Wednesday, November 01, 2017

I had recommended these three stocks in the last 7 - 8 years, but subsequently I have suggested either, not  to add positions or exit on rallies or trim down  your holdings in an Bull run. I still maintain this view. The stocks are:

1. Reliance Communication Ltd (Rs.17.10): This Anil Ambani Group company has been shattered due to RJio's freebies and is struggling hard to keep going. It has messed up with expected tie-ups and it debt position is precarious. Both the Ambani brother run an opaque business model and it is very difficult to understand what is going inside the company, like RJio's initial tariff schemes.
In such a condition, the best option would be to sell the share of RCom Ltd on rallies and exit the counter; till some  positive news hits the stands. Yesterday, the stock gave a pop at Rs.18.30, before closing at Rs.17.10, up 8.57%. The stock can go upto Rs.21, but try to sell slowly through its northward journey and shift to some companies with a good story to tell.

2. Rasoya Proteins Ltd (Re.0.15): This scrip has given headache to all those who believed in the  company, and put in their hard earned cash; only to be bombarded by two non-guided missiles: 
(i) Spiraling debt of few hundred crores, with no solution at hand; though the management continued to rant about their so-called efforts to reduce the same. The company's main plant from which it used to get major revenues is still closed and its office is left with very little employees to carry forward its to day activities. 
(ii) A GDR mess, which got some of the directors, to be booked by the authorities on allegations of a scam. Though the GDR issue is now a history, but it is better for NON RISK TAKING INDIVIDUALS to exit such scrips, lock, stock and barrel. 

3. Alchemist Ltd (Rs.12.22): The company launched the IPO with a big bang, but later it started to do all the tricks, which are the domains of non-transparent companies like SEL Manufacturing Ltd (Rs.2.70). Theses kinds of stocks normally gives a sudden pop, during the Bull phase, to rope in floating investors; only to dump them at the end. Like SEL Manufacturing Ltd which hit the 20% UC yesterday, this company has been riding the bull run off late, through stories planted by operators.
I would suggest you to get down from the bull - express, near your buy price; so that you are saved from any major catastrophe at the end.

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