RCOM share price hits all-time lows. When I am writing this post this scrip is trading between 20 and 21 rupees and at almost all time lows. Making money in stock market is all about catching the right stock in the wrong time. Let us see if there is any money making opportunity at RCOM share price trading at Rs. 20.60.
RCOM Company Profile:
RCOM or Reliance Communications is headed by Mr. Anil Ambani. Anil is also heading RCap, Reliance Infra and Reliance Power. Let us check the share holding patterns below:
The company is a part of the Anil Dhirubhai Ambani Group (ADAG). They are a telecom service provider and they have both India and global operations. In the published reports the company has declared that till March 2016 the company has made a yearly turnover of Rs. 11161 crores versus a profit of -1624 crores. The company has fixed assets of Rs. 39513 crores.
The recent slide in the RCOM share price was due to a news that RCOM defaulted Rs. 90 crores as interconnect fees to Airtel. Though as per Reuters news the company clarified that the news is incorrect, there is no default. Anyhow the company is not doing well.
Now can an investor think to invest in RCOM?
R stands for Reliance. So, the company carries the brand of Reliance. RCOM is standing on verge of a default. There may be some family issue between Anil and his big brother Mukesh Ambani, a larger issue can also patch up family relations. Mukesh Ambani is cash rich and if there is any chance of merger the RCOM share price can turn around drastically.
Really stock market is not for weak hearts who always fear of losing money. Go ahead, invest just 2% of your capital in RCOM. Think it as a bad investment. Keep for long term and you can make a fortune if the scenario changes dramatically.
Remember Satyam Computers:
New comers in stock market cant remember what happenned on January 2009. After the surrender of the then CEO Ramalinga Raju, Satyam Computers stock price slided from 180 to below 10 and lion hearts who had courage to buy the scrip close to 5 rupee level made their fortune. And rest is a dream story. Satyam has been merged with Tech Mahindra and money has been multipled many times.
Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.