Offline
| Post a Message | Explore Forums | Browse Stock Messages | Hot Discussions | Top rated Messages | Top Boarders | |
|
|
|
Edelweiss Capital
| |||||
Sell - Fair value to be below 50!
Posted by :
kamleshrutTracked by: 0 Boarder
thanks dear ninkyrajiv.
I understand that in this market one does not look at EPS and PE. As such alsothey are very primitive way of gauging a stock.
Still, I would be satisfied by the answer - why moneycontrol is not showing its EPS and PE?
Thanks.
Kamlesh....
In reply to:
Sell - Fair value to be below 50!
Posted by :
ninkyrajiv
Dear Kamlesh,
In today`s times eps has no meaning. Look at market capital. EPS at Edelweiss and brokerage firms is maniopulated. They decalre what they want. All they need do is show gain in Propreitary Books, while it could have loss, which they defer (not recognize it). Look at Cash in Hand and Mkt Cap only.
This stock should go down to 50 Levels in 2 months. Hold your shorts. Company does not have money to buy all its shares. If it does that it will have n omoney for Biz! They are also lending as NBFCs to Promoters. All promoters will never pay them but will give them stocks! SO it is real bad situation.
Look at the price of Edelweiss, you can get E-Trade - which operates in 15 countries and has volume of 150 times in terms of trading and customers. SO no brainer.
Look at Peer valuations. 
BSE Announcements on Edelweiss Cap
Posted by :
MMB MessengerTracked by: 0 Boarder
Edelweiss Capital Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 23, 2008, inter alia, to consider, approve and take on record the unaudited financial results of the Company for the second quarter ended September 30, 2008 (Q2)....
Sell - Fair value to be below 50!
Posted by : ninkyrajivTracked by: 0 Boarder
Dear Kamlesh,
In today`s times eps has no meaning. Look at market capital. EPS at Edelweiss and brokerage firms is maniopulated. They decalre what they want. All they need do is show gain in Propreitary Books, while it could have loss, which they defer (not recognize it). Look at Cash in Hand and Mkt Cap only.
This stock should go down to 50 Levels in 2 months. Hold your shorts. Company does not have money to buy all its shares. If it does that it will have n omoney for Biz! They are also lending as NBFCs to Promoters. All promoters will never pay them but will give them stocks! SO it is real bad situation.
Look at the price of Edelweiss, you can get E-Trade - which operates in 15 countries and has volume of 150 times in terms of trading and customers. SO no brainer.
Look at Peer valuations....
In reply to:
Sell - Fair value to be below 50!
Posted by : kamleshrut
Dear Ninkyrajiv,
Good analysis. I am confused regarding EPS of the Edelweiss. Consolidated it comes to be around 36 Rs [TTM]. Standalone it is 10. Should not we rely more on consolidated one? If consolidated is taken into account then the PE comes to around 10 or 11.
Kamlesh
Sell - Fair value to be below 50!
Posted by : kamleshrutTracked by: 0 Boarder
Dear Ninkyrajiv,
Good analysis. I am confused regarding EPS of the Edelweiss. Consolidated it comes to be around 36 Rs [TTM]. Standalone it is 10. Should not we rely more on consolidated one? If consolidated is taken into account then the PE comes to around 10 or 11.
Kamlesh...
In reply to:
Sell - Fair value to be below 50!
Posted by : ninkyrajiv
Let me explain some my rationale:
1. At current price Edelweiss is valued @ 2800-3000 Crores. At todays level E-trade having global Biz (and trading volume of 150 times EdelWeiss) is valued at almost same price!
2. Brokerage and AMC biz together is passe. Edelweiss enters AMC biz much late!
3. Last year PE is obscene (130+) - even if One looks at June Qtr EPS and extra polates it is PE of 15. Mind you doing forward with negative growth rate, I expect PE for such stocks to be less than 7. Biggest issue is EPS of June Qtr included extra ordinary.
4. Have not provided for litigation adverse judgements due to squaring of HNI client losses. Those are still in litigation.
