KAVERI SEEDS & MOTHERSON SUMI

Is it good time to invest in Kaveri Seed and Motherson Sumi for 1-2 years horizon, both have corrected considerably.

 

Both are good stocks. Seems like there are some negative news surrounding them, but they are great stocks which have corrected significantly. I would suggest that you wait 1 more quarter on motherson, so that we can gauge the impact on the revenues from volkswagon loss. It might not become a multibagger from here on, but it will give you solid returns.

 

Well said dinesh ,

you are correct ...both are good stocks , but results numbers will speak every thing ...

no need of hurry to buy these stocks ...slowly acquire stocks according to the results

ALL THE BEST

 

Agree both are good stocks, however one needs to keep the below points in mind:

1. Kaveri - there is a legal dispute with Monsanto on Royalty payments. Company has not accounted for it. Decision is likely to be taken in SC only. If Kaveri looses, the financials will be killed in the year of verdict.

2. Motherson Sumi - has significant exposure in Europe. Right now issues have been identified only in 1 VW model. If there are more surprises in other VW models it will have further impact on the financials.

Best is to wait and go slow on both the stocks......

 

A good stock offers static value when its confronted with short/medium term problems. VW faces this issue currently and has dragged down another good scrip Motherson Sumi.

Now let me give you a perspective

Shares of Citigroup, one of the most powerful bank, hit an all time low of 97 cents in April2009. It is a 95.56% drop from the same period last year. The bank's 52-week high was $27.35 on April 2008 and the stock reached an all-time high of $57 a share on Dec. 2006.

I invested some money in Citibank - arnd ~US 6. Happened to be working for another equally troubled international bank then so was sure that neither could US allow citi to go under and nor would the crisis last forever and Citi had the credentials to weather the storm.

Whats Citi today? It quotes when i last saw it was ~ US 48

This is what i call investing

 

Why i gave citi's example and not another of any other troubled banks like RBS etc is because VW to Germany is what Citi is to US and VW is to automibles what Citi is to Global Banking.

Germany will not let VW collapse and VW is a market leader within the automobile space