Wednesday, October 26, 2005

GTL Limited

Global Telecommunications is as crazy a stock you can find. The NCA of this scrip is 81 rupees per share with a CMP of 106 rupees. The cash in the company is a wonderful 72 rupees per share. In pure Grahamian terms, if the stock price were to go below rupees 72 and you had enough money - you should simply buy up the entire company, go to the bank and write a cheque in your name (typical GESCO takeover case). Since it's not the case, I would suggest a confident BUY on the stock just on the basis of the current intrinsic value of the scrip.

If you are wondering why the stock has not yet been raided by others, GTL was one of the K-10 (Ketan Parikh 10) companies.

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