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Friday, January 4, 2013

Your questions and our answers on Cravatex, Prestige Estates, Shree Ashta Vinayak, FCS Software, Austral Coke, Veer Energy and Others.

Valued readers have sent in the following queries:

Question: can you help me regarding two stocks (Cravatex and Foods & Inns)

Can I go ahead and buy or should I wait

Answer: I looked at financials for Foods & inn and it is posting losses from past few quarters.

Also the liquidity seems to be extremely poor, so if you buy in large quantity, firstly buying will be a issue and then selling would be another problem.

Market cap seems to be very low, so in case of company turning profitable for a quarter and liquidity improves, one can take a long position.

Cravatex seems to be a robust firm, with high promoter shareholding. This is a regular dividend paying firm as well. Revenues are in uptrend with good profitability, and quarterly EPS is at 9.85, which results in annual EPS of about 40 Rs. Firm can be accumulated at current price and at possible declines.

Question: I have 500 + share of Prestige Estates Projects bought at 173 /- ,should I hold it or sell currently it is trading at 186 levels .My time horizon is 3 months,Please suggest/advice what to do.

Answer: Prestige has hit a resistance at 189. Last two daily candles has been red rejections, and there is support at 171 and 156 respectively.

My feeling is 173 is a pretty high price to get entry into Prestige. Quick recommendation is to book profit and re-enter at lower levels. Fundamentally, the scrip is richly priced, this is also because the general public holding is minuscule and promoters have about 80% holding.

Question: I am having 1lac shares of shree ashta vinayak cinevision at avg price of 4.85, do u see a possibility of it reaching that level in a year or so .What is the downside or better level to exit with minmal losses?I know fundamently its bad share,no regular income model,i was novice got trapped,but don't have courage to book such huge loss.my portfolio's 80% loss is due to this scrip.What's the status of its FCCB.

Answer: Bad news about Shree Ashti Vinayak is that promoter holding is negligible at 1.35% and public shareholding is at humongous 70%. Firm hasn't paid dividend and Book Value is at 6.

On charts, the support is at 2, 2.4 and 2.6. Scrip is trading very close to its support price and hence you can hold the scrip for some more time.

Next resistance is at 4.68 and is very close to your buy price of 4.85. You should exit the scrip when it reaches your buy price, but do not average any further. You might see this level in next 3-6 months or so.

Question: I have Purchased 800 Shares of FCS Software Solutions, 400 Shares of Austral Coke and 500 Shares of Veer Energy & Infrastructure Stocks Past 1 Year,

Can you Help me, Whats the Future of these Stocks, Will you Suggest me to Hold or Sell

Answer: FCS and Austral Coke are junk stocks. Junk stocks are characterized by low promoter holding (10% in these two cases), no dividend and erratic revenues. Veer Energy is speculative stock, and has already runup six fold from lows of about 3 to 18 currently. Hence profit booking is advised and no additional investment is recommended.

4 comments:

  1. Please point to any write up to find out the support & resistance level.

    thanks in advance

    ReplyDelete
  2. Plz give opinions on hcl infosystem , should buy for long term at cmp

    ReplyDelete
  3. Hcl infosystem , is it good fundamental company ? is it buy at cmp ? or wait.

    ReplyDelete
    Replies
    1. Hi,

      Responded here:
      http://www.stockfundoo.com/2013/01/your-questions-on-l-educomp-phillips.html

      Regards
      Naren

      Delete

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