When the Russia/ CIS problem broke out, everyone deserted JB Chemicals and it tumbled like a ton of bricks. However, Daljeet Kohli, a long-term believer in the stock, stood firm. He implored investors to “Take Advantage Of Russian Crises To Buy JB Chem For 50% Gain”. He emphasized that all fundamental factors are in favour of JB Chemicals and that the Russia/ CIS crises is/was a temporary one which would soon blow away.
G Chokkalingam of Equinomics Research also adopted a no-holds barred approach with regard to JB Chem. “We are aggressively buying JB Chemicals” Chokkalingam announced. He explained that the fact that JB Chemicals is available at 10 PE on one-year forward earnings basis and that it is sitting on a cash pile of Rs 500 crore makes it a no-brainer stock.
Today, both stalwarts were rewarded for their conviction in JB Chemicals because the stock surged 17%. It ended the day at Rs. 258, 14% up.
Now, all eyes are on JB Chem’s quarterly results. Will it report block-buster results? Or will it announce a use for the cash balance of Rs. 500 crore? We have to wait and watch and see whether the stock will surge to yet another all-time high.