We would like to share with you details on the Special situation recommendation to our Alpha + members in the month of Aug’12 – Orient Paper and Industries Ltd (NSE Code – ORIENTPPR) at Rs 63.50
Orient Paper de-merger opportunity was originally initiated in Jan’12 at Rs 50 and subsequently closed in Mar’12 at a gain of ~21%. Earlier, we had to close the opportunity as the High Court approval was taking much time. However, when we re-initiated the opportunity on 1st Aug’12, the company had received all the approvals for the de-merger including the approval from the High Court and only the receipt of certified copy of the judgement was pending.
Note: This report is being shared only for the purpose of information; do not construe the same as buy/sell advice. Our Alpha + members are invested in the stock and we therefore have a vested interest.
Well there are many undervalued stories out there in the market, both due to depressed market conditions and market negligence. However, what is important is “The Trigger”. Yes, as has been observed in many cases, Special situations on account of various corporate actions (rights issues, de-mergers, de-listing, open offers, etc) act as a strong trigger for bringing forth the hidden/suppressed values (of land bank, business unit, etc.) out on the table.
Note: Special situation/Risk arbitrage recommendations are a part of Alpha Plus Portfolio service.
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