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Feb 19, 2009, 02.48 PM IST
Ashish Chugh, Investment Analyst & Author-Hidden Gems is of the view that can buy Wall Street Finance and hold for a couple of years. The promoters of the company over the past few months have been acquiring shares through creeping acquisition.
Chugh told CNBC-TV18, "Wall Street Finance is a twenty-year old company, which is involved in money changing and money transfer business. The Patel family of
He further added, "Pursuant to the stake sell there are a few developments which have happened in this company, Mr. Sudip Bandyopadhyay of Reliance Money, Mr. SP Talwar who is the ex-Deputy Governor of RBI and Mr. Rajnikant Patel, ex-Managing Director of
"The promoters of the company over the past few months have been acquiring shares through creeping acquisition. They have increased their stake by 3% in the October to December quarter and in January and February also you can see Reliance Money buying on a regular basis as per the various disclosures which they have made to the stock exchange. Company has also been talking about overseas acquisitions and they have convened the EGM for authorizing the board to raise about 60 crore through redeemable preference shares probably those funds will be used for funding the overseas acquisitions."
"If you look at the business, I think this business has got significant entry barriers. This company has got 82 license, which allows it to be a money changer and also permits it to transfer money. Only a handful of companies in
"We donít have complete information on the future plans of the company, the company has not done any investor conference, there are no institutional investors in the company, and the volumes in the stock are very low. I think all these make stock a potential multibagger; these are basically the ingredients which can make this stock a potential outperformer in the future. This stock is probably one of the few Anil Ambani Group companies, which provides the opportunity for the investors to buy the stock at the same price at which Anil Ambani Group acquired the stock in the company. So at this price I think this stock is one which can be slowly accumulated by the investors and held on for at least 3-4 years. I believe that you can gain multifold in this stock."
"Given the current state of the market I donít rule out the possibility of the investors seeing a mark-to-market (MTM) loss also in the interim but that should not deter the investors from offloading or selling that stock. So this is for those who can be patient, can buy and hold for a couple of years."
Action in Wall Street Finance
Jun 19 2013, 16:41
- in FII View
Jun 19 2013, 12:44
- in MARKET OUTLOOK