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Part of the game.....
Friday, May 4, 2007
Market corrected due to stay on RIL to sell gas in the open market. Well, I do not think so it could have major impact on RIL but yes bulls wanted nears to screw the market leader RIL on this news so that Monday they can start their game again.
Bears do not care whether it is a Bull market or bear market ....they understand only selling. I have only one theory never go short in a Bull market. If you go short then you should have knack of turning like a shark fish and / or capacity to book loss.
Market will bounce back right from the word go on Monday because this fall was not assigned to any reason but for the fact the RIL was sentimentally weak on bad news and at the same time free time advisors had come BULL eye sight....
Those who are in hurry to make quick bucks in this market always loses most of time because they are most impatient whereas those who take call on long term will always succeed and tons of money is no issue for them. Jenburkt hit upper circuit with huge volume. This is a gold mine and anybody can check the credentials of this co with EPS of over Rs 8 and yet priced at Rs 47. Hedge Funds have taken some position in this stock and only issue is hanging to the best of my knowledge. The FII buyer wants to buy 14% stake held by ICICI Bank at Rs 95 whereas ICICI Bank is insisting the same to be transferred at Rs 125 per share. Precisely this is what is not driving this stock but the day is not far when the negotiation will take place....
Meanwhile may do some preferential allotment to promoters and few investors at Rs 85 per share. Generally pharma co should command PE ratio of 20 plus due to the intricacy of the business and therefore Jenbukt is fairly valued at Rs 160. In past we had done stories like Century Ply, Binani, Panyam etc which all catched fire after we did the story....Now it is turn of Jenburkt...
If this stock crosses Rs 53 in the wave ...you take it for granted that it will stop only at Rs 95. I would love own percentage stake in this co if I get opportunity. I am sure lot of investors have sold this share after seeing it back at Rs 47 because most of them got into this stock at max of Rs 51/52. I think next week this will cross new high and with old hands out it could travel towards its destination.
Smart accumulation started once again in BNK and Triveni glass ...the former could be again on the IPO buzz of its 1500 seated BPO whereas Triveni buying could be assigned to substantially improved nos from Saint Gobain.
Instead of being critics, use your good brains to capitalize the good analysis made available to you.
