Monday, August 31, 2009
I have been tracking these two stocks since long.
I will only write here that Lesha Energy( Old Name, Lesha Steel) is having interest in Oil Fields and TeleCanor Global(Old Name,Victory Project) is where one big investor has taken stake.Growth seems exponential for both these cos if what I am reading comes good.
These two can give big return in couple of years.But have your own diligence and then buy them.... Go to bse site and read all the annoucement.That is what one needs to do.I have written these many times.Google it.
I would like to read more on these two from you all.
I have been recomending Assam Co since the last bull run.Assam Co is still looking good.
I have also recomended Mcnally Bharat when I use to write on MMB.I also gave a call here in Mar 09 and couple of times in my list at around Rs 50.It is Rs 190 now and has still long way to go.....
Let me give reason why I am not writing more on Lesha and Telecanor.Of course they are penny stocks and unknown stocks of how the management is, we have no back track record.Moreover I do not know how they will grow.Suspicious mind is always there to worry.I am a big risk taker and if I find a stock with a slightest trigger with even a small story I would go ahead and buy it.It is always 1k or 2k not more then that but I will go and buy it.
If one will see at the results of last 3 qr in both this cos, then one can find nothing in it.It is BIG ZERO.There is no sales , no earning , no Profit and still they are at 43 and 35 respectively.It means that market knows what is coming and hence giving them high valuation and that we do not know.Now what can happen if the story comes true ! That is where the catch is.....
I would like to know why I have to specifically mention Assam co and Mcnally Bahrat today that too in "Update".I must have found something which urged me to write it here about this two ....I would like readers to find out why I have to again write on Assam Co and Mcnally Bharat......It is not hard to find out...Give a TRY........
Saturday, August 29, 2009
I would like to share some thoughts which are as good as RULES which needs to be followed religeously.
The first RULE that I like and one should always remember is of Warren Buffet.
1st Rule: Never lose in stock market
2nd Rule : Never forget the 1st Rule.....
Everything comes in this defination.
Many readers writes me and tells me that I will hold for LT say for 2 yrs, 3 yrs 5 yrs and more.Good.Money is made in LT only.Those who held on to their stocks made millions.I am still convinced that the game has not changed.Those who are LT investors have earned.Whatever there may be arguement against it , it is still the same story.Invest for LT.Warren Buffet is still a living legend and he is still proving that those who held the stock for LT has come out winner.
But let me write one thing here.If someone has to follow WB rules of not losing money in stock market, one needs to take out money that have been invested and that money should go to bank and no where else.
In Stock market , worldover, they are very brutal.When the tides turn for worse there is no bottom.We all have experianced that in 2008.All the stocks were down by almost 90% whether it was a fundamentally good stock or not.L&T was available around 700.Aban Llyod was available around 300 and see where both are.All types of negative news kept flowing about these cos and when the market bounce backed they were first to come up.
It is very rare phenomenone that small investor end up buying A gr stock.They go for B gr stock or say Cash Gr stocks and they are still in nascent stage of growth.So while buying these stocks one needs to bookprofit whenever one finds that it has runup fast or overvalued.
Overvaluations is something which a small investor can't make out.Rather no one can makeout which has overvalued.There are no parameteres to look at that.
So the best thing is , Sell as soon as the stock doubles or gives 70-80% return.Sell, 40-50% of the stock.Take the money out.Put it in a bank.Wait for any downside and buy at lower rates so that your average price becomes less.If the stock do not come down, forget it.
Remember.....MONEY IS POWER.....I have always discussed with my friends that don't lose money in any form.Many use to argue with me, that with inflation going up and rupee depreciating what is there in accumalating money and putting in a bank at 9-10%.The rupee value has gone down and in present circumstances if one has to buy a house, a flat , it cost one some 10lacs to 30lacs depending on where you buy.But remember one thing.Rupee has still got the value.Money has still get the value.10 years back if some ask for Rs 5000 from some friends or relative, they will definately say ,that we have none or will give excuse that we just gave to our son or brother and hence we are sorry.But after 10 yrs , means even today, if we ask for Rs 5000.00 to someone , we will get the same answer.So Rs 5000.00 has the same value 10 years back and now.Rs5000.00 is peanuts in present circumstances and still no one will lend.
So money saved is money earned.I remember my father use to tell me, whatever you get as a salary is not your earning.Your "SAVING IS YOUR EARNING".The money you spent is gone.It is not with you then how can you tell it is your earning.Money whatever small amt it is , it is worth it.Save it.Money is to be saved.I don't say , one needs to be miser and not spend where it is needed.But always be on tose whether you are not spending somewhere not needed.
Take RISK but it should be calculated RISK.Be it in business or in stock market or investing in a plot .
Always remain alert.Follow the market whichever it is.Be it Stock market, land market ,Diamond market or chemicals, or any form.Only stock which are in A gr are fundamentally great where we can go to sleep for 5-10 yrs and one can end up not losing in it as they are already past the intials growth trouble.They have already made a name of themself.L&T , Tisco, Seimens, Thermax etc etc are such co where the orders flow in with ease because they have proved themselve for decades and hence orders will trickle there first.
B gr stocks are those which are known as upcoming companies still trying to make inroads in the market.So with a slight negative atmosphere these cos can lose the orders very easily and ends up in huge loss(eg.XL Tele).
I have been always writing here that SELL AS SOON AS STOCKS DOUBLES.Take the money out.The real Charm in investing is taking the money out.Do whatever you like with it.Buy TV, Buy a scooter, Buy a DVD Player, help some of your friends, relatives , needy, poor .The joy in buying something from the profit is great, joy of helping someone is enormous .One can't describe it.But the joy is unbound.
When one takes the money out, he is at ease.He feels very comfortable.Don't get satisfied with paper profit.Turn it in REAL.But at the same time I will also write that don't get out of the stock 100%.Never do that.As I have written , no one knows which one is going to be a multibagger , so hold on with the rest.But if you have taken the money out, you remained unpertubed if market goes down and all your paper profit is washed away.You will not repent that I got the chance but I missed it.
I hope readers of my blog will always remember these in mind and act accordingly and come out WINNER IN stock market......
I wish you all the best......
I would like to write some of my recents calls .....
1) Lumax Ind.....@94 on July 17 now @144
2) Kalyani Forge @ 87 on 18 Aug...now @ 131
3) Gayatri Pro @ 166 on June 22 ...now @ 280...
There are many.......like Scan Point Geomatics....@ 16.25 on 6 Aug is @ 29...and many more........UTV has gone upfrom 327 to 488,Maducon Pro has gone up from 50 to over 200,Torrent Power from below 100 to 235 not to talk about Selan Explo @ 110 now over 300,Alpha Geo around 120 now over 200...and many more.......
like Thermax,Seimens,ABB,Alsthom etc etc ........ I hope and wish all must be enjoying my calls and making loads of profit from it.........
Wednesday, August 26, 2009
I just came through this letter wherein a call for Artson Eng was given.
I leave to my readers how much they feel it is copied from our blog........ Maybe I am not doing the right thing.....trying to belittle someone.But let me clear my stand here. I am not trying to do anything like that.I am proud about myself that someone is looking at my blog and taking something out from it...............that's all......Let the world know that our blog is no mean less by any analyst who works for Big Brokerage House or working for any FII's ,wherein they earns millions of dollars as salary..........
So far, the .......................newsletter has been discussing investment ideas that have exhibited robust growth in the recent past. We have been looking for companies that enjoy a good chance of doing well across market cycles.
As investors for the long term we try to stay away from scripts that change like fashions. Still, one cannot resist the temptation of digging up the dirt in search of gems that turn out to be hugely profitable in future.
Obviously one cannot commit a large chunk of his or her investments to such stocks, but still hold enoughto let the portfolio soar high if and when its fortunes reverse.
