Just heard some Insipid advise for RPL from ‘Experts’ on UTVi just now!

Two ‘Experts’, one Fundamental and the other Technical were on a Viewers Q & A show right now on UTVi…A viewers question came forth on RPL…”I have brought it at Rs 154,what should I do ?”

Both these ‘Experts’ went into detail on the merits of holding RPL for a One Year Hold !…Insipid Stuff…Guys ! RPL will not be in existence after a Year !….the RPL Price right now merely reflects a 16:1 merger ratio with Reliance Industries…RPL is Rs 125 and Reliance Industries is Rs 2000 !…That’s it !…so it’s a just a Piggy back share right now…It has to be !…what would have served the viewer well would be to explain to him that at his cost of Rs 154 in RPL ,his holding cost in Reliance Industries would be Rs 2464 …Will this Price be reached ,given the Court ruling against them in the RNRL Case ?…The downward effect of this on the EPS will be Rs 20 in FY 11…Despite this short term reaction in Reliance,it definitely will regain strength…It has a 17% weightage in the Sensex and if the Sensex has to move towards 18000 and beyond in the next year or two,it cannot be without Reliance climbing upwards towards Rs 3000 and beyond

Come On Guys in UTVi…I’ve been impressed with all of you…but you do need to vet some of your ‘Experts’ before putting them on your channel…unless ofcourse you’re being dictated by their PR exercise !

2 thoughts on “Just heard some Insipid advise for RPL from ‘Experts’ on UTVi just now!

  1. dear gaurav
    i entered the market in 2006…and past 3 years have been spent reading and making mistakes..since i m not in loss..i take it as a positive…however i wish to build a portfolio of 10 lakhs…planning to buy around 3600 nifty…looking for some undervalued stocks with a potential to be multibaggers…colud u ps sugest? as per my analysis(non structured) gtl infra is a multibagger in making..could u have a look. sesagoa..i bought at 74..but due to indisciline n foolishness sold at 84 and saw the 3 fold rise rueing…at what level can i buy nd how much would u have bought incase u were making a 10 lakh portfoli.
    ps: accept my apologies for inconvenience caused…if any
    regards
    manoj

  2. Hi Manoj,

    Paying Clients would kill me if I generously doled out my selections and ideas and created portfolios on my Blog…It would not really be fair to them

    But you will get great hints and also at times some direct advice on my blog

    What I can tell you is that you’re on the right track with Sesa Goa….only don’t get out too early…it’s like taking a train to Goa from VT but getting off at Dadar ! …..as far as how much exposure in a Rs 10 lakh Equity Portfolio
    you should have in Sesa Goa,I need to know your risk profile,objectives and constraints to decide on a strategy for creating an optimal equity solution that would include Core,Growth,Value and Multibagger potential scrips…Sesa Goa would be categorised as a Growth Scrip…therefore the specific equity premium sought would be relatively higher than Core and Value Scrips

    At what level should you buy?…check out my response in the ‘Stay with Sesa Goa’ Blog,a day or two ago to comments from Nitin,Sayantani and Kamal

    I believe that Concentration of Stocks leads to a superior Portfolio Performance …a Rs 10 lakhs Portflio therefore should not have more than 10 stocks max…preferably 5 or 6 only…If you believe GTL Infra has a great future,include it in your portfolio….and pay attention to appropriate
    weightage

    I hope the Nifty does revert to 3600…Sensex equivalent of just over 12000…lower risk to buy in..next fortnight till budget,these levels may not come as expectations and sentiment should keep the Indices in a buoyant range

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