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Lumaxauto

Discussion in 'Technical Analysis' started by myidgmc, Dec 2, 2014.

  1. myidgmc

    myidgmc Member

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    LUMAXAUTO - is formed W pattern can we enter now?




    CMP: 45

    Target: 60

    Stop loss: 39.8

    Thanks,
    Ram
     
    myidgmc, Dec 2, 2014
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  2. shabbir

    shabbir Administrator Staff Member

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    I don't see a W and what timeframe are you looking at.

    I see a good support being formed at 34 and then at 40 but then circuits between 25 to 50 is not very comforting for me to be entering into this stock purely on technicals because volume is just too low for technical entry into this stock.
     
    shabbir, Dec 2, 2014
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  3. myidgmc

    myidgmc Member

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    i can wait for 6 months for target.
     
    myidgmc, Dec 3, 2014
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  4. shabbir

    shabbir Administrator Staff Member

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    But technical investment in this stock is not recommended only. Its a low floater.
     
    shabbir, Dec 3, 2014
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  5. myidgmc

    myidgmc Member

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    Thanks for the update Shabbir.
     
    myidgmc, Dec 3, 2014
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  6. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
    shabbir, Dec 3, 2014
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  7. shabbir

    shabbir Administrator Staff Member

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    And BTW I just did a short fundamental check for this company and did not found much in it. Still sharing with you and for others.


    • Total share capital of the company is 7.4 Crore which is just too low.
    • There has been no dividend by the company since 2008ish range and so it looks like company cash levels have an issue.
    • Sales are pretty much stagnant at around 100 Crore but then it dipped to 78 Crore in March 2014 and so that is ultimate test that company is not doing right things. Sales cannot dip by this margin at any given point of time.
    • They are paying 9+ Crore of interest and not sure if that is justifiable.
    So a big NO fundamentally as well.
     
    shabbir, Dec 3, 2014
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    masihpatel and yankeedin like this.
  8. Suresh_Sinha

    Suresh_Sinha Active Member

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    All I can say is you are a genius @shabbir
     
    Last edited by a moderator: Jul 16, 2017
    Suresh_Sinha, Dec 3, 2014
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  9. myidgmc

    myidgmc Member

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    Thanks shabbirbf for details explanation..
     
    myidgmc, Dec 4, 2014
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  10. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
    shabbir, Dec 4, 2014
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  11. virudjoshi

    virudjoshi New Member

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    Nice way to decide about a company Shabbir... hatts-off
     
    virudjoshi, Dec 8, 2014
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  12. shabbir

    shabbir Administrator Staff Member

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    Thanks.
     
    shabbir, Dec 8, 2014
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