One such gem we have come across is Artson Engineering Ltd, a sick company taken over by Tata Projects in 2008. Set up technocrats with experience in the field of petroleum refining, AEL has been in thebusiness of setting up petroleum storage and handling systems.
The company turned sick some years ago after it failed to recover dues from Essar over their ill-fated refinery at Jamnagar. Despite being unable to take up projects due to nonavailability of funding fromfinancial institutions, AEL boasted an impressive client list including Indian Oil Corporation, HPCL, IPCL,GAIL, Reliance Industries, BARC, etc.
AEL’s equipment supply business also managed orders from major power equipment suppliers likeBHEL, Siemens, ABB, Alstom and others.
Last year, Tata Projects took over AEL under a debt restructuring and rehabilitation scheme proposed by BIFR and infused fresh capital into it.
Having taken control of AEL, Tata Projects have retained members of its erstwhile management to ensuresmooth transition of operations.
The closely-held Tata Projects expects a number of advantages following the takeover of AEL. TataProjects which also has a joint venture with Engineers India Ltd (EIL) says it enjoys a number of synergies with AEL. Tata Projects is in the business of providing infrastructure services such as Balance of Plants forpower projects. It is also in the business of building blast furnaces for steel plants. AEL’s performance has also seen a quantum leap since its takeover. The June FY10 quarter saw the company’s turnover touch Rs 25.63 cr. as against Rs 7.47 cr. The year before. AEL’s net profit during the same period touched Rs 45 lakhs as against a loss of Rs 1.32 cr.in the corresponding period. On the other hand for the whole of FY08, AEL reported a loss of Rs 4.86 cr. on a turnover of Rs 32 cr. According to analysts tracking the company, AEL is expected to end the current financial year with a turnover
of between Rs 170 to Rs 200 cr. AEL’s management has indicated that it would aggressively pitch for orders in the coming months from various private and public sector oil companies. Its AEL’s order book hasincreased with orders worth nearly Rs 250 cr. in its kitty. Some of these include construction of 4 Crude oil.
Storage Tanks at Shri Guru Gobind Singh Refinery – a project being set up at Bhatinda. The estimatedcontract value of the order is Rs. 36.70 cr.
Earlier this year AEL received another order worth Rs 191.70 cr. from the same customer construction of Intermediate and Product Storage Tanks. Execution of the orders has already commenced, according tothe company. Another order is from Kuwait’s
Alghanim International General Trading and Contracting Co to construct 62 kms of pipe line at a cost of approximately Rs 17 cr. The project is expected to be completed by January 2010. Indian Oil and Cairn have placed orders worth Rs 22 cr. each.Management has indicated that the company would be net worth positive in the current financial year andwipe out accumulated losses worth Rs 17 cr. by FY11. The company will also under take capital expenses to the tune of Rs 5 cr. in the current financial year.
Monday, August 24, 2009
I have posted about SRF Ltd. SRF has showed a stupendeous result for the last qr, June 09, a 100% growth in NP from last year.The NP has gone up to 92 cr from 45 cr last year ,giving an eps of 15 for June qr.The expansion plan and recent aquisition are bearing fruits for SRF Ltd and according to my thinking this can also be a Carbon Credit story.
They have done everything right at right time and that is now showing on the bottomline.SRF Ltd can fetch great returns in times to come if held for LT.
Established in 1973, SRF has today grown into a global entity with operations in 4 countries. Apart from Technical Textiles Business, in which it enjoys a global leadership position, SRF is a domestic leader in Refrigerants, Engineering Plastics and Industrial Yarns as well. The company also enjoys a significant presence among the key domestic manufacturers of Polyester Films and Fluorospecialities. Building on its in-house R&D facilities for Technical Textiles Business and Chemicals Business, the company strives to stay ahead in business through innovations in operations and product development. A winner of the prestigious Deming Application Prize for its tyre cord business, SRF continues to redefine its work and corporate culture with the TQM as its management way.
SRF Today – a snapshot
Rs. 2000 crore multi-product, multi-business organisation
Market leader in Technical Textiles, Refrigerants, Engineering Plastics and Industrial Yarns
8 locations in India, one in Dubai, one in South Africa and one in Thailand
World’s 2nd largest producer of Nylon 6 tyre cord fabrics
World’s 2nd largest producer of belting fabrics
Exporting to over 60 countries
Technical Textile Business
Building on its dominant position in the domestic market, SRF enjoys a significant presence in the global market as well for all the three products under its Technical Textile Business - tyre reinforcements, belting fabrics and coated fabrics. Its tyre cord fabrics are used as reinforcement material for all categories of tyres – from bicycles to heavy commercial vehicles. The company’s Belting Fabrics are used as reinforcement material for manufacturing conveyour belts and its coated fabrics find applications as static and dynamic covers in various areas ranging from Agriculture to Defence applications.
SRF's Chemicals Business includes the Fluorochemicals and Fluorospecialities business lines.
In the Fluorocarbon business space, SRF has grown to become the undisputed domestic market leader in its core product line of Refrigerant gases, while exporting two-thirds of its production to world-class international buyers spread across 60 countries. Refrigerant gases are used for a variety of industrial, commercial and household applications such as refrigeration and air-conditioning, as a blowing agent for insulating foam, as a propellant for aerosols, in mobile air conditioning, and as a propellant in metered dose inhalers for pharmaceutical companies.
SRF has also been taking responsible initiatives under the guidelines of UNFCCC (United Nations Framework Convention on Climate Change) as a part of its Clean Development Mechanism (CDM).
SRF entered into the Fluorospecialties business in 2003-04 as a natural progression of its expertise in Fluorochemicals and its strong knowledge of halogen chemistry. This business is focused on addressing the need for complex organo-fluorine compounds.
Packaging Films Business
The company’s Packaging Film Business produces PET films, which are used in packaging of food, cosmetics, personal and health care products. The focus of the business is to move up the value chain of packaging films and towards this end, it is a supplier of metallised films and holographic films apart from plain and chemically treated polyester films.
Industrial Yarn Business
In the space of Industrial Yarn Business, the company is the dominant market leader in India holding more than 50% market share in multi filament twine and caters to major fishnet manufacturers in India.
Engineering Plastics Business
Equipped with fully integrated multi-locational facilities at Manali and Pantnagar for manufacturing of Nylon 6 Engineering plastics, the business has the capabilities to compound more than 150 grades of engineering plastics in Nylon 6, Nylon 66 and PBT with consistent quality. With a brand name of TUFNYL and TUFBET the business caters to the needs of different sectors like automotive, electrical, telecom, engineering, electronics and industrial sectors.
in 2004, SRF became the first tyre cord company in the world to win the prestigious Deming Application Prize for Total Quality Management
SRF’s Chemical Business awarded with Responsible Care Logo by Indian Chemical Council (ICC), Mumbai
SRF conferred with the prestigious Greentech Safety Platinum Award 2006-07
SRF conferred with the prestigious Greentech Environment Excellence Platinum Award 2007
SRF developed processes to manufacture HFC 134a, HFC 32 (different varieties of new generation refrigerant gases) through in-house R&D efforts
SRF holds a process patent for HFC 32, issued by the United States Patent and Trademark Office
SRF’s Chemicals Business received ‘Commendation Certificate’ under the prestigious CII ITC Sustainability Award for the year 2008 in the Independent Category for strong commitment towards sustainable development of the country
Chairman, Mr. Arun Bharat Ram, conferred with the prestigious Jamshetji Tata Award from the Indian Society for Quality (ISQ) for the year 2006
Chairman honoured with the prestigious Officer’s Cross of the Order of Merit, presented by the Federal Government of Germany in August 2008.
