I think I just found one multibagger - need your views

[findvikas]

Hi,

I was not sleepy and when I am not sleeping I think of money

I pull up my laptop and started to research hoping to find a multi bagger with great future potential.

I think I just find one such company and need expert views on that.

Vishal Information Technologies Ltd.

Industry : IT Enabled Services
BSE Code : 533011
NSE Code : VITLINFO

LTP : 26.40 [NSE]

Face Value : 1.00
P/E Ratio : 28.90
Market Cap : 413.93 Cr

52 Week High / Low's [NSE]

High High Date Low Low Date
68.65 6/4/2009 12.56 8/11/2008

This is the yearly chart of company and per my reading it looks over sold

Other facts..

• Company has informed the Exchange that in the meeting of the Board of Directors of the Company held on July 28, 2009, the Board has decided to fix Record Date on August 07, 2009 for reckoning the eligible shareholders who are entitled to get the Bonus Shares in the proportion of one new fully paid Equity Share for every two existing Equity Shares held by them.
  
• Tutis Technologies, the promoter of Vishal, has recently (27 July 09) acquired 5.50 lakh equity shares of Re 1 each. The shares acquired represents around 0.34% of the total share capital of Vishal.
  
• Recently launched online digital book store http://www.coralhub.com
  
• In March 2009, the company had raised $30 million worth of funds through a GDR issue.
  
• It is in the final stages of acquisition of a company in Nordic Region.
  
• The acquisition is expected to be financed through the proceeds of the recent GDR issue of the company.
  
• The target company is one of the leading solution provider globally for a flexible software system to process invoices electronically. This system comprises of a complete automated workflow that saves in millions for the user, the company said in its filing with the BSE. The solution provided by the target company is installed at more than 75 companies covering multiple locations many of them being Fortune 500 companies. The acquisition is expected to boost the companys sale & increase the turnover by Rs 20 crore and profit by Rs 3.60 crore.
  
• IT is the booming sector and had corrected quite a lot in recent past.

Caveats

• I am not sure why there is offloading of shares in recent few days, may be operators booking profits ?
  
• Last Friday this has tanked to yearly low of Rs. 26 , may be investors not supporting the acquisition ?

 

[columbus]

Hi,

Caveats

• I am not sure why there is offloading of shares in recent few days, may be operators booking profits ?
  
• Last Friday this has tanked to yearly low of Rs. 26 , may be investors not supporting the acquisition ?

I am not in favour of VITL INFO for the following reasons:

1.Small IT scrips are no longer favourites of the market.
2.It does not have GREAT fundamentals.
3.Operator activity is seen here.Last 7 trading days have seen HUGE
volumes. (with fall in price)

 

[MurAtt]

This is a story repeated oft. Especially small firms and mainly IT space.

Why IT? Because there values are intrinsic and not physical so promoters and manipulators can get away with any pricing and funny projections.

Announcements are made so that unknowing/newbies etc are lured into the scrip and then the promoters/manipulators shell off the equity to those unknowing ppl.

Many scrips always are in a range - check them out. They are awesomely below value like 1rs, 2rs. Then they run off to 20/-, 12/- etc. Some major announcement is given - acquisition/bonus/rights whatever - unknowing ppl expect rise and buy where the shares are offloaded by unscrupuluous ppl into these unknowing to-be investors.

Price goes on moving down down down ....

Same story repeating ... these to-be investors who had bot the shares at higher price start selling at 2/-, 3/-, 5/- 8/- and the manipulators are buying. Price still goes on moving to 12/-. 14/- 20/- and the cycle is repeated ...

Enjoy the rollercoaster ....

 

[findvikas]

Thanks Bros... I am very new to this and that's why I always seek the advice of my expert brothers here

 

[rinku4142]

intresting sales up by 80 % on mar09 but eps fell down by 30% compare to mar08

 

[findvikas]

intresting sales up by 80 % on mar09 but eps fell down by 30% compare to mar08

I like your Tag line and stole it for my Facebook

 

[MurAtt]

Also a possibility that it is now ex-bonus and therefore prices down.
Check it out thoroughly ...

 

[findvikas]

Also a possibility that it is now ex-bonus and therefore prices down.
Check it out thoroughly ...

Yeah I guess you are right... can you also comment on this bhai?
http://www.traderji.com/equities/31556-bonus-share-record-date-vs-stock-price.html