TWO LOW PRICED SCRIPS TO KEEP IN YOUR RADAR

No doubt investment in stocks is a high risk high profit way to create wealth compared with investment in many other assets.Even in equity investment we have many choices like Blue chips,Mid caps,Penny stocks..etc depends on one’s risk profile.Many investors are willing to allocate a small part of their total equity corpus in micro caps and test their luck.Even we are willing to do so we must have at least some reasoning in selecting such stocks and not bet on any stock if even the promoter of the company selling it and only operators are playing with. This week , I am bringing  two such stocks to your attention .Remember ,both of these are not value stocks and not eligible for investment based on any conventional parameters.Since the fortune of these stocks are depends on many IF’s and But’s ,only high risk investors with a willingness to loose the entire capital invested in it  are requested to try it.

1) PCS TECHNOLOGY LTD

      PCS Technology  is now the only listed company owned by  the promoters of erstwhile Patni Computer Systems Ltd ,after the selling of their flagship company to I-Gate Solutions. PCS is one of the first listed companies from the hardware space, made its IPO in 1989.Even the company having operations in  IT and  IT enabled segment it is known as a hardware player.What is interesting now is some important  decisions regarding PCS taken by the management after deciding to sell their big company – Patni Computer. 

         A) Company decided to exit from its low margin hardware and system integration  business and planning to concentrate in IT and IT enabled segment.

        B) Decided to clean the balance sheet using the share premium account, realisation from  land sale..etc

 C) Sharp improvement of bottom line in latest quarter (Top line decreased due to the exit from hardware division on a phased manner) 

      D) Acquired new office premise at MIDC Area Mumbai 

It is important to note that this scheme of arrangement  to write off some dead assets and clean the balance sheet is entirely funded without any change in capital structure like reduction in share capital ,face value or such arrangements.Another important point is that the share holding of Patni family in this company is still  as high as 70% .

If Patni family sold their flagship company Patni Coputer  at price of $  1 Billion and they are now taking renowned interest in their  only other listed company ,in my opinion ,it is worth a bet at current market price of Rs.19/-

For the link to Company website Click HERE

2)      MILTON PLASTICS LTD

MILTON  is a well known brand in Vacuum Flasks,Casseroles, Water Jugs ..etc. I suspect even many other household items  are selling under this brand by some private limited companies of the same management . I am not sure who is the real owner of this brand whether it is the listed entity or the family who runs the company .Anyway, what is attracting now is the sharp increase of the share prices of some company’s like TTK Prestige and Butterfly Gandhimathi  and the efforts  of  the promoter of MILTON to settle company’s dues with banks on a one time settlement basis .If the wealth created in the mentioned companies  is an eye opener for this promoter too ,the brand MILTON is still strong for rewriting the future of this company . If they are ready to correct their past mistakes ,on settlement of dues with banks the entire business may be consolidated in the listed entity .Everything depends on promoters’ attitude and whether their efforts to settle dues is an indication for their changing mind ,only time will tell....  .More details about this company is available in their NEWLY launched website. CMP of Milton is Rs.11/-

Note : These scrips are only for investors with above average risk and willing to loose the entire capital invested in it.

Disc:I have vested interest in both scrips.