rakesh jhunjhunwala stock portfolio caught in bear trap

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- Rakesh Jhunjhunw ala - http:/ / rakesh-jhunjhunw ala.in -

Rakesh Jhunjhunwala Stock Portfolio Caught In Bear Trap

Posted By Arjun On November 19, 2011 @ 4:22 pm In investments,stock

picker | No Comments

Rakesh Jhunjhunwala ‘s portfolio is caught in the midst of a savage Bear

attack and has suffered huge losses. We check to see how RakeshJhunjhunwala can turn the tables on the Bears

Rakesh Jhunjhunwala, in his long and distinguished career as a billionaire

investor, has seen many vicious Bear attacks and survived to tell the tale.

But even Rakesh Jhunjhunwala must have been shaken by the savage & barbaric manner in which the Bears have launched the present attack.

The Bears have trained their guns on Rakesh Jhunjhunwala ‘s portfolio andare not willing to let go even though Rakesh Jhunjhunwala ‘s portfolio is

bruised and bloodied.

[1] Rakesh Jhunjhunwala (Image

credit ET)

We reported earlier how RakeshJhunjhunwala ‘s favourite

stocks Bilcare,Visaka & Geometr

ic had borne the brunt of the Bearattack and lost a large amountof Rakesh Jhunjhunwala ‘s

wealth (see RakeshJhunjhunw ala’s favourite

stocks fall from grace [2]).

However, this is only a part of the story. After the shocking 20% + 20% fallby Bilcare on two successive days (despite reasonable Q2 FY 2012 results),

another of Rakesh Jhunjhunwala ‘s favourite stocks and latestpurchasePipavav Defence & Offshore Engineering [3] plunged 20% on

Friday and hit the lower circuit filter.

Rakesh Jhunjhunwala ‘s other favourite stocks VIP

Industries [4],Autoline I nds, Orchid Chemicals and Subex also plungedbetween 15-28% in the past 10 days. Rakesh Jhunjhunwala ‘s stocks have

severely outperformed the market given that the Nifty fell only 4% since 4th

November.



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The Bears are adopting a tried and tested strategy to attack RakeshJhunjhunwala ‘s portfolio. They home in on the stocks that are heavilypledged and held by weak promoters. Once a stock is Bear-hammered and

the stock price plunges, the lenders get panicky and call the borrower/

pledgor to provide more margin funds. If the promoter does not have thefunds/ other assets to provide, the lenders have no option but to dump the

stocks to recover their loans – this causes the stock price to plunge even

further leading to a vicious circular effect.

The other strategy that the Bears are adopting is to spread rumorsthat Rakesh Jhunjhunwala is in trouble and is himself liquidating the

stocks to cover up for the losses. One rumor spread by the Bears isthat Rakesh Jhunjhunwala has speculated heavily in Silver futures and

that because the price of Silver has plunged, Rakesh Jhunjhunwala has

suffered huge losses. The other rumor spread by the Bears is that RakeshJhunjhunwala speculated that the market would zoom and bought a largeamount of Nifty futures. However, the reversal in the trend has

caught Rakesh Jhunjhunwala off guard.

The Bears are emboldened by the fact that Rakesh Jhunjhunwala keeps adignified silence and does not attack the Bears. The Economic Times reported

that Rakesh Jhunjhunwala kept a poker face and said “Let speculation

remain speculation. People can say anything they want, I have no comments.I never talk about my trading bets.”

However, the Bears also know that they are playing with Fire intargeting Rakesh Jhunjhunwala ‘s portfolio. Rakesh Jhunjhunwala did

not become a billionaire by meekly accepting whatever the Bears throw athim. Rakesh Jhunjhunwalahas seen these Bear tactics several times in the

past and one can be sure that Rakesh Jhunjhunwala has a couple of tricks

up his sleeve as well.

One should not be surprised if Rakesh Jhunjhunwala launches a blazing

‘Shock & Awe’ counter attack on the Bears and engineers a swift reversal inthe stock prices. Such a strategy will catch the short-sellers unaware and intheir panic to square up, they will end up buying more and more, thereby

driving up the stock price and creating another vicious circle – this time

in Rakesh Jhunjhunwala ‘s favour.

Rakesh Jhunjhunwala will, as usual, have the last laugh!

Rakesh Jhunjhunw ala Portfolio In Bear Attack



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Article printed from Rakesh Jhunjhunwala: http:/ / rakesh-

jhunjhunwala.in

URL to article: http:/ / rakesh-

jhunjhunwala.in/ index.php/ 2011/ 11/ 19/ rakesh-jhunjhunwala-stock-portfolio-caught-in-bear-trap/

URLs in this post:

[1] Image: http:/ / rakesh-jhunjhunwala.in/ wp-

content/ uploads/ 2011/11/ rakesh-jhunwala-portfolio.jpg

[2] Rakesh Jhunjhunwala’s favourite stocks fall from

grace: http:/ / rakesh- jhunjhunwala.in/ index.php/ 2011/ 11/ 14/ rakesh-jhunjhunwala-favourite-stocks-fall-from-grace/

[3] Pipavav Defence & Offshore Engineering: http:/ / rakesh- jhunjhunwala.in/ index.php/ 2011/ 10/ 08/ rakesh-jhunjhunwala-

portfolio-latest-buys-sells/

[4] VIP Industries: http:/ / ww w.rakesh-

jhunjhunwala.in/ search_results.php?q=VIP% 20Industries

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rakesh jhunjhunwala stock portfolio caught in bear trap

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