On June 22, 2007 the honourable Bombay high court came out with the approval for the demerger of Kotak Mahindra Capital Company Limited. After that in the last two weeks, most of the senior executives of the bank got their shares under ESOP of the bank.
Now there are some announcements expected in the market from the management of the bank. The announcement will typically cover the demerger of the company and some other strategic initiatives. The AGM is scheduled on July 5, 2007, and we do expect it to be the occasion.
Investors with an ability to take risks may consider going long on this stock with a clear time frame of one week. We do recommend buying call options on this counter though we could not find a quote for the same. In no circumstances stock futures should be considered as that amounts to leverage with potential for unlimited losses. One can consider buying from cash market.
Also fundamentally the stock has almost factored in all possible positives. Hence the stock must be sold on the day of announcement irrespective of the future. This is a purely speculative stuff and attracts high risk.
Disclosure: We do not have a position in the stock.
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