Pioneer Emb

CMP 46.50

Think one can buy and hold for good rewards

 

Hold long or short term?

 

Medium to long term

 

@good stocks I think its already surged more than 100% in last months, do you suggest buying it now even.

 

Today stock is down 4%. Volume is very high. It is microcap with 88 cr mcap.

 

can we buy @ current price?

 

@good stocks can we buy @ current price?

 

The scrip has supports at 47.60 and 43.Can accumulate for much higher levels of about 100--110 in the medium to long term. THIS IS MY PERSONAL OPINION.One has to maintain a lot of patience.Stoploss could be 36 on closing basis

 

Now @56.45

 

Scrip rallied from 46.50 to 59.50 today

 

Great Pick good stocks

 

Can we still hold for long mere bhai?

 

Looked at the fundamentals, my observations:
Pioneer Embroideries was clocking net loss till 2014 and they turned profitable in 2015.
PEmb's ROCE and ROE are very low (minus for many years) and not of investment grade (i am not saying it cannot be speculated as early signs of turn around).
The Debt Equity ratio is 0.81 which is good.
The P/BV is < 1 which is also good.
The Sales over last 5 years is slowly increasing - a good sign.
Current PE ratio is 3.5 which is very attractive.
During 2005 company announced bonus 1:2 (record date Oct.2015)
No dividends after 2007
A big minus point (for me) is that the promoter has pledged 68% of their shares.
As per 2014 annual report, their Dope Dyed Polyster Yarn(DDPY) division made profit and the Embroiedery and Laces division made losses. However the Management was optimistic about future as they could reduce losses gradually from 2011 to 2014.
Surprisingly the annual report for 2015 is not available on Money Control.
Most optimists can take a chance (take risk) and try to make money (not guaranteed).
What I would do: I will wait for another quarter to observe their performance. By then the price may go up but still I would wait for reducing my risk.
I would like to receive others comments.
Thanks

 

thats true, you may buy some and can average if you like after reviewing next quater. how does that sound?

 

This is a great turnaround story....look at the debt - it has been reducing quarter on quarter. Sales are rising. The company has opened new branches in London and US and the signs are very positive. If not Q3, Q4 will be excellent. A strategy where you buy 2X numbers right now, prior to Q3, the stock will surely go up by another 15% - 20%, at tht time you sell off X number of shares - your then holding will be less than current price and you still will have the number of shares you would have bought now.

 

20% U C at 69

 

Better to book profit now or at reasonable levels - might be in over bought zone

 

As expected the scrip came down a bit to 68 , succumbing selling pressure after touching 71

 

can we buy in correction for long term?

 

Supports at 61--55-and 50 --see where it takes support and buy