RESPONSE TO READER'S QUERY; @ANON; 23/9/11 SINTEX INDUSTRIES

On the TECHNICALS, the Charts for SINTEX look pretty bad. It had a long term support at 137, but now since it has broken the same it could go down all the way to 121 and then to 111. On the upside, there is a strong resistance at 137 and then 144. Uptrend confirmation only if it trades consistently above 159 levels, which seems unlikely at the moment.

FUNDAMENTALS show that the Company has been performing well in the past and has aggressively guided for a 25-30% topline growth with similar guidance for Margin growth as well. What seems to be spooking the Markets is the FCCB conversion slated to come up in FY13 and the high trigger price of 247+ to be paid in case conversion does not go through. The debt on the Books is also pretty substantial notwithstanding the defence offered by the Management in the recent past. On the other hand, the Company is a clear Market leader in its segment and has well established Brands as we all know.

So, in my opinion, it may be useful to let the current volatility play out because we don't really know where the Scrip will finally settle. One could then start buying in at levels of 112 or lower in small lots, for the long term.

You other Queries: JINDAL SAW , WELSPUN CORP