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Friday, November 23, 2012

Your questions on SpiceJet, RS Software and Zylog!


Question: What is your opinion on RS Software?  Enjoy reading your blog. Thanks.

Answer: RS Software - I had a quick look at financials, numbers look good. Price run-up has been strong till date. Now trading at 2.5X of book value. Can correct slightly from here. Need to analyze in depth, but overall looks good to me.

More questions:


Question: Good article on Zylog as how the bear cartels exploit the stock pricing. What basically is the outcome of this situation's in a long term over the stock pricing? Even though fundamentals are intact, will company loses the PE considerable over the period of time? or Just its a short term game plan, long term outlooks remains as before?

Answer: Thanks for your question. As we are seeing now, conditions have taken a head over heels kind of turn.
From millions of shares on sale for Zylog daily, now there is no sell order and daily upper circuit at market open. So manipulators are having a field day.
Sentiment gets affected in short term as retailers who lost money will exit at cost price, once price reaches their buy level they exit, so overhead resistance becomes strong and stock may not recover for next 3-6 months to levels seen prior to crash.
Long term stability might come at support levels on chart. P/E loss may not happen, as firm is supposed to deliver well over a period of time and is not debt struck like other IT midcaps.
So if a firm is good fundamentally, such crashes are a good opportunity for a 1 year kind of investor to take a dip.

Question: It was with great interest that I went to your website and found the articles on camson biotech, HCC very informative from an investment point of view. I follow the BTST route of buying and selling stocks though in a limited way. I hold 150 shares of Spicejet bought at Rs. 30-31 levels. Upto what level should i hold before selling? Please give your valuable suggestion.

Answer: I looked at the charts briefly for Spicejet. 41 looks to be nearterm resistance for Spicejet and next resistance is at 47. So you can take partial profits at near 40 levels and balance at 47. I have also written an article on Spicejet earlier here:

Good news is emanating from Spicejet so it’s also a good investment scrip for 3-6 months.

Please send your questions to stockfundoo@rediffmail.com and we will try to address them as soon as possible.

3 comments:

  1. What is your view on Alembic Pharma, Ajanta Pharma, Anjaneya Pharma, Indoco Remedies and Dishman Pharma? Just a quick view.

    Many retail investors trapped in Alembic Pharma at 75 levels. Now the stock is in down trend.

    @Deepak,
    Thanks for bringing to attention. The company India Gelatine looks to be good pick. Debt free, attractive valuations. Not sure of management quality. Hope Naren covers these details.

    ReplyDelete
  2. Kolkata based RS Software is pioneer in electronic payment systems. The share price already run up lot, there seems to be some more downtrend, perhaps once the share price consolidated one can accumulate.

    ReplyDelete

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