Monday, July 16, 2007

Why did Subros rise today?

Subros, an investment I made back in Jan'06, witnessed a spurt of close to 10% today. The rise was backed by a sharp jump in volumes (up from an avg of 14k to 95k), however, the percentage of shares delivered was quite low at around 27%.

Now, the news/announcement that followed a little later in the day was that of -

> a Board meeting to consider Stock Split and the Final Dividend for the year.

This hardly sounds like a reason to cheer the stock up by around 10%. Don't think the run-up is sustainable. Had the delivery percentage been higher, there would have been a hope for the rise to sustain itself.....but with a 27% delivery it doesn't look like it...will be watching the counter closely over the next few days.

Had written about this stock a few weeks ago, read it here.

News (17/7/7): To invest Rs.200 crore to double its capacity to 1.5 million units by 2012.

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