The Story…
What all can change in a month!
Aban, written off for dead, is back. And if you think about it…what really is the problem with
company?
Sure, oil prices were down. But that was yesterday. Now oil prices are headed back up to the $80
levels and beyond, given the weakness of the US Dollar.
Aah…yes, the company has a bit of debt.
Excellent! That's precisely what we are looking for these days. We all loooooove companies with
loads of debt these days, don't we…Because we wanna give them moneys in QIPs, FCCBs, PE, off
balance sheet the way Ramalinga gave to Satyam…whatever…
Short point is: Aban's twin problems are receding fast, and before you know, they'll have
disappeared altogether. Let it get some equity, and a whole new company emerges from the
chrysalis.
Valuations are totally undemanding at 4-5x earnings. The stock had an all-time high 5.5x higher than its current price.
That's good news.
Because there is plenty of room for the stock to run before it hits the wall. Global peers in the form of oil services companies are also seeing their stocks do well. No reason for Aban to sit out the party.
Aban could so easily be a Rs.2000 stock…Buy it.
(See Full Report)
What all can change in a month!
Aban, written off for dead, is back. And if you think about it…what really is the problem with
company?
Sure, oil prices were down. But that was yesterday. Now oil prices are headed back up to the $80
levels and beyond, given the weakness of the US Dollar.
Aah…yes, the company has a bit of debt.
Excellent! That's precisely what we are looking for these days. We all loooooove companies with
loads of debt these days, don't we…Because we wanna give them moneys in QIPs, FCCBs, PE, off
balance sheet the way Ramalinga gave to Satyam…whatever…
Short point is: Aban's twin problems are receding fast, and before you know, they'll have
disappeared altogether. Let it get some equity, and a whole new company emerges from the
chrysalis.
Valuations are totally undemanding at 4-5x earnings. The stock had an all-time high 5.5x higher than its current price.
That's good news.
Because there is plenty of room for the stock to run before it hits the wall. Global peers in the form of oil services companies are also seeing their stocks do well. No reason for Aban to sit out the party.
Aban could so easily be a Rs.2000 stock…Buy it.
(See Full Report)
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