Pick details

MoneyVidya.com member ‘arunthestocksguru’ has reccomended a ‘buy’ on Unitech for 1 year about 5 days ago. Since he has reccomended it, the stock has risen by over 25%. He has not suggested a target price or stop loss limit.

Analysis (Verbatim)

Story:Unitech develops self-sustaining residential areas, commercial spaces, amusement parks, infrastructure development, thermal power plants, transmission lines, highways, flyovers, industrial facilities, steel plants, and overseas turnkey projects.Now lets come to the point,Have things changed so drastically for the real estate sector in the last 10 odd months?Hell,no is the answer.Its fine real estate stocks are finding it tough to grow by leaps and bounds which was a common scenario even some months ago but it makes no sense for investors to exit the leaders at throwaway prices.India is a country of 113 crores population and it would grow,no doom in that isnt it?Folks many of you have applied the logic of dotcom bust with the real estate sector.Thats utter rubbish and ridiculuos to compare the dotcom companies with the real estate ones.Dotcom companies at that 2000-2001 time were quoting at mind-boggling valuations and within them there were several start up firms too.Added up point would be some companies which only existed on paper and nowhere else.Its 2008 guys and valuations are too attractive for these counter,UNitech.I am not talking about any realty company with 100 PE and land bank of a mere car parking space.Its a huge company having world of lands lands with it.Unitech is a very classy player, its totally in the top end of the market and when interest rates fall, as they are doing, Unitech will be a very big beneficiary because it gets a lot of investment demands for its high end properties.Valuation wise as well as on a NAV vasis its immensely attractive.One would be a fool to miss it at these 26 levels.It was the same company which traded at a price of 546 in these january and now unitech at 26,too hard to beleive but its the reality.I was never a real estate votary but would still hate to miss a company which deserves atleast a price of 90-100.Unitech is quoting at 2 times 6 month forward,would you give that to a real estate king?Would you prefer to miss a counter which made so many peoples luck in the yesteryears?Speaking much wont help matters,I personally bought few and if available at these level would pocket up more.Buy,buy,buy…………………….

Regards,
ARUN
www.arunthestocksguru.com/

Tags: MoneyVidya.com, Stock Market, Stock Picking, stock picks, Wisdom of the Crowd

This entry was posted on Sunday, December 7th, 2008 at 11:40 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.