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basant
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   Posted: 26/Nov/2006 at 10:47am |
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Even the pink papers seem to be spinning!!!
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basant
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Posted: 27/Nov/2006 at 12:47pm |
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If some one tracks GE shipping can he share with us whetehr the relisting price was as per expectation or not!
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ankit18
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Joined: 18/Nov/2006
Location: India
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Posts: 22
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Posted: 27/Nov/2006 at 3:02pm |
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I expected 275-300. 240- 250 is ok and but, 225 is way below expectations. Also, my cost of acquisition was lower. CNBC has put valuation of GE Offshore above 600. Also, market does not like Shipping companies. Hence, the stock has been beaten down too much.
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Markets are never wrong. Opinions are!!!
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basant
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Posted: 27/Nov/2006 at 3:56pm |
I do not think investors have lost maybe the punters have. See WHen the demerger was announced GE traded at around Rs 220. WHen it went off listing it traded at Rs 335.
SO for every 5 shares of Ge SHipp investors were given 4 shares of GE SHipping and 1 share of Great Offshore:
4shares of GE Shipping @ Rs 225 = Rs 900
1 share of Great Off shore expected to list at around Rs 850
Total value for 5 shares is Rs 1750 i.e Rs 350 per share.
Great Offshore should do an EPS of Rs 35 for Fy 07 so giving it a PE of 24 times current year gives us a price objective of Rs 850. Aban Lloyd the other comparable company in this space trades at a higher PE to that.
So for some one who bought GE shipping at Rs 220 when the news first broke through is still richer by 50%.
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catcall
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Joined: 02/Sep/2006
Location: India
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Posts: 1076
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Posted: 28/Nov/2006 at 6:22pm |
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the shpping industry generally trades at a low PE, by industry standards, the relisting of GE shpping is at par with the industry at the price range of 220 to 240. However, the comany should see a rise in a sharp profits by 2008 end, as the shipping comonent of the demerged comany comes into profits. So from now on, it would be a hold for the long term, for the short term, it would be worth holding on till the budget
Edited by catcall - 28/Nov/2006 at 6:23pm
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omshivaya
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Joined: 06/Sep/2006
Location: India
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Posted: 01/Dec/2006 at 3:31am |
Basant ji,
Can you kindly do a "Reliance Communications" analysis on its possible spinoffs, demerger(if any) in the future. Is there any talks of coming out with an IPO of some kind, or something else.
CMP of Rel. Comm. is around Rs. 440.
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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basant
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Posted: 01/Dec/2006 at 11:47am |
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Now Rel comm would spin out into what? They should remain integrated for synergies of business to flow in.
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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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omshivaya
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Joined: 06/Sep/2006
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Posted: 02/Dec/2006 at 6:24pm |
Ok thanks. Was just shooting in the dark. hehe
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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