Get in when the technical indicators show things look right, grab as much as you can, and get out, always being conscious of resistance and support. Stocks heading into splits can be highly volatile and can turn on you quickly. Don't let good profits disappear. Watch for turns, especially when a stock trades in a wide range and finishes off its high. That is a sign these stocks often give you that they are running out of steam. Remember, wait to see the stock start to move up. Don't just blindly make a play and don't try to guess tops and bottoms. We can look at indicators to give us a clue as to what will happen, but we need the stock to confirm it for us.
Credits: Larry @ Stocks2Watch® ABOUT THE AUTHOR: Larry Potter is a recognized authority on the subject of trading and has been publishing his newsletter, Stocks2Watch®, since January of 1998.
The record date for Sanghvi Movers stock split has been fixed as 30 August 2007. Shareholders of Sanghvi Movers who’s names appear on the register of shareholders of Sanghvi Movers on 30 August 2007 will be eligible for the stock split. The ratio of the stock split is 1:5 (1 share of face value Rs. 10 each will be split into 5 shares of face value Rs. 2 each).
Jai Corp was locked at the 5% upper circuit of Rs 5580.45 at 10:54 IST after its board approved a 1:1 bonus issue. The announcement was made after market hours on Thursday, 9 August 2007. The BSE Sensex, meanwhile, was down 354 points or 2.39% to 14738tracking fresh setback in global markets. Asian stocks tumbled acrossthe board on Friday as credit jitters flared up, after France's biggestlisted bank BNP Paribas on Thursday, 9 August 2007, froze three fundsthat invested in US subprime mortgages On BSE, 22,993 shares were traded on the counter today. The scrip hadan average daily volume of 12,817 shares in the past one quarter. The shares of the mid-cap diversified company hit a high of Rs 5580.45,its all-time high for the scrip, and a low of Rs 5300 so far during theday. It had touched a 52-week low of Rs 275 on 21 August 2006. Jai Corp had risen 72.12 % over the last one month to 9 August2007 compared to the Sensex's gain of 1.27%. It had outperformed themarket over the past quarter, rising 182.75% compared to the Sensex'sgain of 9.45%. The scrip had climbed 71.02% from a recent low of Rs 3107.60 on 25 July2007 to Rs 5314.75 on 9 August 2007 backed by the company's decision tosplit the shares and to consider bonus issue. The company's current equity is Rs 8.63 crore, with 86.3 lakh outstanding shares of a face value of Rs 10. The current price of Rs 5580.45 discounts its Q1 June 2007 annualised EPS of Rs 157.78 by a PE multiple of 35.36. On 31 July 2007, the board of directors had approved thesub-division of the equity shares from existing face value Rs 10 pershare to a face value of Re 1 per share. It also approved increasingthe limit for investment by foreign institutional investor (FIIs) to49% of the paid-up equity capital. Jai Corp reported net profit of Rs 34.04 crore in Q1 June 2007 asagainst net loss of Rs 6.13 crore in Q1 June 2006. Sales declines37.76% to Rs 51.20 crore in Q1 June 2007 over Q1 June 2006. The company operates in three business segments: steel, plasticprocessing and spinning. The steel division manufactures coils andsheets. The plastic processing division manufactures woven sacks andfabrics. The spinning division is involved in the manufacturing ofspinning yarn.
Anant Raj Industries was down 2.84% to Rs1190 at 11:53 IST ahead of its board meeting today, 10 August 2007, toconsider a stock-split. The BSE Sensex, meanwhile, was down 410.62, or 2.72%, to 14,689.53,tracking fresh setback in global markets. Asian stocks tumbled acrossthe board on Friday as credit jitters flared up after France's biggestlisted bank BNP Paribas on Thursday, 9 August 2007, froze three fundsthat invested in US subprime mortgages. On BSE, 3,331 shares of the scrip were traded. The stock had anaverage daily volume of 8,535 shares on BSE in the past one quarter. The shares of the mid-cap construction firm and tile maker hadtouched a high of Rs 1278.80 and a low of Rs 1172.35 so far during theday. It had hit a 52-week high of Rs 1474.90 on 7 December 2006 and a52-week low of Rs 685.10 on 9 August 2006. Anant Raj Industries had fallen 4.87% in the one month to 9 August 2007versus the Sensex's 1.27% drop. It had added 7.35% in the past threemonths against the Sensex's 9.45% return.
Stock split: Modison Metals has fixed 10 August 2007 as the record date for thesub-division of 1 equity share of Rs 10 each into 10 equity shares ofRe 1 each.
