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Value buys - The intrinsic value is close to market price
 The Equity Desk Forum :Investment Ideas - Creating winning portfolios! :Value buys - The intrinsic value is close to market price
Message Icon Topic: Rayban Sun Optics- Co. has cash Rs30share Post Reply Post New Topic
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basant
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Quote basant Replybullet Posted: 23/Oct/2006 at 9:02pm
 
That is the biggest threat with these MNC's see what they did to Eserve, Digital. I mean it is very much possible that when Rayban sees itself with a big opportunity they may come up with an open ofer and all analysts would look at the pE and say well, it makes sense to tender and then Rayban would launch itself again. Very much a threat I would confess.
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Quote bub100 Replybullet Posted: 23/Oct/2006 at 1:58am

as per the last data they have to go for buyback at 104.- so I donot think that the openoffer would be less than 100.- but it test our patiance.


as  a patiance investor good to hold  with less down risk.

thanks



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Quote Ajith Replybullet Posted: 30/Oct/2006 at 10:27pm

All the comments on the business of Rayban Sun are regarding Rayban brand and growth here is ordinary-15-20%.(so no point in Rayban going in for cheaper products which strategy met with disaster in India a few years ago)The real growth can come only from premium brands like Prada,Versace,Chanel,Ferragamo,Polo Ralph Lauren.....growing at 50 percen on a small base( but by now larger than (midpremium )Rayban sales) without any advertisements.Of late real growth has been here in the above Rs8000 category, according to the annual report.Lately,fashion  and premium journals like Cosmopolitan,Men"s Health,Top Gear( Annual issue)seem to have ads and special pages devoted to high fashion eyewear.I suppose with designer outfits flying off the shelves these shades too will as I see ( in the photographs)that both go together.I also observe that most motorcyclists wear shades,perhaps unbranded but over the years a slight shift to high class,(made of really superior material) would mean that a huge market would emerge.

Luxottica has been reluctant to increase stake as required by law and has gone to court.Also in an interview CEO Harsh Chopra has said that interest of all shareholders will be taken care of.
I expect staus quo on shareholding  to be maintained due to FDI restricions for retail and that is what Luxotticca is all about but I am not certain about their plans  and am only guessing.
 Quarterly today-July-Sep is the weakest quarter.While profits would depend on company strategy,sales turnover has to grow by at least 25 %.Whatever be the results I will be waiting for results after 2 years when
luxury malls and standalone retail fashion outlets  together with fashion trends and rising disposable incomes really make a difference..


Edited by Ajith - 30/Oct/2006 at 9:19am
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Quote Ajith Replybullet Posted: 01/Nov/2006 at 12:00pm
Rayban Sep results were way ahead of my optimistic projections with sales at Rs14.2 crores,net profits at Rs 2.73crores.Designer sunglasses market in India is taking off.

Edited by Ajith - 01/Nov/2006 at 8:13am
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Quote Ajith Replybullet Posted: 10/Nov/2006 at 3:34pm
Great upmove by Rayban today  to close at recent high 0f 94.05.
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Quote bub100 Replybullet Posted: 12/Nov/2006 at 5:35pm
as I check with the dealer they are selling good quantity from rayban.

great vol.> 1 mio
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Quote Ajith Replybullet Posted: 14/Nov/2006 at 9:54pm
In todays chat R Damani commented that Rayban does not interest him currently because it has a 'bloated equity'.He is right on the surface just like in the case of TVS Suzuki many many years ago on a similar equity cap someone commented 'elephants don't dance' and subsequently it was more than a 15 multibagger as demand for motorcycles soared.
        According to www.abhishekbachchan.org dt. 08-09-06 Abhishek may endorse Rayban.Unless there is market potential Rayban would not have been thinking along these lines.


Edited by Ajith - 14/Nov/2006 at 10:14pm
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Quote basant Replybullet Posted: 23/Dec/2006 at 1:45pm
Shayne John is known to me for a couple of years.In June when the markets were tanking he was among the few who thought that the time is right to buy stocks and did actually invest. He is a fund manager in the US and had written an article on why RayBan excites him. The link to that article is posted below:
 
 
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