Wednesday, July 11, 2012

Update on LIbery Phosphate - Sell / Exit

Update on Liberty Phosphate- 12 July-2012 -I believe earnings growth will be a challenge in FY13 ( on 30% reduced subsidy). 
So my basis is - cheap may continue  to remain cheap/ get cheaper. My principle is Valuation is never an only trigger to buy or sell , earnings growth /momentum is MOST important.
So I would rate as SELL /Exit .I`ve sold my long position at ~ breakeven.
When one is not sure of prospects,it is always better to exit.One can always enter again later.Will enter again if I see some triggers.
Update added in the earlier post here

4 comments:

Anonymous said...

I have this share @82. Is there any chance of this share bouncing back to this price in near future. How do you read its latest results? How does the future look for this company in general?

Anonymous said...

Recent results of some peers have been quite bad. So I dont expect Liberty Phosphate to post any good results.
Govt. also has cut the subsidy & no chance of a U turn / reversal in their decision.
Only trigger is if Management Announces something like a buyback.But given the debt it has , I doubt it can do that.
So in short,I dont see any positive triggers on the horizon. ( Apart from being cheap but cheap can remain cheap / get cheaper)

seema said...




Thank you. I just wanted to know where to ship it since I know now to keep producing it

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