From: A P Abraham <abrahamap@airtelmai
To: sharetrading@
Sent: Tue, January 5, 2010 11:24:37 AM
Subject: [sharetrading] Genus power
Recently one of the member's had sent a private query…………….. last sunday
This was my answer then…….
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As of last close, it is still not a technical buy as weekly has not yet generated buy signal. Also the volumes show lack of interest, hence the driving force is missing. However, if you think the stock is worth as a LT pick, one may enter. Remember 23% of stock was pledged. It is down to 18%. Also the interest payments are reducing……
Dalal street shows BV of 168. With that as a basis for calculations the IV is very high (Rs 600). Hence you may BUY with a very long outlook.
Overall considering the prospects that this stock should return good numbers in LT and the field of operation being a sensitive sector, one may INVEST with a 2 year perspective minimum. But be prepared to see the price dip as much as another 50%, considering that it has come down from Rs 900 levels.
SL 131. Buy as close as possible to this number…………………..
Abe
But now with the market so strong, this could give some good return………………….
SL – 168………………..
Abe
Happy Trading,
United we grow!!!
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