Prakash Steelage Ltd IPO Message Board (Page 2)

sj sir, i biggest loss i ever had is with suzlon , i bought a lot of 3k shares @ 78 and i have sold them at 52.Even now i dont know why i am intersted in suzlon. Please throw some light on this and as well on KGL(Karuturi).

dear srinivas..

I have already told you strategy so many times dont be anxious....have/peace

if close is above 215 and if it crosses 234 resistance hold....

If you want to stay in peace sell above your cost......

PlZ note that this counter is risky and fundamentals do not support current price......

Sj sir , good morning . I am still holding at 227 , i think today i may get a chance to come out of it . what do u say ?

Dear Subba Rao,
Check the subscription figure in HNI & retail & check the GMP.Also the company should be priced reasonably in its peer range.Midfield & Prakash both qualified in all these parameters.Aster failed in its valuation metric it was priced very steep to its peer & its fundamental value is 50.I applied for both these IPOs & put stop loss as 2 percent below the Issue price.I have let them ride .Most important thing is the stop loss becos once the stop loss is breached stocks may go to any price as happened with Ganesh Jewellary.

srinivas

wait

if it is not crossing 234 and closing below 205 sell ...

and if closing above 220 hold

basically stay put if it is forming base here for next upmove...

Regards

SJ and Ravi good morning, should i exit the counter at 218(bought them 300 @ 227 ) or can a wait for a while.The counter is not showing any momemtum - pls advice

Excellent analysis Ravi....

well fundamentally it is good at 120 coz you also have to attach margin of safety as well

However even at 135-140 levels it can be taken as a trading bet ......for short term or even if it settles at 175 odd levels tommorow or day after tommorow or a week

Coz hands were changed between operators at that level.

That is the level ..i am watching ...i will take some risk buy taking risk at 174 if price settles there else at 135....for short term trading.....with strict stop loss at 120.

Prakash Steelage 216

Resistance 224, 243, 267, 356.

Support 216, 202, 173.

I believe Rs.140 is the right price fundamentally. It may eventually settle over a period of time. However, before falling to Rs.140, it may even rise to Rs.400.

Speculators can hold with a stop below 202 (say 190). Significant resistance at 267 & heavy resistance at 356.

Stop-loss is important. It is cornered by Operators & perfectly under bulls control.

1. Rised Rs.69 crore from IPO. It has not used its present capacity fully since past three years. However, promoter intends to increase capacity using Rs.20 crore out of 69 crore from IPO. Rest of the money used for building, office interiors, working capital & to Operators to rig the stock.

2. Promoters found guilty of concealing income. The company faced negative cash-flow in the past three years.

3. Issue size is only Rs.70 crore. 5 - 10 HNI clients are sufficient to rig the price post-listing.

What else you want in life. This story attracted Operators. It is great stock for short-term and disaster for long-term investors who may buy at Rs.300 or Rs.400 taking SMS tips & don't have the habit of putting any stop-loss.

kk

until and unless it is not above 234 you can short on intraday...coz next support is only at 174

Fluctuations will happen

when you get some profits like 10 rupees intraday

Exit with gains

Preservation of capital is more difficult than making money. Today in Prakash, I made loss in mind-trading; yesterday I made profit in mind-trading.

It has limitd trading histroy, hence, I stayed-away.

Dear Sreedhar,
I did not touch Prakash today. I was busy in the morning and so could not see your message. Had I seen it, I would have followed suit. When I saw it in the afternoon, it was around 205. That must have been the place you people would have covered your shorts. I thought of shorting there but the one line in one of your earlier message -- SHORTING IS THE OXYGEN FOR PRAKASH -- prevented me from doing so. It then went up to about 218 or so. It is now like electricity. If you touch it without precaution, you will have a shock!

Keep a stop above 216 (eg: 218), hold short. If triggers, book loss and go home.

Above 216, it can rise all the way to 223 even in a second as there is no selling pressure till that zone.

It witnessed high volume selling at 213.1 and 210.75.

Support lies at 173.

It has no sufficient trading history. Hence, it is provisional analysis. There is high risk of loss in trading.

Operators don't want fundamentally good companies.

Sj Bhai, thanks for the message.will do as said.Would you please list / provide me your portfolio so that i can invest in them only taking inputs from you.Bhai, help out - already incurred huge loss.

@ srinivas

ha ha ha ....new to profit making old to loss making...good sense of humor...well you yourself have said you are old at bookin losses...phir bhi you dint learn lesson not to trade in counters without studying fundsmental valuationsss......always trade in fundamentaly good stocks by taking delivery...dont speculate even if yiu have to not without expert opinion...else you will keeep making losses....

If it closes below 220 next support is only at 176......

So take your call if it does not rises above 234 book profit....let it rise...after that tommorow,.....let it rise to even to 500 also..no body knows what operators do...but retail investors like you may book heavy losses in such counters........

Regards

SJ sir, i will till the EOSession today and will sell them.
You guys inputs are always required for people like who are new to profit making but old to loss making .

dear srinivas

boss you did not ask before buying to any of us.....

Now you are asking after you are trapped....

Fundamentally it is trading at 20x current earnings..........

Its peers are/trading at 8x pe

so you can imagine if industry pe is 10 for pipe industry how can it trade double that price.....

And it is not like it has 100 percent cagr...........or mega expansion that can lead to doubling of eps....in 1 year or even 2 years...or it has wide variety of product portfolio........industry was having higher margins in 2009.....now due to rising raw material cost how will they maintain high margins.....?

Anyways...wait for any rise today...and runaway from your holding if it is does not crosses 234-240 convincingly......

Regards

hi, Ravi/sj/sreedhar , i have bought 300 @ 227 , pls advice on this. should i sell at the CMP or i can wait ?

busy with office.Its is making lower tops & bottoms.Already has breached mornings day's low of 208.

dear shreedhar

Where were you yesterday

did you short yesterday

Ya even i shorted at 214

now it is 209

Watch out next support only at 178