What to do with Reliance Power ?

 

Once the record date for Reliance Power’s bonus shares is coming close, a million dollar question hovering in every one mind is what one should do with their holdings of Reliance power?

 

Once the stock will go ex-bonus, it will face tremendous selling pressures because of its expensive valuation and the fact that earnings will start flowing only from 2011.

 

So, the investors should sell the stock immediately after it goes ex-bonus and Investors with more conservative views can sell the stock even one or two days before the record date.

 

What to do with the money realized?

 

Invest the money realized in LARSEN & TOUBRO LTD or ICICI Bank with one year investment prospective, both of these stocks will generate return of over 60-90 % in 12 Months.

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