United Breweries at Rs 86…Indiabulls recommends to sell…Reliance Capital Mutual Fund buys into it !

It’s not that Reliance Capital Mutual Fund always does exactly the opposite of what Indiabulls recommends !

United Breweries (UB) was recommended to sell at Rs 90 by Indiabulls with a target price of Rs 70,citing high Leverage and margin pressures

Reliance Capital Mutual Fund and another Fund,Indea Absolute Return Fund ,actually went ahead and purchased 1.5 million shares and 1.3 million shares respectively of UB on February 27,2009,last week for Rs 75 in Bulk Deals of Rs 11.25 crs and Rs 9.75 crs respectively 

It’s just that the Beauty of Equity and Diverse Views in it come into Focus…with such mixed view,who do you follow !?…..Follow what you have conviction in and what appeals to you rationally and logically…Some basic sense of Earnings and Assets Valuation is warranted as Share Price is often skewed around this….. this will also help you to do some of your own basic homework and basic research to build up a well informed view with better conviction.

 

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