Monday, May 24, 2010

This is NOT a stock for investors. Its for traders who love buzzing penny stocks.
CMP / Reco Price : 18.70
Target / SL : NA

Marson's Limited manufactures and distributes transformers, as well as provides power generation and distribution services.
Marson's current total market cap is 38 Cr (Smallest of small caps).
What's Buzzing:
Marson's announced today that they are planning to acquire a well established European company manufacturing power transformers up to 132KV class for a consideration of GBP 6.1 million (Close to 40 Cr) subject to due diligence.
For a company acquiring another company of its own size, its a big deal. It all depends on how well they manage and leverage from this acquisition. In the short term, the news should hold the stock high. In long run, there is a risk, where they might just fail at the merger. But, its a potential multi-bagger in coming years if all goes well.