LDEV.N0000

kav4 · 1 LDEV.N0000 Sun Jul 31, 2011 11:13 am

kav4

Senior Manager - Equity Analytics

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Lankem Dev. (LDEV.N0000) price has dropped from 90+ to 22 for the last 3 months. It has appreciated it's price 23.2% last Friday. Will it be bounced back to it's position to 90+ again? Is it a good time to get this share @ 23/- to earn a good profit within next 3-4 months? Experts please share your thoughts.

windi5 · 2 Re: LDEV.N0000 Sun Jul 31, 2011 11:30 am

windi5

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Hey dear, it came down cos of the right issue.They issued 15 for 1 right issue at a price of Rs.25, couple of months ago. It was trading 30 level,with the news that they were going to buy Angarapathna Plantation Ltd, share rose. 53,100,000 Ordinary Shares of the Company has been listed after the right issue.

kav4 · 3 Re: LDEV.N0000 Sun Jul 31, 2011 11:41 am

kav4

Senior Manager - Equity Analytics

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Thanks for the reply. I searched via DirectFn & it has not shown the right issue. That's why I was wondering the price difference.

Thanks

kansai · 4 Re: LDEV.N0000 Sun Jul 31, 2011 9:37 pm

kansai

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Hi,

LDEV went up suddenly few months ago probably due to a "Mega rights issue". That was the time some people were overenthusiastic about those mega rights during the immediate aftermath of the WAPO "Mega rights issue". With the annonouncement of the rights issue it went up like a rocket. Before that it was very easy to buy this around 30 to 40 as I can remember

With the issue of the rights at 20 rupees the share price reduces to this level.

Please read little more about the financials of LDEV and what were the investments done by LDEV with the capital collected by the rights issues and who belonged the property they acquired with rights money investment, before mere comparison of the price between two points of time and make a decision.

Well I am not an expert but I feel such decisions will burn your hands and burn at least few new comers. Some times ago I learnt that truth in a hard way and do not wish others to face it Smile