Revealation........

Friends,
Lots of water has flown over in last 24 hrs.
Amit says I made him a Villian here .
I have been writing here since the inception of this blog that I am not a CA, MBA or analyst.I donno how to see Cash flow, I don't read BS, I don't read AR....this I have been writing many times and this I have written everynow and then.
Hence I can very easily assume that Mr.Amit must also have read these things.
I have also written many times that I lives in USA since last 2 yrs and I am just like a One Man Army.I don't have people who works here under me.I have also mentioned that I explore the internet...read ET,BS, Live Mint business paper.That also means that I have no access personally to anyone in the Co.That  also makes a simple to understand that I may be wrong in my analysis.
I have always taken back my call whenever I  have found that I didn't have explore properly .One can any time look at my pas post wherein I have written that I am taking my call back so the question of accepting the mistake never comes here....I always do that....
Amit says ,he wants confession from me that I was wrong.He says he is my admireror and he has praised me for my good calls as well.
I would like to invite Amit to show me his comments where he appreciated my good calls........I do not remember ever he has written a word of praise for any of my calls.
Now coming back to what Amit is doing to me personally at my id ......
 For an evidence I am pasting here his mails.....

"  On Fri, 16/4/10, Amit Sharma wrote:

From: Amit Sharma


Subject: IFB Annual Reports


To: desairi@yahoo.co.in


Date: Friday, 16 April, 2010, 12:04 PM
Dear Rajeev,
Can you send me ARs of IFB....say past 5 years. I shall be grateful for that."

My answer:
Amit,

I do not read AR...so I have none.....

So he send me another mails immidiately............

"On Fri, 16/4/10, Amit Sharma wrote:

From: Amit Sharma
Subject: Re: IFB Annual Reports
To: "Rajiv Desai"
Date: Friday, 16 April, 2010, 12:48 PM
Dear Rajeev,
Then, in that case, can you provide me the Balance-Sheet, P&L statements & Cash Flow Statements?

My answer was .........

"Amit,



That is one and the same.....I do not read all these and that I have written many times at my blog.....so don't ever ask me about BS, AR , Cash Flow....these are all Greek N Latin for me...."

One can read here that even though he has tried to irritate  me I have kept cool  and not written anything to him any offensive.....
Now from above conversation anyone can understand what is happening between us and what he is trying to do......
When I had categorically wrote that I do not read BS,AR or Cash flow...on my blog.....why he asked for AR to me at my id?What he was trying to do?Am I a person who keeps AR of IFB of 5 yrs?When I wrote ,I do not read AR, he asked me again for Cash Flow, Balance Sheet,P&Lstatement etc...what does that mean?It was an act of irritating me and trying to prove a point.....that he is smarter then me ......He was trying to unnerve me by doing that.......
He has asked me some queries in past as well on Apar Ind etc.....but since last few days he started ddoing again to prove himself.....
Amit says he admire me most and he didn't expect this from me that I created an enviornment against him at my blog......
See, many readers has kept on asking me questions which were redundant and I have given them a very blunt reply but I had never done to them what I have to do with Amit.............Why I hasd to do with Amit and noone else....WHY?Amit is not the first person who keeps asking me silly or redundant questions and unnerve me.....
He was trying to irritate me and unnerve me and that can be seen from the above facts Viz his mails etc.....that even though I have written that I do not read , AR,BS,Cash Flow he ended up asking me about that........that prove a malice towards me...and that is why I have to come out in public.......
Let Amit show me his comments wherein  he has praised my good or excellent calls....I has never seen any from him....
I thought it is high time for me to put myself here an write what is happening between two of us.....I read one of the readers comments that which says that actually Amit is blod to show me my mistake...and I am not behaving properly with him.....His id here is "share".......I would like to read his opinion.....here what he has to tell me now.....
I ask why it happened with Amit and no one else....In past also I have been shown my mistake.....and I have accepted that......because he is trying to prove me wrong....he called Windsor Co and asked about Windsor Realty.....he says , Windsor Realty is not from Windsor Eng...fine....if he has found that then don't buy it.....
When I write Due Diligence is a must....that doesn't mean that one has to put it here and force me to write that it was wrong call!When I write DD is a must, that is for the readers to do that and if anyone find any faults he should not buy that stock.....what was the BIG DEAL with it.....what Amit is trying to prove here.....
Amit says he do not buy anthing what I recomend then why he is visting my blog?The answer is there in the question....he visit to find faults from my calls and as soon as he find fault he pounch on that and starts his work.....When Amit do not buy anything what I recomend why he is visting.....this BLOG?Can he answer me that?Or can anyone who feels Amit is right can answer me that?
I don't say, it is neccessary to buy what I recomend here.....but then I also expect that you don't try to become heavy on me......If you do not like my writing stop visiting my blog...no one is forcing you to do, but if you visit my blog and also wants to comments then one needs to be polite and respect the owner and writer......if writer is getting irritated or unnerved by your writing you have to stop that.......and that is the botttomline....
When I write ,Amit is a Hypocrate, it means that what he saying is not what he is doing...he is speaking something and doing other or opposite towhat he is speaking.....I am not saying he is not Amit....I say his words and act do not match.....and when is say his word and deeds do not match, I say, he respects me a lot then he should have stopped doing what he was doing...and should have shown that respect....but instead he went ahead and wrote whatever he felt.....
Readers adivce me not to take these seriously and ignore such episode.....but I AM NOT A THICK SKIN...I  AM NOT A POLITICIAN.....
I hope , I have very nicely explained what was happening ........and what he is upto.....

