Joined: 24/Oct/2006
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Topic: Reliance communications Posted: 25/Oct/2006 at 2:25pm
reliance communications moved handsomely in past few days. still a lot of steam is left in this stock and at cmp(368) its a value buy. the value will unlock in coming 2-3 years and this one is sure going to be a multibagger. i read a news pick today a part of which states:
"The Anil Ambani-controlled company is launching a slew of hand-held mobile computing devices, which are expected to hit the markets early next month.
At present, there are an estimated 50,000 push mail users in the country, expected to increase to over a million in the next 12 months. "
apart from this Reliance Communications has inked pack with Hutch & Idea.
the day it starts its high speed cable internet in full swing the investors will be rewarded.
Joined: 01/Jan/2006
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Posted: 25/Oct/2006 at 2:35pm
Enam has been pushing this stock. It has forecasted an EPs of Rs 15 for Fy 08 and has a target price of Rs 400.The company should benefit from the operating leverage of its business model but I prefer Bharti Airtel.
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Joined: 01/Jan/2006
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Posted: 25/Oct/2006 at 3:12pm
You have a point there. The expansion with Rel Comm will bring in economies of scale but I think that PE is earned in the market and Bharti has an RoE of 28% against Rel Comm 18% this gap should narrow but the real cream has been made in these stocks from here on both stocks should triple in 3-4 years. Where did you see a PE of 0.55 for Rel com? I think there is something wrong there.Actually Rel Comm should trade at a PE more then Bharti since the growth in Rel Comm is being priced in by the market.
Both remain growth stocks but the market gets afraid each time Marathon Ambani talks of a technology switch from CDMA to GSM maybe he does that to bargain with the vendors and I am told that he would not switch because thatwould cost about US $ 4-5 billion and also send the stock tanking.
'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
Joined: 01/Jan/2006
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Posted: 25/Oct/2006 at 4:32pm
There is something wrong (extra ordinary income or typo) we need to check with BSE Rel com cannot trade at a pE of 0.55 otherwise we would have sold our house to buy this stock.
We should also check with moneycontrol.
'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
Joined: 01/Jan/2006
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Posted: 25/Oct/2006 at 5:49pm
Yes both are good and should reward shareholders but as I said earlier I would prefer Bharti.
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