Wednesday, February 3, 2010

Get well Soon - U Sleeping Beauty!!!


There is one stock which has been pissing me off continuously for 6 Qtr now. Till now, though I have tracked and traded many stocks, this still remains among my favourites. She is none other than Chandra's daughter, the Sleeping beauty - UNITECH.

I started tracking UT somewhere in Q3, 2007-08 and soon after it touched its life time high of 546.

It was 21-Jan-2008 (no investor can forget this day, who at that time, had at least a single penny invested in the market), when like many others it started sucking up capital in line with crumbling market trend.

Every Qtr, it made new lows and so called market expert kept on drawing funny technical chart for 50/200 DMA.

I said enough to my patience and entered this stock @29-30 towards of end of Nov-08.

As per the If-Else logic (this logic has more history and evidence than Indian Cricket team has of winning) this went down further and a week after touched the life time low of 23.15.

It did recover to some extent but as I quoted, I loved this sleeping beauty and did not even think of selling at break-even price. Finally, somehow, principal of profit booking (actually, minimizing loss) instigated me to sell at 40+.

I was just expecting for the If-Else script to get executed and it happened in a big way with Incumbent Govt. getting absolute majority; UT went past three figures on June 5th, though not on closing chart.

I had to wait for few more months and apparently, price stabilized in the range of 75-80. UT was again part of my portfolio.

Since then, it has never failed to exasperate me with her sleeping beauty.

UT tops the NSE volume chart almost on daily basis, yet the price movement can beat the pace of a tortoise. Sometimes, it remains at .12% up/down for hours. Consistency is just the perfect name coined for UT.

It’s price linearity can make you even think of a World tour and weeks down the line expect UT to welcome you at the same price.

O my sleeping beauty, despite of all this you look attractive sitting at the top of NSE volume chart.

Your collateral strength to re-structure every bit of debt makes me so confident of you.
Your million square foot of Land spread over the tier-1 cities of country makes it worth gleaming.
Your Q3 Thumka (of 29% jump in bottom line & 58% jump in top line growth during same period of previous fiscal) on Y-O-Y basis pushed the realty giant DLF way back in the race.

You, country's 2nd biggest realty firm, were the fastest wealth creator since 2004 with staggering CAGR of 122% (in stock price).
Your network is just getting better with Telenor.

I don't like your EPS or dividend history but with Debt-to-Equity ratio at less than 60%, you give optimism to portfolio.


Highlights from Q3, 2009-10 result:

  • 29.37% jump in net profit at 176 Crore, against 136 Crore during the same period of previous fiscal.
  • Total income increased to 774.46 Crore, against 491.24 Crore during the same period of last financial year.
  • Net Debt-to-Equity as of Dec 31, 2009, stood at healthy level of 0.55.
  • Currently it has 60 projects under construction.

With your latest lovely figures, I just wish................

Get Well Soon, U Sleeping Beautyyyyyyyyyyyyyyyyyyyyyyyyyy!!!

Unitech

Disclaimer:

  • For reader from Tax dept, this only reflects my expectation for sleeping beauty UT. I have no positions through any instrument in any stock mentioned above.
  • Technical details/figures are taken from Goggle Finance, Economic Times and few more financial sites.
  • If-else: Stock goes down if you buy it and move upward if you trade it else way.
     

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