Decoded by Market Guru Anil Singhvi: This share wants to become 'penny stock' - Is this Unitech-like case?
Zee Business Managing Editor and Market Guru Anil Singhvi with his panel of experts not only suggests quality shares to buy, but he also finds out shares you must leave and ignore in order to save money.
Zee Business Managing Editor and Market Guru Anil Singhvi with his panel of experts not only suggests quality shares to buy, but he also finds out shares you must leave and ignore in order to save money. The Market Guru this time has come out with East West Holding shares that is fast going to become a 'penny stock.' Singhvi advised stock market investors to remember the Unitech episode that not only split its shares but announced bonus to its shareholders too. However, the shareholders of the company finally bled heavily as the company shares couldn't sustain the artificially bull run for long.
Speaking on the East West Holding company's offers that may lure share market investors Anil Singhvi said, "East West Holding company has announced to split its shares. Now, East West Holding share price of face value Rs 10 will now become Rs 2. Apart from this, East West Holding shareholders will be given one bonus share on each four shares of the company."
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On how these offers will impact the East West shareholders, Singhvi said that East West share price is currently at around Rs 74 that means after split, East West share price will be around Rs 15. If we add the bonus announced by the company in it, its share price further reduces to Rs 12.
However, the Market Guru advised investor not to fall prey of these luring offers of the company as the company's financials are very weak. Its overall revenue is stagnant, its profit has been dipping while its debt has been on a rise. So, from the fundamental perspective, this is not a share to buy that any market analyst would recommend.
See full coverage in Zee Business video below:
एक अच्छा-खासा शेयर बनना चाहता है Penny Stock !
बोनस और शेयर विभाजन के बावजूद आप नहीं लगाना चाहेंगे पैसा...
क्या यूनिटेक जैसा है इस कंपनी का केस?
— Zee Business (@ZeeBusiness) February 22, 2021
Reminding investors to take lesson from Unitech episode Anil Singhvi said, "What East Weat Holding is doing has already being done by Unitech. They had also split their shares and announced bonus to its shareholders. But the Unitech shares couldn't sustain for long as these artificial bull runs can't sustain for long. So, it's better to avoid these luring offers as the East West Holding share is fast going to become a penny stock."
Singhvi went on to add that the company has a habit of changing its name too. Originally it was Ranten Bonds & Holding that they changed to Bullish Bonds & Holding that they again changed to East West Holding.
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