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Pantaloon retail is being traded at 17% premium in fii to fii trade ..
is it because fii limit has reached ? where can we check the fii limit ..
can we still buy it at cmp ??
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from reuters article on aug 20, 2007 ..
Pantaloon Retail OKs unit IPO, shares jump.
India's retail industry, valued at nearly $350 billion, is forecast to double in size by 2015, with modern retail's share of that quickly increasing from about 3 percent now.
Shares in Pantaloon, valued at nearly $2 billion, were up 2.2 percent at 487.50 rupees at 0646 GMT after rising as high as 518 in a firm Mumbai market.
The shares trade at 47 times forecast earnings, compared to 37 times for Shopper's Stop and 30 times for Tata Goup's Trent Ltd.
On Jan 3rd 2008, the shares were traded between fiis at rs. 1001 .. is there still upside left in pantaloon retail ??
On Jan 4th, it was traded at 1027 (fii to fii) ...
Yes, all stocks that have reached their FII limits command a premium in the FII segment.
You can buy the stock at the market price, the premiums apply only to FII to FII trades.
I haven't looked at Pantaloon in detail, but 47 times earnings is expensive.
If the company is showing 40%+ annual growth in earnings and this trend is likely to continue in the next 2-3 years, then only the stock can be a value pick.
Pantaloon has run up quite a bit since the ipo news came out in august .. it has more than doubled .. its still traded fii to fii at 17-20% premiums, mostly coz fii limit is reached .. it has plans to list few more subsidiaries in the future ..
i dont know how to value the stock fundamentally & the different valuation methods used for different sectors/growth stories .. so i am also still mulling over buying pantaloon .. personally i am not a big fan of big baazar .. even though cheap, most of the stuff they sell cheap are low quality and in the long run i ended up spending more compared to the costly & quality ones ..
waiting for a fundamental analysis from alchemist to considering entering this stock ..
but right now i would wait to see if the market would pull back and go above the 50 day ema .. otherwise there might be more downside ..
Alchemist, any idea why there's such a difference in price between the Pantaloon Retail share (178.10) and the one without voting rights (142.2)? The latter was listed yesterday and is the "bonus" share.
Alchemist, any idea why there's such a difference in price between the Pantaloon Retail share (178.10) and the one without voting rights (142.2)? The latter was listed yesterday and is the "bonus" share.
Not sure.
Maybe there were too many sellers yesterday and hardly any buyers.
Tata Motors DVR is at a significant premium to the ordinary share, but in case of Tata Motors, the promotors had to buy most of the DVR shares.
In this case, it was a bonus issue and so all shareholders got the DVR shares.
Many DVR holders may try to sell their holdings in the open market in next few days.
Investors are usually not interested in buying DVR shares and this may keep the price subdued for some time.
Alchemist, any idea why there's such a difference in price between the Pantaloon Retail share (178.10) and the one without voting rights (142.2)? The latter was listed yesterday and is the "bonus" share.
The difference has widened even further.
Yesterday's closing prices were 118 and 72 for the common share and DVR share respectively.
This means that the DVR is now at a 39% discount.
The main problem is that there is no liquidity in the DVR.
Even a small amount of selling takes the price down sharply.
For an investor who isn't bothered about the voting rights, the DVR should be the better buy because of the additional dividend.
However, investors are ignoring the DVR.
Personally, if I were a shareholder of Pantaloon's common shares and intended to hold for the long-term, I would sell the common shares and buy DVR shares for the same amount.
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For an investor who isn't bothered about the voting rights, the DVR should be the better buy because of the additional dividend.
However, investors are ignoring the DVR.
Personally, if I were a shareholder of Pantaloon's common shares and intended to hold for the long-term, I would sell the common shares and buy DVR shares for the same amount...
I agree but I know some who have gone the other way .
I bought ten shares of DVR for exposure to this company @ Rs. 100.
Actually, I don't understand why they chose this route for a bonus issue. A DVR would be more apt in the case of a rights issue. Maybe Biyani's just being himself
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The main problem is that there is no liquidity in the DVR.
Even a small amount of selling takes the price down sharply.
......
Alchemist, when I last looked at the market book, there were a total of 6695 buyers and 733 sellers. Even in the top five orders, the buyers were more than sellers. I don't think the top 5 orders are rigged. Further away from the LTP there may be orders placed just to give an impression.
