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Saturday, February 23, 2013

Your Queries on RPower, Shiv Vani, Jindal Poly, Rubfila, ISMT, and many other stocks!

Question: Can I buy Shiv Vani & Opto circuit at this level? I bought both stock at average Rs.100


Opto has received lot of negative press recently. Lots of investors are exiting even at lower levels. It might see 55-50 kind of levels, where there is good support. If one has high risk aptitude, one can take a punt at Rs 55 or so.

Shiv Vani had some issues with ONGC ban for 2 yrs and service tax evasion. This will hit the firm in improving future revenues.

During the last few days the stock was in uptrend. Resistance might come at Rs 90, which is also the 2008 lows. It has uncertain future, though looks attractive at really low price. One needs to be nimble in getting in and exiting this stock.

Question: I have almost 5000 Rubfila International purchased @ 22 avg price. With correction in midcap/ small cap stocks along with index and fall of rubber prices in global market, where do you see support for this stock. Is it advisable to add more at support levels?

Answer: Support is at 17 levels, which is nearby level. If this breaks, difficult to judge where it can stop.

However, the upside seems to be limited with recent jump from Rs 7 level onwards, which is sharp upmove. Lot of investors might be cashing out now after this huge upmove.

I suggest no more buying, but aim for Rs 25 kind of levels, where you should lighten up the holdings.

Question: I have read your posts regarding Brandhouse retail and Ramky infra,
both of them are making fresh 52 lows. So do u see this as a good
opportunity to enter or is something changed regarding the
fundamentals of these companies?
Please advice. I can hold around 6 months. Thanks in advance.

Answer: Brandhouse had a decent Dec quarter results. Mkt is not valuing midcaps and smallcaps favorably now, so one can hold for decent valuations to reappear.

Ramky also had a decent Dec quarter, so no worries. Technically you are right, at 52 weeks low, one can’t predict, how much more lower things will move. But one can SIP in slowly.

In another 6-9 months things should be in better shape than now for smallcaps.

Question: I have two stocks...I need your advice on them...

a) 2000 ISMT @ 38 per share

b) 30000 Harig Crankshaft @ 0.70 paisa....This stock is not traded on the stock exchanges now...I am very worried about this..When will it get traded again?

Answer: Sorry about Harig. There are some bucket-shops which buy stocks like these, but at discount prices. You can research on internet and check if you can get some money back.

ISMT had support at 21 which it broke profusely. Now the support is nearby at Rs 14.8 which may not break. Overall not a bad stock fundamentally. One can average a bit and aim for 45 kind of levels.

Question: I got 25 shares of Reliance Power through IPO and currently holding 80Nos at average price of Rs.180 .What should I do? Continue to hold, sale or do averaging again.

Answer: 69 is a support which may not break. You should get 115 kind of levels in next 12 months.

I still think stock is overpriced even at these levels, so i can’t suggest averaging here.

Question: In Nov'10, I have purchased 1000 shares of HB PORTFOLIO @ Rs.60/-.
The day before I purchased, rate was Rs 70/- and experts prediction was Rs 80/-
in coming days. But unfortunately, rate was came down to Rs 50 then 40 and now present rate is Rs 22/- only.

My investment was Rs 60,000/- and now market value is Just Rs 22,000/-.
One more problem, there is no buyer even if I want to sell it.

Please guide me, what exactly I have to do with this stock.

Answer: The firm deals in investment in securities and is a dividend paying firm.

The support is evident at Rs 20 and stock will consolidate at these low levels for a while. You may see levels of Rs 50 in about a year's time, at which I suggest selling the stock. 70 or higher levels may not be feasible.

Question: I need your advice on this stock Barak Valley Cements. I have got 400 shares in IPO @ 50 per share. This stock is at sub-10 levels. Plz advise. Can I average? What’s the future of this stock?

Answer: Last 2 quarters were loss making for this scrip. Cement stocks were in strong bull run but seems like this specific stock did not pick up. That is sign of something wrong with the fundamentals.

My view is that 37 is Book value and that level should come in next 12 months or so. Do not average, but you can hold and sell at Rs 35 or so.

Question: I have bought 50 share of Jindal poly at Rs. 190/-, Now the current price of this share is Rs 142/-. What do I do with this share - HOLD or SELL?

Answer: 135 seems to be a support level for this stock. Dec quarter is in red, so stock might be in pressure now.

Very high promoter ownership is a good feature of the stock and Book value is at Rs 400. Good dividend paying firm, so one can hold for about 220 levels in a year.

Question: Sir I bought 1000 shares of A2Z @ 72 and averaged 1000 @ 44 and now it is 34 and I am in a mood of investing every month as i get salary and i have observed good rated companies bounce back again. What is your opinion of this share. I am not day trader and looking as investment oppertunity in this stock

Answer: A2z has not stopped its downtrend, hence charts are in just one way down trend since the IPO happened.

No further averaging is suggested in this stock as revenues are declining on QoQ basis.

Its fundamentally weak scrip now, but one can hold it for reaching your cost price. Till revenues improve and firm declares profits and dividends, it’s difficult to stop the downtrend.

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