Growth & Expansion
Pursuing its ASPIRATION to achieve global leadership by 2020, SRF has embarked on a long and challenging journey of growth & expansion for all its businesses.
An investment of around Rs. 1000 crore has already been made in the last four years mainly in adding and augmenting state-of-the-art production facilities. Today, several projects involving additional investment of around Rs. 600 crore are in different stages of completion and many more are in the pipeline. As part of its growth strategy SRF in the recent past has acquired two foreign entities, one in Thailand and the other one in South Africa under its Technical Textiles Business.
SRF will enter the world of Polyester Industrial Yarn (PIY) Business – becoming the first player in India to do so
The PIY business will enable SRF to enter two new areas – tire cord fabric for radial tires and the reinforcement for V- cord belts
SRF is investing in setting up Wind Power projects to support development of renewable energy
Investment in R&D under Chemical Business will enable SRF to acquire capabilities to develop new fluorochemical molecules required by pharma and agro giants
Investment in R&D under Technical Textiles Business will enable SRF to develop new products using latest technologies like Nano, Plasma and Microwave
Plans are on the anvil to develop a Chemical Complex
The Packaging Film Business will attain optimum economic size by doubling its capacity.
The SRF Board in a meeting held on 25 July 2008 approved two capital expenditure projects at an aggregate investment of Rs. 115 crore. This includes a Polyester Polymerisation Chip Plant of 60,000 MT per annum capacity at an aggregate investment of Rs. 92.65 crore. The chip plant will be set up under SRF’s Packaging Film Business at Indore. The other project entails setting up Rs. 22.5 crore Fluorospeciality facility with a capacity of 400 tonnes per annum at Bhiwadi plant under Chemical Business.
Mergers & Acquisitions
Continuing with its commitment to become a global player SRF has acquired two foreign companies during 2008, one in Thailand and the other one in South Africa. Thai based Thai Baroda Industries Limited (TBIL) is a tyre cord company and South Africa based Industex Technical Textiles (Pty) Limited is a manufacturer of belting fabrics.
Acquisition of the Thai plant will enable SRF to emerge as the 2nd largest Nylon 6 tyre cord fabric manufacturer and 5th largest Tyre Reinforcement manufacturer in the world.
Acquisition of the South African plant will improve SRF’s world ranking from the 3rd largest player to 2nd largest player in the Belting Fabrics Business.
Fact Sheet – Thai Plant
Name of the Plant
Thai Baroda Industries Limited
Date of Definitive agreement
May 27, 2008
Date of Acquisition
September 8, 2008
dipped nylon tyre cord fabric
Fact Sheet – South African Plant
Name of the Plant
Industrial Technical Textiles (Pty) Ltd.
Name of Joint Entity
SRF Industex Belting (Pty) Limited
Date of Definitive agreement
July 14, 2008
Date of Acquisition
July 14, 2008
Modernisation & Expansion
SRF in the midst of implementing Rs. 600 crore projects
wind power plants in Tamil Nadu commissioned
project on polyester industrial yarn in progress
investing in a second metalliser and a new film line
Several R&D projects underway to develop new products
SRF Limited is in the midst of implementing several projects aggregating around Rs. 600 crore. Many of these projects will begin to bear fruit within two years. The company successfully commissioned all the nine units of wind energy project to produce 15 MW of ‘green power’ in Tamil Nadu in the beginning of the year 2008-09. The project which was implemented at a total investment of around Rs. 90 crore, has been set up as a CDM initiative and the viability of this project is directly linked to its ability to generate carbon credits under the Kyoto Protocol.
( Here is where the Carbon Credit story comes in)
SRF is also setting up a plant for polyester Industrial Yarn (PIY) within the premises of its existing plant at Gummidipoondi in Tamil Nadu at a total investment of around Rs 250 crore. The work on the project is progressing as per schedule and the plant will become operational in early 2009. With the setting up this plant, SRF will become a one stop shop for reinforcement fabric to the tyre companies in India.
With its entry into the new space for polyester yarn, SRF will soon be entering two new areas – tyre cord fabric for radial tires and the reinforcement cords for V-Belts. The project assumes significance in view of the large investments already announced by the leading tyre manufacturers for enhancing radial capacity for passenger tyres.
The company is also in the midst of setting up a new 27,000 MT line for the manufacture of PET films under its Packaging Film Business (PFB) at a total investment of around Rs. 165 crore. Earlier in 2005, the company had successfully commissioned a metallised film plant in October 2005, which is running to capacity. Looking at the possibilities in this segment, SRF has commenced a similar project at an investment of Rs. 16 crore for setting up another metallising machine at its plant in Indore. Metallising films are used in food packaging and the most visible products are the ones, used for packing dry snacks. The project of holographic film plant has been commissioned in December 2007 at an investment of approximately Rs. 10 crore. The product from this plant is used for luxury packaging segments.
The company also plans to invest around Rs. 100 crore for its Chemical Business especially in the area of upgrading its R&D facilities, for developing new products under fluorospecialities and setting up of a new power plant at its Bhiwadi Plant.
Sunday, August 23, 2009
Trust Is Everything, Nurture It
Anil Dhirubhai Ambani
Trust was the foundation on which my father, Dhirubhai Ambani, built his life, his enormous wealth of relationships, and one of India’s greatest business enterprises. The absolute sanctity he attached to trust is reflected in the very name that he gave to his business – Reliance. It was his way of saying to the world, “You can rely on me.” Without reliance, he said, there can be neither trust, nor relationships, neither family nor life itself. Reliance means many things. But, first and foremost, it is a deep sense of honour, a commitment to one’s word. When Kaikeyi approached Dashratha for the grant of her boons, he was devastated and broken. How could he send his beloved Rama to exile? How could he deny him, the righteous one, the throne? How could he nominate Bharata as his successor? But, equally, could he afford to break his word, not keep his promise? Dashratha knew the answer but he had his moment of doubt. Rama had none. When the news of his terrible fate was broken to him – by Kaikeyi, not Dashratha, who was too distraught to talk, one might remember – he was the very picture of tranquillity. If father had given his word, could Rama ever think of going back on it! His was to obey, not question, follow, not doubt, surrender, not seek. “Raghukul Riti Sadaa Chali Aai, Praan Jaai Par Bachan Na Jaai” (Ayodhya Kanda). Could there be a higher example of trust? Lord Rama knew in his heart, as a billion Indians do, that trust is not about taking shortcuts, it is not about taking the easy way out. Trust is all or it is nothing. Make a sacrifice if necessary; but do what is right rather than what is convenient. Trust is also my father’s proudest legacy to all of us, our most precious inheritance. Sadly, a legacy might not be forever. More than what you get, it is what you make of it. Cherish it, and it grows. Neglect it and it wilts. Like a tender young sapling, it demands constant care and concern. Looking back over the last few years, i am deeply and painfully aware of how easy it is to lose touch with one’s values. How easy it is to let one’s samskaras turn into empty words without meaning or intent. How easy it is to let the obsession with self – ‘i, me, mine’ – vitiate even the purest, most selfless of relationships – the bond between a child and his mother. This takes us beyond trust to a realm yet higher; a realm so sacred, so exalted that it is likened, in our scriptures, to divinity itself. There is no higher duty, purpose or end in life, say our epics, than an unconditional surrender to a mother’s love, a supreme respect for her will, a devotion to her well-being. “Verily”, say the Vedas, “the mother is God.” “Matrudevo bhava!” proclaims the Taittriya Upanishad. “Honour thy mother. Look upon her as God.” Can one worship God without total trust? Can one show her reverence without bowing one’s head in absolute humility? Can one break a word spoken solemnly in her presence? And if one does – in the mindless pursuit of power, ego or material riches – what has one gained and, more importantly, what has one really lost?