All Readers......

All readers,



It seems that everyone likes Amit as well and seems they feel that what Amit is asking is great....as I am seeing none is coming out to speak against him.....I feel very sorry that when I am putting so much of effort and puting my time and mind...but people never have gratitude for that....I was knowing that one day this was going to happen.....I am surprised to see how people can be so ungrateful that they are seeing some readers disturbing me and they don't write a single word to them?I feel dejected and frustarated that all wants everything from others but would not like to put their effort if somethings happens to others.......I would have liked to see all readers writing to Amit , about what he is doing and caution him not to do that again......but seems sab apni khichadi pakane main hi mast hai.....jahan , rajeev likhta hai....think hai....
But let me write here that I have felt very very bad that all are reading my answers to Amits what Amit is trying to ask ......and I thought people will come to stopAmit....but none felt like that....
So what I was thinking is "Whether people CARES  FOR ME OR NOT?"If someone is trying to disturb me and that I have written in my comments....whether they come out to stop Amit or not.....readers all have been reading  my conversation with Amit since many days.......but none uptill now had come out to tell anything to Amit....
So it seems that all the good wishes and blessing are just fakes......they were not meant for me....they just spoken for the sake of speaking them otherwise , when I am writing , that Amit you are irritating me,  all readers should have written Amit in strong language.....but that never happen....
 AND IT IS A PITY THAT I HAVE TO ASK FOR THIS.....
I again reiterate that ,I am not an MBA, nor an analyst nor a CA nor an economist.....I donno many things which many must be knowing...but readers keeps on asking me such questions and perticularly Amit is doing it with some purpose...as he is picking stocks which have some things he can write and not picking stocks where there is nothing to write.....and no one feels that he is doing purposefully.....


I think if no one feels that what Amit is doing is without any malice and if I am feeling like that then I think it is time for me to bid farewell to this blog....BECAUSE I CAN'T WRITE ON MY BLOG THIS WAY.......
 but what I felt very bad is I have to ask to all of  you to write to Amit, instead of all of you doing by your own.......I can't write here if someone keeps on disturbing me like Amit is doing......and no one feels that he is doing wrong....as I have already written that he is disturbing me....

This is my last post at this blog.....


Enough is enough...for me ........

ABG Shipyard..cmp...255...Value Buy.....

*FIRST CHOICE - Local shipbuilders to benefit from proposed cargo norms...



 In a move that will likely give domestic shipbuilders a shot in the arm, the Indian government plans to give first preference to ships built and registered in India for moving cargo imported by do- mestic entities such as Oil and Natural Gas Corp. Ltd, Indian Oil Corp. Ltd and Bharat Petro- leum Corp. Ltd.


Currently, only Indian- flagged vessels, or ships that are registered locally and bear the Indian tricolour, have the right of refusal to match the lowest rate quoted by a foreign flagship for cargo transporta- tion. This is in accordance with the rules set by regulator Di- rectorate General of Shipping, or DGS. All Indian-flagged ves- sels are not necessarily Indian- made vessels.


“It is proposed in the draft action plan, that to promote Indian shipbuilding sector, we may give the first right of refus- al to Indian-built, Indian- flagged vessels and second right of refusal may be given to the other Indian-flagged ves- sels,“ R.K. Sen, assistant direc- tor in the shipbuilding and re- pair division of the ministry of shipping, wrote in a recent circular inviting comments from DGS.


This could be done by modi- fying existing guidelines issued by DGS, Sen wrote. Mint has reviewed the circular.


Besides cargo import op- portunities, the country's coastal trade is reserved for In- dian-registered ships and for- eign ships are hired to operate in Indian territorial waters only when Indian ships are not available and that too with the regulator's approval.

If indeed this proposal comes into force, leading pri- vate shipyards such as ABG Shipyard Ltd, Bharati Shipyard Ltd, Larsen and Toubro Ship- building Ltd and Pipavav Ship- yard Ltd will stand to benefit, given their shipbuilding capa- bility.


India has 27 shipyards, in- cluding state-run entities such as Cochin Shipyard Ltd, Hindu- stan Shipyard Ltd and Hooghly Dock and Port Engineers Ltd.


ABG Shipyard, India's largest private shipbuilder, has an order book of Rs12,100 crore and its closest rival Bharati Shipyard's order book is to the tune of Rs4,987 crore.


S.S. Kulkarni, secretary gen- eral of the Indian National Shipowners' Association, an industry lobby, said DGS had sought its comments on the proposal made by the ministry of shipping, but declined to comment on it as he is still col- lating the opinions of member firms.


A senior executive from a leading shipping company said the Indian shipbuilding indus- try isn't mature enough to meet demand.


