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Saturday, December 8, 2007

Rama Petrochemicals:A gem of a penny stock

Another penny stock which was suggested to members few months back has started rocking bigtime offlate.Looks good for some more way to go.


Scripscan:Rama Petrochemicals ltd
Cmp:7
Code:500358


Story:Rama Petrochemicals is engaged in the besiness of manufacturing Methanol.Presently methanol is produced by Deepak Fert and GNFC.Demand of methanol in India is increasing at a rapid pace and it is much more than the production capacity at present;the shortfall being met by imports.

Rama had stopped production 4 years ago as it not cost-effective to produce methanol thru regular fuels.However,plant is being maintained in perfect condition. Now,the company will start getting Gas within 4-6 months and will resume production immediately thereafter.With gas as main fuel,the company will run its operations profitably.

Conclusion:Methanol demand in the country is increasing due to sustained growth in it's end product and new use in bio-diesel manufacture.At these prices of 6-7rs its a gem of a buy with chances of multipling ones money when the production begins.



Regards,
ARUN
I can be reached at:arunanalyst@rediffmail.com

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Posted by arun at 7:33 AM

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Important Disclaimer

Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
 
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