What's luck got to do with investing?
Vivek KaulMonday, December 28, 2009 21:53 IST Email
How do I define history? It's just one f*%&ing thing after another.
-- Rudge in Alan Bennett's The History Boys
I came across this sentence last night and it's been haunting me ever since. It reminds me of a situation which I encounter almost everyday: "What's the story?" my editor(s) ask, when I make a pitch to them about something I want to write on.
Well I don't blame them for asking the same question over and over again. After all, newspapers are in the business of making sense of what is happening around us. But are we really doing that? Or to ask a deeper question, can we really do that?
Take the case of the BSE Sensex rallying by a little more than 500 points on December 23. Now why did it happen? If newspaper reports are to be believed (including this newspaper), the market went up because the finance minister revised the GDP growth rate to between 7.5% and 8%.
Sounds reasonable? Yes. Or does it?The FM has made such noises of the economy doing well in the past as well. Has the market rallied to such an extent, every time he has said something optimistic? Or has it rallied to the extent it rallied on December 23?
Or was it, to put it a little more realistically, a case of investors getting up on the right side of the bed, and in the pre-Christmas good mood, going out and buying stocks, and thus pushing up prices? The point is, I don't know. But I can't say that to my editor. We are in the business of explaining things. (In fact, the word analysis is even built into our paper's name). And that's what I do on an occasion like this; I try and create a story which explains things.
John Allen Paulos explains this phenomenon in his extremely engaging book A Mathematician Plays the Stock Market: "Around stock market rises and declines, people are often prone to devise just-so-stories to satisfy various needs and concerns."
Having said that, what would be the correct way to report on such events? Nassim Nicholas Taleb, before he became famous for writing Black Swan, wrote a much better book called Fooled by Randomness. In this book, he elaborates what he feels should be a true role of a journalist. "To be competent, a journalist should view matters like a historian, and play down the value of the information he is providing, such as by saying: 'Today the market went up, but this information is not too relevant as it emanates mostly from noise.'"
Now, have you ever come across a story, article or column in a newspaper that says just that? Of course not! Anybody trying to do that is more likely to lose his job, as Taleb puts it "by trivialising the value of information on his hands."
This inherent need to construct a story around events leads to several other interesting situations. The media likes heroes. We create them now to destroy them later.
Take the case of someone like a Rakesh Jhunjhunwala in India, or a Warren Buffett in the US. Are they really as competent as they are made out to be or does luck play a huge part in their success?
As Taleb writes, "If one puts an infinite number of monkeys in front of (strongly built) typewriters, and lets them clap away, there is a certainty that one of them would come out with an exact version of the Iliad... Now that we have found that hero among monkeys, would any reader invest his life's savings on a bet that the monkey would write the Oddsey next?"
The investors we love to write about are survivors who have had a lucky winning streak of generating greater returns than the broader market over the years.
As Malcolm Gladwell explains in his new book What the Dog Saw and Other Adventures, "Suppose that there were 10,000 investment managers out there, which is not an outlandish number, and that every year half of them, entirely by chance, made money and half of them, entirely by chance, lost. And suppose that every year, the losers were tossed out and the game was replayed with those who remained. At the end of five years, there would be three hundred thirteen people who had made money in every one of those years, and after 10 years, there would be nine people who had made money every single year in a row, all out of pure luck."
Leonard Mlodinow, a faculty at the California Institute of Technology explains this phenomenon rather succinctly: "a simple calculation shows that if a the few thousand mutual fund managers who were managing funds... were simply flipping coins once a year, rather than investing in the market, and if we equated getting 'heads' with beating the S&P, then after a few decades, the chances of a streak of 'beating the S&P' for 15 or more years in a row would be 75%.This illustrates that a streak like this was to be expected, by chance alone, and hence does not indicate skill."
A good example of a person who rode this phenomenon is a mutual fund manager called Bill Miller whose Legg Mason Value Trust mutual fund -- one of the biggest mutual funds in the world -- beat the returns of S&P 500 Index for 15 consecutive years from 1991 to 2005.
Tomes got written on his legendary investing style and various reasons got attributed to his success. But Mlodinow feels Miller was plain lucky. And his performance regressed to the mean once the current financial crisis had an impact on the performance of his fund. As Michael J Mauboussin, Miller's colleague at Legg Masson, writes in his new book Think Twice, "We have difficulty in sorting skill and luck in lots of fields, including business and investing."
Over and above this, because these guys are famous, other investors follow their investing decisions, buy when they buy, and sell when they sell. This makes these investors look even more smarter than they are. As Paulos writes about Warren Buffett: "His phenomenal success... is often cited as an argument against the market's randomness. This assumes, however, that Buffett's choices have no effect on the market. Originally no doubt they didn't, but now his selections themselves... can influence others. His performance is therefore a bit less remarkable than it first appears."
At times, investors themselves come up with stories and theories regarding their investment decisions. George Soros, the hedge fund manager, who once broke the back of the British pound, is said follow the Theory of Reflexivity, which was influenced by the work of the philosopher Karl Popper (who said and as Gladwell states in his new book, "You could not know with any certainty that a proposition was true; you could only know that it was not true"), while making his investment decisions.
But as Robert Soros once said about his more famous father, "My father will sit down and give you theories to explain why he does this or that. But I remember seeing it as a kid and thinking, Jesus Christ, at least half of this is bullshit. I mean, you know the reason he changes his position on the market or whatever is because his back starts killing him. It has nothing to do with reason. He literally goes into a spasm, and it's this early warning sign."
Luck plays a much more important role in the investing process than people (which include journalists like me) are ready to admit. But if we in the media start attributing luck and noise to every time a market moves, or an investor does well, what will we ever write about? And we need our headlines, because headlines sell what we write, though they never tell you the real story.
As Taleb summarises it best "People do not realise that the media is paid to get our attention. For a journalist, silence rarely surpasses any word."
Tuesday, December 29, 2009
Monday, December 28, 2009
Supreme Petro......my old call......
Friends,
I gave a call on Supreme Petro long time back.
I even discussed it here recently......
Now ET has come out with a buy report which I am pasting here for my readers.....
Reading today also that Goldman Sachs is taking over 10% stake for 500 cr and they will join the board of Max India as well......Max India , has remained my favourite stock as I have been recomending it time and again.
That once again proves that my calls are well ahead of time.....
Supreme Petrochem:
Supreme Petrochem is set gain from a turnaround in the polystyrene industry. Long-term investors should invest in the stock .
SUPREME Petrochemicals is India’s largest producer and exporter of polystyrene (PS) polymer with an installed capacity of 272,000 tonne per annum (TPA). The company acquired Shin Ho Petrochemicals in 2006 with a manufacturing capacity of 6,000 TPA of expandable polystyrene (EPS) at Chennai. The name of the company was later changed to SPL Polymers, before merging it with Supreme Petrochemicals.
In 2006, the company had entered into an MoU with the Maharashtra government to set up a world class styrenics complex and a minor port in the Raigad district at an estimated investment of Rs 1,115 crore. However, the land acquisition for the project is still continuing through MIDC
while the company has obtained environmental clearances. The company has implemented a share buyback last year to acquire and extinguish 15.4 lakh shares. The company’s equity capital now stands reduced to Rs 96.8 crore.
