level. 2013 is years away. Avoid chasing stock. |
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Post-Purchase Care |
During the previous years, the Company has hedged its foreign currency exposure by taking various derivative options from various banks having maturity up to January 2013. These derivative options are proprietary products of banks, which do not have a ready market and as such are marked to a modeL, which is usuaLly bank specific instead of being marked to market. In view of the significant uncertainties associated with the above derivative options whose uLtimate outcome depends on the future events, the Loss on such derivative options cannot be determined at this stage. |
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Authored by Anil Selarka (Kalidas). CAUTION: The market may not behave as intended. The above opinion is given subject to no claim, liability or responsibility. | |||||||
Copyrights © Anil Selarka (Kalidas) Published for Blog – Financial Wisdom of Kalidas – http://anilselarka.com |