Sell SABERO ORGANICS GUJARAT @ Rs 65-Rs 70 range on Corporate Governance issues

Over two years ago on Thursday,August 7,2008 I had initiated a SS 1 recommendation of Crop Protection Chemicals Company,SABERO ORGANICS GUJARAT at Rs 26 as a potential multibagger

It rose to levels of Rs 80 + and is now quoted at Rs 65-Rs 70 range…I had it in the Potential Multibaggers Segment in 2008 and early 2009 and as Share Price crossed Rs 50 I moved it to the Growth Segment last year….even in recent blogs I had opined that Sabero holds potential

But have just taken a Call to recommend a ‘Sell’ for SABERO ORGANICS GUJARAT on Corporate Governance and lack of Transperancy Issues that specifically deal with no clarification forthcoming from the Company on the recent adverse Press Report for fradulent exports and also if any court cases were recently filed in the past two years against the company and if any consent terms were filed and any restraining clauses or orders  

Press Reports allege that SABERO ORGANICS has been caught exporting large quantities of herbicide under the registered trade name of it’s competitor,Excel Crop Care which is a Shroff Group Listed Company quoted at Rs 320 today and a pedigree of 60 years and was earlier called Excel Industries Ltd

Check out the report in the October 11,2010 edition of The Afternoon Despatch & Courier,a local late morning Mumbai tabloid 

http://www.afternoondc.in/city-news/spurious-pesticides-affecting-agriculture-farmers/article_10472

Am aware that Corporate warfare and vested interests and planted media leaks may be involved here…..and would have liked to hear the Company clarify on this…..however it has stayed quiet so far on this adverse press report…..  this heightens the risk of remaining invested…..commonsense directs and dictates that when in doubt stay out or get out..eliminate the risk…exit the scrip

Am also aware the Company is to declare  it’s Q2 September 30,2010 results today..but have decided to make this call to Sell regardless of the results

If you are on my wavelength on this and have invested in SABERO ORGANICS my advise to you is to exit,even at a loss if you’ve brought it at Rs 70+ in 2010….most of you will be booking profit if you’ve picked it up in 2008 and 2009 and in early 2010