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Tuesday, February 6, 2007

Salona Cotspin : Another Gem

Friends, continuing with my endeavour of creating wealth for all my readers and well-wishers, I am presenting another gem: Salona Cotspin (bse), yesterday's closing price Rs.21.75. This textiles company has been posting excellent results consistently and the nine months eps for 2006-2007 stands at over rs.5. My attention was drawn to this stock by a guest on my site and after checking the fundamentals and technicals of this stock, I am giving it a Buy rating. Cheers!

38 comments:

vinay said...

hey superstar,
i m the one who posted about salona cotspin on ur site. Thanks to put it on the front page and giving a buy rating. Cheers buddy.

NITIN said...

superstar is gem..no doubt

Shuvadip said...

Superstar,

This is my first blog here, thanks for the invitation. I generally check the P/E of a company with EPS & the current order it is holding. Also how mutual funds are dealing with the stock & the performance of the peer companies. Can you let me know what else should I check?

Shuvadip said...

Superstar,

For Salona, any target rate? Also any time frame?

Stars said...

Dear Superstars,

Can you give us your views on ADOR WELDING (year high is 525 and CMP is 245) & LKP MERCHANT FINANCE (year high is 201 and CMP is 84.00)?

I am already holding Ador Welding bought at around 260+ and planning to have some exposure in LKP after getting your opinion.

Would appreciate your comments ASAP.

With best regards,

Vishnu

Stars said...

Dear Superstars,

Can you give us your views on the following stocks?

ADOR WELDING (CMP = 245 & YEAR HIGH = 525)
LKP MERCHANT FINANCE (CMP = 84 & YEAR HIGH = 201)

I am already holding Ador Welding bought at around 260+ and planning to have some exposure in LKP after hearing your views.

Kindly advise ASAP.

With best regards,

Vishnu

Vincent said...

Vinay great call and thanx to super for putting it. Keep it UP. just wanted to know till wat rate should i hold it?

SS

Vijay said...

The current CMP is Rs. 27 from 21.75 today. Do you still recommend a buy. Thanks.

Vijay said...

Hello the current CMP is Rs. 27. do u still recommend a buy superstar. thanks vijay

GSM FIXTURE said...

what the max., sell price expected in mid term for salona cotspin

Superstar said...

Salona Cotspin is still very cheap at cmp. This stock can become a multibagger like Skumars Nationwide became. Target of Rs.70 plus within a year looks achievable. Cheers!

Vincent said...

thanks once again guru for all your inputs.

SS

Anant said...

Hi All,
I had a feeling overall textile sector is not doing good in small cap segment. Like u see SPL Industries it is still very company and was trading around Rs 90-100 year back but now trading at around Rs 38/-.
I feel investors should be caution in this sector.

Happy Investing
Anant

Arun said...

Hi ! SuperStar,
I have the following funds:
1. 3i Infotech Pur_Rate @316.00
2. Blue Star Pur_Rate @99.00
3. Deccan Aviation Pur_Rate @148.00
4. Spanco Tele Pur_Rate @219.00
5. Dr. Reddy Pur_Rate @774.00

Please do comments ! what to do

Superstar said...

Dear Stars,
I took a cursory look on both Ador welding and LKP on your request, and I do NOT find anything exciting in either of these shares. There are much better buys available in the market. You would do well to choose from some of the picks given by me on this site to build a portfolio.

Dear Arun,
Thanks for visiting this site and you are welcome to make profit by using some of the tips given by me and other guests on this site. You have given a very long list of shares asking for my opinion, none of which I track on a regular basis. It would not be possible for me to comment on personal portfolios and off topic comments individually due to obvious paucity of time. My clients have the first right over my time for personal advice like the one you are asking. I hope you'll understand.

Cheers!

vinay said...

Guys its a definite multibagger. One can hold it for a target of 70 as rightly said by superstar. Patience is the key. Company has given regular dividents (10%)aswell. So people can still buy it. Its an unnoticed gem and can run alongway once catches the eye of investors. Cheers guys.

grsh said...

Hi Superstar,

Thanks for the tips man. What do you think of Ventura Textiles? There is a lot of interest and volume in this scrip for the past one month. It has moved up from Rs 1.40 to 2.09 today. Astrologically speaking, can I buy 1 lakh shares at cmp and make money by Diwali this year? Pls advice...

Matex

Stars said...

Dear Superstars,

Thanks for your advise on the 2 scripts I have asked. I am already following some of your recos as I have happened to see your site recently only and bought YASH MANAGEMENT (at an average of 13.25), ANIK IND (bought at 29 and sold at 38.20 and already placed order to buy again at 32 ), KOVILPATTI (at an average of 55/share). I have bought Lok Housing also, but after that only I have seen your website on moneycontrol board and visited it to see your other recos.

You are doing a good job by offering valuable advises without expecting anything in return. I appreciate your attitude.

Keep it up and wish you good luck.

Regards,

Vishnu

sakpalnitin said...

Superstar,

what do u think of Venky'e India ??

it has posted good results, also market leader in Poultry buisness.

sakpalnitin said...

after reaching 38/- level MP GLY has fallen to 31/-.

do u still recommend ?????????

Superstar said...

Thanks for all your comments.

