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Friday, November 30, 2012

Your questions on Heritage Foods, L&T Financial Holding and Apcotex!


Question: What you have to say about L&T Fin Holdings ? It was trading near its IPO price in the 40s for a year. Suddenly during diwali it was spiked to 88 levels. There are rumours regarding banking licenses and everything but it still doesn't explain this sudden rise. the company also has sold stake in federal & plans 125Cr debentures hence total incoming cash is around 500Cr in short time...but what the company is going to do with such cash is not known. from monday it is going into T Segment ..hence i am seeing downfall.. What do you think about this scrip?

Answer: Yes, technically chart is broken now. If you plot a Fibonacci, its hovering around 38% retracement of sudden rise from 50 to 88. Next support at 71 at 50% retracement. Then at 67, 61. Fundamentally, at 13,000 crore market cap, it looks expensive than some existing operating banks.


However, interestingly volumes went up during rise and are declining during fall. So may not be a major fall, only correction till support levels.

Question: Hi Naren, What is your view on Heritage Foods? The stock run up from as low as 135/- in June to 560/- few days ago, almost a 4.2 fold increase in few months. What is the fundamental call? May not be worth to buy now, want to know what is further upside?

Answer: Heritage is a established dairy name in South India. Stock had a strong run from 125 to 550, and that too at high volumes! It may now cool down around these levels for a while. 465 is a nearby support and next support levels are 405 and 315. 


Can be accumulated at lower levels around 400.

Question: Hello Naren, What is your view on Apcotex Industries in near to medium term.

Answer: Apcotex is aptly valued smallcap. Had a good run from lower levels of 120 or so, where it had a huge double bottom. It has appreciated and almost gone to 2X level now. Can be accumulated when it corrects to 195 or so. 


Nearby Support is at 195.
Hope this helps. 
Pls send in your questions to stockfundoo@rediffmail.com.


5 comments:

  1. Thanks much Naren for sharing your views on L&T Fin Holdings Ltd.

    Keep up the great work. All the best.

    ReplyDelete
  2. Naren, I am regular reader of your articles. My brother (Venki) frequently comments on your blog.

    Note that it is easy to talk to invest in so and so company and wait for good raise. But what if we have limited funds. Can monthly trading in blue chips a good idea? I am looking for 5% raise on monthly basis by investing only in the blue chip stocks. This has worked past seven months. I am buying stocks only when they come to support level (thanks to your articles here). And encashing after they run by 5 to 6% excluding charges.

    I know it eats up lot of money towards charges. But I don't see better options to increase my principal. I am against day trading. So far, the strategy worked well. Since I am new to market (10 months), don't see potential risk with my strategy. Requesting your comments here.

    I have so far invested in Bharti, Infosys, JKB, LIC HF, HDFC (block deal), Tech Mahindra (block deal), Cairn (June block deal), Allahabad Bank and ONGC (a week ago). All of these returned 2 to 12%.

    Since the market PE is going up, I am scaring whether I may get locked at high levels of stock price. Is this strategy correct? What are your suggestions?

    ReplyDelete
    Replies
    1. Its a good strategy, trading is what we all love doing.
      Your returns have been reasonably good, so obviously you are doing things right.

      One idea to stop worrying about market PE is to keep a stoploss. If stock closes below support level or your stop-loss, then you can exit immediately and will not get locked in. Hope this helps.

      Delete
  3. Sanghvi Forge.......Is it very good investment?

    I am feeling very interest on this scrip, mainly strong equity and innovative operation, New plant is almost ready, trading at very cheap price.
    Please go through the below link to understand more on their road map...

    http://www.sanghviforge.com/userfiles/interaction/250Transcript_Q2FY13.pdf

    Is it a best investment?

    ReplyDelete

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