This is not the first time I am reading AA speaking wisdom and philosophy.I have seen people telling me that, is there any scope of philosophy in business?Well, there is no place for that in business but that doesn't mean that Industrialist need to be a dumb and has only knowledge of business and nothing more.If someone is having that much knowledge then it is a great thing to have that.AA is doing everything to save his shareholders interest by publishing in media and AA is not a child who do not know what he is doing.
Talking of Upnishad and quoting verses is no childs play.You need to be well learned about it and also able to understand the meaning from it.
This is not the first time I am hearing .I have read his thinking couple of years back and there was no dispute as big as now between Ril and RNRL but still it was there with AA. What I want to say here is this has not come out suddenly for Anil..it was there..
Last I would like to write couple of lines of a SONG which was composed by Roshan, father of Producer/Dir Rakesh Roshan and Grand father of Hrithik Roshan from film "Dadi Ma."....
"Usko nahi dekha hamne kabhi , per iski jurrorat kya hogi , aye ma aye ma teri surat se alag bhagwan ki surat kya hogi kya hogi......"
It is wonder fully written by Indivar, sung by Mahendra Kapoor, Manna Day ..hear each and every word it will be a treat to hear the wordings ....Hats Off to all who made it possible.....See how Bina Rai ( late Premnath's wife)looks here as a mother, awefully full of grace......one can see this song at You Tube....http://www.youtube.com/watch?v=0hwGkie0BnQ
Never come across such a beutiful song in my life....This is my all time favourite...if one fails to properly listen the wordings repeat again to listen it carefully....I frequently hear and see it on You Tube....
More you hear the more one would like it...
Saturday, August 22, 2009
I have started this blog just to help small investors .I do not charge anything for anything I write here.This is not a paid blog.
I decided to share my experiance and has always done that here and at mmb and other places.People use to point me my bad calls reminding me about that but never speak on my good calls.But I have learn now to take it in my stride and I feel no bad for it.
But what I want to write here today is that I use to sometimes give stocks which are out of world.Means no one may have heard of and these are RISKY calls.There is no guarantee for these type of calls.The best thing is one should invest in good fundamental stock and it should be atleast 60-70% of the portfolio.Only 30% of the money should go in RISKY stocks.These are stocks which have no prior history of having good management.And when there is no such type of history then ur money is at RISK.....but agianst that it is also true that money is made from such unknown stock.The TRICK here is one should be able to book profit from it and should not end in holding such stocks after it also reached a certain high.
That is why I have always written here that "Sell 50% as soon as stock doubles and take ur money out and keep the REST FREE"
Bear market are very brutal and they wipes out ur whole investment .Invest only those money which one is ready to lose and invest in A gr stocks where money is safe.
So the best way is sell 50% as soon as stocks doubles and keep the rest FREE.....
I like the RULE of Warren Buffet " 1st RULE :Never lose money in stock market and 2nd RULE "Never forget the 1st RULE"
and this can be achieved only when one takes out the money invested in stock market.
Always be on TOES.Try to see who is selling and analyse the situation.If situation warrents to sell stock at LOSS do that.Never get afraid of booking LOSS.This is also an ART how to cut down the LOSSES.
I have written in past here and writing it here again that don't sell stocks in which u r making profit to makeup the LOSS in other stock.SELL LOSS making stocks.They are ur bad decision and where u r making profit is ur correct decision.So hang on that.
Thursday, August 20, 2009
My old post:
US Stocks..........OXY......Occidental Petroleum Corporation .. cmp...$54...
Friends(Hiren),I gave a call somewhere else of ....Occidental Petroleum Corporation (OXY) at $44.43 on Oct 28...and it is up by $11 in 3 days.....The reason for recomending was it has an EPS of 8 and was available at just 5P/E and it actually rallied to $55 in 3 days....one of my frined wrote me there at that time,that it is looking good over $55 as per technicals....So take your own call.I still feel that PKD and GEOI are looking great to me......
Wednesday, August 19, 2009
While zinc, copper and oil have all reached their highest levels of 2009 in the past few weeks, the commodity hitting the headlines most recently has been sugar. Benchmark raw sugar futures recently hit a 28-year high of 23 cents per pound. And by all indications, investors expect sugar to continue its relentless march upward. The number of call options to buy sugar at 40 cents a pound in New York next March has jumped six-fold in less than five months. Net long positions on sugar contracts traded on the New York Board of Trade are running at four to five times their normal levels to reach more than 200,000 tons. The implications of sugar's sharp moves up go beyond the higher prices you'll be paying for candy bars. Understanding where it is trading within the context of a classic "boom-bust cycle" can help you to make money from sugar both on the way up, and on the (inevitable) crash down.
The World's Sweetest Investment:
A Story of Supply and Demand Right now, sugar is caught in a perfect storm, its price driven by both fundamental factors and speculative fervor. On a fundamental level, sugar prices are soaring because the world is consuming more sugar than farmers are producing. Estimates on global production for the 2009-10 season are continually being revised down, almost on a weekly basis. You can blame El Niño. The warming of the Pacific Ocean has played havoc with global weather patterns. There's been too much rain in Brazil and too little rain in India. Brazil, the world's largest producer, was drenched by four times more rainfall than normal, making much of the sugar production too wet to harvest. And thanks to government-mandated production of ethanol, only about 43% of Brazil's sugar capacity is geared toward making sugar. Meanwhile, India, the world's second-largest sugar producer, had unusually low monsoon rainfall and suffered its driest June in 83 years. Production in Russia, Mexico, China and the EU has also fallen, as the EU has swung from exporter to importer this past year. At the same time, global demand for sugar is growing unabated. Global inventories are close to record lows and food companies are scrambling to secure ever-tightening supplies. According to the International Sugar Organization, world demand for sugar may exceed supply by 5 million tons in 2009-2010 after a record deficit of 7.8 million tons in 2008. And when production falls short of consumption for two years in a row, inventories become seriously depleted and the price of sugar tends to soar.
The World's Sweetest Investment:
Sugar Shortage Hits Home The global outlook for sugar is also wreaking havoc with the protectionist mess that is the U.S. Sugar Program. A vestige of the Great Depression, the Sugar Program has been artificially inflating the domestic price of U.S.-produced sugar to support the incomes of sugar-beet farmers on the Northern Plains and cane-sugar farmers in the South since 1934. Under its terms, the U.S. government guarantees a minimum price to domestic sugar growers by restricting imports and by buying and storing excess production. The result? Most years, the price that food companies pay for U.S. sugar is twice the world level. Current import quotas limit the amount of tariff-free sugar that the food companies can import in a given year, except from Mexico. At the same time, Mexico's domestic shortfall suggests that exports to the United States will fall dramatically from the 1.5-million tons shipped this year.The result? U.S. sugar supplies are set to drop 43% by September 2010 from this fall. The government estimates that sugar stocks will end next fiscal year, September 2010, with about 24 days' supply, compared with 63 days in 2007. Recently, Kraft Foods, General Mills, Hershey and Mars all warned of a severe shortage of sugar used in chocolate bars, breakfast cereal, cookies and chewing gum. In a letter to Agriculture Secretary Thomas Vilsack, they wrote that the United States could "virtually run out of sugar" unless the Agriculture Department allows them to import more tariff-free sugar -- specifically, an additional 450,000 tons of tariff-free sugar by Sept. 30. Coddled farmers are, of course, up in arms, fearing that artificially propped up U.S. sugar prices would be set for a fall. Each one-cent drop in the price of sugar costs them about $160 million.
The World's Sweetest Investment: Boom to Bust?
