yesterday the stock was up almost 30% from the day`s lows and today again 10% kind of moves. the reason being heavy buying in the counter after the company announced its plans to raise capital for its future expansion plans may be. i think it will correct from current levels and nobody will buy this stock at 600+ levels atleast for now. at 500 levels or so there is good value for long term investor.
There was a big news for about 10 minutes news about Scam discovered in Advanta and United phosphorus account books in Zee Business news on this date:12Nov2009, suddenly the stock first fell to below 400 and then rose 30%, with very high volumes. Surprisingly this news is not mentioned by any other channel/paper. Is there some sort of scam going on for false news....????
There was a big news for about 10 minutes news about Scam discovered in Advanta and
United phosphorus account books in Zee Business news on this date:12Nov2009, suddenly the stock first fell to below 400 and then rose 30%, with very high volumes. Surprisingly
this news is not mentioned by any other channel/paper. Is there some sort of nexus going on....????
its news of rights issue is keeping the stock at higher levels. gets locked if the demand is good in the next 2 days. chances of the stock hitting circuit filter level of 20% once again is very high as the sellers are not there in the counter and the buyers are increasing due to rights issue news. hence the severe volatility is present in the counter, but will settle down once the rights issue price is fixed by the management.
The fundamentals seem to be seriously overvalued, This has a P/E of 1700 as against the industry P/E of 23 (i.e.80 times overvalued), and Price/Cash ratio of 117. If this reached the industry P/E it would crash by over 80 times. Buyers at this level may be ready to take a lot of risk.
The EPS of Advanta India for FY08 was Rs 30 and half year FY09 is 13 - gets your facts correct - go to bse site - as far as the PE of 23 goes the stock should trade atleast at 700 based on FY08 EPS - not even considering FY10 EPS
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