TELEDATA INFORMATICS LTD-BUY

This stock has been discussed threadbare in various message boards in the past.The recommendation to buy comes from basically the following pointers:

1.The dilution in the promoter stakes has been due to the aggresive accquisition strategy adopted by the company in the past.The dilution has also been higher due to the low price prevelant for the stock in th past.

2.The demerger of the company into three parts will give better focus in its operations-will also unlock value for the shareholders of the merged entity.



3.The increase in the bandwith of the management-The entry of professional managers in the form of Vikas goel and others will ensure that the company is looked at differently by the investment fratenity.

4.The company has a near monopoly in the marine products division in the Asia region.

5.Price comfort-The share is trading at Rs.64 which is less than 2 times its annualised earnings for the year ended March 08.


I think the worst is over the company and long term investors can buy with a target of Rs.250(post demerger)consolidated price.