Possibilities of merger arbitrage exist. If the share price of one of the smaller cos goes too low, and if you are willing to short 1 lot of Tata Steel and buy the equivalent (post merger) amount of the smaller co, then ideally it should work out. As with other risk arbitrage plays, the real risk is if the merger doesn’t go through. The reverse trade doesn’t work because you can’t trade FnO in any of the smaller cos, so there’s no way to short those.
Posts in category Value Pickr
Tata Steel – Would be merger be of any value? (24-09-2022)
Possibilities of merger arbitrage exist. If the share price of one of the smaller cos goes too low, and if you are willing to short 1 lot of Tata Steel and buy the equivalent (post merger) amount of the smaller co, then ideally it should work out. As with other risk arbitrage plays, the real risk is if the merger doesn’t go through. The reverse trade doesn’t work because you can’t trade FnO in any of the smaller cos, so there’s no way to short those.
SmallCap Hunter : Trying to find the dark horses with triggers (24-09-2022)
Your observation is 100% correct as our module manufactures do not have technological advantage unless there is technical tie up.
Caplin Point Laboratories (24-09-2022)
Caplin’s aim is “The top line of FY 2021-22 will be the bottom line of
FY 2027-28”. Top line for Fy22 was Rs. 1,300Cr.
Assuming the company achieves the above, and assuming a P/E of 20, the market cap could cross Rs 25,000Cr. Thats over 4x from current levels.
Most companies in Pharma sector which have healthy return ratios, are debt free, healthy free cash flow generation trade at higher valuation. Caplin has a potential to give 4-5 times returns in the next 6-7 years. Thats an interesting opportunity.
What am I missing?
Piramal Enterprises Ltd (24-09-2022)
Found very useful to find out my PPL shares
Bharat Electronics Limited (BEL) – Investment & Warfare (24-09-2022)
Will delete post in sometime.
received msg from NSDL for bonus credited on Sep 23 but I don’t see anything in icicidirect account. other demat services has already credited. any ideas how it can happen?
StageInvesting +Elliot Waves (24-09-2022)
Hi@stageinvesting …used to enjoy your posts a lot in a silent mode. They were so insightful and different from everyone else. Don’t know why you have stopped writing, hope everything is good at your end.
I am an old man, having 25 years of investing experience. These days don’t write or trade much due to health-related issues.
I GOT the following article on a WhatsApp group …it was on the same website that you used to refer to in the past. I found it interesting and learned a few new things. Thought of putting it in your thread as it is in line with your market views that you wrote 2-3 months back, will request your views on the same. Hope they are still the same as the market seems to be playing in that direction.
Hitesh portfolio (24-09-2022)
Hitesh Bhai - Thanks for helping everyone. It really takes a lot of time, energy, and effort to explain everything.
One question: What is the % ge cash in your portfolio now?
Momentum Portfolio-TechnoFunda Picks (24-09-2022)
So now the worst phase of the bear market has statrted … came to 90% cash last week.
Sona Comstar BLW – Direct EV Play (24-09-2022)
“Company’s global OEM customer portfolio includes a Global OEM of EVs, a North American OEM of PVs and CVs, Ampere Vehicles, an Indian OEM of PVs, CVs and EVs, Ashok Leyland, CNH, Daimler, Escorts, Escorts Kubota, Geely, Jaguar Land Rover, John Deere, Mahindra and Mahindra, Mahindra Electric, Maruti Suzuki, Renault Nissan, Revolt Intellicorp, TAFE, Volvo Cars and Volvo Eicher. They also serve selected leading Tier 1 automotive system suppliers such as Carraro, Dana, Jing-Jin Electric, Linamar and Maschio.”
Found this from their IPO note: https://www.lkpsec.com/Admin/Research/637590324079590621_Sona-BLW-Precision-Forgings-IPO-Note_LKP.pdf