Here is an act that I normally do not recommend - but I must confess that I am thinking about it.
To buy or not to buy India cements stock - the stock has gone down due to bad news from IPL. The stock has fallen from Rs. 87 to Rs. 71.5 in tha past 5 days -about 18%.
I believe that this price drop is reactive and I believe that there is an opportunity - a short term opportunity - over time I believe that the stock will stabilise at it's 200 day moving average of around Rs. 85 - but right now the stock is down.
The likely scenario that will play up is the Srinivasan will survive as the BCCI head -till his term ends. Plus India Cements as a company is doing steady even though the cement industry is not doing well overall. Plus this year's IPL is almost over and all the revenues and costs would be accounted for till the next year.
So is the market reaction justified?
Well take you call. I am just trying to seed a thought in your mind right now.
If you have any data /views on this issue - please do give me your comments in the area below
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I think It's a great idea. Also its safe because even though the Owners are under a scanner, the actual worth of the team CSK has increased more than any other team, so ultimately even a sell off will fetch them a huge chunk.
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