The shareholders of those four companies have received their proportion of summit securities in their demat a/c in august but the merged entity (Summit securities) is still not listed and hence shareholders are not able to sell their holdings. Shareholders are stuck and frustrated and have been looking for several exit options. Many brokers are trying to take advantage of this situatuion asking investors to tender their share of summit securities lying in their demat a/c at Rs. 10/- through off market transaction, misleading them that their investments are of no worth now and they should exit at whatever value they are getting.
The shareholders should stay away from such brokers or people and stay calm for some more time. This is about to get solved very soon. As per the recent conversation with an RPG management representative we came to know that all the approvals have been obtained except SEBI. The approval from SEBI should also come soon as the pressure is equally high on the RPG group as well. RPG group being a 17,000 crore enterprise is not expected to cheat shareholders of such small companies.
As per the latest annual report of summit securities the top 5 quoted investments held by the company are as follows
|Company Name||No of shares after Merger||CMP as on |
|Value in crores|
So the top 5 holding iteself are worth approximately 400 crores. On an equity capital of 10.90 crores, the per share value of the above investments comes out to Rs 365/-.
Other quoted and unquoted investments including cash held by the company are worth at least 100 crores.
Considering the above facts it is advisable not to sell any holdings in Summit securities until it is listed and has been traded for 6 months, because it might happen that because of delay in listing some shareholders sell on the listing day itself.
The book value of the company at cost as on 31st March 2010 is Rs. 362/-. Even if we discount the BV by 20%, the shares of summit securities should stabilize above Rs. 300/- within 6 months of listing.
Firstcall research has comeout with a buy rating on Federal bank. The research report can be downloaded from this link.
These are not just the quotes, but the experiences shared by some of the most successful investors in the history of stock markets. We can benefit from them if we understand them and remember them while taking investment decisions.
Profit in stocks goes to those who buy stocks on sale. There’s no such thing as risk free investment.
The four most dangerous words in investing are 'This time it's different'.
The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell.
Every day I get up and look through the Forbes list of the richest people in America. If I'm not there, I go to work.
I hate weekends because there is no stock market.
Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.
It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong.
Warren Buffet, Peter Lynch, George Soros & Sir John Templeton