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basant
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   Posted: 25/Mar/2009 at 9:13am |
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Absolutely. They tried to put off the burn by pouring some cold water!
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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wiseowl
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Posted: 26/Mar/2009 at 3:04pm |
Originally posted by praveen
They have a history of trying to diversify/diworsify as the case may be in the"hot sectors" that era from cellular operations in 1990s to online business in "2000s" to say power generation in 2008.
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Since they make electrical equipments, power generation seems to be an allied field. So it appears that they moved into a not-so-unrelated diversification this time . APIL is up and running (although with its own expansion programme), so the payback time may not be as long as that for a greenfield venture. However, the company could have first sorted out the huge debt of its subsidiaries before moving to the APIL turf.
Edited by wiseowl - 26/Mar/2009 at 3:05pm
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You alone are responsible for your actions.
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smartcat
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Posted: 26/Mar/2009 at 4:31pm |
| Boss, in these promoter-run companies, the diktat of the promoter will work. Take it....or leave it, your choice!!!! |
haha.. looks like many investors ticked the second option and "left it".
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Vivek Sukhani
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Joined: 23/Jul/2006
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Posted: 26/Mar/2009 at 4:40pm |
Originally posted by smartcat
| Boss, in these promoter-run companies, the diktat of the promoter will work. Take it....or leave it, your choice!!!! |
haha.. looks like many investors ticked the second option and "left it". |
....and lost an opportunity to make a10 p.c+ in a day......hehehe
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Jai Guru!!!
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kannanravi1
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Joined: 08/May/2007
Location: United States
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Posted: 09/Apr/2009 at 2:26am |
Originally posted by wiseowl
Originally posted by praveen
They have a history of trying to diversify/diworsify as the case may be in the"hot sectors" that era from cellular operations in 1990s to online business in "2000s" to say power generation in 2008.
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Since they make electrical equipments, power generation seems to be an allied field. So it appears that they moved into a not-so-unrelated diversification this time . APIL is up and running (although with its own expansion programme), so the payback time may not be as long as that for a greenfield venture. However, the company could have first sorted out the huge debt of its subsidiaries before moving to the APIL turf.
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This is true...power generation is an allied field and plus the acquisition is not at a premium, but at book value. So I don't think we should suspect that the management is trying to pull a 'satyam' here. Having said that, I think there are risks of a history of diworsification here that should be kept in mind. Also, thier US and Euro operations could be hit in the slowdown. At 12-13 times PE and 5 times book, I don't think the risks have been adequately priced in (even considering the buyback). Overall though, a strong company with excellent products and respected brand - I would personally though wait for the prices to come down further.
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kannan
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Hitesh Shah
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Posted: 20/May/2009 at 5:17pm |
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Crompton Greaves, manufacturer of transformers (among other things) whose demise was predicted by many:
Year's low: 99.40
CMP: 251.35
A modest two-bagger (at least).
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basant
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Posted: 20/May/2009 at 5:41pm |
Its fashionable to pick holes isn't it? How many predicated the demise of Pantaloon Retail?
Its better to get direct rather then go indirect with statements like "many"!
Edited by basant - 20/May/2009 at 5:44pm
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Hitesh Shah
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Posted: 20/May/2009 at 5:53pm |
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I read the thread just before posting. There were many posts negative. I, Vivek, & Praveen were a bit postive.
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