An acquaintance was once speaking on how when the US FDA (checks the quality of Indian drugs) had banned Wockhardt's certain plants from exporting drugs to the US the share price had collapsed from Rs 2000 to Rs 350 in days.

Sun TV Network: Quotes, News

BSE 594.4511.45 (-1.93%)

NSE 595.3512.95 (-2.18%)

SUN TV is a high risk bet which can give you high returns as well

Shares in SUN TV have fallen from Rs 477 to the current price of Rs 307. In recent days the steep fall is on account of the fact that the channels of the company were denied security clearance for 33 channels by the Ministry of Home Affairs.

Now there are reports that the Information and Broadcast Ministry has sought the opinion in the of the Home Ministry's decision and if the case can be linked to economic offences and national security.

As we reiterated Sun TV Shares can be a high risk bet. If the company's channels do get an approval again by the concerned Ministries be rest assured the same will flare again like Wockhart shares. SUN TV Network is a highly profitable company and with 33 channels virtually dominates the South Indian television space.

There were also reports in some quarters that the company maybe taken over by Reliance, while the reports cannot be confirmed, could also be speculative. The Reliance group already has bought the Network 18, which owns CNBC TV18.

If the either of the above two things happen, the shares of SUN TV could rally and rally sharply. However, there's always an element of risk. After all, that is the risk investors do take when buying shares.

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