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hit2710
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   Posted: 09/Aug/2009 at 10:21am |
Originally posted by subu76
On Crane software....any idea if the company has a huge debt burden?
Whenever i see this stock...that seems to be the overwhelming fact standing out.....
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The company has had debt equity ratio of more than one since past 3-4 years which for a software company is not very good because there are a lot of other software companies with cash per share and still showing good growth.
I feel there are plenty of good small and midcap software companies with good cash in their balance sheet as compared to Cranes Software. Case in point being Kpit , Nucleus etc.
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Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.
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smartcat
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Posted: 10/Aug/2009 at 6:59pm |
On paper, Crane's business model is brilliant. Buyout a product from a developer or a small company, modify/add features to the product with the help of the developer & crane's technical team and market it through its worldwide sales network.
But they seem to have taken a lot of debt to make such acquisitions.
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chimak10
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Posted: 10/Aug/2009 at 7:17pm |
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Deleted
Edited by chimak10 - 10/Aug/2009 at 7:27pm
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subu76
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Posted: 09/Apr/2011 at 1:16am |
Crane software seems to be in it's final legs now....A 130 rs stock is now at rs 4-5.
We had discussed about it's high leverage and not so sound business plan earlier and now the chickens have come home to roost.
This one is a Bangalore based company
Edited by subu76 - 09/Apr/2011 at 1:18am
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basant
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Posted: 09/Apr/2011 at 6:16am |
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A friend who is a big investor had a position in this and kept recommending it when it was at Rs 100. Would you suggest that this makes sense now?
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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nav_1996
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Posted: 09/Apr/2011 at 10:33am |
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You can punt to double your money or so. But not as an investment.
Unlike manufcturing industry IT industry assets (people) are not tied to the company. All it may have is IP for some products and if they can find a buyer for the same.
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subu76
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Posted: 10/Apr/2011 at 2:24pm |
Originally posted by basant
A friend who is a big investor had a position in this and kept recommending it when it was at Rs 100. Would you suggest that this makes sense now? |
Hi Basant Sir,
A dodgy bad balance sheet and promoter holding of only 6% makes the company risky.
If an acquirer emerges then things could spice up but how can one bet on that.
Not sure what happened to the FCCBs (goes to show even top bankers do not get the IT industry)
Please note: the company was recently barred from NSE
Edited by subu76 - 10/Apr/2011 at 2:33pm
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basant
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Posted: 10/Apr/2011 at 8:05pm |
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Ok, I asked just out of curiosity.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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