What is happening in RCOM ? Is this a scam?

In stock markets, if prices can come down, it can go up again :wink:

I think you have misunderstood the concept. This is applicable only for quality stocks and not for fundamentally poor stocks like Rcom. You can’t load up on a stock that is about go bankrupt.


Are you sure it will go bankrupt… The company is just re-positioning its business (the way i see it)…they already said focus would be on 4G as they are shutting 2G.

If you looked closely there was massive selling by the bears which actually pumped up the stock price.

well @Bhuvan you would save a lot of time yourself :slight_smile: if questions are not allowed to post if ppl are selecting category as uncategorized

Let me educate you a little about the how beautufilly F****** up Rcomm is and @iSTFF can back me up here.

  1. Interest coverage is negative, meaning no paisa to pay up debts. Currently stabds at about -0.6%.
  2. The debt which stood at about 8000 odd crores stands at 45000 crores today. Even if they sell of their assets to pay up, they’ll lose their footing turning it into a bit part player in the telecom industry. It’s debt is over 7 times EBITDA.
  3. As per the repayment schedule in FY18 it owes 8102 cr, 8366 cr in FY19. Unless Anil Ambani has a magic hat from which he can pull out money, I don’t see a scenario where things work out well for Rcomm.
  4. It’s Q2 loss alone was about 2700 cr with total income down by 48%.

It is showing negative subscriber growth and it is just present in 8 circles. This against the onslaught of Reliance Jio which has a PAN India presence and deep pockets I don’t think so!

Judging by your logic of buying when stocks go down then I should load ou on Jp Group Stocks, Lanco, IVRCL, Jyoti Structures, Bartronics, Videocon, Religare and others which are trading at lifetime lows. All these companies have said that they will focus on business restructuring!

Let me know if I am missing something.


Haha. Maybe we should give it a shot. :slight_smile:


Completely agree with Sanket! His assessment is that of a seasoned fundamental analyst, however, if someone understands even basic Fundamental valuation then he/she would completely stay away from companies like Rcom. @mexpress- The famous quote of Warren Buffet that you mentioned: “The lower stocks go, the more i buy”- is only for qualified fundamentally strong stocks that are falling due to broader market bearishness. These are the times when you can pick up such stocks or more of such stocks at cheap prices. For example, many good quality stocks were beaten down in the 2008 broad bear market which back then could have been picked up at cheap prices as per Buffet’s quote that you have mentioned.

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Is it a deja vu… :wink:

similar discussion earlier…


Here, Value is missing in price. (RCOM)

@mexpress Now it all makes sense

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Yes, it’s true. Maybe, when i sell the stocks i hold, i will get back to prove the ‘experts’ wrong :slight_smile:

I love JP. Made profits from JP yesterday also. :slight_smile: Maybe getting profits because i’m doing everything what no ‘experts’ dare to do. :rofl:

Would love nothing more than to be proven wrong. I genuinely hope your investment pans out. Good luck. :slight_smile:


Sure sir, I’m learning from all of you from your valuable comments. My views are just from a newbie trader point of view.

PS: I finally beat my addiction to South Bank stocks as suggested by fellow members. :joy:

RCAM is saved by Mukesh / now we have a reason to believe that separation is only on paper

yesterday , only 4% of qty traded was deliverable for RCOM. So something is going on.

Also daily vol has also increased for RCOM. time to short i guess.

Rcom, JP, videocon all these are failed companies. Favorites of traders. Only fools Will invest.

We should not insult any investor by calling them fools etc… each one have their own perception about market/stock & because of which the market is running…if entire community takes one view then imagine the market conditions…we will not be able to trade…we should respect every one’s view in this market…

how do suppliers / directors / employees of rcom paid money ?

I mean : are suppliers , creditors , employees , directors of a defaulting company like e.g. kingfisher etc . Paid money ?