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.
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.
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