Some Good Steals...

[SSM]

Hi AMit
I have shorts in Cipla & STAR (Strides) both in the money @ 363 & 301 resp
Pls elaborate.
Thanx

 

[garun1979]

Re: ITC PE

Hi Vivek...I'm not very clear here.
The usual way to calculate PE is by dividing the last closing price of a stock by its EPS. In the case of ITC, with RS.10 face value, the last annual results put the EPS at about 88. Taking yesterday's closing price of 1929, we get roughly 21.9 as the PE.
Now with the face value of RS.1 and the number of stocks multiplied by 10, do we also dilute/divide the stated EPS by 10? If this were true, the new EPS would be 88 divided by 10= 8.8.
If then, the closing price today of 140 is divided by 8.8, we get roughly 15.9 as the PE.
BUT...all this is in the air...I'm not too sure, and just taking it logically.
Any member who has more on this, do kindly comment.
Thanks.

ITC pre bonus and split price 1929

bonus 1 share for every 2 held , therfore no of share pre split but post bonus = 3
Split ratio = 1 share of Rs. 10 face value into 10 of Rs.1 face value

No of shares post bonus post split = 3*10 = 30. So u get 15 shares of Rs.1 face value for 1 share of Rs.10 face value after bonus and split

Now PE = CMP/EPS

Effective CMP = 1929/15 = 128.6
Effective EPS = 88/15 = 5.87

PE = 128.6/5.87 = 21.9x

PE w,r,t 140 (yest clsoing ) = 140/5.87 = 23.85x

My guess is ITC would now trade at the same PE as HLL...around 30..
Lets wait n watch

Regards
Gaurav

 

[viveanan]

Re: ITC PE

ITC pre bonus and split price 1929

bonus 1 share for every 2 held , therfore no of share pre split but post bonus = 3
Split ratio = 1 share of Rs. 10 face value into 10 of Rs.1 face value

No of shares post bonus post split = 3*10 = 30. So u get 15 shares of Rs.1 face value for 1 share of Rs.10 face value after bonus and split

Now PE = CMP/EPS

Effective CMP = 1929/15 = 128.6
Effective EPS = 88/15 = 5.87

PE = 128.6/5.87 = 21.9x

PE w,r,t 140 (yest clsoing ) = 140/5.87 = 23.85x

My guess is ITC would now trade at the same PE as HLL...around 30..
Lets wait n watch

Regards
Gaurav

Thanks a lot Amit & Gaurav,
Even if it would trade at same PE as HLL, the price must be 170-180.
And in case of ITC it can be achieved in a month time, as voulme is rising due to splitted price.
What do you suggest Amit.
Regards,
Vivek

 

[Saint]

Hey saint...was about to pull the boredom stop on it following your lead when it upped and ran! Was about to do the same with IDBI a few days ago, and it did the same. I still think there a laggards' race on here between the two.

Anyway, I too believe we are not completely out of the woods yet, but look at the way there is crazed buying at lower levels everytime.
Was listening to some reports on the tv, and the conjecture being made was, that there was a dip in the Dollar vs. the Rupee, and it seems the FIIs may well have been buying the Rupee heavily to invest in the markets at lower levels. Further it seems, the market began to move up a little after this went on.
Makes you wonder, eh?

Interesting.......

 

[AMITBE]

Hi AMit
I have shorts in Cipla & STAR (Strides) both in the money @ 363 & 301 resp
Pls elaborate.
Thanx

Hi SSM, here I have given some important supports for the scrips you have queried.
Strides is looking quite bearish resting at a crucial support at 288. Below this, 275-270-265-260 are the levels where support may come. Not much below 260.
Cipla...though looking weak at 355, below 352 it has several supports in the 340-350 region. Below this, 335 is strong.
Thanks.

 

[AMITBE]

The most resilient counters on my screen besides MCdowell, NTPC and IDBI are VisualSoft and InfotecEnt. Bring these two on your screens...good chances here.

 

[Saint]

The most resilient counters on my screen besides MCdowell, NTPC and IDBI are VisualSoft and InfotecEnt. Bring these two on your screens...good chances here.

Nice call on McDowell!!

 

[AMITBE]

Nice call on McDowell!!

Check Visual Soft too, saint...
InfotecEnt too appears ready for some moves.

 

[Saint]

I got into Infotech Ent 2 weeks ago....yep still looking great!Visual soft has some resistance around the 207-208 area......nice 3% move so far today.Cool!On the weeklies though,would much prefer a bigger pullback to enter.

Great stuff as always,Amit!!

Sincere thanx!
Saint

 

[AMITBE]

Re: ITC PE

Thanks a lot Amit & Gaurav,
Even if it would trade at same PE as HLL, the price must be 170-180.
And in case of ITC it can be achieved in a month time, as voulme is rising due to splitted price.
What do you suggest Amit.
Regards,
Vivek

Hi Vivek...I'm still confused about ITC's PE....will look around later.
As far as the HLL comparison...I could not tell. ITC is much more diversified of course and has aggressive growth plans.
It is in a great trend for now, so ride it out.
Regards.