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 !