Lakshmi Machine Works: Up 36% in a month over good volumes

Lakshmi Machine Works, our investment pick (click here for fundamental analysis) has soared 36% over the past month, and that too in good volumes. The stock, trading now at P/E of 26 touched the 52 week high of 1449 today on the NSE. The scrip had impressive volumes, not only today, but over the whole month, when a significant amount of buying has happened. LMW had seen significant deterioration of the topline in the past quarter, and had the stock price hammered down to the levels of 400. Now, at 1449, it is still seen as an investment candidate by many.

BSE Data:

Month	Open Price	High Price	Low Price	Close Price	No. of Shares	No. of Trades	Total Turnover(Rs.)	* Spread (Rs.)
								H - L	C - O
July 2009	951.00	1,040.00	760.00	993.15	345746	26745	316,259,237.00	280.00	42.15
August 2009	1,020.00	1,153.95	951.05	1,101.15	377164	27984	399,947,553.00	202.90	81.15
September 2009	1,114.90	1,449.00	1,060.00	1,402.90	356538	24871	461,369,702.00	389.00	288.00
* Spread H - L -> High - Low C - 0 -> Close - Open

So, if you had missed the stock at 400 when it was at its lows, and again, at 1000 when I pointed it out to you, my suggestion to you is not to chase this stock. There will be opportunities ahead, and dips when one can buy. Invest sensibly, and invest according to your appetite. If you are ready to hold this for the longer term, this will reap good returns. Otherwise, you'll be losing your money punting on the market's sentiment.