RAMSARUP INDUSTRIES LTD: CONTINUE SIP

Sir, What's your view on Ramsarup industries Ltd. You have advised in your penny stock blog couple of months back. Is it worthy now to enter and Recently I noticed many of the companies are splitting their shares to 1 FV. By doing this, they can increase the volume but nothing special thing will happen. What benefit will get these the companies by doing this act? Ask by Shankar ji. 

1. On 2 April 2011 I write an article on my penny share blog about to enter in ramsarup industries @ 19 for my new readers who not read this article first read it at this link http://mypennyshare.blogspot.in/2011/04/ramsarup-industries-ltd-19.html

 2. Now ramsarup industries are traded @ 5 only but read above article again you find I already warn you that in the coming 2 year ( April 2011 to April 2013 ) price fall will be continued so investing only in 2 year SIP method.

 3. Today my view is still positive because the promoter stake is now constant at 40.29 % and no new bulk deal happen in last 2 year which is a sign of non speculative trade.

 4. The Board of ramsarup industries noted that the Net Worth of the Company has eroded and the Company has become a Sick Industrial Company as per provisions of Sick Industrial Companies (special provisions) Act, 1985 (SICA) and is required to make reference with BIFR and necessary compliance be made in accordance with provisions of SICA. 5. So if you make a SIP than I think it will be continue till April 2013 BUT PLEASE DON'T MAKE ANY FRESH INVESTMENT BECAUSE THIS IS A SICK UNIT AND OTHER GOOD STOCKS ARE AVAILABLE AT MARKET FOR FRESH INVESTMENT.

6. I have no any stock of ramsarup industries Ltd.

7. Now we come your second question that why companies splitting their shares at 1 rupee FV , it is make a psychological effect on small investors because if they buy a stakes of 10 rupee face value @ 120 than they think it is costly but if they buy same stock of 1 rupee face value @12 than they think it is cheap.