Multibagger stock analysis – compu-u-learn , 20^th feb 2008

The company is basically in the field of computer education and other software services. It had come out with an IPO in the year 2000. The shares were offered at par. For the last several years the co. was making losses. But recently some positive developments have taken place for the co.. The total management control has been changed , the new promoters to officially take charge after the EGM being held on 27^th feb 2008 . The authorized capital of the co. is alao being raised from 15 cr to 50 cr. Some 60 lakhs shares and warrants are being offered at a premium of 7.50/- on preferential basis. The FII holding limit is also being raised from 24% to 49%. The co. bagged a work order for 6 cr in Jan. 2008 and a 4 cr order in Dec 2007 , both from U.S. companies .The last dec 2007 quarter results have been outstanding , showing a profit of 1.09 cr. Sales have also increased multifold. All the factors indicate the co. is a strong turnaround candidate. Further the sector of computer education is a high growth one. Buy at the current rate of 22 and expected price in one year is 60.

Risk factors include the co. has low liquidity on the bourses. Future earnings will depend on the Dollar-Rupee conversion rate.

CRICKET – As I had mentioned in my earlier blogs the Indian team got the combination right. Well Praveen Kumar might have failed with the bat in this match , but he is sure to click sometime .He should keep his head cool and avoid the lofty shots, as the situation demands Maybe he could have been promoted to no. 3 , to take advantage of the powerplay. The Indians have the habit of making the match a thriller , as we saw in today’s match against Srilanka .Yuvi finally got his touch back , maybe because of his breakup with Deepika . I had rightly mentioned this earlier. Perhaps his breakup might be just another rumour .

HEALTH TIPS – New research shows that only one peg of alcohol daily is in fact very good for health. Red wine will be a better choice . But more than one peg is equally harmful to health.