“Indian shipyards are still not up to the standards of in- ternational shipyards and could not cater to the require- ments of Indian demand,“ said the executive, who didn't want to be named. “It will take at least 10-15 years for Indian ship makers to reach global standards. Moreover, there could be conflict of interest as most ship makers have their own shipping companies.“


According to him, compa- nies such as Shipping Corp. of India Ltd (SCI) and Great East- ern Shipping Co. Ltd have huge fleet acquisition plans to meet cargo demand.


Indian shipping companies largely rely on South Korean and Japanese ship makers al- though they have in recent years started placing orders with domestic shipyards.


 “Any move to help indige- nous efforts are welcome,“ said S.S. Hajara, chairman and managing director at SCI, “Also, I do not see any difficul- ty in fleet acquisition for SCI because of this new proposal as we purchase ships through a global tender. It is quite appropriate to give support to Indian shipbuilders.“
Under the government's na- tional maritime development programme, SCI is in the process of acquiring 76 new ves- sels at a cost of Rs15,000 crore.


 The acquisition will be com- pleted in phases by 2011-12.


 The government's proposal could help boost employment in the shipbuilding industry and help facilitate plans to di- vest stakes in state-run ship- yards that would benefit from the move, said an industry ex- pert, who didn't want to be named. “It will also help the government in further diluting its stake in SCI as it will be an- other major gainer with this,“ the expert said. The govern- ment had earlier proposed to divest a part of its stake in Co- chin Shipyard as well.
Dhananjay Datar, chief fi- nancial officer at ABG Shipyard, said the move will boost the order books of Indian ship- building companies.
“If this proposal comes into force, SCI could place orders with Indian yards as it will get preference in bidding for car- go. The quality of the construc- tion would not be compro- mised,“ Datar said.


According to Datar, very few Indian shipping companies are placing orders with Indian ship makers. “Majority of the clients are foreign shipping companies. But Indian ship makers are capable of meeting Indian shipping companies' fleet demand.“



My Comments:


I know ABG Shipyard has already doubled from years low....but then it is also down 30% from years high of 346....almost 100 points down from 52 week high and that is why I like this stock....


As one can read in the above post , ABG Shipyard has got order book of worth Rs .12,100 cr and that is huge by any standard.....
Now let us check some parametres which I use to look at...barring which my knowledge is limited....
1) eq...50 cr small for a shipping co....advantage
2)NPM is over 16% which I think is the highest in the Ind...Advantage
3)Order Book of Rs 12,100 cr which can be compared with SCI where SCI has Eq of 423 cr...Advantage ABG
4)Annual Sales turnover for last year was Rs 1412 cr and this year will easily end at Rs 1600 cr...
Now if we take order book of Rs.12,100 cr one can say that they have order booked for atleast 5 years....if we expect that sales will go up , means they will be able to finish contract worth Rs 2500 cr every year from hereon.......and hence the earnings will also go up and hence the price....
5)Mcap is 1233 cr which is alomst equal to sales butif sales increases then the Mcap will also go up.....
6) Promoters stake is 57% which is excellent andd 25% is held by DII and FII which makes 82% held by close entities....only 18% floating stock is there.....
7)Looking at the last qr ,NPM have increased ...we have to look whether that sustains or not....
 8)According to the last 9 months results , showing eps of 34, this year can end eassily with an eps of around 44 and hence the stock is available at just around 6 p/e ratio, makes it an excellent buy...
When the analyst are speaking about Indian Market not much attractive and now fully valued,and is fully priced at 17p/e.....I feel ABG Shipyard gives an excellent investment opportunity....which is available at 6 P/E.....
So according to me, ABG Shipyard is looking an excellent buy at this current rate.....
These are my views and I may go wrong so DD is must before buying it..

Ricoh India ......cmp..Rs 37.15.....

Friends,
I gave a call on Rico Auto at 27 and it is still there.But it will move when its time will come.....now one of the readers was talking about Ricoh India.I know this Co since long and hence got interested in it and was just exploring the internet and I land up with this report from other site and after reading it I thought it would do good for my blog readers so I am posting it here.....



Ricoh India – A compelling value buy

Posted on 7th January 2010
by Dipak Sen

Ricoh India Limited (RIL) is one of India’s leading sellers of office automation equipment like copiers, printers and multifunctional devices. It is the subsidiary of Ricoh, Japan, one of the world’s leading players in the office automation industry. The parent company owns 73.9% of the equity of Rs 39.7 crore.

The Indian office automation market is one of the fastest growing in the world and being driven mostly by BFSI sector (banking/financial service/insurance etc). The Industry in all likelihood will continue to grow in foreseeable future.
Ricoh (Japan) used to operate two units in India , Ricoh India and Gestetner India ( manufacturer of duplicating machines). Few years back, Gestetner India was merged into Ricoh India. The duplicating division was closed and all the employees were given VRS. The cost of closure was charged in the accounts of Ricoh India already. The goodwill arised out of merger was written off in the accounts and as on 31.3.09, entire Goodwill amount was already written off in the accounts.


