It needed a leading Broking House to liven up and entertain us and provide a chuckle while the markets swing around !
On May 31,2010 this Broking House gave a Fundamental Call Report to ‘Sell’ Punj Lloyd at Rs 137 with a down target of Rs 97
On the same day the ‘Private Client Group’ arm of the same Broking House released a Fundamental Call Report to ‘Buy’ Punj Lloyd at Rs 137 with a target of Rs 158
True Divisional Autonomy or Plain Foolishness…Call it what you will !…but such conflicting advice on the same day…same basis…same Broking House….pity the Clients !…am sure there would be a common set of clients that would have received both reports…equally sure they must have queried the Broking House on this !…not good for business and if such conflicting views continue to be disseminated from the same Broking House,clients may just vote with their feet and take their business elsewhere
Incidentally, on January 9,2009 when the ‘Simon Carves’ issue erupted and Punj Lloyd had to overnight bear a 28.5 million pound => Rs 250 crs cash outflow as the Bank Guarantee was enforced by SABIC,I had blogged on the sudden cash outflow impact…it was quoted at Rs 160 levels in the first few days of January 2009…opened at Rs 136 on January 9,2009 and fell to Rs 114 same day….check this blog archive out
But as our markets recovered,so did Punj Lloyd…the Share Price flew past 225 in June 2009…and today it’s halved to the same levels of Rs 116 as on January 9,2009…many are making it a contrarion call…others see an unfolding disaster in the share price yet….when in doubt,stay out !