Actually, I don't understand why they chose this route for a bonus issue. A DVR would be more apt in the case of a rights issue. Maybe Biyani's just being himself
You are right.
It actually makes no sense to create a new type of share just to issue a bonus.
Maybe the promoters have a plan to sell their DVR shares in future and raise cash.
This cash may be used for buying additional normal shares or for other purposes.
If the company would have gone for a rights issue, the promoters would have had to arrange for cash to subscribe to the rights issue.
Quote:
Originally Posted by vasa1
Alchemist, when I last looked at the market book, there were a total of 6695 buyers and 733 sellers. Even in the top five orders, the buyers were more than sellers. I don't think the top 5 orders are rigged. Further away from the LTP there may be orders placed just to give an impression.
Yes.
I have pointed this out many times....the total buy quantity and total sell quantity figures are useless.
Orders that are far away from the current price mean little.
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The DVR usually opens with hardly any sellers. There are sell orders of less than 1000 shares.
However, someone did a block deal of 20000+ shares today at around Rs 70.
I had placed a buy order early in the morning at 66.05.
I managed to get 10 shares at that price, but then other buyers emerged and I didn't raise my bid.
66.05 was also the low for the day.
As I had only 10 shares at the end of the day, I didn't take delivery and sold at 3:29 for 70.55.
Thus, I did both the opening and closing trades for the stock...
Quote:
Originally Posted by new2markets
I am new to these terms. Could anyone of you tell me how do we buy DVRs for PANTALOON RETAIL?
I don't think the Pantaloon DVR is a really a good buy in the current market.
What I suggested was that if someone is holding Pantaloon shares, he can switch to DVR shares.
This reason is that I believe that the price difference between the normal shares and DVR shares may narrow down in the future.
I had placed a buy order early in the morning at 66.05.
I managed to get 10 shares at that price, but then other buyers emerged and I didn't raise my bid.
66.05 was also the low for the day.
As I had only 10 shares at the end of the day, I didn't take delivery and sold at 3:29 for 70.55.
I saw a message in Reliance money that all intraday trades must be squared off by 2:55 p.m or converted to delivery. Is the square off time limit different for different brokers?
I saw a message in Reliance money that all intraday trades must be squared off by 2:55 p.m or converted to delivery. Is the square off time limit different for different brokers?
Ragav
Yes, I think so. Geojit starts their's at 3.00 pm.
What's wrong with this counter after so much hammering it went up to 150 levels.Then the most eagerly awaited news came and for continuously it went uptrend and reached around 200.Then again in one shot lost half the rally value.
What's wrong with this counter after so much hammering it went up to 150 levels.Then the most eagerly awaited news came and for continuously it went uptrend and reached around 200.Then again in one shot lost half the rally value.
Today's ET Investor guide carried a negative report on Pantaloons Retail, highlighting their mounting debt burden. The article called for a immediate sell.
Today's ET Investor guide carried a negative report on Pantaloons Retail, highlighting their mounting debt burden. The article called for a immediate sell.
PANTALOON SHOULD BE BOUGHT NOT FOR ITS CURRENT or NEAR TERM EARNINGS it should be bought now (51% FDI in multi-brand retail being approved) for the space & scale it occupies in the Indian retail landscape, it would be a lucrative takeover target for biggies like Walmart, and the potential of the retail sector can be gauged from the market cap of Walmart (200 billion us dollars).
Pantaloon is a bad stock to invest. Its net profit margin is 1%, negative free cash flow and debt to equity ratio of 3. A company cannot run just on debt.
Pantaloon is a bad stock to invest. Its net profit margin is 1%, negative free cash flow and debt to equity ratio of 3. A company cannot run just on debt.
No, though I have some investment in this stock.
I see this company as another sks micro type mess.
Just creating debts on debts and thinking they will be bailed out by something bigger.
Strong rumors. After the retail portion of Pantaloon now Kishore Biyani looking to exit from Big Bazaar chain.
As he not getting buyer for other sections and he wants to exit before time goes out of his hand.
Really don't know what's left for Pantaloon shares owners in hand now. All profit or sector which might be providing relief going out of hand one by one.
Pantaloon Retail
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