ISMT behaved exactly as I said (see below advice on Aug 27). It dipped to 48 and then today it has climbed back to 65 today. Congratulations to those who had bought at my recommended entry price.
SHORT TERM CALL: Buy ISMT at 64-65 for a short term 3-4 weeks target of 70-72. Book profits on reaching target.
From: POWERFULPICKS Sent: Friday, August 27, 2010 3:50 PM
To: P S JAIN Cc: powerfulpicks@yahoogroups.co.in
Subject: [pp] Advice on ISMTLTD
ISMT: Q1 sales were good, but expenses were too high. This may go down in Q3 and Q4, as the company starts using captive power and will not need to take care of salary revisions etc. But raw material costs will be much higher. So sales will be higher, but profit will taper off. Can hope for a 10-12% rise in EPS over previous fiscal year. Technically the stock has a bell shape on its candle stick pattern and may correct to 47 in the short term. However, it should rebound from those levels gradually to scale back to 63 in the medium term. So hold. You may buy some more at 47-48.
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