Dear Grsh,
I had a look at Ventura and as you say, it has evoked interest in the last few weeks. Maybe because we are seeing an increased interest in the entire small caps universe by retail investors, now that the index is at record highs. The eps figure for nine months is only 13 paise, so valuations are not exactly cheap. But technically, momentum wise the scrip can move up still. The fate of such penny stocks is dependent on the operators who run it. It all depends on how far the operator wants to take it. This is a high risk high return gamble. Astrology wise, the time between Mid Feb and mid March can be a good time for the textile sector.......I'll speak more about the astro part in my Astro blog. But I personally would prefer safer bets like Gupta Synth, Salona cotspin in this sector.

Dear SakpalNitin,
I have been tracking Venky's from earlier, but even though the current results are okayish, the nine month eps is only rs.4.88. The cmp of Venky is 106. To me it looks more than fairly valued at the current price. Unless the future eps figures rise very rapidly, the stock is not likely to go anywhere. There are better buys available.

Regarding MP Glychem (Anik), I had first recommeded it at 27-28 after which it rose to 39 levels and now you are asking whether it is a buy again at 31 levels. Yes, it can be bought at current levels and on dips for a medium to long term outlook.

Cheers!

brd said...

Dear Superstar, What are your views about K.Dhandapani. The EPS and Bv are remarkable.

Rakesh said...

Salona Cotspin is not tradeable on icicidirect??

Superstar said...

Dear Brd,
I had a cursory look at K.Dhand and it has posted remarkable eps of rs.11 in Dec qtr, where as its half year eps was only rs.2.41. But insiders have already taken its price up from 25 to 45 in one month. The problem with such companies is that their eps figures are so erratic that one qtr they will show extraordinary income and the next qtr they show loss. If you have any more information about the company and its business, then you can post it in the Guest Stock Tips thread. What is it's book value?

Dear Rakesh,
If Salona Cotspin is not in the list of tradable shares in icicidirect, then you need to call them up and tell them to add it in their list. As a customer it is your right to tell them so. I am sure that they can do the needful. It is a great stock and one can accumulate.

Cheers!

Rakesh said...

Navin,
You mentioned your "clients" have the first right over your time. Please drop me an email at dubeyrakesh at gmail so that we can discuss. I am former employee of TCS holding the stock since the IPO. Please drop me one email.

Stars said...

Dear Rakesh,

Salona Cotspin is already available through ICICI DIRECT under code SALCOT and I have bought shares @24 yesterday.

Cheers,

Vishnu

My World said...

I don't know how u find the time to post answers to all our queries.Its much appreciated.Could u pls post ur views about FCS software and Futura Polyster.Thanks

akash said...

Hi Navin,

Do have a look at Panama Petrotchem? Did u checked Miza International,it flared like anything. just keep an eye on Panama, 9month eps stand at 19, CMP 152. take your call.

varun said...

hey guys have a look at eskay knit..... a good story ready to be unfold

Superstar said...

Hi My World,
I had been trading in FCS earlier also and it is a good value stock at cmp. I do not track Futura and haven't yet found the time to check it.

Cheers!

Nilesh Lokhande said...

Hi Suparstar,

i have got shares of salona@24 and FCS @ 75 but since then both are moving down :( .. i am ready to keep it for 6-8 months but what i want to know is why the volume is so low in both the shares?
i am new to stock market and already in some loss .. plz help.

Thanks,
Nilesh

Superstar said...

Dear Nilesh,
Both Salona Cotspin and FCS Software present excellent value at current levels. But they cannot defy the trend of the whole market which is currently very very weak for the midsmall caps. One has to keep patience. I'm sure those who are brave enough to ride this storm will be rewarded in the medium to long term. Cheers!

Nilesh Lokhande said...

thanks superstar. i will hold both the stocks for long term :)

Thirtydays said...

hi anyone can offer comments on Gujarat NRE coke

Saurabh said...

Hi Navin,

do you some idea that why there is very low/no volumes in this stock?

I am holding this since february but no movement.

Superstar said...

Hi Saurabh,
The volumes are so low in this counter because there is no floating stock of this company available in the market. This is a small cap company and the Promoters are holding more than 57% shares. Moreover, no prudent investor would like to sell at the current ridiculously low price. Investors would rather take home the good dividend yield of 5% currently.

I know this stock is testing patience, but whenever it starts to move, it may double. But if you are only a short term trader then maybe you can move out of this stock and get into some other market fancied stocks.

shirish said...

Dear Superstar, Some Navin Bajaj has sent me your Blogsite address and this is my first comment on your blogsite. On your recommendatons, I have purchased Salona Cotspin. Some " Guest " on Moneycontrol has given a target of Rs. 100/- by Dec-07. I wanted to know is it correct ? KIndly clarify. Thanks.

Superstar said...

Dear Shirish,

Welcome to this site. I have replied to your query on Salona Cotspin in mmb also. Salona has made gains of nearly 60% since my buy call from 17-18 levels to the current 28.60 in just about 4 days. Since the results of Sept qtr are not very good, it would be wise to excercise some caution now. Ride the stock as long it keeps going up, but be quick to book your profits the moment it reverses its trend. For the short term, the target given by "guest" ids of 100 looks a bit ambitious. I wouldn't take "guest" ids too seriously.

Cheers!