Members Login
Username 
 
Password 
    Remember Me  
Post Info TOPIC: Investment experts on the IPOs


Member

Status: Offline
Posts: 2289
Date:
Investment experts on the IPOs
Permalink Closed


http://news.moneycontrol.com/india/news/iposwot/airdeccan/deccanaviationclearlyexitnikhilgarg/market/stocks/article/219500


Deccan Aviation clearly an exit: Nikhil Garg 
 
2006-06-12 11:12    
   
 
 Nikhil Garg of Edelweiss Capital believes that as compared to Deccan Aviation, Jet Airways or Spicejet is a better option.


Deccan Aviation will take atleast 6-8 quarters to show better performance. He advises investors to exit the stock if there is a bounce in the stock above the issue price.


Excertps from CNBC-TV18's exclusive interview with Nikhil Garg:


Q: Deccan Aviation - Rs 148, where do you see it listing?


A: I think it would list near to the issue price. But as with other stocks, it should also come off a bit.


Q: Just a bit or quite a bit?


A: Maybe quite a bit. Its other peers- SpiceJet and Jet Airways have corrected by 20 30% in the last three-four days. So we can expect a similar correction in Air Deccan as well.


Q: What is your call on the stock, if indeed it gives you little bit of a bounce, exit or stay invested?


A: Clearly an exit.


Q: At what price would it become tempting? If for sake of hypothesis it goes down close to Rs 125, would that be attractive, or not even then?


A: I do not think so, we do not like this stock because we do not like their business model. It will take at least six to eight quarters for them to perform, so I would rather invest in this stock maybe one-one and a half years down the line. I will not buy it at any price.


Q: You are saying that at Rs 650 Jet is perhaps a better option than Deccan at Rs 146?


A: Yes, it is and Spice Jet too. SpiceJet has also come off quite a bit. As compared to Air Deccane,  especially if one looks at the low cost carrier, LCC, space then Spice Jet is close to breakeven. It has already achieved a breakeven at EBITDA level and probably in the next two-three quarters, it will achieve a breakeven at net profit level also. So I strongly say that if anybody is investing in Air Deccan, then they should switch over to SpiceJet.
 
_______________________________________________________________________ 


http://news.moneycontrol.com/india/news/marketoutlook/airdeccan/aviationspacenotfavoredsectorilfs/market/stocks/article/219653/0


 Aviation space not a favored sector : IL&FS
 
 
 
 2006-06-12 16:34   
 
  
 
  
 
 R Sreesankar of IL&FS Investsmart says, when the market went up to a great extent all of us were concerned about the effect that huge surplus liquidity within this system was having on the markets. He further said that one needs a large amount of conviction to buy into the airline space as Jet airways and Spice Jet are not great performers at all.


Excerpts from CNBC-TV18's exclusive interview with R Sreesankar:


Q: How have you read the extreme volatility in the last few days?


A: When the market went up to a great extent all of us were concerned about the effect that huge surplus liquidity within this system was having on the markets. The surplus liquidity was good. Now, the liquidity has taken a reverse turn and we are paying for it.


I think fundamentally there is nothing wrong in the domestic economy. But the correction that we have witnessed today is a function of the global liquidity changes. I am not reading beyond those falls at all.


Q: Would you buy in the aviation space? 


A: Everything is relative right now.  We have seen from the performance of existing aviation stocks like Jet Airways, Spice Jet that they are not great performers at all. One needs a large amount of conviction to go and buy into the airline space.


I am not sure about this sector so I would rather keep away from it.  Globally lots of people are keeping away from that particular space and especially in environment, where the crude prices keeps increasing and there is such a serious competition between airlines.


 Deccan Aviation is a low cost airline so one gets a better deal. So there is enough competition happening in the domestic space even from the established airlines, so it is going to be a hard call.


 


 



__________________
KCM


Member

Status: Offline
Posts: 2289
Date:
Permalink Closed

Deccan had JPMorgan Chase and ABN AMRO Holdings pull out as advisers to the share sale, after the two firm complained of scheduling issues. SBI Capital Markets also backed out, leaving ICICI Securities and Enam Financial Consultants to manage the offering.
 

Local brokerages Sharekhan, HDFC Securities and ASK Raymond James have advised clients not to buy the shares, saying they are expensive and that increasing competition in India's aviation industry would make profit hard to come by.


What's Gopinath's plan now?


Air Deccan shouldn't become Air Duckkan!! 


Investors too erred in judgement.


 

__________________
KCM


Member

Status: Offline
Posts: 2450
Date:
Permalink Closed

well its IPOs were at RS148 nowthe shares opened at Rs98

__________________
Light travels faster than sound...thats why people appear bright, until you hear them talk!


Member

Status: Offline
Posts: 2450
Date:
Permalink Closed

A investment 'guru' said that in india airline stocks are not worth for small risk investors... what do u say

__________________
Light travels faster than sound...thats why people appear bright, until you hear them talk!


Member

Status: Offline
Posts: 80
Date:
Permalink Closed


the_380 wrote:

A investment 'guru' said that in india airline stocks are not worth for small risk investors... what do u say



One answer to your question is that none of the aviation company shares are popular with mutual funds now. Jet was popular until a few months ago.

__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us


Create your own FREE Forum
Report Abuse
Powered by ActiveBoard