Getting savvy

Rajesh Naidu, Rahul Jain
Posted: 2008-04-13 23:29:25+05:30 IST
Updated: Apr 13, 2008 at 2329 hrs IST

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: 15% limit, indicates maybe Solrex wants to just be a financial investor. Hence, you need to read into developments of the acquired company carefully. Also, you must ask yourself questions such as what could be the objective behind open-market acquisition? Is there any speculation to generate a run-up in the stock? Or is it just for financial gains? More specifically, if you think there is a possibility of the potential acquisition of the company you are invested in, simply ask the question: “What can it offer?” Also, in order to test the authenticity of news regarding a company you must consider two factors. First, how important is the news in terms of its impact. Second, is the news knowable from relevant and reliable sources? Because just keep in mind that there may be as much 'off the books' data to incorporate as there is within the company's numbers....