5 stocks of the ADAG group have hit their 52-week low today.

Reliance Capital.

Reliance Communications.

Reliance Infrastructure.

Reliance MediaWorks.

Reliance Power.

The only exception is Reliance Broadcast Network, which is still much above its 52-week low.

Is there any ADAG stock that I have missed?

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The psychological factor aside, what's the significance of considering 52-week lows? Is it established that stocks trace crests and troughs on a 1-year cycle? Why do we generally not consider 78 (52+26)-week or 104-week cycles?

Stock market cycles don't have any fixed period, thus we use a period that is used most frequently for financial and business purposes - 52 weeks.

e.g.

We measure long-term returns of our investments by using CAGR.

Companies report audited financial reports after every 52 weeks.

Business cycles of many businesses are of 52 weeks.

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Why are the stocks free falling today??

No sure, my guess is it's because of "SWAN" effect (2G scam).

Anil Ambani meets Kapil Sibal as 2G probe widens - CNBC-TV18 -

Then why have Reliance Infrastructure and Reliance Capital fallen so hard too?

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No Idea sir,

I am thinking of jumping into RELINFRA (down 25%).

Reliance Communications was down because of reports that Anil Ambani met Telecom Minister Kapil Sibal and this meeting had something to do with 2G scam probe.

Reliance Infrastructure and Reliance Power were down because of reports in the media saying that ICAI has written to auditors of these two companies regarding SEBI's recent consent order.

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Bought calls of RCOM, Rel Infra and Reliance Power. I think it would move up tomorrow as its a knee jerk reaction and rumours were floating around that Anil Ambani might get arrested.

I know i am taking a risk but lets see. I expect a bounce back of at least 10%.

Is it possible for any Tata or Ambani to get arrested? If the stocks fell this way just on rumours, what would happen if it actually happens.

Tata and ambani getting arrested is like thinking rahul gandhi and manmohan singh getting arrested.

This is never going to happen.

Even raja will come out in few days or month.Or remembered Madhu koda the CM of Jharkhand who made 1000 crores and transferred it to foreign havens.

Do we hear about him now?Do we hear about Ramalinga Raju now?What he does where he is?

Similarly in few weeks all this news will die down.

Now coming back to ADAG stocks I feel Mukesh will come as savior to ADAG group and have a strong feeling the company might buy stakes as by this year end they wants to start 4 g service and also too many serious allegation on RCom have given a serious dent to reliance brand image.

Anil have done too much down to the brand from rel power to rcom and even rel broadcast in case of fame india war.

Soon or within a year we might see stock at good valuation.

Today just by luck I got two positions in rel com and rel capital. Just hoping to see I exit at better levels in a year.

I don't think Mukesh would like to save ADAG. I guess he has more hatred feeling towards Anil than brother feeling.

Recently in one of the Industrialist meeting while addressing all of the participants even though Anil addressed him as a brother, Mukesh didn't even mention his name while addressing (even for the courtesy purpose in such top guys presence, though he knows it would be a big nose cut for Anil).

I agree Mukesh doesn't give a damn about Anil.

But he gives a damn for the Reliance tag which Anil holds.

I just have a feeling that Mukesh might buy the whole telecom business from Anil. As it was his brain child.

Mukesh wants to enter telecom and 4g is bigger than 3g.And i don't see a better opportunity than this for mukesh to get a tailor made company to start his business. And what if its his own child.I am just betting on my business thinking. I might prove wrong.

Again news about some serious hammering of ADAG is doing rounds.

Now the overall valuation ADAG stocks is not even equivalent to any single company in top 20 list in market capitalization.

There is rumour doing round that supreme court will definitely putting bells in cat's (Anil's) neck.Also because of similar sentiments earlier rcom and rinfra were thrown out of sensex list. And now Rel capital from nifty.

Just 6 months back it was said if any Reliance share (including mukesh) which will lead in future or to touch 3000 per share figure was said to be Rel capital.

And today the share is said to be another SKS Microfinance.

Does anybody share similar sentiments?

I am seriously averaging and increasing my presence in them as I am following the tag buy on rumour. Also one should buy when other is running away.

Reason only being reliance tag the name to be too big to die. Also i seriously feel before any other group it will be mukesh who will swallow Anil's business and the first one will be RCOM as that will be the perfect platform for him to launch 4G.

Any inputs from people over here?

I own couple of ADAG stocks and in all of them i am still bullish on Reliance Capital. It is bound to go up, its businesses are good and reliance capital is leader in them. Insurance, Reliance amc, etc are doing great, so i am accumulating rel cap on every fall. I am bullish on Bajaj Finserv too

There is very aggressive selling going on ADAG stocks.

People don't sell so aggressively on rumors.

It seems the bigger players know something that the rest of the market doesn't know.

Reliance Capital and Reliance Infrastructure do look undervalued at these levels, but that's true only if one believes the financial statements presented by the companies.

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I would stay far away from ADAG stocks. The group is reeling under crippling debt. The rupee fall against the dollar is also going to hit them hard with their FCCBs coming due soon. There are much better options in the market.

ADAG stocks are still making new lows.

All of Anil's companies are near their 52-week lows.

Reliance Broadcast Network, Reliance Capital and Reliance Infrastructure have made new 52-week lows today.

Reliance Communications, Reliance MediaWorks and Reliance Power are also less than 5% above their respective 52-week lows.

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Which stock is exciting you right now out of all this?

I am investing in average down method in Reliance Capital and Reliance Infrastructure. Might have to start for Reliance Power too which I have been holding long from IPO period.

Reliance Power still doesn't make any real profits and so I think it is best to avoid it.

I will avoid Reliance Communications too. It has lot of problems (high debt, severe competition, accounting issues, 2G scam etc). It's best to stay away for such companies.

I have no idea about businesses of Reliance Broadcast Network and Reliance Mediaworks and so I will not comment on those.

S.P. Tulsian on Reliance Capital:

Reliance Power, Reliance Infra, RComm look weak: Tulsian - CNBC-TV18 -

I am not sure what Tulsian is referring to and so will avoid Reliance Capital too.

Reliance Infrastructure looks interesting at current levels, but I need to look into the financial details of the company before I can give my final verdict.

In short,

Reliance Power - Avoid.
Reliance Communications - Avoid.
Reliance Capital - Not sure because of rumors in the market.
Reliance MediaWork - No idea about its business.
Reliance Broadcast Network - No idea about its business.
Reliance Infrastructure - Looks interesting, but I need to look at the details.

The group has serious corporate governance issues and risk-averse investors should not invest in these companies.

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Nice sum up.

Just wanted to ask do you see any chances of Reliance Infrastructure and Reliance Power getting merged together?

I mean say Reliance Power goes to 40 levels and all start bashing the brother and he does same as RNRL job.

I now have a feeling that both are power companies with one already existing whereas other just on paper right now.

Just to make matter complex up and get some time as cushion.

Note::I hold Reliance communication but as you said I am avoiding it now to average as I too have gut feeling of it going to as low as 20-30 levels in worst period and yes the debt issue is really bad for them.

It is possible, but not probable and I don't think minority shareholders will benefit from any such move.

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