AVOID -COMPACT DISC

Some companies are paying much attention to their advertisement rather than their business. They are spending lot of money for multicolour advertisement in financial dailies and business channels .Various announcements regarding the commencement of projects and filing of it on a daily basis to stock exchanges are their hobby. But normally there is no announcement about the completion of such projects. They are ready to spend lot of money for this type of advertisement activities but do not pay even Rs.1/- for its share holders as dividend or do not spend anything for buyback of shares .Only motive is to attract the attention of investors and rig the share prices inorder to raise further fund or to exit from the company.They may even announce dividends but do not pay it.After the case of Satyam computer, investors are more vigilant about such companies and their share prices are normally in single digit P/E even they are showing EPS like Rs,30.40,or 50. Retail investors having low risk appetite should exit from such counters even if they are showing growth in financial front.Check the history of promoter group and the trend in their shareholding pattern before investing in over advertising companies.