Wonderful interview by one of my favorite authors
Day: January 31, 2013
Forecasting Folly: Shiv Vani Oil
This post is in continuation of my forecasting folly series (see here).
On Aug 19, 2011 Sharekhan put out a strong recommendation on Shiv Vani Oil stating
At the current market price, the stock is available at 3.1x its FY2013E earnings and an enterprise value (EV)/EBIDTA of 3.3x. We believe the moderation in order inflow has already been absorbed in the stock as the same has corrected by 60% in the last one year and by almost 36% in the last quarter. The stock is currently trading at attractive levels. Hence, we maintain our Buy recommendation on the stock with a price target of Rs340.
The then prevailing price was Rs.166.45.In less than 18 months, the stock has crashed to 62.6 i.e around 20% of the target price announced by Sharekhan !
Forecasting folly, anyone?
There is an earnings conference call on 1st Feb, 2013 which investors may like to attend.
[gview file=”http://www.renukasugars.com/pdf/buzz-renuka/SRS_Earnings%20Presentation_Q2%20FY%202013-Subsidiaries.pdf”]
[gview file=”https://alphaideas.in/wp-content/uploads/2013/01/Phoenix_pr_29012013.pdf”]
A bite out of Apple
Source: A Bite Out of Apple