i have few concerns about R S software...
-low promoter holding
-no competitve advantage to preserver the margin
-high dependence on few clients fr revenue e.g. visa
please clear my doubts.
I got this question from a readers ABC.I have put it on front page so that others can also read it and read my reply as well.
I have been writing time and again that please read my reply to comments but I am sure many do not do it and hence taken this oppertunity to write it here so that readers can understand how to look at things and understand the Co and how market price it.
My reply is as below:
1) All his concerns is with the market as well and that is the reason why R S Software Ltd is going cheap.R S Software is quoting at 2.5P/E.....with and eps of 20.....why?It is a debt free Co and divident paying Co .It is in Payment Gateway sector which is still in nascent stage in India then why market is not discounting high?
The reason is market has the same concerns like ABC and that is why it is not priced high.
2)Before asking any question one needs to go through the latest AR and Co website which is easily available at bse website.Go through who the management is, who is at the helm of affairs , what experiance they have got , what is their future plan and read the risk and oppertunity discussed by the management ,etc.
Go to website and click each and every link and read them and see whether your concerns are addressed or not.
Let me tell you all , that when I give a call here, I do everything what I have written here.What you get is a ready stock which can give big returns if everything goes well.That will always remian in hand of the market and how Co does in future.We have to take that calculative RISK and invest in a Co which is showing promise and that is how multibaggers are picked.Take chance.......there is no sureshot way that we will end up with a multibagger every time we pick a stock.After all it is a business and one bad decision and it cost the Co very dearly.
If one wants to derisk the investment better buy TCS /Infy/Wipro......where there can be no question asked........
and now ABC's concerns:
1)-low promoter holding....In IT Cos we usually see low promoters holding.But the positive here is the CM, Ranjit Rai Jain is constantly buying from the market .This can also be seen through bse website.Click Filing and other Info tab and one can see that he is buying......
05/10/11 Rajnit Rai Jain B 15,200
29/09/11 Rajnit Rai Jain B 10,500
26/09/11 Rajnit Rai Jain B 9,600
23/09/11 Rajnit Rai Jain B 26,500
22/09/11 Rajnit Rai Jain B 38,670
I have copied paste it here so that readers can see where to look after walking through what I have written.
This is what I call baby sitting......I can't do for each and every stock.That is for readers to do.
But if CM is buying from the market, I don't have to teach what that means.
2)-no competitve advantage to preserver the margin and -high dependence on few clients fr revenue e.g. visa
For this concern ,one can get the answer while reading the latest AR which is already posted at bse site and going to Cos website.Read it throughly and try to make out what is coming up.
I again write, read what I have written thoroughly , read each and every sentence 2-3 times.Each sentence and each para has its meaning.Read again and again.
I have often seen that readers don't understand what I am trying to say and ends up the otherway round.......and that goes for everything I write .......