VIEW ON SUZLON AND UNITECH

Dear Sir,
I deeply impressed by the methods you've been advising peoples for the shares. I would like to ask that currently I hold about 300 shares of suzlon which were bought @ 58, do you think that I should continue holding the stock or shall I sell it when the price come near to 56 or 58, another query I am interest in buying some 100 shares in unitech as I've marked that the prices have slashed to near Rs.33, do you think is it smart to buy unitech at this rate?
I would welcome if you kindly suggest me to buy shares of some good companies which are currently prevailing in the market at lower rate
Regards
Vikram tiwary


1. Suzlon energy ltd is a 2 rupee face value Heavy Electrical Equipment this is a good company only one issue is there that promoters continue dilute their holding from 58.14 to 57.09 and finally it is 54.84 % but promoter holding is still not very low so I think this is a good company.
2. For detail view on suzlon energy ltd you may read my old article on this share at this link


http://sharegenius.blogspot.com/2010/08/repsected-sir-i-would-like-to-buy.html
3. I think in a bad time of good fundamentals company stocks is convert to good trading stocks so in case of suzlon 56 is a strong resistance for stock so before his multiple view it may test your patience many time so if you are a real long term investor and see suzlon price just 2 year after from today then you are hold it but if you check suzlon price daily and feel bad when it show trading loss then it is good to trade in range of 50-55 ( means buy below 50 and sell above 55)
4. Unitech stocks melt down due to rumor about attachment of properties by directorate of enforcement but Unitech Limited (real estate Company) has not been named in the aforesaid charge-sheet filed by the CBI. It is further to clarified that the on-going matter pertains to Unitech Wireless (Tamil Nadu) Pvt Limited (Uninor) which is a separate legal entity engaged in the telecom business.
The Company would like to reiterate that Unitech Limited would continue to focus on its real estate business in normal course read these old article on unitech for more details


http://sharegenius.blogspot.com/2009/04/unitech-share-what-to-do-now.html


http://sharegenius.blogspot.com/2009/02/unitech-complete-analysis-of-unitech.html
5. I think trading in unitech @ 37 to 42 is also good but my view is still negative for unitech.
6. I have no any share of suzlon and unitech. And my view is positive for suzlon in long term and negative for unitech.

UNITEC SHARE ? ? ? WHAT TO DO NOW ? ?

shri shankar marimuthu ask by e mail that "I currently own the Unitech shares of total 10,000 for the amount of Rs 32.CMP is 53. Will it go up to 150 in next 3 to 4 months ?
What would be its long-term growth? Please advise me, Sir. "

Dear investor,
1- Face value of unitec share is 2 rupees.

2- Book value of unitec share is 13.2 rupees. (Read http://sharegenius.blogspot.com/2009/03/what-is-book-value-of-share-list-of.html in this blog )

3- EPS of last 4 quarters is 13 rupees. However, it is still in downtrend and in quarter 12/2008 earning per share (EPS) is only 0.12 rupees means in quarter Oct to dec company one share earn only 12 paisa.
4- We are not so bullish in this share but market run 25 percent based on fundamentals and 75 percent on the momentum. So we advice you a good strategy for your investment in the next 2 point.
5- We think fair value of unitec share is near about 15-20 in this time and current price is 47. Divide your 10000 share in 5 blocks each block have 2000 share. If unitec price will come down you can sell each block on the rate of 40-35-30-25-20. (This is your stop loss setting like dynamite fitting if you see price 40 you just sell your one block and see 35 sell 2nd block…… I think you understand these dynamite settings).if unitec really come down to this level you again purchase your entire share below 20
6- Suppose unitec come down only the level of 31 then only 4000 share is selling by you in the level of 40-35 and you buy again it on level of 34 if momentum is change.
7- and if your luck is better and unitec is turn around before 40 and go to 60 then your stop loss settings is trailing like 50-45-40-35-30 and so on…………..
8-point 5, 6, 7 is only trading suggestion but our view is bearish in this stock read my old article on this share in this link

http://sharegenius.blogspot.com/2009/02/unitec-complete-analysis-of-unitec.html

9- I think it will not to go 150 within 3 months. If market is bullish maximum, level accepted 80 in 3-4 months.
10- Long term growth of company is accepted 5-6 percent only

