Feb 22, 2012, 06.08 PM | Source: CNBC-TV18
SP Tulsian of sptulsian.com spoke to CNBC-TV18 about certain stocks that are on the move. Check out his comments.
SP Tulsian (more)
CEO, sptulsian.com | Capital Expertise: Equity - Fundamental ,IPO
Q: What have you made of this 17% downtick that we have seen on United Spirits ?
A: All stocks of the UB Group are down, and in my view, this should be used as a buying opportunity because I think Kingfisher Airlines and United Spirits are swinging with news flow. With the rejection of the I-T department request for de-freezing account, you have seen the negative on Kingfisher and the market is so apprehensive that they presume that having pledged everything by Kingfisher Airlines’ holding company, UB Holdings of United Spirits and United Breweries are also at a risk. That could be valid to an extent. However, one should look at overall scene that the Group will definitely be forced to take some corrective measures with respect to Kingfisher Airlines, otherwise their entire operations, whether you talk of United Breweries, the largest beer-maker, United Spirits, the largest spirit-maker, will come at risk. So in my view, this fall should be used as a buying opportunity, but not as a trader, rather more as an investor.
Q: It does appear that Reliance Communication ’s FCCB has been passed through. They got the approval from the RBI, they have tied-up with the Chinese bank and that stock is down about 9%. What's the concern on that how would you approach it?
A: If you take a longer call, may be with a view of next couple of months, I hold it positive. However, we have been seeing liquidation of long positions. In fact, this news was very much there last week, and riding on that news, the stock has gone up so much to about Rs 115. This is the long liquidations which we have been seeing in the stock. The stop losses are getting triggered; may be there was lot of euphoria on the stock and in all the trading and momentum kind of stocks. I don’t think that news of refinancing of the FCCB by three Chinese banks which have come just now is really going to help the stock because it has more to do with the technical forces ahead of the expiry where we are seeing the long liquidation. So that can make the stock correct even further to about Rs 90-92.
Q: Any thoughts on Firstsource that’s been a big mover this entire week?
A: We have started hearing that probably the stake sale will happen by ICICI Bank and we have been hearing the top two IT companies of the country are in the race to acquire it. I am hopeful that something is going to come out, but the kind of run up which we have seen and the short term investors also have come in into the picture, so you need to take a longer term view. Every dip should be used as a buying opportunity, Rs 11-12 could be a very good entry point, and if somebody can keep a view of may be next couple of months, they can see a price of anywhere between Rs 16-18. So, on a relative basis, this stock can effectively give a return of 40% in next couple of months.
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