| Author |
Message |
yogishkamath
Senior Member
Joined: 28/May/2009
Location: India
Online Status: Offline
Posts: 110
|
   Posted: 04/Feb/2010 at 3:53pm |
|
The problem with issuing a lot of new shares is that the company is selling at a significant discount to its intrinsic value (in my opinion).
That hurts current shareholders.
|
 IP Logged |
|
|
|
 |
|
kishi_1
Senior Member
Joined: 01/Dec/2009
Online Status: Offline
Posts: 129
|
Posted: 04/Feb/2010 at 9:17am |
|
Hi Yogesh,
This is very normal for a company to grow, always debt cannot be made for raising money. In any case company at 49 EPS company is trading at huge discount sooner or later it will move upwards significantly. I wont be surprised if it trades 250+ 1 year later [even its share capital increases significantly]. The new Defense portfolio has high profitability with lower competition.
|
|
IP Logged |
|
|
|
yogishkamath
Senior Member
Joined: 28/May/2009
Location: India
Online Status: Offline
Posts: 110
|
Posted: 05/Feb/2010 at 3:55pm |
|
Well, if they issue new shares when the market cap of the company is close to its intrinsic value, then I have no problem with it...
But this company issued new shares last year when it was trading at around 60-70 if I remember correctly and it may do so again. That hurts.
|
|
IP Logged |
|
|
|
kishi_1
Senior Member
Joined: 01/Dec/2009
Online Status: Offline
Posts: 129
|
Posted: 05/Feb/2010 at 6:17pm |
|
As I remember there are lot of companies which have issued at lower rates in 2008 bursts. These are companies are trading at much higher levels.
I understand your concerns but there at the same time there is no need of panicky or bearish about this shares. Promoters will always issue warrants to themselves. Even i would have done who told investors to sell it lower levels. This is the name of the game.
|
|
IP Logged |
|
|
|
yogishkamath
Senior Member
Joined: 28/May/2009
Location: India
Online Status: Offline
Posts: 110
|
Posted: 05/Feb/2010 at 6:55pm |
|
I am not panicking or bearish at all. Just disappointed at the devaluation of my asset.
The fact that it has gone up substantially doesn't tell me anything. Who knows, maybe it would have gone up more if it hadn't been devalued.
Besides, I don't plan to sell anytime soon. So, I would actually have been happier if it had gone up less than it has. Then, I'd be able to buy more at a greater discount to its actual value.
|
|
IP Logged |
|
|
|
trushik
Groupie
Joined: 05/Feb/2010
Location: India
Online Status: Offline
Posts: 51
|
Posted: 16/Feb/2010 at 12:18pm |
Hello
Looking at the financials of the company, it looks a good buy. Apart from the high debt factor.
Being a new investor, and still a learner  ... I would like more views on the company's standings!
Regards
|
|
IP Logged |
|
|
|
kishi_1
Senior Member
Joined: 01/Dec/2009
Online Status: Offline
Posts: 129
|
Posted: 18/Feb/2010 at 9:20pm |
Hi Trushik,
This is a great stock to be invested in.
Look at the following articles.
http://www.moneycontrol.com/news/business/current-order-book-at-over-rs-30cr-shri-laxmi-cotsyn_442493.html
http://www.indiainfoline.com/Markets/News/SLDA-unveils-Hi-Tech-defense-vehicles/4778740967
I think this will go great height next two years ! I have already some in my pocket , I want to add some more on dips.
|
|
IP Logged |
|
|
|
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
