Jul 12, 2012, 08.23 AM IST
SP Tulsian, sptulsian.com advice traders to avoid AP Paper and West Coast Paper.
SP Tulsian, sptulsian.com advice traders to avoid AP Paper and West Coast Paper .
Tulsian told CNBC-TV18, “I have always distanced myself from the paper stocks as an investor, but if you take a call on the AP Paper, I don’t think that it has anything to do with the results because results, which we have been seeing for last two quarters post it’s change of management have been very horrible and pathetic.”
He further added, “I don’t think there will be much improvement happening in the Q1 even if it’s difficult to take a call whether the bottom line will be in the red or in the black, but the main reason for this surge is again the buzz of delisting because the promoter International Paper, they are having a stake of 75% and we have seen this type of buzz coming in that, probably they will go for delisting the stock and that could be the trigger for the stock to really move up and suddenly if you see for the first couple of hours the stock was ruling close to about Rs 300-305 and suddenly after maybe about 11 o’ clock it really surged to this level, but for the last one week we have been seeing accumulation happening in AP Paper, but as regards West Coast Paper, which is also about 6% up, there you keep getting the news of maybe the stake sell again by the promoters happening, but I don’t think that those news are having any relevance because the stake sell news was denied by the management in case of West Coast. So I will keep distance away from all other paper stocks, maybe it is risky to play in AP Paper also at the current level from delisting theme, so better to avoid both at the current level.”
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