Above 130, I am not comfortable with valuation. Now it is in trading zone.
Wait till week-end, you will get good opportunity to enter. Play with stop-loss. Be prepared to loose Rs.10 - Rs.15, there is a chance of making Rs.30 - Rs.40 within a week.
I will utilise any dip to take exposure, preferably below 138 with a stop-loss of 124.
My target is 165, 190 or even above 220+.
Profit booking at each target & trailing stop-loss is my trading strategy. Eg: if hits 165, I will book profit & at closing on same day or any other day if crosses 165 for second time, I will trail my stop-loss & take exposure again for further targets.
Fair Value appears to be around 130. Any fall to 72 or below 40 could be used to take fresh exposure in phases.
Based on FY 2010 earnings, the PE is over 78; Book Value 3.73x. NPM 23%.
It is not related to education; it is a pre-school for kids, playgroup and kindergarten type of business. It is making good money; a unique kind. They have introduced afternoon shift particularly in the metro branches. It has 230 branches, where each branch produce sales of 17 Lakhs and profit of 4 lakhs. They operate on franchise model also.
They charge high fees and parents are still willing to pay as they see it as an investment rather than an expense.
The company is not serious about complying statutoy rules in time - delay in depositing income tax, paying PF, ESI, sales tax etc. This information is available in RHP.
Your notion that Operator stocks don't follow chart is wrong. Chart shows the historical prices. It is left to the analyst- how they intrepret chart.
Astrology is not vooooovooooooo science, however, astrologer could go wrong. Astrologer could interpret the data wrongly.
Technical analysis is not perfect science. It shows the probability. Eg: if IPO price breaks, then most likely scenario is bearish. However, if some big fund put large buy orders, it could go up despite breaching issue price. Hence, stop-loss is important.
Trading success depends on how less you loose when you go wrong & how much you make when your call is right. Out of 10 trades, if you do reasonable analysis, at least five will click. Don't think that all 10 would go wrong. Professional traders will have some base & reasonable way of making directional call. Most importantly, target & stop-loss are pre-determined. No emotion for traders if they have trading plan!
Had you shorted Brooke at 115 after breaching open price of 120, you could have covered at 62. A whopping profit of Rs.53! Will you get such returns in good stocks? In case your trades goes wrong, you loose only Rs.5.
Trading is all about winning some & loosing few. Will Australia win all matches? When India looses one-day match wih 10 - 20 runs, although fans are disappointed, they will get thrill! However, if India looses one-day match with 200 runs, fans will get upset. Similarly if you loose Rs.50 in Brooke, then it is not trading. However, if trades loose Rs.10 - Rs.15, it is all part of game. Trading in Operators stock gives thrill; there is a chance of making good profit with reasonable risk.
There is no perfect formula in trading to make profit in all trades! You should have basic understanding & risks associated with traders. Criticising is easy job, but, trading is not!! Without trading plan, making even Rs.100 profit is very very difficult!!!
Dear Sreedhar . What you wrote may be correct. I agree with you. sometimes the company may have their account with Dhanalakshmi bank and LOAn with Dhanalakshmi BANK. Thank you for quick response
Ok, congartes, u made lot of money in trading in third class issues...
But one has to remember that third class/ manipulated issues dont follow charts. I am only writing here to warn innocent retail investors on dealing with such stocks.
I, too, not expert. I am giving probability whether target could hit or stop-loss could trigger! It is only probability, not perfect science!
Your statement that experts don't trade in junk stocks is incorrect. The fact is, investors don't invest in junk stocks, but traders don't hate any stock. Traders put stop-loss & trade in both good & bad stocks.
Had you shorted as per my hint, you could have made profit! Keep that in mind before making any loose talks.
Making loose talk is easy, giving opinion during trading hours is challenging! Trading is only probability, not certainty!! If you believe, one should not trade in junk stocks, then there is no reason for you to check this site in the IPO Section meant for junk IPOs!!!
I am not a market expert. If i am so, I wouldnot be writing my technical skills here, rather will use my skills to trade..
Remember, experts do not trade in third class stocks... its only punters speculation. Nobody can say this will go to that price and that will come to this price. these are all somebody wasting time....
There are 2 things... Either retail investors should opt for ipo listing gains or hold it for medium term... In the latter case, the investors should judge the stock over a one month period after listing... If its the first case I.e.listing gains then the stock provided enough opputunities for 15 to 20 % exit till 2.45 pm... Retail investors who got a bit carried away lost money...
Duraiswamy, QIB was subscribed just around 1 times which means these people were persuaded & offered some carrots to pass the issue becos DRHP had clear provison QIB needs to be subscribed to make the issue pass through.Since they had obliged ,they were given profits which were taken with both hands.
Dhanlaxmi Bank sells 7.3 lakh shares of Tree House. which pulled down the price below issue price. WILL SEBI SHOULD STOP QIB'S TO SELL ON LISTING DAY TO PROTECT RETAIL INVESTORS MONEY. ALL ipoS GOES BELOW ISSUE PRICE ON LISTING DAY ITSELF. BETTER TO stop APPLYING FOR ipo