Trend of stock prices post OFS

General
1

Dear Folks,

Could you please let me know, the trend of stock prices post OFS issue is over.I was planning to invest in SAIL OFS, however due to insufficient amount, i cannot buy. Hence post OFS does the stock price tend to fall, (so that i can buy) only want to know the historical trend of any stock which perhaps anyone has personally experienced in past. I am sure, you cannot predict any such situation, however SAIL was a quality stocks, such like this if you can give your views.

Thanks

2

The Govt is divesting stakes in SAIL. The trend really depends on many factors related to divestment.No one can predict what the direction is going to be like, but when it comes to divestments, please keep the following points in perspective -

Extent to which the Government is divesting – divesting small stakes does not really help as the management may not get the required management autonomy

Profitability – You need check the profitability of the PSE. You should avoid buying into divestment stories where the PSE is inherently loss making

Future Prospects – Last but not the least, you should consider the future business prospects of the PSE.  Suppose a PSE is loss making, mainly owing to Government’s involvement, and the Government is divesting stakes in such a PSE, then you need to evaluate the possibility of a turnaround story.

1 Like