dark horse

 Sanguine Media Services Ltd trading around Rs.3.99 could be dark horse going forward. The company is expected to come up with Q2FY10, results at the end of this month, probably on 31st, October, 2009. The results are expected to be good sequentially and would further improve going forward. The company’s event management section earlier received contract from ICICI Bank and probably from TVS Motors Ltd. The company is focused on rural media coverage.


According to the market sources the stock could cross Rs.11-12 in the next 3 to 4 months time frame. Since the company has very low equity capital and hence, when it starts hitting upper freezes it is very difficult to buy the scrip from the open market. The book value of the shares of the company is Rs.21.88 (Rs.22 approx) against its current market price of Rs.3.99. This essentially means that if the company gets liquidated today, then all of us (shareholders) would get Rs.21.88 per share—less administrative or other charges---doesn’t it look interesting??!! Its price to book is OLNY at 0.18. Can you imagine that the market cap of a BSE listed company is only Rs.5.63 Cr!!

Hence this absurd price of Rs.3-5, cannot remain long—the aberration would be corrected soon. Just buy for 6 months time frame—I am sure your money would get doubled by that time, as the stock in all probability after Q2FY10, results will start to rally again.