IFGL REFRACTORIES LTD: AVOID

HI Sir, 

I looked at your blog.. 

looks interesting..and convincing.. I really need your help.. because I have made huge loss.. on below IFGL : Bought 2250 qty. @ 196.. now its trading @ 135 to 150 zone. please comment .. also edelwiess. I had initially 4500 qty. @ 66rs.. because it fell to the level of 45 I exited and purchased IFGL Sir please comment on both.. and will it be good if i can re-enter them , as they trade in low price. Regards Prabhukumar KS

1. Prabhukumar KS ji IFGL REFRACTORIES LTD is a 10 rupee face value share which year high 218.25 and year low 51.25.

2. I wonder to see that people invest huge amount when stock traded near his year high but fear to catch this type of stock at his year low. In this case year high/low is above 2 so as per my theory this is an Avoid.

3. Any one new in stock market most of time loss his money in these type of stocks , Net sales per share for IFGL is 94.60 So fair value for this stock is below 94.60 ( This is not a target this is fair value for investment read my book for more details, If you read my book then you knew that I always invest only those stocks which traded below his last year net sale per year).

4. Promoters of IFGL Ref. Ltd hold 71.30% , that is good.

5. You invest INR 441000 in a single stock , If I am in your side Then I never put this type of huge amount in a single stock , In my style of investment I am invest a minimum amount ( INR 2900)in a time, read my shopkeeper theory in my book for more detail.

6. You may also wonder to knew that in 2001 IFGL Ref. Ltd traded at 0.55 only and in 2002 this stock traded at 1.10 only.

7. So overall my view is negative for IFGL Ref. Ltd.

8. For Edelwiess my view is also negative due to huge bulk deals , I think edelwiess is also an Avoid.

9.  Discloser:- I am an exiting research analyst and applied for a grant of registration under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 and I have/my wife have no any stocks of this company so my personal interest is not included in this stock.

Prakash Constrowell Ltd : Wait and Watch

Good morning mk sir... Sir what is your view on Prakash Constrowell Ltd . Pune based company .. In reality .....Ask by Anand Reddy. 

1.Prakash Constrowell Ltd is a 1 rupee face value Construction & Engineering company.Prakash Constrowell Ltd split It stocks face value from 10 rupee to 1 rupee in 13/12/2012 , So as per my rule 2 years are over from face value split. 

2.Prakash Constrowell Ltd year high is 4.14 and year low is 0.53 , Stock traded @2.31 ,so this is a problem , because when year high/year low ratio is above 2 than I think stock is not stable and more downside will be remain. 

3.Promoters of Prakash Constrowell Ltd hold 64.13 % stake but they pledged his 24.81% , So this is a high debt company. 

4. Prakash Constrowell Ltd Sales are down from last year. 

5. Net selling per share in 2013-14 is 12 ( but if we count in ratio of currant 2 quarters then It is 4.77)

6. So overall I think stock of Prakash Constrowell Ltd is not bad if available below 2 and and one should start accumulating from this price but as my year high/low ratio formula warn that something is wrong in this stock, It is wise to wait and watch at-least 6 more months. 

7. I have no any share of Prakash Constrowell Ltd.