Jordan Flaming fund dumps Scandent

STREET SIGNS

Yesterday we had mentioned about the buying spree at mid-cap IT counter, VisualSoft Technologies.

While Uncle Sam was the buyer, it was only a follow up act to that of Metro Fund, who had purchased the stock at Rs 196 levels, thus increasing its share to 5.80 per cent in the company. Now right on cue, Metro had decided to book profits at the counter.

The fund is said to have sold more than a lakh of shares at Rs 215 levels. Considering that the stock has appreciated by nearly 75 per cent since the beginning of August, we are wondering whether other buyers like Reliable Fund and Prudent Fund might also be tempted to do so.

Missed the bus?

Finally someone conjured up the courage to sell the Scandent Solutions Corporation stock. Hats off to Jordan Flaming fund for such heroics, as they took profits by selling more than four lakh shares at Rs 241.

But there is a feeling that they may have missed the bus. Because, in the aftermath of Scandent announcing a reverse merger with back-offices entity Cambridge Services Holdings LLC (another arm of the Singapore-headquartered Scandent Group), the stock price had zoomed to Rs 356 levels last week.

The fall was equally dramatic as the stock closed on Friday at Rs 244. The merged company will be renamed Cambridge Solutions and has combined revenues of around $ 275 million.

The company will be targeting a turnover of more than $300 million in the year to March 2006. Clive Lloyd Fund was also a seller at the Scandent Solutions counter last week.

But they got a better deal as the selling occurred at Rs 299 levels.

Bullish on McLeod

Tea plantation stock, McLeod Russel was in focus last week following hectic fund activity at the counter. The prominent buyers at the counter included Prudent Fund and Princely Fund, both of whom bought the shares at Rs 65 levels. The upswing in fortunes for tea companies including McLeod Russel is what made these funds buy into the counter.

Analysts note that there is an improvement in price realizations in the industry, thanks to the demand-supply mismatch that exists.

In 2004, Indian tea production is estimated to have dropped by more than 4 per cent.

The tea company's growth plans - it plans to acquire estates in India and Kenya - also seems to have attracted the buyers. But market perceptions change fast, especially when funds like Merry Lunch are operating. Merry Lunch is said to be among the sellers of the stock at Rs 86 levels. Will others follow suit?

In other news

Reliable Fund was a seller at the Hinduja TMT counter.

Looks like the fund is fed up of waiting for appreciation in the stock price.

The stock has hardly moved from its levels of Rs 322 four months back. Apparently, even the software and business service firm's plans to spend its cash to grow through acquisition have failed to impress Reliable.