UNITEC: A COMPLETE ANALYSIS OF UNITEC SHARE

Dear investors,
If you want to invest in unitec share please read this article carefully before investing: -
HISTORY WEBSITE TELEPHONE NO. AND SUBCIDIARY OF COMPANEY: -
· Unitec is establish at 09-02-1971 as United Technical Consultants Pvt. Ltd. and it is a construction and contracting-civil bEssions company
· The name was changed to Unitec Ltd., on 17th October1985. The Company undertakes projects both in India and abroad.
· A Joint venture Company in the name of Benetone Unitec Co. Ltd. was incorporated in Thailand to undertake development and construction projects.
· The Company was awarded a job for the construction of transmission station in collaboration with a Yugoslavian Company.
· Unitec Metals Ltd., Unitec Exports Ltd., Supernal Corrugation (India) Ltd., Ruhi Construction Co. Ltd., New India Construction Co. Ltd., Unitec Industries Ltd., Unitec Builders Ltd., The Hyundai Unitec Electrical Transmission Ltd, and Unitec Investments are wholly owned subsidiaries of the Company.
· The Company signed a MOU with Singapore Consortium and Haryana Urban Development Authority for setting up a Technology Park in Gurgaon. The company was also negotiating for further tie-up with International Companies to enable it to bid for large Highway construction projects.
· If you want to visit company website please visit http://www.unitechgroup.com
· The address of company Registered Office is 6, Community Center, Saket New Delhi - 110017
· Telephone no of company is (std code011) 26857330 / 26857331 / 26965169· We think so many subsidiaries is a question mark on company corporate governance because a huge revenue transitions between the subsidiary is possible so it is difficult to a general investor to find transparence in such type of revenue transitions.
CAPITAL STRACTURE OF COMPANEY:
· In year 1985 company has only 2 lac share that is increase in year 2007 and total number of share is now 1.62 Arab (billion) increasing of share is not good for investors because there profit is dilute for example if you are 2 member in home and your income is 5000 then you spend on per member 2500 but if member of family is increase and now they go to 10 member then only 500 is spend on per member
EARNING PER SHARE PROFIT LOAN ETC.:-
· In march 2008 EPS of company is 6.35 it means in year 2007-08 one share of company is earn 6.35 rupees and in quarter 12/2008 earning per share (EPS) is only 0.12 rupees means in quarter oct to dec company one share earn only 12 paise.
· If in view of this poor earnings if we think annualize EPS maximum rs1 rupees and if we give company a standard P/E is 10 so fair value of a share of company is rs. 10 only. (Please remember the face value of unitec share is rs. 2 only) so current market value is unitec 28 is very high in view of his earnings.
· Book value of company share is 13.21 rupees only which justify our estimate rs.15 to 20 are fair value of unitec share.
PRICE DATA OF UNITEC SHARE SINCE 1990: -
· In 1990 unitec make a year high of 42.50 and low is 24 but this price is not comparable with current unitec price because this price is before bonus and spilt adjustment so if we adjust the bonus and spilt the price of current unitec 2 rupees face value share in 1990 is high 0.35 rupees and low is 0.20 rupees
· 1991 after adjustment year high 0.42 and low 0.21
· 1992 after adjustment year high 0.75 and low 0.30
· 1993 after adjustment year high 0.50 and low 0.29
· 1994 after adjustment year high 1.23 and low 0.46
· 1995 after adjustment year high 1.20 and low 0.91
· 1996 after adjustment year high 1.00 and low 0.36
· 1997 after adjustment year high 0.75 and low 0.39
· 1998 after adjustment year high 0.56 and low 0.34
· 1999 after adjustment year high 0.53 and low 0.30
· 2000 after adjustment year high 0.50 and low 0.27
· 2001 after adjustment year high 0.39 and low 0.24
· 2002 after adjustment year high 0.49 and low 0.30
· 2003 after adjustment year high 1.04 and low 0.32
· 2004 after adjustment year high 2.85 and low 0.56
· 2005 after adjustment year high 8.41 and low 2.20
· 2006 after adjustment year high 123.32 and low 1.30
· 2007 year high 623.60 and low 239.00
· 2008 year high 546.80 and low 21.80
PROMOTAR HOLDING: - promoters holding is more then 60 percent is a good factor because if in a company promoters hold more then 50 percent is a good sign for company.
OUR ADVICE (FOR EDUCATIONAL PURPOSE READ DISCLAIMER); - we advice our reader that they cannot invest in this company. If they already invested and make profit then book profit and if they making loss then sell 50 percent of their holding and invest in other sector or company. If price really go down below 10 then again buy his 50 percent holding and wait 2 to 3 year or next bull cycle then book all holding and say good bye to this share.
THIS BLOG POST IS UPDATED ON 22-04-2009 READ UPDATED STORY ON UNITEC ON THIS LINK
http://sharegenius.blogspot.com/2009/04/unitec-share-what-to-do-now.html

Disclaimer
(Trading in stock market is very risky. Please analyze yourself what is your risk profile. This blog is not perfect. This is not an advisory service to buy or sell. The contents of “this blog” are only for educational purposes. No liability is accepted for any content in “share genius blog”.)

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