Anil Ambani's ADAG has six listed companies- Reliance Infra, Reliance Power, Reliance Capital, Reliance Naval, Reliance Communication and Reliance Home Finance. Shares of all these companies are seeing huge buying by the crazy investors, either on averaging to heal old wounds, or on buy calls given by the experts, on hopes of fund raising and revival of these companies, or on positive outcome of NCLT.
Incidentally, majority of these experts, as also, investors, buying these stocks, are not aware that what amount is owed by each company to Banks and Creditors, how many companies are in NCLT reference, what is their latest financials etc.? When even senior management of each of these companies are not knowing it, these experts and investors can not be blamed.
When we ask few investors, of any sane reason of buying them, we get fancy replies -
> Re-Union of both brothers
> Astrological prediction of ADA seen bouncing back soon
> Nothing to lose, if buy at Rs.4 - Rs.5 (forgetting that not 1 share is bought by them)
> Action replay hopes, as seen with Dhirubhai in 1995, when Patalganga plant was submerged with flood waters of 10 feet
> Averaging old buys, earlier made at 20x to 200x of present price
We feel like hitting our Head to the Wall, as we even do not get a laughon hearing these reasons.
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