Any idea why this stock hit today 20% circuit. I hold 50 and 35 shares in 2 accounts at 74 price.

I had invested in this stock along with elantas beck for delisting gain purpose. Can't dig any news. And since this is the first opportunity to earn even a decent profitable return might exit the stock completely.

According to this article, Fairfield Atlas is a delisting candidate where the chances of the delisting actually going through are good.

New norms may see MNC delisting: Are the fears exaggerated? - CNBC-TV18 -

If one looks at the valuations, unlike most delisting candidates, the company doesn't look expensive.

Only thing that bothers me is that the company hasn't paid any dividend for many years.

I think the best strategy for this stock is to book partially and keep a stop-loss of 69 for the rest of the shares.

The stock has a 52-week high price of 89.40. There is a good chance that the 52 week high will be tested early tomorrow.

Sell 45% of the shares around 89 and hold the rest of the shares and see what happens.

Hold the stock for next 12 months. If the stock doesn't go anywhere, sell the shares.

Sell if the stop-loss is hit.

If the parent company tries to delist the company, the stock will go much higher than current levels.

__________________
Read All Rules Before Making Any Post | E-Investing on Google+

That's interesting.

Why should the price of the shares increase if a company decides to delist? Isn't delisting a "bad" thing?

Thanks for the tip. Even I was thinking to sell 50% and see what happens with the rest of the shares as I am doing in Elantas where abnormal high volume being seen in last 5-6 trading sessions.

Anyways touch wood i am making returns on delisting stock. I guess i need to stick with this trick.

Delisting of a company can be good or bad, depending on why the company is being delisted.

When a company is suspended or delisted because it fails to comply with laws/rules/regulations, it is bad for the investors as they are left with shares that can't be traded.

In case of voluntary delisting, the promoters themself delist the company by buying out the minority shareholders.

If the promoters of a company want to delist it,

- the promoters have to buyout at least 50% of the minority shares.
- reduce the minority shareholding to less than 10% (take the promoter shareholding to above 90%).

Both the above conditions have to be satisfied.

Let's take the case of Fairfield Atlas.

In Fairfield Atlas, the promoter shareholding is 83.91% and public shareholding is 16.09%.

If the promoters want to delist the company, they have to buy at least 50% of the public shares (8.05% of the total shares).

(If they are able to buy 8.05% of the shares, 90% condition will be met too).

In case of voluntary delisting, minority shareholders are free to ask for any price that they want. Minority shareholders always ask for a significant premium over the market price and thus every time promoters decide to delist a company, the share price of that company jumps.

Delisting price has to be fixed at such a level that both the above mentioned conditions are met.

Of course, promoters may or may not accept that price.

Those shareholders who don't want to accept the delisting price, can continue to hold the shares after delisting.

__________________
Read All Rules Before Making Any Post | E-Investing on Google+

It seems there will be no delisting attempt for this one, at least not in the near future:

Announcements

__________________
Read All Rules Before Making Any Post | E-Investing on Google+

Is it possible that they go against their own wish after say 2-3 months and doesn't offload their stake at all.

The promoters can change their mind any time that they want to.

However, the chances of that happening in the next few months aren't much.

__________________
Read All Rules Before Making Any Post | E-Investing on Google+

Thanks for the explanation Alchemist.

However it would not make much sense in holding the shares of a delisted company in my opinion.

The main advantage of this asset class (equity) is its liquidity apart from higher returns. I don't think delisted shares would be that liquid.

Unless the shares are of a company which is a large cap company, with a strong business model and has above-average growth potential, I wouldn't take the risk of holding a stock that is not listed.

__________________
Read All Rules Before Making Any Post | E-Investing on Google+

Is there any recent news of de-listing of Fairfield Atlas?

Nothing that I know of.

These delisting candidates go up every time an MNC announces a delisting offer for its Indian subsidiaries.

This time it was Alfa Laval.

__________________
Read All Rules Before Making Any Post | E-Investing on Google+

Again the stock has come in news because some brokerage giving 120 target as it being a delisting candidate.

I have been sitting on this stock from very long almost 18 months.

And planing to exit at 100 now.

Or there is more meat to this news.

Sharing those reports and links

17 stocks likely to delist: Unicon Investment - Moneycontrol.com

Buy Fairfield Atlas; target of Rs 120: Sunidhi Securities - Moneycontrol.com

Also Alchemist can you suggest some more stocks (you think it might get delisted) as so far my best returns have been all delisting stocks?

Here are some stocks that i track,many of these stocks have gone up due to the recent market rally and i would caution you against chasing prices.

With promoter stake above 75%:

a.Kennametal.

b.Honeywell Automation.

c.Timken.

d.Blue Dart Express.

e.Thomas Cook.

f.Novartis.

g.INEOS.

With promoter stake below 75%:

a.Goodyear India.

b.Gujarat Gas(BG selling 65.2% will trigger mandatory open offer of 26%).

c.Akzo Nobel India(needs to be watched closely,promoter increasing shareholding with merger of group companies,proposed buyback from minority shareholders as well as secondary market purchases).

Thanks kris for the list.

Right now i am not chasing any delisting stocks presently.

But yes i had it on my mind and i missed the bus.

I was thinking to get thomas cook when it was at 37 levels.Also timken when around a month back it was around 190.

Boc india around 270.

Anyways no harm done.

But right now i am just exiting all stocks in which i haven't seen any gain and now coming near my buy price.

Though i must say greed is going above my target.

When i had bought Fairfield Atlas i had decided i will exit at 100 after a year hold and within a year at 120.My holding have passed a year period but i am still holding because some broker house gave 120 dream to me.

Everyday i used to keep 120 target.Today i kept 115 and it got sold.

So my old 35 shares and new 10 shares got sold .

Now in my sister account i have another 50 shares which i will exit tomorrow morning at 125 .

Another delisting stock in which i exited in profit.

I will stick with delisting gun now for buy but presently i preparing for fall in market.

Greek crisis, Iran-Israel trouble, banking npa etc.

So finally all holdings sold.

50 shares from my sister account sold at 132 price.

With brokerage and dp charges I guess it will be 130 per stock.

Made a good 70% return on money invested (holding was almost 2 years old).

Any news around.I exited my holding around 130.But another 30-40% rally have been seen from there. I can't dig any news.

Is it still buzzing on delisting rumor or some other news?