Global commodities investor Jim Rogers has also shifted his attention to sugar. Rogers argues that with Asia prospering and three billion people striving to join the global middle class, demand for sweets and sugar is set to explode. Food inventories are at the lowest they have been in decades. And sugar is still 70% below its all-time high of 66 cents in 1974. Sugar could triple from its current levels and barely reach nominal levels last seen when Richard Nixon was president. And adjusted for inflation, sugar would have to hit a mind-boggling $2.75 -- a 12x increase from its current levels. That said, the dynamics of sugar are different from zinc, copper and oil. You'll never hear about the coming crisis in "peak sugar." If sugar prices stay high, farmers can always plant more.And given growing cycles, it takes between 18 months and two years for sugar supply to meet demand. Sugar production in India, the world's second-largest producer, may jump as much as 52% to 25 million tons in 2010-2011 from 16.5 million tons in 2009-2010, as mills have already agreed to boost the availability of sugar to cool record prices. And historically, any price spike above 15 cents a pound has been often followed by a big sell-off within 18 months.In fact, sugar for delivery two years from now costs about 6 cents less than spot prices. That shows traders expect a price decline. The bottom line? There's probably a big bear market in sugar coming in 2011. The boom will be followed by an inevitable bust. Riding the wave up, as well as down, can make sugar a sweet investment, indeed.
I would like my readers to show me some stocks in this sector if they are listed.I know only one stock that is listed and that is Moldtek Technology Ltd ....
Big deals help Indian law firms enter the global league
Our Bureau NEW DELHI
THE Indian law firms are now matching up to the standards of their global counterparts, thanks to a robust Indian economy that is generating the largest number of project finance and public private partnership deals worth $ 31.9 billion which happened in the first half of 2009, according to a global survey by Dealogic, an agency which compiles such data. Indian firms closed 36 project finance deals valued at $31.9 billion, an increase of 158% over the same period last year. Top Indian law firms, such as Luthra & Luthra and Amarchand and Mangaldas along with Mumbai-based mid-sized law firms, such as DSK Legal, Indian Law Services (ILS) and MV Kini & Co, exploited the boom in Indian projects finance and public-private partnership (P3) deals, leaving behind global giants, such as Clifford Chance, Allen & Overy, DLA Piper, White & Case and Latham & Watkins. “It is a big achievement as Indian law firms have gone ahead in spite of all our inherent disadvantages while competing against global giants. In addition, it is also about being at the right place at the right time as the Indian economy is very well placed vis-a-vis the first world nations,” said Rajiv Luthra, managing partner, Luthra & Luthra. On the global private finance initiative (PFI) and public-private partnership (PPP) deals, Luthra closed three deals equalling close to $6.3 billion, making its market share just over 10%. Amarchand advised on five deals worth $5.8 billion, DSK Legal followed in second place with a market share of 6.7%. ILS acted on 14 deals worth just over $6 billion, according to Dealogic, meaning its market share is an even 6%. This means that Indian law firms enjoy a 28.2% market share of all PFI/PPP deals and an 18.1% share of global project finance deals as market leaders. The three major deals that Luthra & Luthra was involved were the $3.8-billion Sasan Ultra Mega Power Project (for lender), the $2.6-billion Dahej Ethylene Cracker Plant (for consortium) and the $1.8-billion Mundra Thermal Power Project Phase 4 (for the lender). Where as, ILS advised $3.3-billion Vodafone Essar seven circles GSM network rollout (for lender), the $1.3-billion Gondia Coal-Fired Thermal Power Project Phase 1(for lender), the $886-million NH1 (Panipat-Jalandhar Section) Six Laning Highway PPP (for lender). “Last year, no Indian law firms even made it to the top 10 in the Dealogic survey, this year is a double-whammy for the Indian business league and the economy that is shining even as the world is reeling under the recession,” said Ravi Kini, managing partner, MV Kini & Co. This shows that Indian law firms are second to none when it comes to competence, skill and use of technology. “This is the beginning of export of legal services on the advisory and due diligence on deals, as it would be an advantage for foreign companies to outsource services from India at a competitive price,” said Anand Desai, managing partner of DSK Legal.
Tuesday, August 18, 2009
I gave a call of Kalyani Forge @87 and Tin Plate @46 on 22 nd July means not even a month back.
I just past through the bse site to pip in what my calls were doing.
Kalyani Forge is now at Rs 118.35 buyer even when the market tanked today on Chinese worry by 652 points and TinPlate is at Rs 70 after making a 52 week high at 73 .
So Kalyani Forge is giving a return of 35% and Tin Plate is giving a retrun of 50% in less then a month and that is very big by any standard if we calculate it annually.
When market is down Kalyani Forge is going for UC(Upper Circuit)and that is the beauty of the call.I have written here that you will find stocks running in UC, of my call ,when market will be down.
These both stocks has a long way to go and one can buy even now at this rate.
Remember one thing.When ever one buy a stock it is not neccessary for it to go up.I can rather say that most probably it will go down 10-15% after we buy it.It doesn't mean that market has singled you out and hence you don't deserve to be in the market.I remember one quote from a very famous fund manager who found many multibaggers in his life and also got retired early.His name is Peter Lynch and he has always felt that after he has bought a stock it has invariably gone down and down to that much extent that one get scared.But he use to hold on the position because he was confident of his pick and has come out winner many a times.
So don't get frustrated when a stock goes down after you buy it.It is part and parcel of life in stock market.I have seen many people taking a break from the market saying market is not good and hence I will sit aside and wait for the opportune moment to jump but according to me, unless there an euphoria like we saw at 21k ,there is no such day where one cannot invest.Right now even though we have come up from 8k to 15k, scores of stocks are below their worth and one needs to keep his eye open and be always on the lookout for opportunities.
Be it USA market or Indian Market of any international stock market of any country opportunities are always there.
Now talking on yesterdays big scary fall due to external factors I think Indian investor don't need to panic on such fall.If China is losing India is profiting from it.If China is slowing down then commodities will come down which will help end users which willhelp in taming down the inflation which in turn will help economies to do better world over.China is comsuming so much of commodities that slowing down a little bit will not cause any problem.
India's growth is internal and domestic comsumption lead and when I say about domestic consumption lead it means Infrastructure lead and not the consumer side.It will come out when people will have money.
Friday, August 14, 2009
TNN 14 August 2009, 01:35am IST
Some light showed up at the end of the recession tunnel on Wednesday as France and Germany announced unexpected returns to the growth path, which means that four of the world’s five largest economies and six of the top 10 are now not in recession. Adding to the sense of optimism, the US Federal Reserve left rates unchanged, saying that the world’s largest economy was showing signs of levelling out. Both France and Germany had been predicted by most economists to face a decline of about 0.3% in their GDPs for the second quarter (April-June) of 2009, but they surprised themselves and the rest of the world by announcing that they’ve actually recorded growth of 0.3% each. Among the five largest economies of the world, measured in purchasing power parity (PPP) dollars — which is more of an apples to apples comparison — China and India are already growing at healthy rates, although lower than their own pace for the last few years. Japan too has climbed out of recession and so has Germany. These economies and the US account for 47% of world GDP in PPP terms. The Eurozone as a whole is also now projected to have contracted by just 0.1% compared to the 2.5% fall in GDP in the first quarter (January-March). The growth rates reported by Germany and France may seem like nothing to get excited about, but considering that German GDP shrunk by 3.5% in the first quarter and France’s by 1.3%, it is quite a smart turnaround. Among the world’s other large economies, Brazil is also now no longer in recession having grown by 1.5% in the second quarter. Among the world’s large economies, UK, which is the seventh largest and Italy, the tenth, remain in recession, like the US. The UK economy shrunk 0.8% in the second quarter, while Italy’s was down 0.5%. Unlike in the UK, however, economists in the US believe the worst may be behind them. ‘‘It’s quite possible, though not certain, that retrospectively, we’ll say that the recession ended in July or August, may be September,’’ Nobel laureate Paul Krugman was quoted as saying. There is evidence that his is not undue optimism. The pace of job losses in the US slowed more than forecast in July and the unemployment rate dropped for the first time in more than a year. US GDP also shrank by just 0.3% (equivalent to an annualized 1%) in the seconnd-quarter after a 6.4% drop in the previous three months. That explains why US Federal Reserve is willing to bet that the nosedive the economy had witnessed in recent months is behind it. Over the last two years, the US has witnessed its worst financial crisis in decades, but that could be ending, which is good news for the world since it accounts for a fifth of global GDP.