GROWTH DRIVERS:
The polystyrene industry globally had been suffering from overcapacity and stagnating demand due to competition from polypropylene. However, the scenario has improved with nearly 1.5 million tonne or 10% of the world’s PS capacity closing down in last three years. At the same time, the demand prospects are improving. The lightweight sheets made from extruded PS are increasingly being used for insulation in construction buildings to reduce energy consumption. In fact several developed countries have made this kind of insulation mandatory, and even in India the concept is gaining currency as part of ‘Green Building’ initiatives. In fact the first half of 2009 witnessed the domestic demand for PS spurt 22% against a year ago.
Supreme Petrochemicals is also shifting its focus from commodity polymer to value added varieties such as coloured, compounded, specialty, expandable, extruded and cup grade polystyrene. It has lined up investments of over Rs 200 crore to expand its capacities in all these value added products within next 18 months. The company has also entered in a tie-up with Italy’s Ultrabatch to manufacture and market high-end additive masterbatches, which are concentrated mixture of pigments and additives. Similarly, it has joined
hands with the US based Nova Chemicals to set up 20,400 TPA cup-grade EPS plant in India, which has recently commenced operations.
FINANCIALS:
The company has been stagnating over last 5 years - both in case of topline as well as bottom line - due to difficult situations in the global polystyrene markets. During these five years, the company improved its debt-equity ratio gradually to 0.7 as on June 30, ’09 as against 1.48 five years ago.
For the year ended in June ’09, the company recorded a net profit of Rs 19.2 crore despite a net loss of Rs 46.7 crore in the December ’08 quarter due to inventory losses. A strong rebound in demand in the first half of 2009 enabled the company to wipe out these losses and end the year in profit.
VALUATIONS:
At the current market price of Rs 26 the company is valued at eight times its profits for the trailing 12 months. The current price is just 1.3 times the book value of the company’s stock price. Going forward, we expect the company to report net profit after tax of Rs 55 crore during the year ending June 2010, which translates in a forward P/E of 4.6. The dividend yield of 3.8% can add to the margin of safety for an investor. Considering the growth prospects as a result of the industry turnaround Supreme Petrochemicals appears attractively priced.
ramkrishna.kashelkar@timesgroup.com
I gave a call on Supreme Petro long time back.
I even discussed it here recently......
Now ET has come out with a buy report which I am pasting here for my readers.....
Reading today also that Goldman Sachs is taking over 10% stake for 500 cr and they will join the board of Max India as well......Max India , has remained my favourite stock as I have been recomending it time and again.
That once again proves that my calls are well ahead of time.....
Supreme Petrochem:
Supreme Petrochem is set gain from a turnaround in the polystyrene industry. Long-term investors should invest in the stock .
SUPREME Petrochemicals is India’s largest producer and exporter of polystyrene (PS) polymer with an installed capacity of 272,000 tonne per annum (TPA). The company acquired Shin Ho Petrochemicals in 2006 with a manufacturing capacity of 6,000 TPA of expandable polystyrene (EPS) at Chennai. The name of the company was later changed to SPL Polymers, before merging it with Supreme Petrochemicals.
In 2006, the company had entered into an MoU with the Maharashtra government to set up a world class styrenics complex and a minor port in the Raigad district at an estimated investment of Rs 1,115 crore. However, the land acquisition for the project is still continuing through MIDC
while the company has obtained environmental clearances. The company has implemented a share buyback last year to acquire and extinguish 15.4 lakh shares. The company’s equity capital now stands reduced to Rs 96.8 crore.
GROWTH DRIVERS:
The polystyrene industry globally had been suffering from overcapacity and stagnating demand due to competition from polypropylene. However, the scenario has improved with nearly 1.5 million tonne or 10% of the world’s PS capacity closing down in last three years. At the same time, the demand prospects are improving. The lightweight sheets made from extruded PS are increasingly being used for insulation in construction buildings to reduce energy consumption. In fact several developed countries have made this kind of insulation mandatory, and even in India the concept is gaining currency as part of ‘Green Building’ initiatives. In fact the first half of 2009 witnessed the domestic demand for PS spurt 22% against a year ago.
Supreme Petrochemicals is also shifting its focus from commodity polymer to value added varieties such as coloured, compounded, specialty, expandable, extruded and cup grade polystyrene. It has lined up investments of over Rs 200 crore to expand its capacities in all these value added products within next 18 months. The company has also entered in a tie-up with Italy’s Ultrabatch to manufacture and market high-end additive masterbatches, which are concentrated mixture of pigments and additives. Similarly, it has joined
hands with the US based Nova Chemicals to set up 20,400 TPA cup-grade EPS plant in India, which has recently commenced operations.
FINANCIALS:
The company has been stagnating over last 5 years - both in case of topline as well as bottom line - due to difficult situations in the global polystyrene markets. During these five years, the company improved its debt-equity ratio gradually to 0.7 as on June 30, ’09 as against 1.48 five years ago.
For the year ended in June ’09, the company recorded a net profit of Rs 19.2 crore despite a net loss of Rs 46.7 crore in the December ’08 quarter due to inventory losses. A strong rebound in demand in the first half of 2009 enabled the company to wipe out these losses and end the year in profit.
VALUATIONS:
At the current market price of Rs 26 the company is valued at eight times its profits for the trailing 12 months. The current price is just 1.3 times the book value of the company’s stock price. Going forward, we expect the company to report net profit after tax of Rs 55 crore during the year ending June 2010, which translates in a forward P/E of 4.6. The dividend yield of 3.8% can add to the margin of safety for an investor. Considering the growth prospects as a result of the industry turnaround Supreme Petrochemicals appears attractively priced.
ramkrishna.kashelkar@timesgroup.com
Thursday, December 24, 2009
Valuation............
What is valuation?How is it determined?What are the parametres to determine it.
We have seen experts of stock market speaking on Valuation.
The term use are undervalued, Overvalued or valuation at par....there can be many more names for giving ......
Now , how one can come on conclusion that the stock is overvalued or undervalued.I have a big PDF file which explains how to calculate the valuations that someone send me.I have saved it in my computer but has never read it.
If one will try to find a book on how to find valuation, they will find many books and after reading investor will find it fentestic and also would talk to some other stockmarket friend about that book and even refer it to read it.
Why I didn't go through that PDF File speaking on valuation?There are reasons for me not go read it.
I am not sure whether it is still there in my computer, so please don't ask for it........
I have seen that analyst who comes on business channel, says that so and so stock is now fully valued,means very less scope of going up.So one need to sell it or bookprofit in it.
Some stock expert says it is undervalued and can be bought.
I have seen one fund house or FII's or brokerage house giving a overvalued call on certain stock and other will come out with a buy call......in next couple of days......Now why that is happening?When one says it is overvalued why other is saying undervalued?
This gives the answer itself....there are different parametres to look at the valuations and all have different way to analyse it.One find overvalued other find undervalue....why so , because the growth one is able to see, other is not able to see.Or in other words,what one has got the firsthand information after meeting the management, other is not having that and hence one ends up saying it is overvalued and other end up saying it is undervalued........
Well, if there is not a big difference between two opinion then it is OK but when one says is totally opposite to what other say then whom to believe.
Valuation is not a constant thing.It keeps on changing,everyhour, everday , everyweek, everymonth or even everyyear.
A Co, say Aban Llyod, was overvalued in Jan 2009 and need to be sold with so big of debt and I was reading sell call from each and every house and in just one go......Crude started going up....valuation become cheap......look at the 52 week lows and 52 week high........of Aban Llyod....
