Wednesday, August 08, 2018

Winning Strokes: Think Different
Photo: Who is the Owner of
The two of my recommended Adhikari Brothers Group stocks, TV Vision Ltd and Sri Adhikar Brothers Television Network Ltd hit their respective buyer freezes today also at Rs.6.15 and Rs.7.80. I hope you remember, the targets of both the scrip, mentioned earlier by me in this blog. Keep accumulating on intraday declines (if any). 

The scrip of SKM Egg Products Exports (I) Ltd (Rs.76.65) is not going anywhere during the last few days. The long and short term investors should do well to exit the counter if it breaks Rs.75, on closing basis. Unless, it closed above the range of Rs.82-85, the next level of upmove is not possible. The scrip came down, from the upper ends of the Bollinger Bands and is not looking encouraging in the short term charts. However, very long term investors can hold with a SL at Rs.67.

The stock of Reliance Naval and Engineering Ltd was recommended in this blog at around Rs.11-12 last month. The scrip today hit the Upper Circuit at Rs.18.15 and achieved its 1st target. Keep accumulating the scrip for the 2nd target of Rs.21 and 3rd target of Rs.27. 

Today, I have recommended the scrip of Den Networks Ltd (Rs.47.90), which is one of the largest MSO's in India. Now many of my ardent blog readers might be surprised looking at the Q1FY19 results, which is not that encouraging and the company's future looks a little challenging in view of Mukhesh Ambani coming up with JioGigaFibre. 
Here are the possible triggers for the scrip
#Driven by strong broadband demand across its cable presence markets, the company was able to successfully roll out fixed line broadband services in 28 cities by end of Q1 FY 19 as part of the 100 cities plan.
#Though its June, '18 quarter results were not that satisfactory, I feel the stock has already reacted to that and has come down. I feel it has completed its time correction and is ready for upmove.
#It has no pledged shares and institutional holding is a whooping 46.26% giving a premium to the stock price. 
#Den Networks Ltd has a beta of 1.41 with Sensex, hence it has high chance of moving ahead especially when the main indices are cruising on well. 
#Cable subscription rates have been increasing consistently year on year, further increases have been announced in July' 18 to offset the impact of increased content costs. Also, the notification of TRAI order is expected to be a "game changer for the industry".
#In last September, '17, there were media reports that Mukhesh Ambani owned Reliance Industries is said to be in talks to acquire Sameer Manchanda promoted multi-system operator, Den Networks Ltd. The option according to my sources is still open. 
#But why RJio might acquire it is the natural question? A possible acquisition of the company will give RIL a direct entry into 13 million households, including over 10.5 digital subscribers. Not only that, after the launch of JioGigaFibre, a fibre broadband network by Reliance Jio this space likely to witness a wave of activities in the fixed broadband market dominated by cross-spectrum players. Or in other words, this sector could mirror the developments or consolidation in the telecom sector.
#There were also news in the internet that Ambani’s JioGigaFiber is all set to Target Internet, Cable TV Networks and unleash the next phase of disruption after Reliance Jio triggered a tariff war driving consolidation in the world's second biggest telecom market. An average Indian telecom user now consumes 2 GB of data every month compared to 0.23 GB before Jio’s launch, according to the Telecom Regulator’s data. Hence this company  becomes one of the prime acquisition candidates, from the RIL Ltd's stable. 
#Today, the shares of its nearest competitor, Hathway Cable & Datacom Ltd closed at Rs.19.40 up 7.78%. Hence, we could see some rub-off effect in its share price in the short term. 
Buy the shares of Den Networks Ltd, at the CMP of Rs.47.90, for short term targets of Rs.53/55.50 -- above Rs.57, the stock is likely to catch Super Trend. The 9d conversion for the scrip is Rs.49.12, which it crossed during the intraday (Intraday high-- Rs.49.50) but could not close above that level. It is likely to face the 1st resistance at around Rs.56. However, a SL at Rs.44 is a must, for short, long, and mid- term players. 

The scrip of Kwality Ltd hit another buyer freeze today at Rs.17.52 in the BSE. If the share goes in this way, then Rs.22 can be achieved in this month only. Keep accumulating on declines. 

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