Updated View on Provogue as of 01-July-2012 : (Closing out New Positions @ 15.4-Gain of 30%)
http://rupeeneversleeps.blogspot.in/2012/07/updated-view-on-provogue-as-of-01-july.html
I have been a close follower of Provogue but have changed my views over the last few weeksost results and looking at its balance sheet.
I think its prudent to share it as i have my bullishness.
Note:
This is only for investors who have followed my view on Provogue since Feb 2011.
The Sell is for investors who have added following that.
Primarily stock is good but we have reduced exposure considering various parameters
1) Provogue's a good Business even at current price of 15.
2)If i was a promoter would have bought out and delisted
3)Reason for change in View (important)
a)Bought other mispriced stocks
b) Recent results were pathetic and Empty stores on few surveys across stores.
I have reduced my bullishness on Provogue since i last wrote Multibagger @ 12 levels. and continue to hold only older positions.
Our initial cost on Provogue pre-demerger stood at 24.
so if i split at half between Provogue and Prozone each stands at 12odd. (Assigning Base of Rs12 for Prozone)
Yet i was looking on the Market Cap basis and it continues to look cheap on that.
But on free cash flow basis it was far more disappointing looking at its Balance sheet this FY2012.
On Top RESEULTS WERE Pathetic
I am yet to go through the annual report but the fresh buy as of May 2012 stands close as of 01- July @ 15.4 (again a Gain of 30%)
FDI in Retail is not going to change much immediately, However PHYSCOLOGICALLY stock would move to around Rs20 and at these levels we are looking to sell half of our pre-Demerger positions.(effective adjusted gain of more than 50%)
.
Again i Repeat the rise seen is these stocks is not structural as RBI Has not budged on the rates and is purely Driven due to GLOBAL RISK-ON.
Hence taking partial profits is advisible. 30-50% in two months is a no brainer
http://rupeeneversleeps.blogspot.in/2012/07/updated-view-on-provogue-as-of-01-july.html
I have been a close follower of Provogue but have changed my views over the last few weeksost results and looking at its balance sheet.
I think its prudent to share it as i have my bullishness.
Note:
This is only for investors who have followed my view on Provogue since Feb 2011.
The Sell is for investors who have added following that.
Primarily stock is good but we have reduced exposure considering various parameters
1) Provogue's a good Business even at current price of 15.
2)If i was a promoter would have bought out and delisted
3)Reason for change in View (important)
a)Bought other mispriced stocks
b) Recent results were pathetic and Empty stores on few surveys across stores.
I have reduced my bullishness on Provogue since i last wrote Multibagger @ 12 levels. and continue to hold only older positions.
Our initial cost on Provogue pre-demerger stood at 24.
so if i split at half between Provogue and Prozone each stands at 12odd. (Assigning Base of Rs12 for Prozone)
Yet i was looking on the Market Cap basis and it continues to look cheap on that.
But on free cash flow basis it was far more disappointing looking at its Balance sheet this FY2012.
On Top RESEULTS WERE Pathetic
I am yet to go through the annual report but the fresh buy as of May 2012 stands close as of 01- July @ 15.4 (again a Gain of 30%)
FDI in Retail is not going to change much immediately, However PHYSCOLOGICALLY stock would move to around Rs20 and at these levels we are looking to sell half of our pre-Demerger positions.(effective adjusted gain of more than 50%)
.
Again i Repeat the rise seen is these stocks is not structural as RBI Has not budged on the rates and is purely Driven due to GLOBAL RISK-ON.
Hence taking partial profits is advisible. 30-50% in two months is a no brainer
No comments:
Post a Comment