Just a big order for a Co and stock become CHEAP......one product becomes successful and stock become undervalued.....
Valuation is a constantly changing thing.A stock can remain overvalued or fullyvalued for 2-3 yrs or even 4-5 yrs and suddenly the fortune changes and stock becomes darling and everyone wants to buy it......There are innumerable example like that in Indian Stock market as well in International market.
Valuation depends on how the economy is faring, how the Cos product is doing, what are the future potential of the Cos product,what world will need, how will be the demand,will perticular co will get beniffited from that and over and above that How market is doing.......there are so much of things to be taken care of that it is impossible to say anything on valuation front at anytime unless you have firsthand report.....on any Co.
Nestle was looking costly at 1600 to Dr Vikas and now at 2500 he is asking me whether it is a buy or not.
So at 1600 Nestle was overvalued and at 2500 it is not?Well that depends on how one thinks.If someone think that product will do good and has great future , one can definately go ahead and buy it at even this rate.
There is P/E ratio to decide.People looks at P/E .....sector p/e and see if that stock has lower p/e then other peers gr.....but that is also always not a great thing to do.Market can keep certain stock undervalued for a longer period of time and one can left with that stock not moving at all for entire whole bull run.......
Valuation is also related with demand and supply.If demand is more and supply is less then the stock can soar to great highs....irrespective of earnings.....
I have seen people (read expert) selling stocks at 3-5 times return and that stock went on to give 20-30 times return..............so noone can say that a stock is overvalued or undervalued......I think it is impossible to opine on that parametres.....
Have you ever met with a stock which when you see after 3-6 months or a year and you feel ,you missed it?These thing should have happened with each and everyone.I have no doubt about it.
Now why you were not able to buy it at that time ?What was the reason at that time that you missed such a great stock and ended up with something else which may be a laggard in your portfolio?Because at that time you were not able to see what is there in that stock and hence you didn't buy and those who were able to see bought it and making hay......
If the fundmanagers , analyst and some experts are so great in telling whether a stock is overvalued or undervalued then why their clients or funds Nav is still underpeforming even with the average return of market?
If they are great teller then they should show better return then the market gives but that is not the case........Very less funds gives above average return then market and very less gives same return like market .....
What is value then?Value is brand, value is management,value is growth, Value is foreseeing .....like when I wrote on SNL Bearing Ltd......it is NRB bearing managed Co .....which is showing positive bottomline.....and available at just Rs 11!Can one imagine a NRB Bearing run Co have such a less value? that is VALUE........Like I wrote on Yashraj Containeurs Ltd......great product and great clientele list and great earning .....and stock at 3-4 p/e?That is value.......and mind well, after doing all these market may not give the thumbs up to that stock...and one has to wait for longer period untill others find out.....
We have seen experts of stock market speaking on Valuation.
The term use are undervalued, Overvalued or valuation at par....there can be many more names for giving ......
Now , how one can come on conclusion that the stock is overvalued or undervalued.I have a big PDF file which explains how to calculate the valuations that someone send me.I have saved it in my computer but has never read it.
If one will try to find a book on how to find valuation, they will find many books and after reading investor will find it fentestic and also would talk to some other stockmarket friend about that book and even refer it to read it.
Why I didn't go through that PDF File speaking on valuation?There are reasons for me not go read it.
I am not sure whether it is still there in my computer, so please don't ask for it........
I have seen that analyst who comes on business channel, says that so and so stock is now fully valued,means very less scope of going up.So one need to sell it or bookprofit in it.
Some stock expert says it is undervalued and can be bought.
I have seen one fund house or FII's or brokerage house giving a overvalued call on certain stock and other will come out with a buy call......in next couple of days......Now why that is happening?When one says it is overvalued why other is saying undervalued?
This gives the answer itself....there are different parametres to look at the valuations and all have different way to analyse it.One find overvalued other find undervalue....why so , because the growth one is able to see, other is not able to see.Or in other words,what one has got the firsthand information after meeting the management, other is not having that and hence one ends up saying it is overvalued and other end up saying it is undervalued........
Well, if there is not a big difference between two opinion then it is OK but when one says is totally opposite to what other say then whom to believe.
Valuation is not a constant thing.It keeps on changing,everyhour, everday , everyweek, everymonth or even everyyear.
A Co, say Aban Llyod, was overvalued in Jan 2009 and need to be sold with so big of debt and I was reading sell call from each and every house and in just one go......Crude started going up....valuation become cheap......look at the 52 week lows and 52 week high........of Aban Llyod....
Just a big order for a Co and stock become CHEAP......one product becomes successful and stock become undervalued.....
Valuation is a constantly changing thing.A stock can remain overvalued or fullyvalued for 2-3 yrs or even 4-5 yrs and suddenly the fortune changes and stock becomes darling and everyone wants to buy it......There are innumerable example like that in Indian Stock market as well in International market.
Valuation depends on how the economy is faring, how the Cos product is doing, what are the future potential of the Cos product,what world will need, how will be the demand,will perticular co will get beniffited from that and over and above that How market is doing.......there are so much of things to be taken care of that it is impossible to say anything on valuation front at anytime unless you have firsthand report.....on any Co.
Nestle was looking costly at 1600 to Dr Vikas and now at 2500 he is asking me whether it is a buy or not.
So at 1600 Nestle was overvalued and at 2500 it is not?Well that depends on how one thinks.If someone think that product will do good and has great future , one can definately go ahead and buy it at even this rate.
There is P/E ratio to decide.People looks at P/E .....sector p/e and see if that stock has lower p/e then other peers gr.....but that is also always not a great thing to do.Market can keep certain stock undervalued for a longer period of time and one can left with that stock not moving at all for entire whole bull run.......
Valuation is also related with demand and supply.If demand is more and supply is less then the stock can soar to great highs....irrespective of earnings.....
I have seen people (read expert) selling stocks at 3-5 times return and that stock went on to give 20-30 times return..............so noone can say that a stock is overvalued or undervalued......I think it is impossible to opine on that parametres.....
Have you ever met with a stock which when you see after 3-6 months or a year and you feel ,you missed it?These thing should have happened with each and everyone.I have no doubt about it.
Now why you were not able to buy it at that time ?What was the reason at that time that you missed such a great stock and ended up with something else which may be a laggard in your portfolio?Because at that time you were not able to see what is there in that stock and hence you didn't buy and those who were able to see bought it and making hay......
If the fundmanagers , analyst and some experts are so great in telling whether a stock is overvalued or undervalued then why their clients or funds Nav is still underpeforming even with the average return of market?
If they are great teller then they should show better return then the market gives but that is not the case........Very less funds gives above average return then market and very less gives same return like market .....
What is value then?Value is brand, value is management,value is growth, Value is foreseeing .....like when I wrote on SNL Bearing Ltd......it is NRB bearing managed Co .....which is showing positive bottomline.....and available at just Rs 11!Can one imagine a NRB Bearing run Co have such a less value? that is VALUE........Like I wrote on Yashraj Containeurs Ltd......great product and great clientele list and great earning .....and stock at 3-4 p/e?That is value.......and mind well, after doing all these market may not give the thumbs up to that stock...and one has to wait for longer period untill others find out.....
Wednesday, December 23, 2009
SNL Bulk Deal.......
Freinds,
I saw a Bulk Deal on bsesite for SNLBearing.....
