CONCURRENT INDIA INFRASTRUCTURE - UPDATE

After a long time ,got many queries from readers about Concurrent which is currently trading at its yearly low @ just Rs.4/-.Many of them are asking -  is it a buy even at current level ?.But it is not a buy for me even at current level and there is no change in my opinion on this company from my earlier stand .Old postings can be accessed HERE and HERE.

NOT ON CONCURRENT INDIA INFRASTRUCTURE BUT ON SMALL AND MIDCAPS.

Nowadays my mail box flooded with mails requesting to express

opinion on Concurrent India Infrastructure Ltd after recent

developments in the company. I really wonder ,how a small

company which changed its name and line of business recently

getting this much attention from investment fraternity.

On the other side I am really afraid because of my past experience

about over publicised companies in the past .

Anyway I would like to express my view on mid-small caps

generally and not on any company specifically.

1)      I strongly believes that , It is the commitment of any

good  management to come out with an explanation about facts

to its share holders,if there is any strong allegations about any company.

2)      If any company spending much time and energy  for publicity

and announcement ,such companies should be treated with caution.

If any company is working really well and growing steadily

investors will eventually find it out  and it will get deserved

valuation in long term – promoters should concentrate in

business rather than publicity .

3)If any company announcing business deals only  with unknown
counter

parties and parties outside the country ,such companies should be 

treated care fully. In the case of deals with companies outside the home

country , it is not very easy to verify the facts ,which increase the chance

of  foul play. Especially, if the company is very small and no previous

credentials of large project execution ,it is not very easy to get large

contracts anywhere.

4)      If any company announcing only the beginning of various

projects and silent on its completion , it is difficult to swallow such

claims as such

5)      If a company or promoter group  lost its glory due to  serious

allegations and no effective efforts from promoters to clarify their side ,

such company’s will underperform even if they declare excellent results later.

This is because  investors will sceptical  about the results ,

whether it is genuine or fabricated.

PS. :Study the history of companies like Teledata ,Compact disc ..etc.

6)    In a bull market  Small and midcaps are moving not only because

 of fundamentals , anything possible if the parties behind any company

is smart enough and their pockets are deep ,but such up move  may

not last longer.

7) IT IS STOCK MARKET - EVEN SMART GUYS  MAY BE CHEATED BY SMARTER ONES AND BOTH BY SMARTEST ONES.

 

This is my general view on small and mid cap investing and not specific to any company.