One interesting aspect of sales mix of Ricoh is that over the years, the share of service revenue as compared to the revenue from products sales are increasing. This is interesting as the service division enjoys higher EBITDA margin as compared to the margin from product sales. Ricoh will benefit from higher sales of consumables like toners, cartridges and also from higher fees from annual maintenance contracts.


It is interesting to note that during 2008-09, revenues from service division has crossed Rs 100 crore for the first time.
Now let’s look at the numbers. P&L numbers first and then we will have a look at its Balance Sheet (BS). As I always believe, investment decision should be taken on the basis of BS.


Revenue at Ricoh has grown steadily from Rs 167 cr in 2005-06 to Rs 242 Cr in 2008-09 – grown by 9.55% CAGR. The profit at the net level remained flat at Rs 10-12 crore. This is not a concern as Ricoh has generated free cash flow each year and in the process has emerged as debt free company as on 31.3.09.Ricoh has also written off all the costs associated with restructuring and merger.


In 2008-09, Ricoh’s profitability has suffered due to the sharp depreciation of Indian Rupee(INR).Ricoh imports most of its products and the sharp depreciation of INR has resulted in a forex loss of Rs 7.60 Crore. Unlike the other Indian companies, it did not take the advantage out of AS-11(revised) and charged off the entire loss in the P&L. Despite this extraordinary item, Ricoh reported a net profit of 12.5 crore after paying full tax.
Ricoh looks more attractive from the balance sheet point of view. It’s debt free , Fixed assets are almost depreciated. As it imports most of its products, its capex requirements are very negligible. Working capital requirements are moderately high due to large Govt sales. As on 31.3.09, it was having Rs 6 per share. The working capital situation deteriorated in 2008-09 as compared to 2007-08 but things are expected to improve in the coming years.


There is one negative in the form of substantial amount of contingent liabilities. As on 31.3.09, it has a sales tax liability (arised from Gestetner merger) of Rs 22.6 crore. Of the total amount of Rs. 2261.20 lacs on account of sales tax cases (previous accounting year - Rs. 2278.20 lacs), Rs. 1160.48 lacs pertains to Delhi Sales Tax. As per the management of the company ….. “It is pertinent to mention here that most of these demands were raised by the Delhi Sales tax department after reopening the assessment years of the period 1989-90 onwards in the year 1999 pursuant to a survey conducted by the department. The Company considered these demands to be arbitrary and devoid of judicial basis and contested the same at various judicial and quasi-judicial levels. The successful contention by the Company before the authorities is likely to result in demand worth Rs. 1160.48 lacs being dropped and all these cases being decided in favour of the Company. The Company has also received a favorable order from the Central Sales Tax Appellate Authority, Noida in June, 2009 for assessment years 1998-99 to 2000-01 amounting to Rs. 328.92 lacs. In respect of other sales tax demands too, the Company is confident that its contentions before the authorities will succeed since the nature of demands raised are similar in most of the cases.” …..


Now going forward, Ricoh is expected to report EBITDA of Rs 25-35 crore/year. With negligible capex and working capital requirement ( in 2008-09, the sharp increase in working capital will take care the next few years need ), there will be free cash flow of 12-18 crore/year (after paying of the corporate tax at full rate).
Ricoh’s current market capitalization is at Rs 100 Crore ( at its current market price of 26 Rs ). Mkt cap to free cash flow is at 5 times, and is quite attractive. Its market cap to sales ratio is also at quite low at 0.6 times. EV/EBITDA at 4 makes it even more attractive.
Ricoh is also a possible delisting candidate primarily because of two reasons :


1) Outside Japan, it is the only other listed entity of Ricoh group
2) Given the current free cash flow generation, Ricoh India will have significant amount of cash in the balance sheet over next 1-2 years and that may prompt the parent company to go for delisting.
Ricoh is a compelling value buy at the current price of Rs 26 and we may expect a 50% return over a period of one year.
Apart from being a tech-savvy company, Ricoh is also trying to be a green company and it has recently introduced to India the world’s first biomass toner. Given the corporate India’s growing “Go Green” initiatives, the biomass based toner should be able to attract more customers.

Valuation......reposted.....

Dear Readers,
I know there are certian readers who are not good with internet and computer and also not thaat much good with English Language.I too am making mistake of spelling and sentence but that is error I make while writing , a typing error....which is very hard to rectify..as I have to go through and read whole post again and try to write the correct thing....
When I wrote to write "Valuation" in the "Search This Blog" at the top extreme right, many would have been able to retrieve this post of mine but I still feel that there are many who do not know how to explore my blog.....
I again write,try to find the BOX ,"Search This Blog" at the top right of my blog and write any stock name or anything u would like to know and click on Search and you will find whatever I have written....any stock or any topic.........

Read on that post:

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.....

RPG Cables and Windsor Realty......

