Cons
(a) Ethihad Airways with 24% stake has refused infusion of fresh money.
(b) Lender banks will have to make concessions to get some suitable buyer
(c) Most of Jet Planes have been taken by Lessors and they are just left with 12 planes. Even lenders who have paid money for these planes are also threatening to take away these planes.
(d) Disgruntled Employees
(e) Founder Mr Naresh Goyal having emotional attachment and is not letting the reins go away.
(f) Operational bills pending and they are threatening with stoppage of operations.
(g) Saddled with a debt burden of Rs 8500 Crore including pre bookings at discounted rates.
We had covered this stock earlier also with our view on how to trade Jet Airways and it was bang on target that time and now this time this is a fresh analysis with a new perspective as company has grounded its planes as it has not sufficient salaries to take care of daily expenses. Lets first have a look at below newspaper report which has a gist which states that Naresh Goyal was a great manipulator and he pulled the strings to keep Tatas out of the game and now even if company goes down the drain the law can not hold him accountable as he is not a fugitive. Now the ball game appears in the hands of SBI chairman/govt whether Jet Airways is saved or not or goes down like Sahara or Kingfisher Airlines.
Pros
A beaten down stock and some one may miraculously come and take over the company or hoping against hope that being election month, govt may step in and take control.
Word of Advice You Should Not Ignore
Lastly the word of advice is that never go for falling knife stocks and we have already covered DHFL and Yesbank as falling knife stock examples and better to keep away at the time when it falls to avoid whole capital being wiped out. We gave the level at which Yes bank is to be bought and when that level came our delivery stock tips clients bought that stock. DHFL is still avoid unless closes above 163-173 level as its finances state is still not accurately known.
So, no point being greedy and get struck in Jet Airways with a stock which may or may not yield returns. Even if it is taken by some one and stock revives, you will have a entry -point above which only you have to enter. Never feel that you have missed the bus. As of now this stock is in a prayer zone and one should keep away till some clarity emerges. If you have a penchant for gambling than it can be a high risk high return stock with tilt being in favour of negative trend. Just note that unless stock moves above 244 level stock will remain a sell stock only. First sign of some positive news happening will be seen if stock starts trading above 175 levels.
If you are looking straightway to make profit and not consider raking your head than just check intraday tip and start making profit from word go.
You
should Trade Less But Trade Accurately & this is Achieved with our Tip.
