Love To Take Risks? Bet On These 3 Stocks

First, we must warn readers that the stocks recommended are highly risky, but, can reward shareholders a bountiful if all the negative news is forgotten and its business as usual. Here are three stocks that offer a high risk, high return possibility. The stock has collapsed from levels of Rs 500 to Rs 174 in a span of a few months. The auditors resigned citing lack of information from the company to complete its duties as a auditor. The resignation of auditors is always viewed seriously by investors and the stock has come crashing down.But, the point Manpasand Beverages made is this: Deloitte Haskins and Sells (Deloitte) was auditing the financial results and books of accounts of the Company for approx. last eight (8) years and never expressed their concerns on the financial performance of the Company and till date there was never a situation, where they had sought some information and we have denied or abstained from providing such information,.That is a good and a valid point. Why the problem after eight long years? We do not want to comment on whether the books represent a true financial condition of the company. But, the biggest fact is that stocks become penny stocks, if they are largely saddled with huge debt.Here is a company that is a zero debt company, which makes the stock a good proposition. It has good brands like Mango Sip, which has got good presence in the semi-urban areas and also Fruits up, which is now catching up.Manpasand Beverages is also expanding by setting up three more plans in three different regions of the country. The company has also marquee investors like SAIF Partners.Manpasand Beverages shares could be a good high risk, high reward kind of stock bet.Advertisement Again, this is a stock that has collapsed from levels of Rs 500 to levels of Rs 133. Massive selling by a foreign Portfolio Investor in the stock, triggered the fall. The worries here were perhaps linking the company to investments made by Vakrangee of buying shares.PC Jeweller has time and again clarified that they have no business links to the company. Vakrangee on the other hand has issued statements saying that its investments in P C Jeweller, were a part of its treasury operations.Now, PC Jeweller has made a buyback of shares offer at Rs 350, as against the current market price of Rs 133. Interestingly, the promoters would not be participating in the buyback.This apart the company has got Rs 1,300 crores cash and bank balances. It recently made a presentation on its expansion plans and has captured photographs of all the recent new showrooms it has set up.The stock of PC Jeweller is available at a p/e of just 8 times one year forward earnings, making it an interesting pick. Vakrangee can be a slightly more risky bet compared to the other two. The company makes money through the Vakrangee Kendras that it has set-up. The auditors of this company too resigned citing lack of clarity on the jewellery and bullion business.The stock is trading at Rs 31 on a face value of Re 1. The company has a decent cash and bank balances and is once again a debt free company.There is a greater clarity that is needed from the management, on the reasons for the auditors resignation. In that respect PC Jeweller had offered better clarity and also offered a buyback of shares, clearly showing great positive intent. That has been absent in the case of Vakrangee. Again, a high risk, high reward bet. This article is strictly for informational purposes only. It is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article.