Friends,
When I gave a call on Windsor Realty ,I said that I will write on Windsor Realty lateron which I am doing now...The below article I read in BS in Oct 22,2009 and that was in my mind but I have to retrieve it hence took time to post it here.
Here in we can see that there is talk of 2 stocks....One is RPG Cable and other is Windsor Realty.We only know Windsor as Eng Co but very rare people know that Windsor has Realty arm too and it is big ....looking at the deal that has taken place with RPG .....
Here RPG is also all set for turnaround and they are bent upon to turn it around......
But that is how I came to know about the Windsor Realty Arm of Windsor Eng Ltd....a Piramal Gr of Co.......I have not digged in much after that on Windsor Realty Arm but would like to have feedbacks from readers if any on Windsor Realty.....

RPG Cables to rope in strategic investor

PB Jayakumar / Mumbai October 22, 2009, 0:01 IST
RP Goenka-promoted RPG Cables, one of the largest power cable manufacturers in the country, is planning to bring in a new strategic investor as part of a plan to raise about Rs 200 crore to clean up debts and for erecting a new facility in Gujarat.

The five-decade-old company, which got out of the ambit of the Bureau of Industrial and Financial Reconstruction (BIFR) two months ago after four years of intense restructuring, is in talks with multiple players to raise funds, said sources.


Confirming the development, Nikhil Gupta, managing director, said: “We are in discussions with various players,including group companies. But it is early to divulge details.”



Deutsche Bank had picked up a 14.9 per cent stake in the company two years earlier, for about Rs 28 crore. The bank also gave a Rs 100 crore loan to reduce debts, which had piled up to Rs 300 crore. The Harsh Goenka-led RPG Group holds 33.42 per cent stake in the company.


RPG Cables has been growing at over 50 per cent every year over four years, to reach a turnover of about Rs 380 crore. It expects to reach a turnover of Rs 1,000 crore turnover in three years, said Nikhil Gupta.


The company, with debts of close to Rs 100 crore, is planning to set up a Rs 70-75 crore invested high-tension cable manufacturing facility near Baroda, with a production capacity of 120 km length per year. A few weeks earlier, RPG Cables had sold its 36,418 sq metre surplus land at one of its manufacturing plants at Thane to Windsor Realty for Rs 51.5 crore.


The onset of the mobile phone revolution in the second half of 1990s had caused the downfall of RPG Cables, a Rs 400-crore company in the 1999-2000 period, with Jelly Filled Telecom Cables (JFTC) for landline telephones contributing over 70 per cent of the peak business. Within a few years, its Rs 270 crore peak annual revenue from the sector turned to zero and debts mounted to about Rs 600 crore. The company had to close production at two manufacturing units, at Rai Bareli in Uttar Pradesh and at Mysore.

Senior officials of the company left in bad times and employee strength reduced from 1,500 in 2000 to 400 people.( This can help a lot in expenditure) Market capitalisation shrank to Rs 11 crore and many fixed depositors demanded their money back. The power cable business worth Rs130 crore also collapsed, as creditors clamoured for money and new orders got cancelled.

Bears plan of breaking the market flopped......

Friends,
USA market rebounded after initial hiccups....on Friday....Today Dow is up by 74 points....and Goldman Scahs is up by $2.62 ......where is the panic?
I came to read that what SEC has alleged is just $1bn and that is peanuts for a Co like Goldman Sachs.I just read that Citi Bank has posted the biggest profit of last 3 years of $4 bn.....that is a major turnaround....for the financial sector in USA....
I even justnow read an Analyst Dick Bove gave a buy call on Goldman Scahs.He has given reason for why Goldman Sachs is a buy......
I have seen people becoming scared on Western economies and speaking on weakening of Dollars and Euro's.Well, China has capped the value of Yuan and hence Dollar is at disadvantage.China is keeping the Yuan undervalued purposefully and that is giving unfair advantage to China in trade with any country.
As soon as Yuan will be valued properly Dollar again will become strong.

The thing which I would like to write here is , analyst needs to understand that all the times it doesn't happen what they think.....a rerun of same crisis cannot happen twice...that too so soon....that is what the chartist and analyst need to understand....when they dream again of tanking the market to their will......I feel sorry for them....the problem with them is once successful they always feel that they will always prove correct....but that is never the case....The history never repeats again in  stock market otherwise , sensex shouldn't have climbed to 21000 and USA should have not turnup over 11k .......if history repeats then this should not happen......but that is happening......so what to believe?Does History Repeats?.......NO....that is my conclusion....Analyst or Chartist trying to give same call of market tanking to 12k or 10k or 8k again with same reason...looks impossible.....it may happen but then the reason should be entirely different and that reason I am not seeing in near future.....

