Western India Shipyard

There are quite a few wise  investors out there who pray fervently day and night for the markets to go downhill so that they get an opportunity to buy stocks cheaper but the markets are least bothered whether such guys are dead or alive - infact the markets  seems to be putting these wise and shrewd folks to shame. As the market refuses to correct sharply,  one of the simple ways to get value for your money is to :  get in quick and get out fast.  Call it momentum or whatever but the important thing is that you should profit from such quick moves.

To my mind, Western India Shipyard is one such scrip which offers you an opportunity to make some quick momentum gains. Don't read the charts and fundamentals with a magnifying glass but just read the following:

On BSE, 24.84 lakh shares were traded in the counter as against an average daily volume of 2.17 lakh shares in the past one quarter. The stock is not listed on NSE.

The stock last traded  today  6 October 2010  on  BSE at Rs.14.83/share, up 7.70 per cent over previous days close.

On 6 October 2010, the company informed the BSE that the company received a major order of Rs.7200 lakhs to repair INS Sujata, a naval  vessel. This is the first time that Ministry of Defence has entrusted such job to a private player.

The stock hit a high of Rs 15.59 and a low of Rs 13.97 so far during the day. The stock had hit a 52-week high of Rs 18.22 on 19 January 2010 and a 52-week low of Rs 8.30 on 5 November 2009.

The company has an equity capital of Rs 23.42 crore. Face value per share is Rs 2.

Western India Shipyard reported net profit of Rs 5.80 crore in Q1 June 2010 compared to net loss of Rs 9.75 crore in Q1 June 2009. Net sales jumped 188.5% to Rs 29.37 crore in Q1 June 2010 over Q1 June 2009.

Risk takers can buy  Western India Shipyard for quick  news driven gains – if you are able to make about 25-30  per cent in over a  fortnights  time then  you should consider your self courageous for riding the momentum. But don’t keep riding the momentum for too long else you may be flung hard  and get hurt. Good Luck to you in advance for riding the momentum and getting off at the opportune time without being too greedy!

Kishor S. Khot, [Kishor@hbjcapital.com], Equity Strategist, HBJ Capital Services Pvt Ltd