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Thursday, March 20, 2014

Stocks in the news this week (Mar 20, ‘14)

Every week a few stocks make headlines for various reasons. Investors often get excited or perturbed by a sudden spurt or crash in prices, and jump in to buy or sell. That is exactly what they should not do.

The trick to making money in the stock market is to remain unfazed by daily news flow. If you own or have been tracking a stock and suddenly see a price spurt or crash, by all means try to find out the reasons.

If you neither own nor track a stock, don’t get interested just because there is a sharp price fluctuation. Do your due diligence and then decide whether you should get interested at all. Investment opportunities arise regularly. You should make a considered decision whether to avail of such opportunities or not.

Here are the charts and brief analysis of a few stocks in the news this week.

Amtek India 

Amtek

Like many auto ancilliary stocks, Amtek India has been struggling in a bear market. It is a profit making company with decent cash flows from operations but has huge debt on its books. The recent price spurt is on news of an acquisition in Germany. Technical indicators are looking overbought. A pullback towards its 200 day EMA is possible.

Eveready

Eveready

Eveready has been in a bull rally since Sept ‘13, but the company is trading at a high valuation because of meagre profits. Daily technical indicators are showing negative divergences by failing to touch new highs with the stock’s price. News of a price hike caused a small price spurt.

Mukand

Mukand

Mukand is a company that has long fallen from its glory days. It is making losses for the past few years and is in a bear market. Today’s price spurt is on news that promoters have hiked their stake from about 54% to 73% – post a recently concluded rights issue.

Polaris Fin

Polaris

Polaris stock has been moving sideways with a slight upward bias. The sudden price spurt is on news of demerging its product business into a separate listed company. Technical indicators are looking overbought. A price correction should follow.

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