India’s largest private sector shipping company. The company has two bussiness namely shipping and offshore. The shipping bussiness is involved in transportation of crude oil, petroleum products, dry goods and bulk commodities. The offshore bussiness services oil companies for carrying out offshore exploration and production. Investors love GE Shipping for its corporate governance and transparency. GE Shipping now has a fleet of 46 vessels comprising 33 tankers and 13 dry bulk carriers with an aggregate capacity of 3.07 million dead weight tonnage
Current market price: 403
Earnings per share: 68.2
Book value: 201.5
Dividend per share: 11.5
Price/earnings: 5.9
Price to book-value: 2
Dividend yield: 2.8%
Return on equity: 33
Earnings per share growth: 30+
+ve aspects:
*very Good & investor friendly management .
*has shown good eps growth of 30+ in last 5 years.
*cash rich company so down fall will be limited.
-ve aspects:
*sector is capital intensive
Current technical positioning
2. It had crashed from a high of Rs.625.8/- in January'08 to Rs.290/- in about a dozen trading sessions, but didn't stay at Rs.290/- for long. (There existed significant buying interest at the lower price). Thereafter it entered a trendless sideways movement.
3. It seems to have formed a lower base at 310 (without breaking 290), and has been steadily inching upwards.
4. It hasn't yet accomplished the first fibonacci retracement over the crash - typically 38% from the bottom yet. That works out to Rs.418/-.
5. Talking from a moving average perspective, it is just a tad below its 200 day moving average (of 403.72). This itself is to be crossed now, and it may act as a strong resistance.
Given (4) and (5), the stock may undergo a significant sell-off in the band of 403 through 418 resulting in some kind of a price correction.
A position trader or a long term investor may buy some quantity now keeping a stop loss at 360 (that's the immediate support available). Next support is at 310.
Or if it goes above 418 without relenting, it must be bought for immediate targets of 455 and 490
1 comment:
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