23/12/2009 505827 SNL Bearings SHAREKHAN LTD A/C Diversified Equity B 37000 18.50
So from some 41750 shares traded ,37000 shares went to an a/c of Diversified Equity fund with Sharekhan.....Seems someone is buying for LT.....
One of the reader named Deb was asking me what about those stocks which are not running and standing still or have gone down after my recomendation.
Well, I want to give answer to all here so that no one has any question left in future.Though I have been writing giving reasons what happens and what needs to be done....but seems followers are not reading me properly ......it means they just read my post casually....just for the sake of reading other wise no one should be able to end up asking some question which are not supposed to be asked......
Anyway, now let me come to the point......
It is obvious that
1)Not all stocks that I recomend is going to run immidiately.
2)Not all will give multibagger returns.
3)Not all will run in this Bull Run...
4)Some will also underform
5)Some will also give negative returns.....
6) Some will give average return....
Now one will look at this list ,the negative list is bigger then Positive.....
Hence forward keep this point in mind before buying any stock that I recomend here.
I am at all not responsible for any negative return or no profit......If anyone feels at anytime that after buying stocks , it is not worth holding , he should sell it without letting me know......or need not ask me whether it is still a hold or not.......Its yours money and your money is at stake ......hence the decision should also be yours......when one should sell and what should be done , I have discussed in detail .....
What I am doing here is just pointing out some undiscovered stocks.....that's all.........
It is obvious that no all picks can give multibagger return.What I write here is stocks which has potential to become multibagger.....and when I say potential,means there is a story in it, and it may comeout good or maynot........that RISK will remain always...........
I am at all not responsible for any loss or profit of any readers who buys or sells reading my calls......As whatever PROFIT they make from my calls is theirs, so is the LOSS they make from my calls........
I saw a Bulk Deal on bsesite for SNLBearing.....
23/12/2009 505827 SNL Bearings SHAREKHAN LTD A/C Diversified Equity B 37000 18.50
So from some 41750 shares traded ,37000 shares went to an a/c of Diversified Equity fund with Sharekhan.....Seems someone is buying for LT.....
One of the reader named Deb was asking me what about those stocks which are not running and standing still or have gone down after my recomendation.
Well, I want to give answer to all here so that no one has any question left in future.Though I have been writing giving reasons what happens and what needs to be done....but seems followers are not reading me properly ......it means they just read my post casually....just for the sake of reading other wise no one should be able to end up asking some question which are not supposed to be asked......
Anyway, now let me come to the point......
It is obvious that
1)Not all stocks that I recomend is going to run immidiately.
2)Not all will give multibagger returns.
3)Not all will run in this Bull Run...
4)Some will also underform
5)Some will also give negative returns.....
6) Some will give average return....
Now one will look at this list ,the negative list is bigger then Positive.....
Hence forward keep this point in mind before buying any stock that I recomend here.
I am at all not responsible for any negative return or no profit......If anyone feels at anytime that after buying stocks , it is not worth holding , he should sell it without letting me know......or need not ask me whether it is still a hold or not.......Its yours money and your money is at stake ......hence the decision should also be yours......when one should sell and what should be done , I have discussed in detail .....
What I am doing here is just pointing out some undiscovered stocks.....that's all.........
It is obvious that no all picks can give multibagger return.What I write here is stocks which has potential to become multibagger.....and when I say potential,means there is a story in it, and it may comeout good or maynot........that RISK will remain always...........
I am at all not responsible for any loss or profit of any readers who buys or sells reading my calls......As whatever PROFIT they make from my calls is theirs, so is the LOSS they make from my calls........
Tuesday, December 22, 2009
Stocks recomended in past......
Friends,
I remember I recomended Gensys Int at around 100 which has doubled at 201.
I use to recomend time and again Jyoti Ltd around 35-42 range.It was inching up slowly since many days and suddenly it went for 20% UC yesterday to close at 62.75.....
Jyoti Ltd has been my favourite pick and I have recomended it many times here.Looking still good and can be bought in small quantity now and add on dips....
I have been recomending EPC Ind along with Rungta Irrigation.EPC Ind is looking good and promoters are buying big from the open market.Just saw today in ET that Schroder Credit has bought 9,16,667 shares along with Credit Renaissence 1,83,333 shares .....on 11 th Dec....
EPC ind is still looking good at 48......
There is one stock named ASM Technology at 28 which is looking good to me.
Ennore Coke recomended here at 43 along with PAE at 31 has been firing all cylinders......Ennore Coke after making a high of 64 corrected to 51 and now again back to 60 and in circuits.So is PAE....
Both have a long way to go......
I recomended SNL Bearing Ltd at just Rs 11 here and it is making new highs at 19.84 ....and looking good still to me.....
I have been recomending Laffans Petro since long and has been my favourite since my mmb days.Laffans has signed MOU with M/s HUNTSMAN CORPORATION, SINGAPORE PTE LTD which is going to be a trigger for growth for Laffans Petro in future.This MOU will do whole lot of good for this Co located in Gujarat.
Offlate I have been tracking Rasandik Eng and looking good to me at around this level or even 4-7 points up.
The best thing is when a stock is found ,one need to first take a token entry at the prevailing rate and then wait for any correction.But don't miss the entry as it may happen sometimes that stock runsup and we totally lose opportunity to buy it at all........
So first buy token quantity and then have a look and then take a plunge in it after due diligence....We don't know which is going to be a multibagger....like I just saw that Splash Media was only Rs .35 in Jan 09 and now it is Rs.535 in Dec 09....means 15 times return in a complete 1 year.....that is enormous by any standard.....
Who says one cannot get big return .....in stock market......there is nothing impossible in market ...everything is possible.....Remember this FOREVER.....
I remember I recomended Gensys Int at around 100 which has doubled at 201.
I use to recomend time and again Jyoti Ltd around 35-42 range.It was inching up slowly since many days and suddenly it went for 20% UC yesterday to close at 62.75.....
Jyoti Ltd has been my favourite pick and I have recomended it many times here.Looking still good and can be bought in small quantity now and add on dips....
I have been recomending EPC Ind along with Rungta Irrigation.EPC Ind is looking good and promoters are buying big from the open market.Just saw today in ET that Schroder Credit has bought 9,16,667 shares along with Credit Renaissence 1,83,333 shares .....on 11 th Dec....
EPC ind is still looking good at 48......
There is one stock named ASM Technology at 28 which is looking good to me.
Ennore Coke recomended here at 43 along with PAE at 31 has been firing all cylinders......Ennore Coke after making a high of 64 corrected to 51 and now again back to 60 and in circuits.So is PAE....
Both have a long way to go......
I recomended SNL Bearing Ltd at just Rs 11 here and it is making new highs at 19.84 ....and looking good still to me.....
I have been recomending Laffans Petro since long and has been my favourite since my mmb days.Laffans has signed MOU with M/s HUNTSMAN CORPORATION, SINGAPORE PTE LTD which is going to be a trigger for growth for Laffans Petro in future.This MOU will do whole lot of good for this Co located in Gujarat.
Offlate I have been tracking Rasandik Eng and looking good to me at around this level or even 4-7 points up.
The best thing is when a stock is found ,one need to first take a token entry at the prevailing rate and then wait for any correction.But don't miss the entry as it may happen sometimes that stock runsup and we totally lose opportunity to buy it at all........
