What do you think will be the effect of the merger of Power finance corporation and Rural electrification corporation from an investors perpective ? @Neha_Raghuraman
Hey @abhas_singh,
Sorry for late reply.
I am not a fundamental analyst so can’t comment on how strong the combined entity would be. However, from a technical perspective two weak companies do not necessarily make a strong company (unless of course they become some sort of monopoly).
This news or rumors of the PFC & REC have been making the rounds since last year (see article from Jan below). If there was any earth shattering, mouth watering opportunity, I am sure the big guys (mutual funds etc.) would have jumped on it and taken the stocks way higher- instead both these companies are trading at their multi year low.
I may be wrong but I like to stay away from government regulated, especially power companies because they are riddled with corruption, inefficiency and bureaucracy. Can’t comment beyond that.
PS- this is not an investment advice. If these stocks run some 50-60% from here in a couple of years, don’t blame me 
I don’t regrets missing such “opportunities” because pigs do fly in the stock market every once in a while. However, I like to think in term of probabilities and it’s really hard to this duo dazzle the investors any time soon.
My 2 cents.
-Neha (vrdnation.com)
Thanks a lot for the insight ️:slight_smile:️:slight_smile:️:slight_smile:️