Results coming out of Corporates in the current quarter shows dwindling performance ratios. Not many surprises left to discuss. Though some companies are showing robust gains in the current quarter, their past records do not hold promise, stating that this one time increase in earnings can be a blip and cannot be trusted.
HEROMOTOCORP, announced one of the strong results in the current quarter with a growth of 42,91% on its EPS growth, but sales growth has declined to 16%. Though this is an advantage for the stock as they are reducing costs to boost the bottom line, when compared to previous records the EPS ranking for the stock is at 44.15 at the time of this writing, which means that there are about 55% stocks which are doing better than HEROMOTOCORP.
We would not want a stock that is so low on the EPS rank when compared to the industry. But the chart patterns show a clear bullish divergence on the daily charts which also had a trending buy having shown tremendous growth in the past few days. Friday’s volume was up 99% against it average and the indicators are gaining strength. This stock should see some short term gains towards 2000-2100 zones. Entries have already been in, so do not attempt new entries now.
Mutual fund participation in the stock though saw tremendous increase in the November purchase is showing very much lack luster in the December updates received so far, so fund are either not investing much nor selling in a big way. This shows that a wait and watch scenario is seen in this stock.
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