Technical Analysis of Indian Equities by Nooresh

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Fineotex Chemicals – Another Pump and Dump :) New Issue

Lets have a brief look at the subscription status of the company.

 

Qualified Institutional Buyers (QIBs): 0.00 times
Non Institutional Investors: 0.22 times
Retail Individual Investors (RIIs): 4.38 times
Total Subscription: 1.57 times

The best part is the full subscription came from πŸ™‚ RETAIL Investors or Insiders πŸ™‚ – 4.38 times.

No institutional Investors.

The IPO price was 72.

The current market price is 165.

More then double ! with huge volumes but nominal delivery volumes.

 

The company compares itself to multinationals like BASF, Clariant and Pidilite with a turnover of roughly 50 odd crores ! and wants a p/e of 19 πŸ™‚ but that was at the issue price of 72 !!

The closest peer is Omkar Speciality which is a better company πŸ™‚ coz the stock price is down 65% πŸ™‚ and available at a p/e of 4.

Ideally the stock should be at sub 50 levels but stock has doubled or more at 165 + πŸ™‚ will this be another bedmutha or thinksoft shekhawati or so on πŸ™‚

 

The delivery volumes are almost greater then the issue size πŸ™‚ which is just 12-15% of the total volumes. So speculation says the stock is doing 10 times the issued shares πŸ™‚

 

Bottomlime – Avoid the stock ! But its fun to watch such moves in boring markets πŸ™‚

Article by Nooresh Merani

Nooresh has written 2596 articles.

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{ 2 comments… add one }
  • Naresh March 14, 2011, 14:36

    Hello Nooresh,
    What are your view for Ballarpur Industries?

    Best Regards,
    Naresh

    Reply
    • nooresh March 15, 2011, 11:33

      Hi Naresh,

      Fundamentally the stock remains good value at 30 bucks if one is to take replacement costs and its stake in an energy co.

      But currently one may not expect much moves till market doesnt see major moves.

      Reply

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