Wait friends

There are many amongst you who have been approaching us asking if they should buy the newly listed shares which are trading below the issue price. We have dealt with this topic many times and have written umpteen times that let us wait and watch.

We believe in buying only when there is an upside and not just because the stock has gone down. Also we do think that many of the recent IPOs are not really good and we do have a doubt on promoters calibre and integrity.

Take the case of Decolight. We have advised an avoid on this company. Now see the mediocre ways of the promoters to rig up the price. The news item (see at the end) appears only to the extent of the ‘news subject’ and is enough to give stimulus to gullible investors. But a deeper look simply tells you that the order is for just Rs 1.5 crore rupees and does not merit any great attention. Also please note that in the export markets Chinese players are much cheaper than Indian players and the margins may be lower than the domestic business. In a nutshell this is more a case of attracting attention than doing business.

So let us wait for some time now.
Dont catch a falling knife.

Decolight announcement on BSE website
News Subject: Decolight Ceramics secures bulk order from Foreign party

News Body:
Decolight Ceramics Ltd has informed BSE that the Company has received a bulk order for Vitrified tiles from Turkey's Tanislar Yapi Malz Insaat, Istanbult through Hisar Foils Pvt Ltd who is Merchant Exporter. Company has received, this order after defeating to China's giant Companies in the Competition. The order is for around 71,000 Sq. Mtrs. and the value of which may be around Rs 150.00 lacs. The Company hope the order may be completed upto end of July's second week by loading of 55 containers.

This development will make a new hope in the Industry and expect more international orders will be received by the Company in the coming time.