Share Trading Tips

Macquarie Bank has pared its stake in Cranes Software to 18.21 lakh shares by selling 21 lakh shares. The Australian bank’s stake is now significantly down to 1.55 per cent from 4.16 per cent in September 2009. Subsequently, the stock also fell over 20 per cent in the last 10 trading sessions. In October last year, Swiss Finance Corporation, too, had reduced its holding in the company to 1.9 per cent from 4.9 per cent in September 2009. Further, rising interest costs, as a percentage of profits, is a cause of concern. Interest costs increased to 41 per cent in the nine months ended December 2009 compared with 13.7 per cent in the corresponding period of the previous year. Besides, the company’s latest disclosure that of the 2.8 crore shares held by the promoter group, about 2.5 crore (roughly 88 per cent) shares has been pledged is proving to be hangover on the stock. Compounding the negative development is the fact that the Bangalore-based company’s international revenues have declined by 79 per cent to Rs 16 crore, while domestic revenues, too, were down 79 per cent to Rs 4 crore in the December 2009 quarter. For the nine months ended December 2009, revenues were down 13 per cent to Rs 304 crore, while profit was down 49 per cent y-o-y to Rs 48 crore.