So first buy token quantity and then have a look and then take a plunge in it after due diligence....We don't know which is going to be a multibagger....like I just saw that Splash Media was only Rs .35 in Jan 09 and now it is Rs.535 in Dec 09....means 15 times return in a complete 1 year.....that is enormous by any standard.....
Who says one cannot get big return .....in stock market......there is nothing impossible in market ...everything is possible.....Remember this FOREVER.....
Monday, December 21, 2009
Mark Mobious Latest Interview..............
By Frederik Balfour , On Friday December 18, 2009, 8:08 am EST
Mark Mobius is a legend among emerging-market investors. For more than 30 years, the 73-year-old fund manager, who oversees $33 billion spread across 35 Franklin Templeton funds, has scouted for investment opportunities in unlikely places. His U.S.-listed Templeton Emerging Markets Fund (NYSE:EMF - News)had a 109% return as of Dec. 14, compared with 73% for the MSCI Emerging Markets Index. Hong Kong-based correspondent Frederik Balfour caught up with Mobius by phone as the fund manager was visiting Doha, Qatar -- one stop on an itinerary that included Dubai, Lebanon, Saudi Arabia, and Libya.
What was behind the huge runup in emerging markets in 2009?
With the subprime shock, everybody was looking for safety. And for some strange reason, they thought the U.S. dollar was safe and went into money market funds until January or February of 2009. Then people began to wake up to a few things. One was that the supply of currency would at some time outpace demand, so value would decrease. In China there was 21% growth of money supply, and in the U.S. 18% to 20%. That created this incredible liquidity looking for a home as people woke up (to the fact) that they should think about inflation coming down the pike. They weren't getting any yield on dollar deposits, so equities were the obvious answer.
Have emerging markets moved too far too fast?
The percentage increases are a bit misleading because you are coming from a low base(That is what needs to be understand by market GURUS). We are only halfway toward the previous high of 1997. Have we gone too far? The only measure we have is valuations, and probably the best single measure is price-to-book value ratio. (Book value is a measure analysts use to estimate what a share of stock would be worth if all the company's tangible assets -- factories, real estate, and so on -- were liquidated.) If you look at the average price-to-book ratio based on the stocks in the MSCI Emerging Markets Index, we are only halfway to the 1997 high. The absolute high was three times book, the low was one times book, and now we are at two times book, roughly.
Could things reverse course?
You better believe there are a lot of hedge funds out there betting against this rally. That provides more volatility. It's a self-feeding situation. You have to be aware that the volatility will be there and there is nothing you can do about it.
Apart from all the money in the system, what is driving the emerging-market rally?
Fundamentals. If you look at any time period -- 10 years, 3 years, 1 year -- emerging markets have outperformed U.S. and global markets.(This someone needs to go and tell Shankar Sharma who always advocates that Emerging markets movement is corelated with US market) Their economies ( read emerging market)are growing faster, four times faster. And during the 1997-1998 Asian crisis (policymakers in) emerging markets realized they needed strong balance sheets at the national and company level and had to build up foreign reserves, which they've done. They were building up reserves, keeping their currencies low, and reducing debt. Their debt-to-gross-domestic-product levels are way below developed markets, and when you look at the foreign exchange picture, it's even more impressive. Russia has $400 billion in reserves; China, $2 trillion. So where do you want to put your money? Obviously, emerging markets are the place.
How did the panic caused by property developer Dubai World's debt woes affect the appetite for emerging-market stocks?
There was some retreat, but it was very short-lived. Dubai keeps on tanking because of uncertainty. Emerging markets hardly missed a beat.
What markets are you keen on?
Brazil and China. Our funds are big, so obviously we want to be in a place where there is good liquidity. But we are also looking at many other markets. We have a frontier-markets fund that we launched about a year ago -- we have one fund in the U.S., one in Europe, and one in Korea. Korean investors have become quite global.
What new markets have you entered?
Well, I was just in Libya and Algeria, though it will be a while before we (invest) there. I am speaking to you from Doha in Qatar, then I'm on to Jordan, Lebanon, and Saudi Arabia and back to Dubai. We are investing in all those countries. There is money coming into our funds, and we see opportunities. Obviously with the high degree of uncertainty, you see an overreaction in Dubai (so there are buying opportunities). Qatar has gas exports taking off, and it's going to have a lot of money to invest. They are building this incredible infrastructure and investing in technology. We are investing in Qatar Steel and Qatar National Bank. In Dubai, we are investing in Emaar Properties and DB World, the ports company.
We continue to hold on and buy in India. In Pakistan, we are probably overweight compared with everyone else. For our Asia growth funds, we have been buying Pakistan Telecom, MCB Bank, and Indus Motor, which is a Toyota (NYSE:TM - News) assembler and distributor. In Iraq, we haven't gone in yet. We have a private equity fund looking at it as well. There is a stock exchange, by the way. And Iran has a big market. When and if things get better, that would be an obvious place to hit.
What themes are you investing around?
Commodities are a main theme. We are looking at $70 per barrel in our model. Another theme is consumers, because the per capita income of consumers in emerging markets is going up. We hold retail chain Massmart from South Africa, which is beginning to move north to other countries. In Kenya, (we hold) East African Breweries. As for telcos, we find them expensive and think the chances of growth are diminishing. It's a bit like the airline industry. You have to keep on investing and buying expensive licenses where the government takes you for a ride.
How do you expect emerging markets to perform in 2010?
You cannot expect the same kind of percentage increases, but that doesn't mean you can't have a very good return. We are not in the mode of selling massively or getting into cash, that's for sure. That's probably the consensus opinion, which is usually dangerous. But we are finding companies with good dividend yields, companies that are growing.
Mark Mobius is a legend among emerging-market investors. For more than 30 years, the 73-year-old fund manager, who oversees $33 billion spread across 35 Franklin Templeton funds, has scouted for investment opportunities in unlikely places. His U.S.-listed Templeton Emerging Markets Fund (NYSE:EMF - News)had a 109% return as of Dec. 14, compared with 73% for the MSCI Emerging Markets Index. Hong Kong-based correspondent Frederik Balfour caught up with Mobius by phone as the fund manager was visiting Doha, Qatar -- one stop on an itinerary that included Dubai, Lebanon, Saudi Arabia, and Libya.
What was behind the huge runup in emerging markets in 2009?
With the subprime shock, everybody was looking for safety. And for some strange reason, they thought the U.S. dollar was safe and went into money market funds until January or February of 2009. Then people began to wake up to a few things. One was that the supply of currency would at some time outpace demand, so value would decrease. In China there was 21% growth of money supply, and in the U.S. 18% to 20%. That created this incredible liquidity looking for a home as people woke up (to the fact) that they should think about inflation coming down the pike. They weren't getting any yield on dollar deposits, so equities were the obvious answer.
Have emerging markets moved too far too fast?
The percentage increases are a bit misleading because you are coming from a low base(That is what needs to be understand by market GURUS). We are only halfway toward the previous high of 1997. Have we gone too far? The only measure we have is valuations, and probably the best single measure is price-to-book value ratio. (Book value is a measure analysts use to estimate what a share of stock would be worth if all the company's tangible assets -- factories, real estate, and so on -- were liquidated.) If you look at the average price-to-book ratio based on the stocks in the MSCI Emerging Markets Index, we are only halfway to the 1997 high. The absolute high was three times book, the low was one times book, and now we are at two times book, roughly.
Could things reverse course?
