Financial Daily from THE HINDU group of publications
Tuesday, May 13, 2003
Financial Daily from THE HINDU group of publications Tuesday, May 13, 2003 |
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Markets
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Stock Markets CAS wave drives up penny stocks
Neha Kapoor
MUMBAI, May 12 WHETHER the conditional access system (CAS) for cable television is implemented successfully or not remains to be seen, what is clear, though, is that all the talk about CAS is driving up fortunes at a couple of penny stock counters on the bourses. All of a sudden, stocks of companies such as Hathway Bhawani Cabletel & Datacom, a cable distribution company in Mumbai and Catvision Products, a cable television equipment company, seem to have caught the fancy of investors, riding piggy-back on the CAS story. Today, on the BSE, Hathway's stock gained 11.04 per cent to close at Rs 8.55 with 7,601 shares being traded, while Catvision gained 19.57 per cent, closing at Rs 5.50 with 20,734 shares traded. In fact, in the past week alone, the share price of Hathway has shot up from Rs 5.85 on May 5 to today's close of Rs 8.55 on the BSE, gaining 46.15 per cent. During the same period, the stock of Catvision Products has gained almost 31 per cent on the BSE, rising from Rs 4.20 on May 5 to its current level of Rs 5.50. Today's jump in price at the Catvision counter was attributed to some talk of an order. "There were rumours in the market today that the company has received a `substantial' order from the RPG group for production and supply of set-top boxes," dealers said.
Catvision is in the business of cable television equipment and services, manufacturing CATV equipment and offering services such as site surveys, system design and equipment estimates, installation and commissioning and training in routine operation and maintenance. Hathway, part of the Rajan Raheja Group, is also in the cable networking business with operations in Mumbai. Among other listed companies that manufacture cable equipment, the stock price of Salora International, a company that claims to manufacture set-top boxes, has remained almost stable in the last few days. Dealers said there are very few companies that are into cable distribution business or associated with it which are listed. "In case the cable distribution business becomes more organised with the implementation of CAS, the fortune of these companies will turn," said a media analyst.
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