Thursday, August 13, 2009
I today wants to discuss a co named Religare Enterprise Ltd. Why the price is Rs 370 when the earning is just 3 cr on an eq base of 76 cr for last qr ! and hence the eps is just .17 for the last qr?Why the market is giving so high P/E ratio to this co?If we take full year earnings it is barely 1 eps and still the price is Rs 370! Why?It means that P/E ratio is as high 370 ! Can one imagine that a co can have an P/E ratio of 370 in bear market?
Let us discuss why it is so.I think very less analyst or stock market pundit will try to come out and explain why that is happening.I am trying to do that.I am a very small person to speak something in this subject as I do not know how to read Balance Sheet, do not know what is Cash Flow,do not able to understand RONW etc etc.........but what I can read is the growth and the visibility and I will be talking on that today.
First thing I would like to write here about Religare Enterprise Ltd is , it comes from a very reputed house, Ranbaxy gr.If someone remember I have recomended Religare Technova Solution and it is also from the same gr.
So being a good corp house the market will give higher discounting and that is the first thing one needs to remember .If someone can recall i wrote here recently and may have written in past as well that Insurance is the upcoming sector and we needs to find stocks in this sector.The reason Religare Enterprise getting high discounting is it is getting ready to takeover American International Group’s (AIG) investment unit and being an US co one can imagine what can be the growth prospect from hereon with Religare Enterprise Ltd . I have pasted the entire text that I came to read on internet which one will be able to read at the end of the post.
Sometimes market gives thumbs up to certain co and many times, rather most of the times, the experts,the stock analyst,pundit fails to understand the finer print and feel that the price is high and one can't invest in such co but they are wrong here.Market and stocks always discount future and not the present.I had written this sentence umpteen times that Market discounts future and not present.Market sees what is going to happen and not what is happening and gives price accordingly.
We also invest in a co whose growth is going to be great hence we also do the same thing then why we look at the latest results?Latest results are just good enough for the direction of future and one or two qr results never makes a co bad .
Likewise buying stock is not seeing the eps or P/E ratio or sales or Mcap or balance sheet.Ofcourse they are necessary ingrediant to look at but not the only one.
That is what one needs to learn and that is what one should be able to make out what is going on.I have always written that try to find stocks on your own.In one of my point "How to pick multibagger "is this also that when one has bought the stock one needs to find everything one can.In this age of internet one can find anything on computer.Internet has made things easy for us.Go and find whatever you can in where you are investing.Finding facts will give enormous CONFIDENCE to you and you will be at ease.This CONFIDENCE will bring CONVICTION which is very necessary in stock market. Have you ever heard Rakesh Jhunjhunwala on TV?He is always optimist and is sure about the bull market.Why?Because he knows what is going to come up.He has got the vision and he is confident of that and hence we never saw selling his core holding in this bear market.
After reading the below news anyone can say what can be the growth for this co.
and one should not wonder why market is giving thumbs up to this finance co.
Here is the news I read for Religare Enterprise Ltd on Internet :
The latest report suggests that the Delhi-based firm may buy the asset management firm independently.New Delhi :
Financial services conglomerate Religare Enterprises has emerged as frontrunner to acquire American International Group’s (AIG) investment unit. Earlier reports indicated that Religare will partner will Australian banking giant Macquarie to buyout AIG Investments.
The latest report suggests that the Delhi-based firm may buy the asset management firm independently according to Financial News. Religare is being advised by Jefferies on the bid.
A spokesperson from Religare declined to comment on this development.
Franklin Templeton Investments, one of the largest asset managers in the world, was also in the race but pulled out last month. Singapore state investor Temasek Holdings Pte Ltd, Hong Kong tycoon Richard Li's Pacific Century Group, and New York-based private equity firm Crestview Partners LP, were also part of the Franklin consortium.
While Temasek and Pacific Century pulled out with Franklin, Crestview is still reported to be in the race. Last week the PE firm was reported to be close to the deal at a price of $300-400 million.
AIG Investments, which manages funds in excess of $85 billion, is expecting a valuation of $500 million. The latest report says that Religare is willing to spend $500 million to build an international asset management business. AIG is selling its assets in order to repay the $182.5 billion bailout by the US government.
Last year, Religare acquired London-based broker Hichens Harrison & Co Plc for £56 million. The firm appointed Matthew H Mongia as a Director, Global Asset Management, of Religare Hichens Harrison earlier this year to develop its asset management vertical via new product launches and strategic acquisitions globally. Mongia has worked with Monsoon Capital and Fidelity Investments.
Religare Enterprises Ltd is the financial services company owned by Malvinder and Shivinder Singh, the promoters of Ranbaxy Pharmaceuticals. The Singhs signed a deal with Japanese pharma company Daiichi Sankyo in June 2008 to sell their 34.8% stake in the company for Rs 9,576 crore.
Since then, the Singhs have been expanding their financial services and healthcare business.
Wednesday, August 12, 2009
The Company has received an Order from HPCL – Mittal Energy Limited for Crude Oil Storage Tanks (4 nos.) work for the Guru Gobind Singh Refinery Project at Bhatinda, Punjab. The total value of the order is Rs. 362.7 million.
Mumbai, 12th January 2009
The Company has received an Order from HPCL – Mittal Energy Limited for construction of Intermediate and Product Storage Tanks work for Guru Gobind Singh Refinery Project at Bhatinda, Punjab. The estimated contract value of the order is Rs. 191.70 Crore.
The contract scope covers construction of 64 nos. of Tanks involving steel works of approximately 21000MT. The contract scope also includes associated civil, fire fighting systems and oil –water separator works.
Time of completion for the total works under this contract shall be 18 months effective from 10th January 2009.
Mumbai, 22nd January 2009
The Company has been awarded an off- plot pipeline project construction work for 62 KM of pipe line work (consisting of sizes from 4" to 36") for various services like crude export, gas export, fuel gas and water injection line etc. The value of the contract is Kuwaiti Dinars 884000 (approximately Rs. 17 Crore). The duration of the contract is 12months and the expected completion is by end January 2010.
Mumbai, 20th March 2009
The Company has received an order from Indian Oil Corporation Limited for construction of storage tanks and associated facilities work for PRAEP projects of Panipat Refinery at Panipat. The estimated contract value is Rs. 21.58 Crore and the contractual time of completion for this work is 12 (twelve) months from 19th March 2009.
This is latest...in 2008 so that no one tells that this is old news....way back.....
Reliance Group, Jamnagar Construction of 19 Floating Roof Tanks for Export Oriented Refinery, 3 Doom Roof Tanks for Alkylation Unit.
Essar Oil Limited, Jamnagar Construction of 4 Super Priority ISR Tanks, 2 Floating Roof Naptha Storage Tanks.
Heavy Engineering Industries & Ship Building Co., Kuwait Fabrication & Installation of 6 Storage Tanks at JO, Wafra Project, Kuwait
Fujairah Port Project Piping & Mechanical work (Pipe Size :- 3” NB to 32” NB) for IRM Terminal inside the Fujairah Port.
Technip India Limited, Chennai. Construction of 2 Vinyl Chloride Monomer (VCM) Storage Tanks for 160,000 MTPA S-PVC Plant for Chemplast Sanmar Ltd., Cuddalore.
