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Sunday, 19 February 2017

Advice on JP Associates Ltd

Although this FnO stock has risen 50% in few days, I feel this is the beginning of real Achche Din ( not political dialogue, we mean it) for JP Associate and it's shareholders. Many more big developments in pipeline to enable co reduce its Debt total by 80%. Mkt value of its assets/ investments can be 6-8 x total existing debt. Promoter didn't siphon off money. But entire biz spread over verticals which are capital intensive and long gestation period. Created multi faceted multilocation biz empire but did not delegate mgtmnt to professionals, leading to inefficiency. However, promoter realised that he had overstretched and now, doing sincerely his best to reduce debt to reasonable levels ( by disposing off few businesses values of which have grown multifold)
If plan of promoter to bring co back from brink sails through ( and it will), stock can be 50-80 in 2018.
In mkt, analysts tend to swing between irrational exuberance/ optimism to unwarranted pessimism

_An optimist sees Green Light everywhere. A pessimist sees Red light everywhere. Wisest is the color blind_

We can only advise our followers:

A. Not to sell for 12-18 months if holding in cash . *Can add more even at cmp*

B. *If holding in Future, keep on rolling for few months*

C. *Options: Can take fresh position once out of ban*

We expect some major announcement in very near future which can take its share price up by 20-30%

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