You better believe there are a lot of hedge funds out there betting against this rally. That provides more volatility. It's a self-feeding situation. You have to be aware that the volatility will be there and there is nothing you can do about it.
Apart from all the money in the system, what is driving the emerging-market rally?
Fundamentals. If you look at any time period -- 10 years, 3 years, 1 year -- emerging markets have outperformed U.S. and global markets.(This someone needs to go and tell Shankar Sharma who always advocates that Emerging markets movement is corelated with US market) Their economies ( read emerging market)are growing faster, four times faster. And during the 1997-1998 Asian crisis (policymakers in) emerging markets realized they needed strong balance sheets at the national and company level and had to build up foreign reserves, which they've done. They were building up reserves, keeping their currencies low, and reducing debt. Their debt-to-gross-domestic-product levels are way below developed markets, and when you look at the foreign exchange picture, it's even more impressive. Russia has $400 billion in reserves; China, $2 trillion. So where do you want to put your money? Obviously, emerging markets are the place.
How did the panic caused by property developer Dubai World's debt woes affect the appetite for emerging-market stocks?
There was some retreat, but it was very short-lived. Dubai keeps on tanking because of uncertainty. Emerging markets hardly missed a beat.
What markets are you keen on?
Brazil and China. Our funds are big, so obviously we want to be in a place where there is good liquidity. But we are also looking at many other markets. We have a frontier-markets fund that we launched about a year ago -- we have one fund in the U.S., one in Europe, and one in Korea. Korean investors have become quite global.
What new markets have you entered?
Well, I was just in Libya and Algeria, though it will be a while before we (invest) there. I am speaking to you from Doha in Qatar, then I'm on to Jordan, Lebanon, and Saudi Arabia and back to Dubai. We are investing in all those countries. There is money coming into our funds, and we see opportunities. Obviously with the high degree of uncertainty, you see an overreaction in Dubai (so there are buying opportunities). Qatar has gas exports taking off, and it's going to have a lot of money to invest. They are building this incredible infrastructure and investing in technology. We are investing in Qatar Steel and Qatar National Bank. In Dubai, we are investing in Emaar Properties and DB World, the ports company.
We continue to hold on and buy in India. In Pakistan, we are probably overweight compared with everyone else. For our Asia growth funds, we have been buying Pakistan Telecom, MCB Bank, and Indus Motor, which is a Toyota (NYSE:TM - News) assembler and distributor. In Iraq, we haven't gone in yet. We have a private equity fund looking at it as well. There is a stock exchange, by the way. And Iran has a big market. When and if things get better, that would be an obvious place to hit.
What themes are you investing around?
Commodities are a main theme. We are looking at $70 per barrel in our model. Another theme is consumers, because the per capita income of consumers in emerging markets is going up. We hold retail chain Massmart from South Africa, which is beginning to move north to other countries. In Kenya, (we hold) East African Breweries. As for telcos, we find them expensive and think the chances of growth are diminishing. It's a bit like the airline industry. You have to keep on investing and buying expensive licenses where the government takes you for a ride.
How do you expect emerging markets to perform in 2010?
You cannot expect the same kind of percentage increases, but that doesn't mean you can't have a very good return. We are not in the mode of selling massively or getting into cash, that's for sure. That's probably the consensus opinion, which is usually dangerous. But we are finding companies with good dividend yields, companies that are growing.
My Comments:
I have already given my comments in bracket in the post.......now it is on readers what needs to understand and whom to follow....
Thursday, December 17, 2009
Yashraj Containuers.....cmp..24.45.....Value Buy...
Friends,
Yashraj Containuers is in containers and packaging sector.
Profile:
Starting with the manufacture of metal barrels, of 180 - 235 liters capacity, in the year 1993, YASHRAJ has grown to become one of the largest manufacturers of industrial packaging solutions in India with a wide range of standard and specialty steel barrels in different sizes and thicknesses with a choice of internal as well as external coatings and configurations. Since its birth, YASHRAJ has committed to Excellence through continual improvements in Customer service and product quality along with developments of new technologies and processes.
Easy access to raw materials manufacturers & customers, ready markets, fully automatic plant incorporated with latest engineering technology, well implemented quality management systems, innovative strategies give YASHRAJ significant advantages over its competitors.
Professionally well qualified, highly accomplished, experienced and committed personnel are the strength of this organization. Active participation of all employees in continual improvements and tackling real business problems helps them to learn practical insights and a pragmatic approach with a clear business focus, which in turn helps YASHRAJ to achieve its goals.
The Machine
YASHRAJ's strategically located fully automatic Steel barrel manufacturing plant at Daman is having an installed production capacity to manufacture 400 barrels per hour. The plant is equipped with machines from renowned manufacturers such as 'General Macchine Impianti s.r.l, Italy ( Main barrel manufacturing line), Thermax Ltd ( Barrel Pretreatment Line), Nordson Corporation, USA ( Hot Airless Spray Painting Systems), Deltax ( Electrical Resistance Welding Machine) etc.
Conveyors between each & every processes in barrel manufacturing, EOT Crane, Hoists and other low cost automations incorporated in the plant help to achieve minimum manual handling of raw materials, semi-finished and finished products.
Our properly designed finished goods storage space that can store 15000 barrels at a time and the designated trucks for barrel transportation are also playing their role in quality improvements.
Strict implementation of Total Productive Maintenance of plant and machineries helps to maximize processes reliability and optimum machine turn around & plant utilization capacity.
The Technology
Barrels are manufactured in our ISO 9001: 2000 Certified Daman plant under the dimensional and performance standards set by Bureau of Indian Standards, Indian Institute of Packaging, UN Performance Level or our Customers itself. "Electrical Resistance Seam Welding" technology (with an overlap of 2.2 mm) is used in Vertical Seam.The top & bottom lids are mechanically seamed to the body shell of barrel using "Triple Seam" technology that guarantee leakproofness of barrel.
"Three Stage External Barrel Pretreatment System" (which consists of Hot Degreasing, Rinsing and Passivation),there after water drying through oven ensure the elimination of dust, rust, grease, oil etc on the barrel surfaces before painting.
Hot Airless Spray Painting Systems, Paint Baking through a continuous oven and the barrel Cool - off system ensure safe performance of the product.
Specially selected and imported as well as indigenous barrel manufacturing machines equipped with Programmable Logic Control systems, aided by Siemens and Allan Bradly Softwares, ensure precise and fine control of the finished product properties.
QUALITY
Continual up gradation, implementation and strict Maintenance of world class quality has been the reason for YASHRAJ being a major success in the industry. We provide the best of our services to assist our customers to fulfill their requirements at a very competitive price through our design of custom made superior quality products and the use of special purpose manufacturing techniques.
This superior quality, the state-of-the-art processes and the committed work force has helped YASHRAJ to find a name for itself in the list of elite companies awarded the ISO, BIS and UN Certifications for its products and processes.
PRODUCTS
We offer various packaging options to our esteemed customers such as 'Closed Top' & 'Open Top' steel barrels in a range of sizes and thicknesses with a choice of coating for safe packing of materials for petroleum products and oils, chemicals and pesticide, paint and varnishes, food, pharmaceutical and hazardous chemical industries with a high degree of internal cleanliness, leakproofness and external appearances.