The Company’s core competence lies in Oil and Gas Sector and Power Plants and it has successfully executed a number of projects, both domestic and overseas.
The Company is presently executing EPC projects at the following sites:Shri Guru Gobind Singh Refinery Project, Bhatinda
In the month of July 2008, the Company has received an order from HPCL – Mittal Energy Limited for construction of 4 Crude oil Storage Tanks at Shri Guru Gobind Singh Refinery - a project being set up at Bhatinda. The estimated contract value of the order is Rs. 36.70 Crore.
In January 2009, the Company has received an Order from HPCL – Mittal Energy Limited for construction of Intermediate and Product Storage Tanks work for Guru Gobind Singh Refinery Project at Bhatinda, Punjab. The estimated contract value of the order is Rs. 191.70 Crore.
The contract scope covers construction of 64 nos. of Tanks involving steel works of approximately 21000MT. The contract scope also includes associated civil, fire fighting systems and oil –water separator works. The project execution activities have recently commenced.Alghanim International General Trading & Contracting Company, Kuwait
The Company has been awarded an off- plot pipeline project construction work for 62 KM of pipe line work (consisting of sizes from 4" to 36") for various services like crude export, gas export, fuel gas and water injection line etc. The value of the contract is Kuwaiti Dinars 884000 (approximately Rs. 17 Crore). The duration of the contract is 12months and the expected completion is by end January 2010.PRAEP Project of Panipat Refinery, Panipat
The Company has received an order from Indian Oil Corporation Limited for construction of storage tanks and associated facilities work for PRAEP projects of Panipat Refinery at Panipat. The estimated contract value is Rs. 21.58 Crore and the contractual time of completion for this work is 12 (twelve) months from 19th March 2009.
Now last I am going for Profile of the Co......
Artson Engineering Limited, (the Company) was incorporated as a Private Limited Company on 18th September 1978.
Since inception, the Company was engaged in pioneering work in developing products and systems in fuel handling and tankage construction activities in Refineries, this led the Company to become one of the foremost companies in India with specialization in Petroleum Storage and handling systems.
In the year 1990, the Company established its own manufacturing facility at Ambad (Nashik) to support its Engineering Procurement and Construction (EPC) projects.
With a consistent record of dividend payment and two bonus issues earlier, the Company came out with its Initial Public Offering (IPO) of 18,00,000 equity shares of Rs. 10 each at par in the year 1992. The IPO was over-subscribed 9.5 times and the shares of the Company were listed on the Bombay, Delhi, Madras and Ahmedabad Stock Exchanges.
By the Year 1994, the Company was already engaged in the multidisciplinary engineering activities. The Company announced its ‘Rights Issue’ in the year 1994 with ambitious expansion plans to take up EPC contracts in the core sectors of Oil and Gas, Power Generation and activities of Cryogenic Tanks Construction. The Rights Issue was of 44,85,000 equity shares of Rs. 10 each at a premium of Rs. 15 per share aggregating to Rs. 11.21 Crores.
Over the years, the Company has developed its capabilities in the multi-disciplinary construction fields for the Hydrocarbon process industry and has successfully executed, on turn-key basis, many prestigious construction contracts. The Company has thus emerged as one of the leading Design Engineering Procurement and Construction Companies in the Petroleum Storage and handling system.
During the span of three decades, the Company has successfully commissioned, on turn-key basis, several fuel storage and handling facility systems and emerged as one of the foremost companies in the country which specializes in such systems. The Company’s expertise has gradually expanded beyond the Country and has been executing prestigious overseas contracts as well.REFERENCE AS A 'SICK COMPANY'
As per the Audited Balance Sheet as on 30th September 2004, the Company's networth was fully eroded due to the accumulated losses. As a consequence, the Company was referred to the BIFR as a sick company under the provisions of Section 3 (1) (O) of the Sick Industrial Companies (Special Provisions) Act, 1985. The Company's reference as a sick company was registered under Case No. 152/ 2004 with the BIFR.
At the hearing held on 17th May 2006 before the BIFR, Bank of India was appointed as the Operating Agency to examine viability of the Company and if found feasible, to formulate a rehabilitation scheme.
The Operating Agency submitted a Draft Rehabilitation Scheme on 5th June 2007 and the same was circulated to various parties for their consent.
At the hearing held on 27th November 2007, the BIFR sanctioned the Rehabilitation Scheme of the Company and the Order sanctioning the scheme of rehabilitation was received on 18th December, 2007 (Sanctioned Scheme).ADMISSION OF TATA PROJECTS LIMITED
In terms of the Sanctioned Scheme, Tata Projects Limited (TPL), has been admitted as the Strategic Investor and Co-promoter of the Company. TPL has committed financial assistance of more than Rs. 28 Crore, of which it has already infused funds aggregating to about Rs. 23 Crore.
TPL has acquired 75% stake infusing a sum of Rs.2.77 Crore towards Equity contribution. The Company has thus become a subsidiary of Tata Projects Limited.
TPL has also taken the Management Control of the Company and has inducted its representatives as Nominee Directors on the Board of the Company on 4th January, 2008.
In addition to the support in the rehabilitation of the Company as per the Sanctioned Scheme, the Company is in a position to derive benefits from TPL on many grounds including professional management, project execution intellect, quality services, TPL’s strong presence in core sectors of the economy and good governance practices.
Well,reading this, no one can say that this was a fake call or no one can doubt about the co credentials.Those who are doing this , saying that Artson is a gone case are doing no good to themselves as well as others.
Artson is a name in itself and one can see from what I have posted here.There remains no scope of any doubt for Artson Eng.Remember the 1 paid up is due to capital reduction due to huge accumalated loss and not that it is splitted to 1 paidup.Today it went for UC at 34.......
According to what I see Artson is a good candidate to hold for 2-3 yrs and one can get great returns in times to come.These are my personal view and one needs to take decision on their own.....but true to my inner wish to try and give fundamentally good stocks and I hope that if I commit a mistake it will taken in right spirit.........
Sunday, August 9, 2009
Couple of days back I saw that Shankar Sharma , head of First Global eq ,became bullish and gave a bullish stance.He again predicted that market can cross 21k by Dec 09 which is what I have writing here since market crossed 12k .......
When bear turn bulls is it time to be catious?Maybe for ST as, as soon as they started speaking about sensex with biggger targets market went down.I donno whether they cut their shorts?
There are concerns over rain deficit in whole India and market tanked on that news.Rain or less rain market direction is up barring corrections . I think it is still early to say about rain fall.Let us wait and see.
Cement,IT,Infra, Capital Goods ,Auto, Finance , Oil &Gas , Media are some sector I am bullish and one of my reader told me that UTv is already at 447 after I gave a call at 337 few days back.
I have kept on writing that Selan Exploration,Alpha Geo, Dolphin Offshore , Jindal Drilling are great stocks with great fundamentals.
I remember I have given the call of India Glycols on numerous occassion and it is one of my favourite stock along with stocks like Max India and Lumax Ind.All these 3 stocks can work wonders if held pateintly for 2-3 yrs.Keep watch on them or buy them.Insurance sector is another sector where I am bullish.That is why I have zeroed on Max India.I think Insurance is the upcoming sector as it gives enormous growth.Company has to rarely pay for accident or health insurance and that is why the agents gets hefty commosion and they also give hefty discounts to customer .If we look around we can see that very rarely people who is having health insurance have to reimburse it.Only in the case of major health problem insurance co has to pay.It is a very lucrative business and perticularly in India where the cost is very low.
Try to find stock in this sector which is cheap.It is hard to find them.Rcap , Bajaj Fin etc are in Insurance sector and they are high.
