FINANCE & STOCK ADVICE: CHEMCEL BIOTECH A DANGEROUS IPO

Chemcel Biotech is debuting the capital market on 9^th September 08, with a public issue of 1.54 crore equity shares of Rs.10 each at a premium of Rs.6 per share, with total issue price of Rs.16 per share, accumulating a sum of Rs.24.64 crores.The company is a pesticide formulator manufacturing pesticides for crops and had a total income of Rs.25 crores for FY 08 with PAT of Rs.1.20 crores, resulting in an EPS of less than 50 paise.

The company has managed to get its IPO subscribed from closed sources and the said source or operator is from a nearby hill station of Mumbai. The stock is likely to witness huge momentum post listing, and it will help the said operator to jack up the price of the stock after listing, if it does not receive any public response. So, interested to have negative analysis and rating on the stock.

Rightly so, the stock has no fundamentals at all. The company is entering into bio-diesel field but nothing seems to be attractive. The huge equity base of Rs.26 crores would be a big dampner.

Nothing attractive in the stock while having necessary momentum and speculative ingredients in it. Those who have inclination to ride the momentum may get attracted towards the issue.

MY VIEW :ONE SHOULD NEVER OPT FOR SUCH DANGEROUS STOCK.

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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CHEMCEL BIOTECH A DANGEROUS IPO