Friday, November 7, 2014

CHCL's right share and Sabidhan and Market

Rajesh Sharma

My comment on Gautamraj Rai ji's post about Chilime's rights share and further discussions on it.
I have two points to share.
1. CHCL rights share: I am not so hopeful. However, CHCL could stand on its firm footing without making additional attractions like rights shares. Hence, neither I believe that all of the sudden it will jump up or fall down. My expectation is that it would move up gradually from this price level.
2. Sambidhan and market: The effects is there when the result is not out. Hence, we may have still some turmoil but that would be before Magh 8. Those who could not take further risk will sell when there is enough time for them to sell. Those who will retain fully being aware that there may not be constitution they will hold even after Magh 8. The institutional investors will hold large part of their holding anyway as that would be only a better option for them. A few undecided ones may not create that much impact. Immunity and resistance will keep market continuing rather than falling down. Only, getting bankrupt macro economic factors and heavily deteriorated company's performance could bring disaster in the market other than the situation of war. That is not the case at all.
Hence, my understanding is that we have two more difficult months remaining due to uncertainties of the political course and anticipation of CDS implementation. By Magh 8, such uncertainties would be cleared positively or negatively or the status quo would continue. Therefore, the market will go on as usual - some high or some low, even if there would not be a constitution by Magh 8.

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