I have written many times here and am writing it again , playing in F&O is Big No No.......it is a losing game and more one tries to cover the loss more there will be loss.There is no solution for winning.All the claims that are made are not worthy to follow.When one is not expert in Stock market then why they go on and play commodities is puzzling me a lot.Commodity is a world wide scenario.It is played the world over and we do not know what is happening elsewhere in the world and what are the effects that takes place.Atleast in Stock market we know what is happening in India and hence we are sure of what we are doing and beting at but commodities is an international play.Please don't play in commodities......Crude, Copper, Zinc etc.....buy those stocks but not the raw material......
Thursday, August 6, 2009
It is just like a game of Cricket.What a next ball will do no one knows.Cricket game is full of uncertainty , no one knows what can happen in next 10 mins.A batsman who made century gets out in very first ball in next innings.Cricket hence also gives lesson of life that anything can happen.The reason why it is played and seen so much is that.It is full of uncertainty.Zimbabwe can win against Australia and England can win a test series against Austrailia and India can win World Cup after no one gave a chance to win. A centurion in 1st innings gets out in ZERO!
Such is with market.No one knows which stock will run and which will not.Which will give multibagger retunrs and which will not.I can give scores of example even now that co having great management and having great earning and EPS and still lying low while there are still stocks which are with poor management and still have high P/E multiple and remember I am talking of recent scenario.That is the uncertainty of market.One never know which will run and which will not.
Coming back to XL Tele ,it went in for UC and the day results were out it went for DC(Down circuit). I saw very big Bulk deal of JMP Sec yesterday at bse site and I thought that someone is buying ! But why they are buying?It means that they are knowing much more then a lay investor knows.....If we recall last time , the results were bad that time too and still XL went up......So what are the management upto?Trying to misguide investors?Solar sector is going to do better in times to come but where are the orders ?Why the sales were down from 250 cr to just 50 cr?Are they going to get orders in big way in next quater?
What will be done for Rs 200 cr loss and how XL Tele is going to fillup that loss that has been taken as a loss in banks credit?
I leave this answers to future and JMP Sec who bought big chunk of XL tele yesterday.
Atleast I don't know the answer and even if the Hydrabad facilty for making Silicon Wafers etc starts off within 3-6 months , what about the orders?If they(orders) were there then why it showed such a poor sales in this qr?Who is playing the game so the people sell XL and someone interested buy as much as he can.......!
Austral Coke is another stock which is known for a dubious management.It came with an IPO of Rs 190 and it is making newer highs recently.It closed at 430 after making a high of 447! It is the same promoters of Gremach Infra and same Rishi Raj gr then why it is making all time high?Whom we needs to follow?The way Austral Coke is rrunning it will easily cross 1k before sensex makes a new high....
I would like to write something on Scan Point Geomatics , old name Scan Point GraphicsLtd which came out with and IPO in KP's time in 1999 and is an Ahemedabad base software co.I am tracking this co since then.Well it is making new high recently and is at 16.25 and is going inconstant UC.I would only suggest here that try to find the website of Scan Point Geomatics and try to see what they are upto.I will not write anything about the co here.It is a microcap stock and according to my image I have written it here.....UNKNOWN STOCK...WHEN NO ONE KNOWS IT.....and I will caution all readers that being a microcap stock, investing in it can wipe out your money hence take that in account before investing in it.
Tuesday, August 4, 2009
I have seen the results and the loss is huge.It is 202 cr and seems the orders stopped coming in from Europian countries.I agree that debt is big for XL Tele and if the situation do not improves drastically then it will be difficult for XL Tele to come out from high debt as for paying the interest to bank, let principle be forgotten for time being, sales is neccesary and if that do not come then things can become bad for XL.Though actually the loss they have taken is for MTM loss, inventory piling up loss but the problem here is bank has marked this as a loss and i.e. as big as Rs 200 cr which will quezze the liquidity for XL Tele and hence they will need the money very badly and 200 cr is no small amt.I would suggest to switchover from XL Tele to some other good stocks.Gremach Infra looks good to me still even though promoter Rishiraj has sold some of his stake but here again I may go wrong.
Well,that's all I can say and I may prove wrong in my analysis.I was so confident of XL Tele even with high debt but they come out cropper.These are the risk one has to face when one invest in stock Market.I think there is very remote chance for XL Tele to come good within next 2-3 quaters and if they come good then it means they manipulated figures and tried to fool investors.
I am very disheartened by the way the things has gone at XL Tele but that is what all is in stock market......
Saturday, August 1, 2009
IF WE CANNOT LOVE THE PERSON WHOM WE SEE,... HOW CAN WE LOVE GOD, WHOM WE CANNOT SEE ? - MOTHER THERESA .
IF YOU WIN YOU NEED NOT EXPLAIN .......... BUT IF YOU LOSE YOU SHOULDNOT BE THERE TO EXPLAIN - ADOLPH HITLERIF
YOU START JUDGING PEOPLE YOU WILL BE HAVING NO TIME TO LOVE THEM - MOTHER THERESA
I'M NOT IN COMPETITION WITH ANYBODY BUT MYSELF...... .... MY GOAL IS TO BEAT MY LAST PERFORMANCE - BILL GATES
DON'T COMPARE YOURSELF WITH ANYONE IN THIS WORLD....... IF YOU DO SO, YOU ARE INSULTING YOURSELF - ALEN STRIKE .
NEVER EXPLAIN YOURSELF TO ANYONE...... .BECAUSE THE PERSON WHO LIKES YOU DOES NOT NEED IT.........AND THE PERSON WHO DISLIKES YOU WON'T BELIEVE IT - AUTHOR UNKNOWN
THE DREAM IS NOT WHAT YOU SEE IN SLEEP......DREAM IS WHICH DOES NOT LET YOU SLEEP. - DR. ABDUL KALAM (Former President of the Republic of India)
NO MAN IS RICH ENOUGH TO BUY HIS PAST - - OSCAR WILDE
IF YOU WANT REAL PEACE,.... DON'T TALK TO YOUR FRIENDS,...TALK WITH YOUR ENEMIES - MOTHER THERES
A WINNING DOESN'T ALWAYS MEAN BEING FIRST,..... WINNING MEANS YOU'RE DOING BETTER THAN YOU'VE DONE BEFORE - BONNIE BLAIR
EVERYONE THINKS OF CHANGING THE WORLD,...... . BUT NO ONE THINKS OF CHANGING HIMSELF . - - - LEO TOLSTOY
I WILL NOT SAY I FAILED 1000 TIMES,...... .. I WILL SAY THAT I DISCOVERED THERE ARE 1000 WAYS THAT CAN CAUSE FAILURE. THOMAS EDISON
NEVER BREAK FOUR THINGS IN YOUR LIFE,
c) RELATIONSHIP and
d) HEARTBECAUSE WHEN THEY BREAK THEY DON'T MAKE NOISE BUT PAIN A LOT - CHARLES
IN A DAY, WHEN YOU DON'T COME ACROSS ANY PROBLEMS YOU CAN BE SURE THAT YOU ARE TRAVELING IN A WRONG PATH - SWAMI VIVEKANANDA
( Great quote)
THREE SENTENCES FOR GETTING SUCCESS:
A) KNOW MORE THAN OTHER
B) WORK MORE THAN OTHER
C) EXPECT LESS THAN OTHER - WILLIAM SHAKESPEARE
LOVE YOUR JOB BUT NEVER FALL IN LOVE WITH YOUR COMPANY BECAUSE YOU NEVER KNOW WHEN IT STOPS LOVING YOU - DR. ABDUL KALAM
IF SOMEONE FEELS THAT THEY HAD NEVER MADE A MISTAKE IN THEIR LIFE, THEN IT MEANS THEY HAD NEVER TRIED A NEW THING IN THEIR LIFE - ALBERT EINSTEIN