CLOSE TOP BARRELS
YASHRAJ Close Top steel barrels with a capacity of 216.5 liter, which are ideal for liquids, complies with IS 1783 standard or other major international standards for steel barrels as per customer requirement. These barrels also comply with stringent UN regulations for packing non-dangerous and dangerous goods in the packing groups 1, 2 and 3.
YASHRAJ steel barrels are provided with rolling hoops and thinner gauge steel barrels are provided with extra corrugations for better mechanical strength.
Electrical resistance seam welding of body shell, Triple seaming of top & bottom lids to the body shell and the superior quality systems checks implemented throughout all phases of barrel manufacturing processes ensure the best performance of the products.
Two openings of 2" & ¾" provided on the barrel allow easy and convenient filling and removal of materials. Gaskets ( rubber / nylon / plastic) on closures are provided depending up on the application of barrels at customer end.
Barrels are available in various sizes ranging from 180 to 235 liters and thickness of steel ranges between 0.8 to 1.25 mm along with a customer specification of external decorative paint coating which is resistant to humidity, sunlight and heat.
YASHRAJ barrels can be internally coated with a phenolic, epoxy-phenolic lacquer or a special coating in accordance with the customer requirement. Technical assistance is provided to customers to determine the suitable internal coating for their specific purpose. Different types of sealing compounds are used depending up on the compatibility of that compound with the product to be filled in the barrels while manufacturing barrels.
YASHRAJ offers special ISO barrels of 210 liter capacity For exporters, 80 of which can be stacked in one 20 foot freight container. G.I coated barrels are also supplied to customers for their specific purpose.
OPEN TOP STEEL BARRELS
YASHRAJ Open Top Steel barrels are suitable for storage and transportation of liquids, pastes and solid substances. These barrels comply with UN regulations for packing non-dangerous and dangerous goods in the packaging groups II and III. These barrels also comply IS 13997 standard or other major international standards as per customer requirement.
The full open top removable cover and closure ring allow easy filling and removal of all contents, including high viscous liquids and powders. The full open top removable cover can be provided with different gaskets and 2" & 3/4" closures . The barrels can be provided with a Lever type or Nut and Bolt type closure ring. Different types of lever in various sizes and steel thicknesses and rings of various steel thicknesses
can be provided as per customer requirement.
Electrical resistance seam welding of body shell, Triple seaming of top & bottom lids to the body shell and the superior quality systems checks implemented throughout all phases of barrel manufacturing processes ensure the best performance of the products.
Open Top Barrels are available in various sizes ranging from 180 to 235 liters and thickness of steel ranges between 0.8 to 1.25 mm along with a customer specification of external decorative paint coating which is resistant to humidity, sunlight and heat.
Open Top Barrels, provided with rolling hoops and corrugations depending on the thickness of steel used in fabrication, are available. Customer specified plain open top barrel with out any rolling hoop or corrugations are also available. In addition to that, YASHRAJ also offers internal coated (with epoxy lacquer), ISO container type and Zinc coated / Galvanized open top barrels.
COMPOSITE STEEL - PLASTIC BARRELS
YASHRAJ Composite barrels have a double shell protection. The inner is a blow moulded plastic liner made from virgin high density polyethylene. This is surrounded by high quality cold rolled steel to provide unrivalled protection.
Composite barrels, in a capacity of 210 liters, are designed for packing dangerous and corrosive materials. These drums comply with UN regulations and Indian Institute of Packaging standards.
Two openings with 2" plastic closures are provided on the top lid of such barrels for filling and removal of contents. Vent holes or 3 /4" closure is provided on the bottom lid of barrels.
Electrical resistance seam welding of steel body shell , Triple seaming of top & bottom lids to the body shell, best quality plastic liners and the superior quality systems checks implemented throughout all phases of barrel manufacturing processes ensure the best performance of the products.
The chemically cleaned surface of steel barrel, special stoving enamel paints, high quality application of painting and paint baking give a cutting edge to YASHRAJ Composite barrels for excellent resistance to humidity, heat and sunlight.
CLIENTELE
Our client list includes leading companies in the government public sector undertakings, defence services and private sector companies. Few among our major customers are Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd, Indian Oil Corporation Ltd, IBP, Bharat Shell, Gulf Oil Corporation Ltd, Jubilant Organosys Ltd, Tide Water Oil Company India Ltd, Asian Paints Ltd, United Phosphorus Ltd, Reliance Industries Ltd, Micro Inks Ltd, Ranbaxy Fine Chemicals, Mitsu Ltd etc.
My Comments:
Yashraj Containuers is in containers and packaging sector.
Profile:
Starting with the manufacture of metal barrels, of 180 - 235 liters capacity, in the year 1993, YASHRAJ has grown to become one of the largest manufacturers of industrial packaging solutions in India with a wide range of standard and specialty steel barrels in different sizes and thicknesses with a choice of internal as well as external coatings and configurations. Since its birth, YASHRAJ has committed to Excellence through continual improvements in Customer service and product quality along with developments of new technologies and processes.
Easy access to raw materials manufacturers & customers, ready markets, fully automatic plant incorporated with latest engineering technology, well implemented quality management systems, innovative strategies give YASHRAJ significant advantages over its competitors.
Professionally well qualified, highly accomplished, experienced and committed personnel are the strength of this organization. Active participation of all employees in continual improvements and tackling real business problems helps them to learn practical insights and a pragmatic approach with a clear business focus, which in turn helps YASHRAJ to achieve its goals.
The Machine
YASHRAJ's strategically located fully automatic Steel barrel manufacturing plant at Daman is having an installed production capacity to manufacture 400 barrels per hour. The plant is equipped with machines from renowned manufacturers such as 'General Macchine Impianti s.r.l, Italy ( Main barrel manufacturing line), Thermax Ltd ( Barrel Pretreatment Line), Nordson Corporation, USA ( Hot Airless Spray Painting Systems), Deltax ( Electrical Resistance Welding Machine) etc.
Conveyors between each & every processes in barrel manufacturing, EOT Crane, Hoists and other low cost automations incorporated in the plant help to achieve minimum manual handling of raw materials, semi-finished and finished products.
Our properly designed finished goods storage space that can store 15000 barrels at a time and the designated trucks for barrel transportation are also playing their role in quality improvements.
Strict implementation of Total Productive Maintenance of plant and machineries helps to maximize processes reliability and optimum machine turn around & plant utilization capacity.
The Technology
Barrels are manufactured in our ISO 9001: 2000 Certified Daman plant under the dimensional and performance standards set by Bureau of Indian Standards, Indian Institute of Packaging, UN Performance Level or our Customers itself. "Electrical Resistance Seam Welding" technology (with an overlap of 2.2 mm) is used in Vertical Seam.The top & bottom lids are mechanically seamed to the body shell of barrel using "Triple Seam" technology that guarantee leakproofness of barrel.
"Three Stage External Barrel Pretreatment System" (which consists of Hot Degreasing, Rinsing and Passivation),there after water drying through oven ensure the elimination of dust, rust, grease, oil etc on the barrel surfaces before painting.
Hot Airless Spray Painting Systems, Paint Baking through a continuous oven and the barrel Cool - off system ensure safe performance of the product.
Specially selected and imported as well as indigenous barrel manufacturing machines equipped with Programmable Logic Control systems, aided by Siemens and Allan Bradly Softwares, ensure precise and fine control of the finished product properties.
