SRK TRADING CALLS: oscar investments 501179

GOLDEN TIP FOR BEGINNERS

WHEN A INDEX OR SCRIP OPEN ,LOW ARE SAME AND HIGHER THAN PREVIOUS CLOSE {REMEMBER MUST BE HIGHER THAN PREVIOUS CLOSE} , THEN DON'T SHORT THAT SCRIP WHERE AS IN OTHER WORDS , YOU CAN TRY LONG IN THAT COUNTER

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WHEN A INDEX OR SCRIP OPEN,HIGH ARE SAME AND LOWER THAN PREVIOUS CLOSE {REMEMBER MUST BE LOWER THAN PREVIOUS CLOSE} THEN DON'T GO LONG IN THAT SCRIP WHERE AS IN OTHER WORDS , YOU CAN TRY SHORT IN THAT COUNTER

DISCLOSURE:- THIS IS MY PRACTICAL OBSERVATION IN MY TRADING JOURNEY AND I PUT THIS AS A THEORY FOR MY OWN TRADES , THIS IS NOT ANY ONE'S , OR NOT WRITTEN IN ANY TECHNICAL BOOKS
SOME COPY CATS COPYING THIS
TOTAL SENTENCE TO THEIR BLOGS OR WEBSITES
SO, IT IS YOUR RISK IF U DO ACTIONS ON THIS THEORY

Sunday, August 23, 2009

oscar investments 501179

Oscar Investments-One For The Long Haul

BSE 501179

A little known firm, Oscar Investments, has made a windfall of Rs.13.04 billion ($325 million) after Japan's Daiichi Sankyo picked up the promoter's stake in Ranbaxy Laboratories, India's largest drug company. This is by virtue of the 4.74 per cent shareholding that Oscar Investments had held in Ranbaxy Laboratories, which forms a part of the 34.8 per cent stake Malvinder Singh and family held in Ranbaxy.

According to the share purchase and share subscription pact, Daiichi Sankyo will pick up the 34.8 per cent stake from the promoters of Ranbaxy, apart from making an open offer for an additional 20 per cent. Oscar Investments held a total of 17,698,468 shares in Ranbaxy Laboratories and at Rs.737 a share that Daiichi Sankyo has agreed to pay for the acquisition, the money expected to accrue to Oscar is Rs.13.04 billion.

As per the pact between the two companies, the payment will be made by March 31, 2009.The bulk of the promoter group's shares in the Indian drug maker - amounting to 26.57 per cent - is held by Ranbaxy Holding Company. But that is an unlisted entity. Oscar Investments, incorporated in 1978, is a non-banking finance company that is registered with the Reserve Bank of India and listed on the Bombay Stock Exchange and the Delhi Stock Exchange.

A look at the financials of Oscar Investments reveals that the company is yet to publish its audited annual report for 2007-08. But, the earning per share, that sets the mood for the listed price, was Rs.63.77 and Rs.80.68 in the previous two years. On the other hand, given that Oscar has a floating stock of 17.28 million issued shares, the windfall on account of the acquisition deal with Daiichi Sankyo will be a whopping Rs.755 per share.

So if the same financials are maintained, the additional money coming in from the Japanese drug maker will translate into an enhanced earnings per share of Rs.827.23.
Oscar Investments has not declared any dividends for the past few years. But for 2008-09, they might do so in a bid to share some of the windfall gains from the sell-off.

Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.

Nothing in this article is, or should be construed as, investment advice.