Fairval

Notes on Indian equities, sectors and economy

This blog flagged Opto Circuits on 17 Jan’12

Posted by fairval on January 24, 2013

In a post on 17 Jan’12, this blog had raised flagged a warning on Opto Circuits. Here is  a link to that post:

Is the bull market back? And is Opto a shady stock..

What caught my eye was an announcement on BSE Opto made about a really trivial order. Some companies tend to start making announcements on BSE the moment they smell a bull market. Often, these companies are shady. There are are few others, which are otherwise fancied by the market, but are highly pro-cyclical with bull markets. Sintex is another company, which seems heavily pro-cyclical, but that is probably a better company.

The Jan post was based mainly on the innocuous announcement, which sounded highly shady to me. Subsequently, one also heard some negative stuff from banking friends in Bangalore.

The share price of Opto on 17 Jan was around Rs 224, which is close to its 52 week high (Rs 225), hit around Feb. Since then, the stock has headed down, and is now Rs 85. Given the turn of events in recent days, it seems investors have turned jittery over deteriorating financials.

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