State Bank of India had moved up 1.94% to Rs 1714.50 at 10:41 IST on reports that it is planning a stock-split. SBI had gained 8.50% in the one month to 6 August 2007 versusthe Sensex's 0.41% drop. It had added 55.51% in the past three monthsagainst the Sensex's 8.26% return. At the current price of Rs 1714.50, the scrip trades at a PEmultiple of 15.82 based on Q1 June 2007 annualised EPS of Rs 108.36. As per reports, State Bank of India (SBI) may announce astock-split and follow-on public offer simultaneously in the next fewmonths. The bank aims to generate liquidity for its share whose valuehas gone up considerably. Post-split, face value is likely to be Rs 1or Rs 2 per share. The bank is also planning to split the shares of some of itssubsidiaries. SBI has seven associate banks of which three – State Bankof Travancore, State Bank of Mysore and State bank of Bikaner &Jaipur – are listed. During market hours yesterday, 6 August 2007, SBI announced areduction as well as hikes in deposit rates based on maturities,effective 9 August 2007.
The bank has cut the deposit rate for one year to less than two yearsto 8% from 8.25%. Simultaneously, it hiked the rate on deposits for 271days to less than a year to 6.75% from 6.50%. The bank has introduced a new band - three years and up to 10 years - with an interest rate of 8.50% as against the earlier five years and above rate of 8.25%. Net profit of SBI rose 78.5% to Rs 1425.81 crore on a 27.8% increase in operating income to Rs 12229.09 crore in Q1 June 2007 over Q1 June 2006. Government of India holds a 59% stake in SBI.
Unitech had surged 4.11% to Rs 558.85 at 15:45 IST after its shareholders approved a 1:1 bonus. The BSE Sensex, meanwhile, was up 290.08 points, or 1.90%, to 15,550.99. The company made the announcement during market hours today, 31 July 2007. On BSE, 14.68 lakh shares of the scrip were traded.The stock had anaverage daily volume of 12.45 lakh shares on BSE in the past onequarter. Unitech had touched a high of Rs 566 and a low of Rs 529.50 sofar during the day. It had hit a 52-week high of Rs 623.60 on 29 May2007 and a 52-week low of Rs 187 on 1 September 2006. The stock had tumbled 4% to Rs 536.80 yesterday, 30 July 2007,despite the company reported 370.5% rise in net profit in Q1 June 2007during market hours yesterday, 30 July 2007. The scrip of India's third largest construction firm in terms of saleshad gained 6.39% in the one month to 30 July 2007 versus the Sensex's4.17% return. It had added 27.37% in the past three months against theSensex's 10.01% appreciation. The company's equity capital is Rs 162.34 crore, with 81.17 crore outstanding shares of a face value of Rs 2 each. At the current price of Rs 558.85 the scrip trades at a PE multiple of 32.60, based on year ended March 2007 EPS of Rs 17.14.
Valecha Engineering had dropped 6.3% to Rs 290.75 at 12:18 IST on profit taking after its board recommended a 1:2 bonus. The BSE Sensex, meanwhile, was up 33 points, or 0.22%, to 15,297. On BSE, 1.27 lakh shares were traded on the counter today. The scriphad an average daily volume of 40,027 shares in the past one quarter. Valecha Engineering had hit a high of Rs 321 and a low of Rs290 so far during the day. It had touched a 52-week high of Rs 325 on30 July 2007 and a 52-week low of Rs 136 on 8 August 2006. The scrip of the construction company which undertakes turnkeyprojects had risen 19.4% over the last one month to 30 July 2007compared to the Sensex's return of 4.17%. It had outperformed themarket over the past quarter, rising 42.98% compared to the Sensex'sgain of 10.01%. The share price had declined 5% from Rs 313.85 on 12 July 2007 to Rs298.15 on 20 July 2007. It had bounced back to Rs 310.55 on 30 July2007. The company's current equity is Rs 7.95 crore, with 79.5 lakh outstanding shares of a face value of Rs 10. The current market price of Rs 290.75 discounts its Q1 June 2007 annualised EPS of Rs 17.96, by a PE multiple of 16.18. Valecha Engineering announced before market hours today, 31 July2007, that the board of directors of the company at its meeting held on30 July 2007 had recommended a bonus in the ratio of 1 share for every2 shares held. The company's net profit rose 47.5% to Rs 3.57 crore in Q1 June2007 over Q1 June 2006. Sales soared 79.1% to Rs 93.39 crore in Q1 June2007 over Q1 June 2006. On 18 April 2007, Valecha Engineering said it had bagged newprojects worth Rs 100 crore. These projects include road works at NewDelhi, Punjab and Arunchal Pradesh and construction job for Delhi MetroRail Corporation. This takes its order book position close to the Rs1000- crore mark. Valecha Engineering has over the past undertaken turnkey projects forhighways, bridges, canals, tunnels, dams and commercial real estate aswell as for airports.