Coming back to our market, it seems that bear thinking of major scar on Goldman Sachs will not materialize and market should found its own course.Market is headed higher.......and let me reiterate again.....this year can be the year of Mid/Small cap and even penny stock.......
Unknown stocks will achieve dizzy heights......and by the end of the year one will see that scores of stocks had given 10 times to 20 times return......and if one will go on looking at the Balance Sheet, Debt eq ratio,Cash Flow,Management then one may lose a huge opportunity to be in a multibagger....
Multibagger are those where one is not convinced about the stock.......people are apprehensive and will give  a pass on that stock and will not buy it......that stock becomes multibagger....Multibagger becomes those where nothing is seen in Balance Sheet.One do not see anything in BS or AR .Experts who use to follow these parameters never end with multibaggers.Even by chance they end up with that,they sell it early and for that the reason is ,they start valuing the stock.At a perticular price they start feeling that stock is overvalued and they sell it and from there stock gives 10 times return....That is the area I am very sceptic of.....Valuation.....I have written a whole post on VALUATION....and if some will write "Valuation" word on my blog "SEARCH" tab at extreme right  of my blog one will find that post.......
The first rule for Indian Market and maybe for world market is, never ever give a pass on any story......anything can happen in market.Yesteryear dud  becomes a darling of market and we have seen that in past.......If everything is written in BS or AR then all those reading them can buy that stock and makes millions......Co use to hide such informations.....the future plans and its execution.....Remember this forever.....as I have read a quote somewhere...which was saying that if "Balance sheet or AR is saying everything then all CA's and MBA's would have been a billioner...."
Well, many may think I am not thinking in correct way.Not looking at BS, AR,Cash Flow.....that is wrong way of picking.I agree with that.I have my own way of picking stocks.I try to foresee growth.......I try to foresee the value...that is my forte....
One of the reader was writing me that readers keeps on asking for new picks because they sell at 20-25% profit and then the stock never gives chance to buy.....but I had always said, don't sell everything....sell 20-30% at 25% profit.....if your hand is itching to sell and make profit one may sell but don't sell whole stake.........I have been giving recomendations on regular basis....but I have no magic stick that I can come out with stocks everyday.......

Sical Logistic.....another Logistic Co with huge growth Potential......

Friends,
I donno why people keeps on asking me about giving more and more stock to buy....I think I write new stocks at regular interval......Just I wrote about Rathi Steel and Power and am back today with a new stock here , named Sical Logistic Ltd , a A C Muthiah, Co, owner of SPIC , a bluechip co of yesteryears.....a fertilizer co....and after reading the below article I can say that A C Muthiah is keen to turnaround SPIC and that hence SPIC can be an excellent buy.....

Here is what I read in Livemints epaper:

Sical Logistics Ltd is selling its 27% stake in a new container handling facility at Chen- nai port to PSA International Pte Ltd, its dominant joint ven- ture partner, two people familiar with the matter said.

“Sical has applied to us for permission to sell its 27% stake in Chennai International Ter- minals Pvt. Ltd to PSA,“ said an official at Chennai port.
“We have referred the proposal to the legal department.“
Proceeds from the stake sale will be used by the parent AC Muthiah group to restructure its debt-ridden fertilizer firm Southern Petrochemical Indus- tries Corp. Ltd (Spic), the sec- ond person said. The two people did not want to be named.
L.R. Sridhar, managing di- rector of the Chennai-based Sical Logistics, said the “deal has not been done yet“.
A venture between PSA and Sical had invested around Rs600 crore to build the new facility, which it will operate for 30 years.
PSA, the world's second big- gest container port operator, is fully owned by Temasek Hold- ings Pte Ltd, the investment arm of the Singapore govern- ment. Chennai is India's sec- ond biggest container port af- ter Jawaharlal Nehru port near Mumbai.
But Sical wants to exit the venture as it does not forsee a meaningful role in its operation, management and maintenace because of the minority share- holding, the second person said.
The PSA-Sical facility, the sec- ond container handling termi- nal at Chennai port, is designed to handle 1.5 million standard containers a year.
Chennai International Termi- nals, the special purpose vehicle for implementing the project, was originally structured with PSA holding a 60% stake and Si- cal taking the balance. However, in 2008, because of the financial trouble facing the AC Muthiah group, Sical decided to settle for a 27% stake in the joint venture.
“Sical did not support PSA in raising debt for the project, which was totally done by the Singapore operator by leveraging its balance sheet,“ the second person said. “PSA is of the view that Sical was not giving any val- ue addition to the project.“
Sical was also facing problems in getting its port concessions assigned in favour of a subsidiary created in 2007 to house its ownership in concession-based, asset-intensive terminals in the inland and port infrastructure space.
These include Sical's 74% stake in a new iron ore-handling terminal at Ennore port and its 37.5% stake in a container-han- dling facility at Tuticorin port, both in Tamil Nadu. Sical is also setting up iron-ore handling fa- cilities at the Union govern- ment-owned New Mangalore port.
Other projects in this portfolio are Sical Distriparks Ltd, the firm's container logistics busi- ness, and Sical Multimodal and Rail Transport Ltd, its container train operating unit.
Sical Logistics also owns a 74% stake in subsidiary Sical In- fra Assets Ltd, with Old Lane Mauritius IV Ltd, a vehicle of Old Lane Opportunities Funds, holding the balance equity.


My Comments:
From the above article on Sical wanting to sell its stake in Chennai International Terminals Pvt. Ltd to PSA,as AC Muthiah wants to turnaround SPIC by infusing these money in SPIC....
what else one can see is the various stake Sical Logistic is having in different Companies...
Let us see what they are:
1)  Sical's 74% stake in a new iron ore-handling terminal at Ennore port .
2) 37.5% stake in a container-handling facility at Tuticorin port.
3) Sical is also setting up iron-ore handling fa- cilities at the Union government-owned New Mangalore port.

