We all know the speed at which cases are decided in our Country. Moreover, this case is special in nature. I have mentioned well b4 the start of the case that it will take lots of time and may be that there is no verdict other than mutual settlement. We have seen one drama of quitting. Let us wait for other dramas to unfold. Forget this stock for the time being unless gambling is yr hobby.
I agree. But - for every investor, there are 3 gamblers in stock market.Else, who can buy MULTI BAGGERS?
The multi baggers must be very cheap to day - and they must have the POTENTIAL to climb up 10 times in 2-3 years.
There must be reasons for present LOW PRICE and there must be reasons why it can go up 10 times in 2-3 years.Some uncertainty is inherent in the forecast.
Well. Anil Ambani is the major attraction - in RNRL. The KG Basin gas price will be a non-issue soon. This case at least will see a quick decision. Everybody wants it. Thankfully, the case is in the HIGHEST COURT and hopefully, there can be no further APPEALS.
Long term investors can probably leave aside all other uncertainties.
Anil Ambani will find a way to make RNRL succeed.On that basis, one can take a call on this share.
Anil can make RNRL big just by virtue of being in Gas sector .
It wouldn`t take him much time to go shopping for gas overseas and make RNRL a gas supplier .
luckily natural gas is already at lows .
so any rebound will help RNRL and other companies in gas sector for free !
I feel RNRL is buy for LT inverters irrespective of the ambani case .
discl :
I am lined up to buy RNRL .. just that am lil greedy with my LT holding so waiting for a sweetened rate in a fall .
How would you evaluate RNRL if gets into Pure Gas discovery-distribution play ?
or
In a case that the court decided to fix the price as per RILs plea , what adverse impact is it on RNRL (only RNRL not on RPOWER) ?
I am holding 6000 shares at the average of 76. Tell me what is tgt for this script. What will be the rate if case doesnot favour RNRL ( which looks more alike)
I am pasting below content from RNRL site for the sake of completeness of the discussion , in case sm1 is following it .
Thanks again .
sd3..
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Reliance Natural Resources Limited (RNRL) is engaged in the business of sourcing, supply and transportation of gas, coal and liquid fuels. The company is concentrating on building a strong foundation for the business of fuel management and has already established itself as a contending player in the Indian market.
RNRL has been awarded four CBM blocks, with an acreage of about 3,251 sq. kms, for the exploration and production of coal bed methane (CBM), making it the second largest CBM player in India in terms of acreage. The Company has applied for Petroleum Exploration License ( PEL ) for all four blocks to the Governments of the concerned States. The company has received the PEL for two blocks(Barmer 4&5) located in Rajasthan for which operations have commenced.
RNRL has also been awarded an oil and gas block with acreage of about 3,619 Sq. Kms. in the state of Mizoram under the sixth round of the New Exploration Licensing Policy (NELP–VI) for the exploration and production of oil and gas. The Company has received PEL for this block and has commenced exploration activities.
RNRL is actively pursuing business opportunities in the supply management of coal and natural gas.
Well, the market dynamics got changed due to Dubai debt crisis otherwise it would have been possible. Nevertheless , you see the strength of this stock in terms of volume and price volatality. You see many good stocks are hammered by 5-9% where as it is only 3% down.
Every one will have access to news.But the analysis has got something to do with ability to see the fine print and making the best use of it.
Let me go a bit out of context to make you understand what i am trying to convey.
The present RBI governor`s first monetary policy had a stated objective of
` To reduce the money supply growth from the current levels of 19% to 17%`.
How ever the actions were in the opposite direction which pumped more money in to the system.
Those who look at the actions( this is what people do generally) can easily say that it will result in higher inflation.
But for me the bigger issue is not ` the higher inflation which is the result of the loose monetary policy b`coz the monetary policy can easily be reversed any time`.
But for me the bigger issue is ` why the stated objective in the agenda is not inline with the actions of the regulator`.
Why the business media and whole lot of analysts are silent about this?
One has to remember that there used to be a lot of hue and cry during the tenure of previous regulator despite the fact the stated objective used to be inline with the actions.
Even if RNRL loses the KG basin case, i don`t see a very negative an impact. But a positive decision could have a significant positive impact.
Right now it`s all speculation and I think RNRL is know to be one of that kind.
The supreme court Decision, if favourable, can swing the RNRL scrip to new heights - even in the short run.
Even otherwise, in the long term,Anil Ambani has the foresight to make RNRL a top class company. WE can bet on him!
The above example has nothing to do with RNRL in specific.
Rather to identify some set patterns in today`s world.
Let me elaborate a little bit.
The actions which are proposed in the monetary policy lasts long till the time of new monetary policy comes in to the picture.
So the result of a monetary policy is typically a short lived set pattern which any one can see.
At the same time, stated objective and actions going in the opposite directions is a bigger pattern ( which many fail to identify) and is like a back ground process which is transparent to the user who is working on a client application but will be there forever unless system admin decides to set it right.
Not having any hint or idea about the back ground processes can keep the users who have access only to a client process keeps them in dark about the slow performance of the server.
Human mind is naturally capable of doing this pattern recognition and pattern matching.
Now coming back to RNRL entering in to exploration and production is like a client application.
System admin will have full privileges to control any client application and so are some back ground processes which may bypass even the inefficient system admin and can control the client application.
Typically there will be some macro signals which emerge from time to time and give a hint or two about the destiny.
Till then, doing any kind of research on that will only result in burdening the limited computing resources( read as human mind in this case-myself being with a slow and outdated processor naturally prefer not to burden my self and i am little averse to heavy weight applications with too many features and i prefer light weight and flawless applications though limited but essential features .I dont like deadlocks).
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