FINANCE & STOCK ADVICE: My View On RS SOFTWARE

About The Company

The company is a software company but a very small company with insignificant position in this field.

About The Results

A tiny software company, it has anyway been between down quite a bit but it was surprising to see that it ended yesterday with a gain of over 3% at Rs.14. Surely, it managed to do this based on the performance of Q3FY09, which YoY has been good but down on a sequential basis. It posted a PAT of Rs.1.60 crore for the quarter ended 31/12/08 and this far exceeds PAT of FY 08, which was at Rs.1.17 crore. But compared to Q2FY09, this was down 6.74%.

There seems to be no correlation between the profitability over the quarters, as also in regard to EPS stated by the company, for various periods. For FY 08, on equity base of Rs.744 lakhs, with PAT of R.117 lakhs, EPS is stated at 16 paise, while for September 08 quarter, on PAT of Rs.178 lakhs, EPS on equity of Rs.744 lakhs is stated at Rs.2.18. And now for the Dec quarter the EPS is at Rs.2.02.

The sole aim of the company is to create sensation by publishing its quarterly results with blocks of “Net Profit up 100 times” etc. The sole aim of the promoters of the company is to have market operations and to trap the investors at the higher levels. Share now ruling at Rs.14 had its 52 week high of Rs.41 and Rs.10.90 and when established mid cap I.T. companies are available at a PE multiple of 3 to 4 times, who would be interested in these manipulative stocks?

At especially such time, it is best that the management refrains from indulging in these gimmicks and also for the investors to take a fundamental view on the stock.

About The Stock

Any investment at this point of time in such company is not recommended.

Disclaimer : I do not have any personal holding this 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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My View On RS SOFTWARE