Thursday, February 2, 2012

Stride Arcolab...making new HIGH....Rs 555.00

I gave a call on Stride Aroclab in Jan 2010 at Rs 234.....

Stride Arcolab got a Windfall amount of Rs 2000 by selling generic operation to other Co.

"Strides Arcolab Sells its Generic Pharmaceuticals Operations in Australia and Southeast Asia to Watson Pharmaceuticals for AU$ 375 Million

24/01/12 11:59

Strides Arcolab Ltd has informed BSE regarding a Press Release dated January 24, 2012 titled " Strides Arcolab Sells its Generic Pharmaceuticals Operations in Australia and Southeast Asia to Watson Pharmaceuticals for AU$ 375 Million". "

Only the other day I saw on one of the stockmarket website that one of the analyst gave a sell call saying that Mcap is biggger then the sales.
That was a wrong analysis as can be seen that market gave a thumbs up for getting a milestone amt of Rs 2000 cr.For a Co whose eq is 58 cr , one can understand what Rs 2000 cr means.
Stride Arcolab is becoming cash rich Co.
I remember after I gave a call here in Jan 2010, RJ took stake in it .I don't say we need to follow RJ, but when a person of that calibre take stake in one of my many calls, e.g Srei etc....then we have to take note of it.
RJ has made mistakes in past, like Tata Infomedia, Aptech and other but still he is one of the most successful investor in India.
I feel that Stride Arcolab has a long way to go and should touch 1k and even more.

Vishnu Chem has come out with a poor results citing reason that the Co did not get Chrome Ore , the raw material , for the product in Dec qr and the notes under the results says that Vishnu Chem has been able to get Chrome Ore from second half of Jan this year.
This says that management is not working on raw material availability and that is a major concern to me.How can management can't take care of raw material?
Well on the ligther part I can say that they could have called Cronimet Alloy mamagement and taken care of that as Cronimet Alloy is in same Chrome Ore field.
Now that open up a new scarcity of Chrome Ore and oppertunity for Cronimet Alloy and hence I think at Rs 20.00 , 2 paid up, Cronimet Alloy gives a good entry oppertunity for us, as even if we put 10 paid price , the price becomes Rs 100,which I feel is cheap.
For Vishnu Chem, I leave to my readers to take decision what to do with it.They mat decide to hold on or switchover to other stock but personally I didn't like the reason given by the management of lack of raw material( Chrome Ore).If the management wants to deliver results then they should have taken care of that.Only if results will come good then and then only market will discount it hihger and then only QIP can take place at higher level of price and then only the huge debt can be resolved and bottomline will soars up.
Well, these can also be a gimmick of management for 1 qr and maybe next qr can come good as they already said that they have been able to get  Chrome Ore from mid Jan this year.
Now let me peep in readers mind.
They think how they can sell Vishnu Chem at 30-40-50% Steep loss.....the mind is not ready to do it.Taking a huge loss is always difficult .Mind always opposes it and hence many times we ends up having a laggard in our PF.
Well, here is my way of thinking.
Try to find stocks which have been down by 40-50% and switch over from Vishnu,if one wants to do it that way.
I gave a call of BL Kashyap at 21 .52 week high is 27 and stock is trading at 13, means 50% discount.One can buy B L Kashyap.
Cronimet Alloy 52 week high was 36 and now quoting at 20.That is another stock one can buy from switching over from Vishnu Chem.
There are many more such stocks.Find them ....
Friends,decision needs to be taken and that too fast.Decide what you want to do and act on it.......

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