Risky Picks 01 Caution Advised

In Risky pick we analyse a company in which
the mangement is not investor friendly or not acting in bonafide interest of investor community but where financial results are good or better future prospects are projected and to an extent achieved too

while investing in such company extreme caution is advised so as to reduce the risk of loss of capital. personally i do not invest more than 10 percent portfolio in such scrips

RISKY PICK 01

Compact Disc BSE: 526141 

http://www.compactdisc.co.in/
http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=526141

good  results year after year Rs 53 crore profit expected for 2010-11 as per management estimate
(in Management Discussion and analysis)

Book value Rs 108 FV Rs 10

Shares outstanding 0.957 lakh of Rs 10 each

Analysis of 2009-10 Financials
-------------------------------
Turnover Rs 238 per share growth of 20 pc

EBIDTA Rs 50.44 per share growth of 25 pc

NProfit Rs 49.40 per share growth of 25 pc

Market Capital Rs 64.9 crore and at Rs 64.40

the PE is 1.33 PBV 0.60

Dividend @Rs 2 for 2008-09 with record date Sep 2009 announced that it will be declared through EGM held on 30.08.2010 thereafter no announcement as to conduct of EGM
Dividend @Rs 2 for 2009-10 with record date 17 Sep 2010 announced that will be declared through AGM to be held on 30.09.2010 thereafter no announcement as to conduct of AGM

NEWS FLOW

Company has secretively announced at moneycontrol that it is going to raise Rs 240 crore through FPO / QIB the same is not included as a part of AGM or announced in exchanges on 14 sept 2010
http://www.moneycontrol.com/news/ipoupcomingissues/compactdiscaimstoraisers240crviafpope_484459.html.

Company management announced that its subsidiary Premier Brands Pvt Ltd has been appointed as the main licensee for merchandising programme of the Commonwealth Games into branding of licensing and merchandising business. which will clock a revenue of roughly Rs 300 crore
http://www.moneycontrol.com/news/business/expect-rs-300crcwealth-games-order-compact-disc_471076.html

will Compact Disc break the record created by Pentamedia graphics during 2000
in market capitalisation growth and erosion subsequenlty


If there are any shareholder of Compact Disc kindly post their experience in this counter