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pcpune · 13-07-10

Well, the stock recently issued a right issue - indication that the company has OVER leveraged itself and got itself into a lot of debt.I understand wind energy has lot of prospects in future, but to provide energy cheap will be the biggest challenge. Infact, i generally dont like "power generating" companies since a lot of costs & investments are needed for the company to generate any revenues...and the companies have a gestation period of 5-7-10 years...well that is some time...

And its true with all power companies...however,if you are still very bullish on power, look for power "trading" or "finance" companies which have a consistent revenue from Year 1 from whichever company who is generating power.

I would advise you to look for companies that are CASH RICH,ZERO DEBT and generate revenues and profits quick and fast.
You can hold on to Suzlon for say 75-90 levels, and then maybe switch to another idea, as I have stated above.
Just to add, always remember, a good company with a good management like Suzlon Or Aditya Birla Nuvo MAY NOT always be a very good stock for its shareholders...

Look for companies that care about the shareholders - in terms of Return on Equity!!!!!!!

13-07-10	#9
pcpune Veteran Member Join Date: Nov 2009 Posts: 1,304 My Mood: Thanks: 0 Thanked 21 Times in 6 Posts	Well, the stock recently issued a right issue - indication that the company has OVER leveraged itself and got itself into a lot of debt.I understand wind energy has lot of prospects in future, but to provide energy cheap will be the biggest challenge. Infact, i generally dont like "power generating" companies since a lot of costs & investments are needed for the company to generate any revenues...and the companies have a gestation period of 5-7-10 years...well that is some time... And its true with all power companies...however,if you are still very bullish on power, look for power "trading" or "finance" companies which have a consistent revenue from Year 1 from whichever company who is generating power. I would advise you to look for companies that are CASH RICH,ZERO DEBT and generate revenues and profits quick and fast. You can hold on to Suzlon for say 75-90 levels, and then maybe switch to another idea, as I have stated above. Just to add, always remember, a good company with a good management like Suzlon Or Aditya Birla Nuvo MAY NOT always be a very good stock for its shareholders... Look for companies that care about the shareholders - in terms of Return on Equity!!!!!!! Last edited by pcpune; 13-07-10 at 05:59 PM.