Saturday, November 26, 2011

Pick Number 3 - Smartlink Network - Only for investors (Part 1)

1.  A big thanks to Deepak Shenoy, whose writings made me stick to  this stock and also to Nooresh Merani who has reaffirmed by belief in this stock.  

2.  Sometime in Mar 2011, a news appeared about a slump sale to Schneider (who was on an acquisition spree globally). Schneider had bought off Digilink (for those familiar with erstwhile Dlink) . The company that owned the brand was Smartlink. I hope you dont get confused with the "links".

3.  That was about 150 Rs per share. The CMP then was around 70 odd Rupees.I immediately picked up a few  shares from the market. However, when I saw news channel  stalwarts rubbishing the promoters for the deal saying he has not shared the reward with shareholders etc, I began to doubt my choice. However, a peek into the management history put all doubts to rest and I continued to hold on.

4. The company had sold out the arm that contributed to 90% revenues (passive networking) with a no compete agreement for 05 years. The promoter was confident of building his active networking portfolio based on their previous expertise with D Link. Besides the interview with KR Naik on TV reinforced my belief in this management.

5. I received a dividend of Rs 30 per share in May 2011 and am continuing to remain invested by picking small quantities during each fall . the rationale for this investment will follow in the next post.

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