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Dear friends, the following is an analysis made by bvt5378 on MMB about Rcom share price spurt. I am copying and pasting it for the kind information of all experienced traders here. Please give your opinion...but remember this is not a recommendation for buying the stock.from my side. Just read through and make your own conclusions.

Market is surprised by Rcom move. Few things need to look at, 1. If debt reduction of 39000cr goes through, (I am convinced this time, as the presentation has some solid information about the valuer, and decent names were there like HDFC realty, Credit Suisse, Ex-RBI Mr. Mundra etc). 2. If stretagic investor joins in and he infused some equity, let`s say 2000 Cr approximately, the net debt will be down by 4000 cr only. Remember, with each completed action, there will be rating upgrade, same as Reliance Infra. Revenue from B2B business are around 3000 cr with 40% profit margin, post debt reduction will translate into EPS of 4 and at PE multiple of 15(Again discounted), fair value will be around 60 (Credit Suisse estimated enterprise value of 15000 cr post Debt resolution actually executed). 3. Current market price of 28.7 is still have 100% potential of price appriciation. 4. Some shorters may trapped badly, as Rcom was a easy short candidate for them, and may shorted heavily as always, considering the first move was a just dad cat bounce and again it will fall below the level from where the move started.And this was happening most of the times in past. 5. Everytime whenever the press conference ends, Rcom shares used to lower level. Enjoy