BSEIndia: All Stock Market News: [sharetrading] Re:ABAN

Sunday, May 16, 2010

[sharetrading] Re:ABAN

I believe that there is more downside on this stock till clarity emerges on the action being contemplated by company for the following reasons:-

1) Markets(read punters) dont like uncertainity...in the absence of any comments from the mgmt at best all guesses regarding

estimate of net losses etc are speculative.

2)Apart from the capital cost of the rig(presumably insured in toto) there is also a committment to the govt regarding the bpd production..the consequence & monetary liability of re-negotiating this contract is not clear.

In summation, dont buy this stock till clarity re-emerges from a reliable company source. till then this stock is in for further corrrection.

I am short in this stock in F& O segment

Ravi

From: A P Abraham <abrahamap@airtelmail.in>
To: sharetrading@yahoogroups.com
Sent: Sun, 16 May, 2010 6:55:46 AM
Subject: RE: [sharetrading] ABAN

It is sad that disaster has stuck. It is only material loss, which will be covered by insurance. So contrarians may wait for a day or two to buy in. Near low seen is near 630. Below which is 395. So a price between them will be a good price for LT….. It is a good company with good management…. In a good sector…. With OBAMAs new oil policies, due to come in near months, rig rates are going to shoot up, along with oil price…..

IV of the co is abv 4 times CMP. So do not worry, one day it will reach the true range…..

From: sharetrading@ yahoogroups. com [mailto:sharetradin g@yahoogroups. com] On Behalf Of Manish Sharma
Sent: Friday, May 14, 2010 3:22 PM
To: sharetrading@ yahoogroups. com
Subject: [sharetrading] ABAN