Showing posts with label SKS MICRO - READ BEYOND LINES. Show all posts
Showing posts with label SKS MICRO - READ BEYOND LINES. Show all posts

Friday, August 26, 2011

SKS MICRO TANKS AGAIN

The stock is down 5% today. In the last one month the stock has lost more than 60%. The much hyped IPO of 2010, where in the shares were issued at a premium of Rs 975, is now trading at Rs 217.

From the day one First Choice IPO has been indicating that the business model of SKS is flawed.

We have been giving selling call right from Rs 1300 level. Sell at current price too. It will come down below Rs 100. Apart from numbers, there are corporate governance issues. SKS needs major surgery.

Sunday, August 14, 2011

SKS MICRO - READ BEYOND LINES


After the unceremonious ouster of Suresh Gurumani, the CEO who successfully steered the IPO of SKS, some well known personalities, known for their integrity have also resigned from the board. They are, Gurucharan Das and Pramod Bhasin. Ashish Lakanpal one of the founder directors is not on the board now. The earlier company secretary has also quit.

We had given sell call on this stock right from Rs 1300 level. The stock will come below Rs 200 in the near future. Apart from numbers, it appears there are corporate governance issues. Only time will tell what is wrong with the company.