Corporate action opportunities - Update

This is an update to my previous post on corporation action opportunities

Following were the corporate action (Bonus shares issue) opportunities

Sterlite Technologies (Holding)

 Initial bonus plan announcement: Jan/11/2010

 Shareholders Vote: Feb/25/2010

 Bonus ratio: 1:1 & Split: Rs 5 to Rs 2.
 Record Date: Mar/10/2010
 
 Purchase price: Rs. 414.10/-
 Purchase dates: Jan/14 to Feb/5
  Current Price: Rs. 104.70/-
  Avg holding period: 210 days  Avg Absolute Profit/share (as of now): 26.42%
  Average Annualized profit: 46%


Poly Medicure (Small cap- Sold)

 Initial bonus plan announcement: Feb/8/2010

 Shareholders Vote: Mar/17/2010
 Bonus ratio: 1:1

 Record Date: Mar/29/2010
 Purchase price: Rs. 193.96/-
 Purchase dates: Feb/26/2010
 Sell Price: Rs. 118.5*2 = 237/-
 Sell Date: Apr/8/2010 (41 days)
 Absolute Profit/share: 22.19%
 Annualized profit: 194.84%
 Index Return during same period: 9.38%
 Index Return (Annualized): 82.36%


IVRCL (Sold)
 Initial bonus plan announcement: Jan/27/2010

 Shareholders Vote: Mar/8/2010
 Bonus ratio: 1:1
 Record Date: Mar/19/2010 Purchase price: Rs. 312.78/-

 Purchase dates: Feb/8/2010
 Sell Price: Rs.175.40*2 = 350.8/-
 Sell Date: Apr/8/2010 (59 days)
 Absolute Profit/share: 12.16% 
 Annualized profit: 74.17%
 Index Return during same period: 0.78%
 Index Return (Annualized): 4.73%

This was an interesting experiment and I am glad that the investments generated decent positive returns. But I don't think I will do it again. I am currently looking into some other opportunities which seems to have better prospects. Will post the details once I have more information.

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Portfolio Update - Parsvnath Developers

  Its been a while since I posted any messages.. Work, School & Family are keeping me really busy!!

  Since the start of this year, I have not made many transactions in my portfolio. But something about Parsvnath Developers (company was part of my portfolio) caught my attention. The company promoters are currently holding 63.60% shares of the company and promoter 'bodies corporate' are holding 11.11% as per latest (June, 2010) update. And promoters and promoter companies have pledged 77% & 98.46% of their respective holdings in the company. In other words, majority of the shares of the company are now pledged!!! Could be because of many reasons including promoters in financial trouble and gambling with the company.

  I didn't think it was a responsible action from promoters, so sold all my shares in the company. Again, the pledge could be because of many reason but I didn't want to find out the reason and future results with my money!!

Click here to read the complete article....