MESSAGES

it is bad to have a peg of more than one. you are paying 1 inr for every 1 inr of eps and 1 percent growth rate of eps. it is okay upto 1.5. for exide industries, due to confluence, the new entrants are paying more than 6. there is wonderful distribution phenomenon going on. funds were short on it even before latest rally. they had to rush to take long position to avoid liquidity crisis and thus further worsening their short position. but, a slow, wonderful distribution of long positions to the new entrants is praiseworthy. they have not only solved the liquidity problem but also may end up in profit for the original short position as well. confluence alliances, client sector perforamance, client agreements, good results, sector performance, emergence of a new sector , upcoming project, and ambitious targets by internationally reputed analysts, either unstudied or manipulated or, in other words, of everything other than fundamentals. one needs to look at the valuation scores if not model before investing. disclaimer approximate numbers used, no recommendation of any kind to anyone.