QUALITY
Continual up gradation, implementation and strict Maintenance of world class quality has been the reason for YASHRAJ being a major success in the industry. We provide the best of our services to assist our customers to fulfill their requirements at a very competitive price through our design of custom made superior quality products and the use of special purpose manufacturing techniques.
This superior quality, the state-of-the-art processes and the committed work force has helped YASHRAJ to find a name for itself in the list of elite companies awarded the ISO, BIS and UN Certifications for its products and processes.
PRODUCTS
We offer various packaging options to our esteemed customers such as 'Closed Top' & 'Open Top' steel barrels in a range of sizes and thicknesses with a choice of coating for safe packing of materials for petroleum products and oils, chemicals and pesticide, paint and varnishes, food, pharmaceutical and hazardous chemical industries with a high degree of internal cleanliness, leakproofness and external appearances.
CLOSE TOP BARRELS
YASHRAJ Close Top steel barrels with a capacity of 216.5 liter, which are ideal for liquids, complies with IS 1783 standard or other major international standards for steel barrels as per customer requirement. These barrels also comply with stringent UN regulations for packing non-dangerous and dangerous goods in the packing groups 1, 2 and 3.
YASHRAJ steel barrels are provided with rolling hoops and thinner gauge steel barrels are provided with extra corrugations for better mechanical strength.
Electrical resistance seam welding of body shell, Triple seaming of top & bottom lids to the body shell and the superior quality systems checks implemented throughout all phases of barrel manufacturing processes ensure the best performance of the products.
Two openings of 2" & ¾" provided on the barrel allow easy and convenient filling and removal of materials. Gaskets ( rubber / nylon / plastic) on closures are provided depending up on the application of barrels at customer end.
Barrels are available in various sizes ranging from 180 to 235 liters and thickness of steel ranges between 0.8 to 1.25 mm along with a customer specification of external decorative paint coating which is resistant to humidity, sunlight and heat.
YASHRAJ barrels can be internally coated with a phenolic, epoxy-phenolic lacquer or a special coating in accordance with the customer requirement. Technical assistance is provided to customers to determine the suitable internal coating for their specific purpose. Different types of sealing compounds are used depending up on the compatibility of that compound with the product to be filled in the barrels while manufacturing barrels.
YASHRAJ offers special ISO barrels of 210 liter capacity For exporters, 80 of which can be stacked in one 20 foot freight container. G.I coated barrels are also supplied to customers for their specific purpose.
OPEN TOP STEEL BARRELS
YASHRAJ Open Top Steel barrels are suitable for storage and transportation of liquids, pastes and solid substances. These barrels comply with UN regulations for packing non-dangerous and dangerous goods in the packaging groups II and III. These barrels also comply IS 13997 standard or other major international standards as per customer requirement.
The full open top removable cover and closure ring allow easy filling and removal of all contents, including high viscous liquids and powders. The full open top removable cover can be provided with different gaskets and 2" & 3/4" closures . The barrels can be provided with a Lever type or Nut and Bolt type closure ring. Different types of lever in various sizes and steel thicknesses and rings of various steel thicknesses
can be provided as per customer requirement.
Electrical resistance seam welding of body shell, Triple seaming of top & bottom lids to the body shell and the superior quality systems checks implemented throughout all phases of barrel manufacturing processes ensure the best performance of the products.
Open Top Barrels are available in various sizes ranging from 180 to 235 liters and thickness of steel ranges between 0.8 to 1.25 mm along with a customer specification of external decorative paint coating which is resistant to humidity, sunlight and heat.
Open Top Barrels, provided with rolling hoops and corrugations depending on the thickness of steel used in fabrication, are available. Customer specified plain open top barrel with out any rolling hoop or corrugations are also available. In addition to that, YASHRAJ also offers internal coated (with epoxy lacquer), ISO container type and Zinc coated / Galvanized open top barrels.
COMPOSITE STEEL - PLASTIC BARRELS
YASHRAJ Composite barrels have a double shell protection. The inner is a blow moulded plastic liner made from virgin high density polyethylene. This is surrounded by high quality cold rolled steel to provide unrivalled protection.
Composite barrels, in a capacity of 210 liters, are designed for packing dangerous and corrosive materials. These drums comply with UN regulations and Indian Institute of Packaging standards.
Two openings with 2" plastic closures are provided on the top lid of such barrels for filling and removal of contents. Vent holes or 3 /4" closure is provided on the bottom lid of barrels.
Electrical resistance seam welding of steel body shell , Triple seaming of top & bottom lids to the body shell, best quality plastic liners and the superior quality systems checks implemented throughout all phases of barrel manufacturing processes ensure the best performance of the products.
The chemically cleaned surface of steel barrel, special stoving enamel paints, high quality application of painting and paint baking give a cutting edge to YASHRAJ Composite barrels for excellent resistance to humidity, heat and sunlight.
CLIENTELE
Our client list includes leading companies in the government public sector undertakings, defence services and private sector companies. Few among our major customers are Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd, Indian Oil Corporation Ltd, IBP, Bharat Shell, Gulf Oil Corporation Ltd, Jubilant Organosys Ltd, Tide Water Oil Company India Ltd, Asian Paints Ltd, United Phosphorus Ltd, Reliance Industries Ltd, Micro Inks Ltd, Ranbaxy Fine Chemicals, Mitsu Ltd etc.
My Comments:
Yashraj Containuers is constantly showing great results and in last qr the NPM also went up.Need to see whether it get sustained or not.
Mcap of Yashraj Containuers is just 22 cr and sales is 112 cr means 5 times more then Mcap.Eq is tiny at 9 cr and hence looking excellent on fundamental front when we look at the earnings , its products and clintele list.
One of analyst who use to come on CNBC , not frequently, but use to come every 3-4 months or 2-3 months has taken stake in it and one can see his name in the SHP.I would not name him but would like to know from my readers who is he......He is there since 3-4 years and has not sold a single share uptill now.
Yashraj Containuer is looking good to me and I would recomend it as a buy as promoters are buying constantly from the market and I think in last couple of days they have lapped up some 1.75% shares from the market.
Well, friends I have given one more stock where one can invest at very early stage and reap benifits from it.
My call on CCAP Ltd which I gave on 4 th Dec at 41.70 touched 58 couple of days back and is still at 51 and that is a return of 40%.
Someone asked me that the stocks I recomends moves more because of market is moving up.It is not my picks that is good.If that is the case then he or anyone can pick any stocks and make millions.Anyone has that liberty to do that way.I have recomeded stocks in Mar 2009 when no one was ready to give a buy call for market or for any perticular stock.
I still say what I have written in past when market was bad and that I write it again.
It is easy to buy stocks when chips are down.It is always difficult to buy stocks when market is running or is good.When chips are down like we saw in 2008 all stocks were available at cheapest rate.L&T available at 557,Thermax available at 151 and many more like Siemens, Areva T&D,Alsthom Ltd ,Torrent Power etc ...these were A gr stocks where one has to just invest and forget...and I did recomeded in Mar 09. and one can see where they are now.So when chips are down u find everything at cheap rates but when market starts moving it becomes more and more difficult......
When market is good and when everything is running it is difficult to find stocks which are undervalued and that is what I am doing here......but if someone feels the otherway I can't help in anyway.Best thing is he should find stocks by himself and then buy it and see where it goes.I am not saying one can't do that.One can surely should be able to find stocks on his own and buy it.
There is no neccessity to visit my blog for my picks if one feels that my picks runs because market is running.
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