Where the skepticism? Recently several analysts came with bearish calls targeting the 144/- level, but where they all are? What made the big difference for the current up move? Does this up move will sustain? Most of the (especially traders) thinking about these issues.
I am following this scrip from its IPO and as per my analysis;
The whole skepticism suddenly changed due to the announcement of the ‘starting of the trial production’. Due to this announcement the valuations looks very attractive at this point of time. The big FIIs (like citi,morganstanley) expecting the FY09 EPS as 9.5-11/- considering that the production will start on dec 08. If the production will start ahead of schedule and on sep-oct 2008 then the projected EPS will become 13.5-15/- for the FY09 it self. So, even considering (the worst case scenario) the price multiple of 15 then the target price will become 202-225/-.
That’s making the big difference right now. Hence, this up move will sustain and will consolidate above the 200+ level in the upcoming weeks.
With thanks
Be and make
2 comments:
Thank you Kalyan and wish you all the best. I burnt my fingers on Reliance COmm ( My naive judgment !)and not your Call :-))))
Now I am holding 400 RelCom at 500/- and hope it can reach back.
Do drop by my Blog and will be treated with some Bizzare Co-incidences !
Many thanks
Capt Anil
Which Counters to get out from
400RCOM
1115 RPL
1400IFCI
80Mundra
70Unitech
40NDTV
25 TV18
20TV today
15Entertainment Network
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