Share Trading Tips

CMP – 1194.85

Sloane Robinson bought 3,23,000 shares of the oil rig company at an average price of Rs 1,279 on March 8, 2010. The stock has seen a reasonably good run since late February. The company is negotiating with State Bank of India and Punjab National Bank for a moratorium on its short- term loans, after it failed to refinance a Rs 200 crore bullet loan due last month. Care Ratings had, in February, lowered ratings on many of Aban’s notes, including the short-term bank facilities amounting to Rs 400 crore. The long-term loans have been rated ‘Double B’, which is indicative of high credit risk. Most analysts believe that the stabilisation of oil prices has put Aban’s earnings concerns on the back burner. Operating margins improved to 62 per cent in the December 2009 quarter, from 56 per cent in the corresponding period a year ago.