AtulGandhi.com

India, Keep Rising !!

09 January 2013

Update : Arshiya International Ltd

I) 
DNA reporting today about Arshiya International comprising
1.   Number of people fired
2.   Non payment of salary
3.   Financial irregularities
4.   Financial crunch

In response management updated  "There have been some news items in some sections of the Press on January 09, 2013, regarding operations and affairs of the Company which is misleading and not true. Further, the Company has clarify, Arshiya International Ltd has taken a call on rationalizing its employee costs / removing non-performers in the overall interest of the Company. Arshiya International Ltd has real assets that it has created in the West and North of India, including Pan-India Rail assets. All of these assets created by the Company are operational and continue to remain operationally strong."

We expected management reply with more detail to include facts & figure. It would have been helped to understand state of affairs clearly.  

Not only shareholder but various stakeholders including customers, employees, suppliers, lenders, regulators would have concern & would like to know more information.

We recommended buy Arshiya in Oct-12 along with red bold note “Company has high operating & financial leverage.” We advice to keep hold on stock & expect more clarity from management.

II)
Events like this impose importance of basic principle “Don't put all your eggs in one basket. Diversification protects your investment portfolio.” Investing in say 30-35 companies as well as buying at different level based on technical analysis can considerably reduce impact of such hiccup.


Disclaimer: Any purchase/sale of a stock involves a high degree of investment risk. Caution all investors that they may lose some or all of their investment if they decide to purchase any stock listed here.

No comments:

Post a Comment

Comments