Wednesday, January 20, 2010

Siemens and Sesa Goa....two S....

I read two news today in BS and I am posting it here....

Sesa Goa net at Rs 827 crore

Sesa Goa said its consolidated net profit stood at Rs 827.5 crore for the quarter ended December 31, 2009. The company had a net profit of Rs 470.7 crore for the third quarter ended December 31, 2008, Sesa Goa said in a filing to the Bombay Stock Exchange.

Siemens bags Rs 2,956-crore order

Engineering major Siemens Ltd said on Tuesday a consortium of the company and Siemens AG, Germany, had won an order from the Qatar General Electricity and Water Corporation worth Rs 2,956 crore. Siemens said the contract value for the Indian arm is approximately Rs 2,491 crore.

My Comments:
Siemens bagged order of Rs 2491 cr.....That is stupendeous....$500 mn contract..a single contract!Wow! and the anamoly I read analyst giving a downgrade for Seimens.I really don't understand how they work.
I have recomended Seimens since Mar 09.I am not sure what was the price then and have recomended Siemens after that also many is evergreen share...u can't go wrong here or in Areva, Alsthom,L&T etc.....
Same is with Sesa Goa.....Net profit of Rs 827 one! that is HUGE by any standard.I remember I first recomended Sesa Goa in Mar 09 when it was just 63....


  1. Rajeev,

    We should go against analyst..why they are downgrading is that they want to enter first in that script..and the shout we are very bullish ;)

  2. Hi Rajeev,
    Whats your opinion on recent developments in EIL. I personally think that with 1000% special dividend, govt. has taken out the large cash reserves out of EIL.
    And by giving bonus and split,the price will come down by 1/6 th, which will lead to more speculation in this so fundamentally strong stock.
    Whats your opinion, still one should remain invested or get out?
    With Regards,

  3. Vikas,
    EIL is great co to held on for LT...

  4. Yes Mahesh,
    u r right and that is what I am trying to bring it up here....that don't follow them.....just yesterday I read Shankar Sharma interview in BS and he is now bullish.....a U turn..I will be pasting that interview here shortly..

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  6. Rajeev,

    When Every Body is bullish, then slowly underlying -ve news start coming up like $ carry trade short covering(which takes 1-3 years to square off), End of US T-Bonds (recently china exited $9.3 billion T-Bonds, which implies govt. bonds is not safe to invest which previously world look @ it with big eyes). 60% of India mkt is covered by FII so we have to watch them :). Q2 and Q3 will be flat to bad due to rise in commodities, interest rate, rumor of FED rise in rates(exit of FII from india). The present growth as we know is by stimulus and once stopped growing is bit tough because 21th century ppl are educated and they scare of spending huge like USA...ppl invest more on land in india then mkt. Lets see where we land on Jan 2011. :)

    India will be in good stand if anything bad happens because Indian holds larget portion of around 6.5% of its forex reserve invested in gold and comparted to Inflated China 1.5% and India has least exposure to US T-Bonds amongst asian countries.

  7. Mahesh,
    I am absolutely not concerned about $ carry trade,US Tresury bond or stimulous relief going off.
    I am not ready to believe that the present growth will not sustain after the stimulous will be withdrawn and these are all thinking.What the global countries will do, what US is going to do, what China is going to do....and when they will be withdrawing the stimulous no one knows.
    It is all one call it correct untill that happens.
    I don't livein skepticism.
    I have seen with just a few hundred points correction people start thinking that now the much eluded correction has sets in but sensex has gone higher and higher...According to me no one hass become bullish...where u see that eveyone has become bullish....except my blog...Lol..

  8. My dad bought sesa goa at 66 and he's laughing all the way to the bank. Only in the stock market.

  9. Hi Karma,
    That is a great thing to hear.
    Don't sell everything.Just BP as much as invested.Sesa Goa is a great stock to hold on...