5. Edelweiss is closing offices 1 a day. ANd are not paying incentive to folks (sales guys).
6. Their own cash (currently being used to prop their own share) wil dry out. Wait for Decmeber results.
Sell and get out. I expect fair mkt cap of Edelweiss to be around 300-400 Crore. And not 2800 crore! Imagine with 3000 Crores one can almost buy 50% of E_Trades Global Biz (whcih also owns a Banking license as a Deposit taking one)
Best wishes
Sell - Fair value to be below 50!
Posted by : radhika_nandlalTracked by: 0 Boarder
Brilliant simply brillaint Ninkyrajiv.
Kindly could u give me some stock picks for longterm say 3 years. Thanks....
In reply to:
Sell - Fair value to be below 50!
Posted by : ninkyrajiv
Let me explain some my rationale:
1. At current price Edelweiss is valued @ 2800-3000 Crores. At todays level E-trade having global Biz (and trading volume of 150 times EdelWeiss) is valued at almost same price!
2. Brokerage and AMC biz together is passe. Edelweiss enters AMC biz much late!
3. Last year PE is obscene (130+) - even if One looks at June Qtr EPS and extra polates it is PE of 15. Mind you doing forward with negative growth rate, I expect PE for such stocks to be less than 7. Biggest issue is EPS of June Qtr included extra ordinary.
4. Have not provided for litigation adverse judgements due to squaring of HNI client losses. Those are still in litigation.
5. Edelweiss is closing offices 1 a day. ANd are not paying incentive to folks (sales guys).
6. Their own cash (currently being used to prop their own share) wil dry out. Wait for Decmeber results.
Sell and get out. I expect fair mkt cap of Edelweiss to be around 300-400 Crore. And not 2800 crore! Imagine with 3000 Crores one can almost buy 50% of E_Trades Global Biz (whcih also owns a Banking license as a Deposit taking one)
Best wishes
Sell - Fair value to be below 50!
Posted by : ninkyrajivTracked by: 0 Boarder
Let me explain some my rationale:
1. At current price Edelweiss is valued @ 2800-3000 Crores. At todays level E-trade having global Biz (and trading volume of 150 times EdelWeiss) is valued at almost same price!
2. Brokerage and AMC biz together is passe. Edelweiss enters AMC biz much late!
3. Last year PE is obscene (130+) - even if One looks at June Qtr EPS and extra polates it is PE of 15. Mind you doing forward with negative growth rate, I expect PE for such stocks to be less than 7. Biggest issue is EPS of June Qtr included extra ordinary.
4. Have not provided for litigation adverse judgements due to squaring of HNI client losses. Those are still in litigation.
5. Edelweiss is closing offices 1 a day. ANd are not paying incentive to folks (sales guys).
6. Their own cash (currently being used to prop their own share) wil dry out. Wait for Decmeber results.
Sell and get out. I expect fair mkt cap of Edelweiss to be around 300-400 Crore. And not 2800 crore! Imagine with 3000 Crores one can almost buy 50% of E_Trades Global Biz (whcih also owns a Banking license as a Deposit taking one)
Best wishes...
Stock in problems
Posted by : GuestTracked by: 1 Boarder
The Edelweiss story seems to be over. They are facing serious liquidity problems and have already started retrenching people in the name of rationalising. See the stock falling to 200 levels by Dec....
multibaggerstockadvisor.blogspot. com
Posted by : GuestTracked by: 0 Boarder
having strong portfolio will make us fee good factor shall we reenter at these levels could be known from here...
NSE Announcements on Edelweiss Cap
Posted by : MMB MessengerTracked by: 0 Boarder
Edelweiss Capital Limited has informed the Exchange regarding a press release dated September 12, 2008, titled " Union Bank ties up with Edelweiss to provide Wealth Management services to its Clients". A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements)....
BSE Announcements on Edelweiss Cap
Posted by : MMB MessengerTracked by: 0 Boarder
Edelweiss Capital Ltd has informed BSE regarding a Press Release dated September 12, 2008 titled "Union Bank Ties up with Edelweiss to provide Wealth Management Services to its clients"...
1 queries on Edelweiss Cap
More from the Finance - General Sector
Boarders tracking Edelweiss Cap
News Updates on Edelweiss Cap
Explore Moneycontrol