4) Sical Distriparks Ltd, the firm's container logistics business, and
5) Sical Multimodal and
6)Rail Transport Ltd, its container train operating unit.



 Now can any investor ignore such an excellent investment opportunity?
Mcap is at 381 cr while sales is at 473 cr last year which is less then Mcap and in all probability , sales should cross 550 cr this year.....
The value is still to be unlocked about all the above stake which I have mentioned here.....
I feel that Sical Logistic is a screaming buy at this rate......
I may be wrong in my analysis so Due Diligence is a must for each and everyone before buying or selling Sical Logistic.....

Market on Monday.........

Due to the news coming out if USA SEC alleging Goldman Sachs for misleading in one of their fund,market may tank in morning.Our RBI has also increased the repo rate after market hrs on Friday and that can also add fuel to fire but I feel that it would be prudent not to panic and buy in any dips that will come.
Buy stock which have sound fundamentals and one missed to buy it ....these are golden chances which comes in ones way and one need to take advantage with both hands....
I am not seeing a very big correction in offing for these news atleast.I think I read somewhere , perhaps in ET that some put has been bought and some Nifty was shorted at Nifty 4800 and that was from Goldman Sachs.
That can have some ripple effect and market should and will go down on Monday.....but that should not dent the rally or Bull run of this year.Most probably we are going to see new highs and cross the previous high as well......
The below two posts shows that Pension Funds are here to stay for long.There is no avenue left in world except India to park their funds.FII's have already invested Rs 25,000 cr in first 3 months and I think that the figure should cross the last year investment from FII's in our market.
FII's invested $17 bn last year and this year it can be more than that.....With China RealEstate sector becoming more susceptible for International players...India is at advantage.....
Nifty or Sensex may remian range bound but selected MidCap/SmallCap can give big returns.The trick would to identify them and have conviction to buy and hold them......

THE POWER OF HOLDING.....

The past 12 months saw hope triumph over despair and bulls tightening their grip on the Indian stock market. Generous stimulus packages had the desired effect of propping up the global economy. Those who had the courage to remain invested are now laughing their way to banks

PSYCHOLOGISTS say hope, fear and greed are the three basic elements of stock markets. And whenever fear is the overriding factor, it is time to enter the market and remain optimistic. But, in reality, to go against consensus is not easy.
In April 2009, fear and scepticism were at their peak. Data coming out of economies were poor and even political leaders were cautious before making tall claims of recovery. Home sales in the United States were down and jobless claims were rising every month. Nobody was giving a chance to equities. Every central banker was preparing for another round of bailouts and was sweating at the thought of ill effects such as high inflation.
It appeared that every economist and analyst had turned into an environmentalist and `green shoots' and `yellow weeds' were heard from Dalal Street to Wall Street. It is tough to take a contrary stand in life, but the people who had the courage to be optimists in the gloom of April 2009 are the ones who are laughing today with equity valuations surging.
Dow Jones Industrial Average has crossed the 11,000 mark, and, in India, everyone is talking about when Sensex will break its high above 21,000. Some people are guessing that Sensex will set a new high this year.
Predicting Sensex is a hazardous business. One should not try to time the market. Instead, one should look at valuations of companies and decide whether to buy them or sell them and ignore the free advice doled out by analysts.
After May 2009, the world started to realise that liquidity, which most central banks had injected into system, was going to have some impact on asset prices. Much before economic recovery gained a foothold, assets began to gain weight.
This brought institu tional investors back into equities, especially in emerging markets such as India, where growth had only slowed down.
Aggressive hedge funds entered India anticipating a rupee rally, considering the surge in FII and FDI flows. These inflows accel erated when federal elections threw a surprise and a stable government came to power.
The global market also started to improve once it was clear that the worst was over for the US financial system and another major failure was not on the cards. But Europe did not show any sign of such recovery, except in Germany, which, technically, was the first country to come out of recession.
In the case of India, gains from equities have been extremely high as the economy showed considerable strength during the crisis. Corporate India has come out stronger, and the better than expected sales of Jaguar and Land Rover are examples of Indian companies successfully taking a contrary stand and passing with flying colours.
A basic strength of India is its population. It is a country of young people who have the opportunity to spend what they earn, making India a big domestic consumption story that is going to grow over the decades. Indian markets are going to beat their peers despite the occasional phases of underperformance due to overheating. 14,284.21 May 18, 2009 Sensex climbs 2,110.79 points on UPA win 14,658.49 July 2, 2009 Petro prices raised by Rs 4, diesel by Rs 2.01 14,265.53 June 18, 2009 The rate of inflation falls to negative zone for the first time in history 14,043.40 July 6, 2009 Union budget 2009-10.

Major foreign pension funds are here to stay ..........

ONE of the major reasons for India's out performance compared with other Asian and emerging markets in the past 12 months is continued buying by some of the largest long-only funds.



In 2007, there were many long-only pension funds that did not invest in India, given the high valuations our broader market indices such as Nifty and Sensex had reached. But Indian stocks are must in every global fund manager's portfolio, given the growth potential of the Indian economy.


