I would not even attempt to answer it but would definitely give my views on it. Remember these are my personal view and does not mean any legal or financial advise.
In simple terms about the case between RIL ( Reliance Industries Limited ) or RPL and RNRL, RNRL is asking the Gas at 2.8 per mmbtu ( million metric British thermal unit ) and RIL is asking price of 4.2 mmbtu. As there is no price information in the contract between RIL and RNRL, RNRL demands the price when the contract was signed and RIL says it should be current price.
Now as you can sense, in simpler terms the case is not very simple and so it could go either way but according to me if you have a risk profile and don’t mind loosing 10-20% of your investment value you can make the same amount in a very short period of time.
So now should you invest in RPL or RNRL? I would bet my money on RNRL for the following reasons.
- It has won one in High Court and so chances are it may win in Supreme court as well. I can be wrong as well.
- Gas is not needed by RNRL and ADA Group currently but after few years from now but they would anyway fix the price.
- RNRL is more aggresive ( as I can sense from newspaper advertisement ) than RIL in its approach.
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{ 20 comments… read them below or add one }
Hi Sabbir, I too request ur opinion on RNRL and RPOWER after Mr.Obama’s visit and recent meetings…
RNRL is out of exchanges and is merged into RPOWER now. RPOWER is buy if you have a 3+ year horizon.
What you say about your views now? RNRL lose the battle and RPL is moving ahead. Just opposite to your forecasting!
RNRL is no more now and going to become a part of Rel Power. I hope you are aware of it.
Please make necessary changes in your article to avoid confusion.
You are commenting on post which is few years old now.
But with te amalgamation of RPL and RIL .. Shareholders of RPL guess would get RIL shares @ the ratio of 16:1 so soon RPL would be off the SENSEX listing …. 28 Sep 2009 is the record date i guess .. then why have u put RPL on a long term bet when soon it would not even be listed for trade …
If you buy RPL you would get RIL and so how does it differ if we do invest in RPL. I mean the fundamentals of the company would not differ if you buy RPL / RIL.
Mr Shabbir,
RNRL is long term prospects as per you , what do you think price will be (approximate) in next two to three years?
RNRL is never a long term prospects according to me because it has no business apart from RIL tussel and providing the Gas to RPower. Its a trading bit. RPL is good when it comes to long term prospect.
RPL and RIL are supposed to announcing a merger this month end . do u think it is worth buying a fe RPL shares in the hope of the swap being profitable to RPL shareholders.
I dont think the arbitrage exists as of now but if you can get anything to work in your favor you should try it out.
Oil and Gas Sector I like and also companies which do not hold the burden subsidy but recent news where all upstream and downstream companies would be taking the subsidy made be not very upbeat on this sector.
But oil / gas is supposed to be the next hot sector in the market and most O & G co’s are psu’s … so u dont recommend any of them .. then which scrips shld one hold in this sector considering most are psu’s investors are left with only the relaince group the next best contender…
Shabbir thanks for the forum . I have Mahindra Satyam at 126 . Is the outlook good in near future for this tainted company .
Looks Good but the level you have entered is not something at which you should be investing. Trading Should be done with Stop Loss. Follow the stop which was suggested to you when you purchased it.
Shabbir how is IOCL as a long term investment they r due a bonus issue soon thats what ive heard
I dont track that
Shabbir,
I hold some stocks in Cairn and Reliance Power .. what are your views on these 2 scrips over the long term.
RNRL – is this a worthwhile pick with a long term perspective.
I am also looking @
Bharti Airtel & RPL are these worthwhile too.
Thanks
Melwyn
RNRL is trading bits where I am ready to loose for gain.
Cairn, Bharti and RPL are fine but I am not upbeat on RPower for couple of years but can consider after 2011
Which account do you think have lowest yearly cost and brokerage, at the same time good service? Is there any account by which I can transact both online and from broker?
I use Motilal Oswal for Offline trading and Sharekhan for Online.
Read http://shabbir.in/review-of-all-stock-brokers/ for review of all of them in detail