Friends, I am going to give a non-technical view on this even though I believe in TA. Reliance is not a stock to think twice by doing any analysis. This is a Blue Chip Stock in GROWTH mode at CLEARANCE prices.....Just buy in SIP mode in 2008 and hold for a long long time to come. This will save a lot of effort, and allow you to sleep comfortably knowing that you will acquire the desired quantity over the rest of 2008 at a pretty good average price point (up and down).
I follow technicals closely for my stocks, but I would definitely advice to own this stock if you do not have any in your portfolio based on FA. The fundamentals on it are too strong, the sector it represents is too hot and the management is A-1 aggressive. At some point in the future, it will become like GE (in the US), which has 17-20 different units that negate each other in any given quarter/month, and hence the stock price of GE has been in the $30's for 5 years!
But, this answer/response has no reflection on the work, suggestion or idea that Spandanbhai is suggesting below.....I'm just taking a 'total fundamental' view on this stock.
ps: I am an original holder of Reliance Group shares and a BIG believer in the management.
KKP
Spandan Joshi wrote:
Dear Friends,
Yes, so true, multibagger is just around.
It has a history which can not be matched to any other stock's history.
What it says is as follows.
Can you hold me for a little longer? I can give you a lot more.
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Thus I have seen people who never sold it.
That is the power of that script.
It's name is Reliance Industries.
PE=17
Book value=542
Dividend=130%
Almost all MFs held it
CMP=2247 on 5th June
EPS=131
52 week hi=3292
52 week low=1248
One year % earning on stock price=29% (1700 Rs) As per today on 5th June 2008
Two year % earning on stock price=142% (962 Rs)
Three year earning on stock price=304% (557 Rs)
Four year earning on stock price=418% (425 Rs)
Five year earning on stock price=621% (303 Rs)
Six year earning on stock price=720% (274 Rs)
It follows technicals so perfectly that mirrors BSE sensex movement in many ways. If you either take Technicals or Elliott's, it is perfect.
If you have bought one script 6 years before, you would have earned 720%. This is if you haven't sold it, otherwise it touched 3290 so you could have earned nearly 1200%. (From 274) This is 200% per year.
I have never ever seen ISGians buying or selling RIL. (Or I might have missed it)
I recommend this script from the bototm of my heart. Needless to say, that you can hold it as long as you can. Always remember the title. (Can you hold me for a little longer? I can give you a lot more)
What would be a price to buy?
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1950/1965 and below as it is in a severe downmove mode. This is a correction of last 7/8 years. This is an opportunity of a decade.
It may go down, acording to Elliott's to 1800/1850 rs. There is a rare chance that it may correct to a level of 1400. (Approximately)
These numbers are not absolutely perfect so can't be taken very strictly but still have capabilities to guide all of us reasonable well.
What is PE of L&T? 35+, NTPC? 20+, BHEL? 30+ and RIL 17, Oh really? How come I missed RIL then? (PE may not be a terrific mesure but for all BSE sensex scripts, if you mesure one with it, you mesure all with it then....so Can't argue)
RIL is simply, must in the portfolio at this juncture. (Of course at an appropriate level and for LT)
I know lot of us may say: Oh I know. But how many got RIL? How many got it in their shopping list? It's not late. Time is coming soon to get this super script.
This post is not to challenge or to taunt anyone. Please, take it as it is written.
I invite Inder to come up with some charts and technicals. His help would be vital. I also invite ISGians to comment and help on levels. I have been studying it for now good 9 days. (On and Off) I will also try to post some Elliott's on it, if time permits to derive some levels to buy. Suddenly it is now on top of my buying list.
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