Stock Story IV

Price of this share is almost half of the cash balance in its books.
It has a twenty years history.
It built itself from nowhere to being the fifth largest in the sector by acquiring assets /companies, some at distress.
When the sector was enjoying rich valuations it sold off to a MNC and is now sitting on more than 10,000 Crores on its balance sheet.
When the world is facing the problem of leverage and excess debt, here is a company with surplus cash, awaiting opportunity to invest in assets in distress.
Markets presently dislike the company because it sold off / does not know where to invest /is investing in unrelated areas.
But is this not the goal of all investing, sell at peak and buy at distress levels.
When market-men are obsessed by minute by minute tickers,
When bulls become bears in hours if not in days.
Here is a company which buys nourishes and sells businesses and awaits opportunities
In the mean while it also makes money for its investors.
Would you be a investor?

Comments

  1. dr kapil sisodia27 October 2011 at 22:44

    sir ,
    didn't get it
    can you share the type of business it is involved in?

    ReplyDelete
  2. dr kapil sisodia27 October 2011 at 22:45

    is it RANBAXY......

    ReplyDelete
  3. Dr Parag Shah28 October 2011 at 07:49

    Ranbaxy is an old story, it doesn't have cash in its balance sheet.
    This a new story, one year old similar to Ranbaxy but different treatment of the financial deal.

    ReplyDelete

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