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Friends, i have generated a report.. read it as per your convenience ..
http://t.in.com/6nVw...
I have read in news that the Rei Agro management had no money to buy their portion of shares for the Rights issue and have made a deal with FIIs to buy their portion of rights shares (so FIIs got two shares for the price of one share) and FIIs sold their shares when the rights issue hit the market. The management is basically cheat and unethical guys ! They may bring down the price even further and buy 5pct of shares eery year from the market and then one day cook the profit book and come up with good profit number and bring up the share price and so called analysts will give buy recommendations and FIIs empty their hands. When management and FIIs are holding 90pct of the shares, then it is not market driven, it is promoter,FII driven share....
Yes it touched 30 when they announced rights issue but my average price was more than that and I thought I could recover some of my losses by going for the rights, instead the rights issue was a trap by management to raise some money from the market. They knew that a follow-on public officer is not a solution to raise money and went with Rights. Management and FIIs sold off their shares and booked profit before the shares showed up in common mans demat account. The rights was a total rip-off by management. Good luck to those already holding it. I`m happy that I made a right decision to quit this share. Let better sense prevail for most of you guys....
Why one should buy REI Agro? see my analysis( updated ).
-Stock trading 5 years low.
-It has always paid dividend.
-.30 dividend is expected this year.
-CARE has assigned valuation grade 5/5 in June,2011 ( read on moneycontrol )
-CARE has assigned fundamental grade 3/5 in Sept,2011 ( read on moneycontrol)
-PE is less than 4
-a Profit making unit
-FII and Promoter holding is quite high
-Promoters are still buying it.
-Promoters bought approx 1 crore in April,2012.
-Promoters bought close to 15 Lacs in May,2012.
-Profit for last 3 quarters 193 CR
-One of the best basmati Rice trading company.
-Industry PE is much higher( see KRBL , where market cap is half and PE is double than REI Agro )
-Price of Basmati rice is increased by more than 30% ( see my recent posts ).
-Total expected profit for the full FY12 is 250 Crores and dividend of .30 is also expected.
-REI Agro total net worth is around 2200 crores after reducing debt.
-Its normal trading range with all current factors should be 27-32.
-Once promoter holding goes above 50%, new expansion plans as indicated by management in Oct,2010 interview can become realty.
-In the year 2010 , REI Agro has issued right issue with price of Rs 19.50 where FII acquired 15% and still holding.
-General public holding is only 3.6 crores agains total equity of 95crores, rest is with promoters,FII and corporates.
-Edelscore( Edelweiss) is 7 for REI Agro.
- 3.8 Crores pledged share were released and % of pledged shares is down by 10%.
- Promoters buying continues in May,2012. 15 Lacs more purchased by promoters in last 4 trading days.
-Q4 Results and Dividend ( if any ) will be announced on 30th MAY....
Dear Tradewhale
One year back it had touched 30, why you did not exit at that time. There is some twist in your tale...
Dear tradewhale,it is not right to generalize the conclusions that only heavy weights shares are worth investing.For REI Agro, the shareholding pattern is not favorable to retail investors. The promoters, FIIs and big houses have more than 90% shares and they call the shots. You may call them operators or whatever word you consider suitable. I feel that right strategy to deal with this share is either to avoid buying it, and if buy it, then hold it for very very long duration......
Dear tradewhale,it is not right to generalize the conclusions that only heavy weights shares are worth investing.For REI Agro, the shareholding pattern is not favorable to retail investors. The promoters, FIIs and big houses have more than 90% shares and they call the shots. You may call them operators or whatever word you consider suitable.. ...
To all those inverters waiting to invest in this share...read my story.. I have invested in Rei Agro when it was trading at 52 two years ago.. it started going down to 40s..then 36... I kept adding shares to average the buying price..and finally they announced the Rights issue.. had no other option to buy double the shares at Rights price..and before the shares could reach my portfolio the share price was already nullified in market to take any advantage of Rights price and there was heavy selling on first day and had to hold on to it for some time..watched for another 3-4 months with no luck in price improvement...and finally decided to dump this share..and got out f this mess by booking huge loss.For the last 16 months I have been keeping an eye on this counter and have witnessed it going down from 21 to 8. There was lot of people doing buy recommendation then and now also they are here.. it is a trap and dont fall victim for them. If you want to buy shares invest in heavyweights or just invest in any property in India....
Why one should buy REI Agro? see my analysis( updated ).
-Stock trading 5 years low.
-It has always paid dividend.
-.30 dividend is expected this year.
-CARE has assigned valuation grade 5/5 in June,2011 ( read on moneycontrol )
-CARE has assigned fundamental grade 3/5 in Sept,2011 ( read on moneycontrol)
-PE is less than 4
-a Profit making unit
-FII and Promoter holding is quite high
-Promoters are still buying it.
-Promoters bought approx 1 crore in April,2012.
-Promoters bought close to 15 Lacs in May,2012.
-Profit for last 3 quarters 193 CR
-One of the best basmati Rice trading company.
-Industry PE is much higher( see KRBL , where market cap is half and PE is double than REI Agro )
-Price of Basmati rice is increased by more than 30% ( see my recent posts ).
-Total expected profit for the full FY12 is 250 Crores and dividend of .30 is also expected.
-REI Agro total net worth is around 2200 crores after reducing debt.
-Its normal trading range with all current factors should be 27-32.
-Once promoter holding goes above 50%, new expansion plans as indicated by management in Oct,2010 interview can become realty.
-In the year 2010 , REI Agro has issued right issue with price of Rs 19.50 where FII acquired 15% and still holding.
-General public holding is only 3.6 crores agains total equity of 95crores, rest is with promoters,FII and corporates.
-Edelscore( Edelweiss) is 7 for REI Agro.
- 3.8 Crores pledged share were released and % of pledged shares is down by 10%.
- Promoters buying continues in May,2012. 15 Lacs more purchased by promoters in last 4 trading days.
-Q4 Results and Dividend ( if any ) will be announced on 30th MAY....