So, a large number longonly pension funds bought Indian stocks when the market was near its low in April 2009. In fact, if we look at FII buying figures during that period, it is clear that more than Indian institutions and domestic investors it was foreign institutional investors, especially long-only funds that were more confident in the Indian growth story and at times pumped in millions of dollars in a single trading ses years or, in some cases, even longer, don't chase stocks. They use large corrections to enter economies that they believe are going to grow over the next couple of decades. This is what happened with India in 2009.
Unlike hedge funds, which were large buyers in the Indian market during the bull run of 2007 and panic sellers in 2008, these longonly pension funds don't sell in short-term corrections, which happen in markets every now and then. In fact, they use minor corrections in indices to buy into companies they have identified for investment.


This has reduced volatil ity in Indian markets in the past 12 months. While it might surprise some investors, the top seven funds of the world did not invest even a single penny during the bull run that lasted from 2003 to 2007. They just kept a close watch on how the long-term India growth story was panning out, and, once convinced about it, they came with plenty of dollars.
The first signs that longterm pension funds are the ones who are pumping money into India came in April to June 2009, when FII holding in large-cap companies surged.
These long-only funds turn into sellers only when there is a serious and major policy shift in a country or any negative development takes place in a company, like what happened in Satyam.
Over the next few years, we are unlikely to see any major selling by these funds as Indian investment forms only a minuscule portion of their emerging market portfolio. DOW sion.
These pension funds, which invest with a perspective of more than five 8,168.12 April 30, 2009 Chrysler files for bankruptcy 8,185.73 April 29, 2009 First quarter GDP falls at an annual rate of 6.1 per cent 8,721.44 June 1, 2009 General Motors files for bankruptcy 8,472.40 June 25, 2009 Revised first quarter GDP decreases at an annual rate of 5.5 per cent 9,093.24 July 24, 2009 Dow closes above 9,000; first time since January.


Federal minimum wage jumps from $6.55 an hour to $7.25 an hour 9,096.71 July 28, 2009 Case-Shiller index shows first rise in US housing prices in 3 years.

Can this and next year be of Realty Stocks in Indian Market?

Realty buyers are back in south India



Published on Tue, Apr 13, 2010 at 22:27
Updated at Tue, Apr 13, 2010 at 22:31
Source : CNBC-TV18
While Mumbai and the National Capital Region may be reeling under a slowdown in home sales, it is a different story for southern markets led by Bangalore, Chennai and Hyderabad. Spurred by the recent IT revival and stable prices, these markets have now begun clocking in stellar sales growth, reports CNBC-
TV18's Priyanka Ghosh.
The real estate recovery cycle is now knocking on the doors of Bangalore, Ahmedabad, Hyderabad, and Chennai. These markets have witnessed a number of fresh launches in the past quarter after a lull of almost a year-and-a-half.
For instance, Godrej Properties launched its Garden City project in Ahmedabad, selling 800 apartments within 10 days.
Bangalore-based Sobha Developers clocked in sales of 345 apartments versus 431 in the previous quarter, which also included a new launch.
Unitech launched 83% of its new launches in markets other than Mumbai and NCR that includes Chennai, Kochin and Kolkata.
The Prestige Group too has received encouraging response from its launch of White Meadow project in Bangalore.
V Hari Krishna, Director, Kotak Realty Fund, said, "Delhi was the first market to revive in the early part of last year. Then in the first quarter, Mumbai revived. Now, we have seen strong recovery back in Bangalore. Incidentally, we are seeing some decent sales in premium end projects in Hyderabad as well. We are seeing similar results in Chennai as well."
Experts say the spurt in sales have been triggered by the recovery in the IT sector. Infosys has revised its hiring estimates by over 150% in the past one year while Wipro has said it will hire 11,000 people this financial year, up from 8,000 last year
These markets that had been pushed on the backburner may attract investments too. Apart advantage IT, attractive pricing is also key for the spurt in sales. Experts say prices in these markets are almost 20% below their peaks, a stark difference from Mumbai, which is now reeling under low inventory, low sales and an pricing pressure.
Abhisheck Lodha, MD, Lodha Developers, said, "Last year, a lot of people pushed a lot of launches into the market because they wanted to sell whatever they could. You are not going to see that sort of a thing happening every year. I think prices are likely to go up by 10-15% this year from where we stand today."
Industry experts are hoping that the IT revival will also finally lead to a recovery in the commercial sector soon.
My Comments:
Can this and next year be of Realty in Indian Market?...The trend is what is saying.....Yes, this year and next year can be for Realty stocks so try to find stocks which have landbank in prime area in South(Banglore,Chennai etc)West(Gujarat,Mumbai,Pune)......lot of project coming up in Assam so try to find Co which have land bank and  is lying low or dorment in that region where it is going dirt cheap.....
Readers feedback is invited....
Keep a watch on Windsor Ltd.......a dark horse in making....

US deficit down in first half 2010....good news for market...worldover..

Published on Tue, Apr 13, 2010 at 10:14
Updated at Tue, Apr 13, 2010 at 11:32
Source : Reuters



The US federal budget deficit in the first half of fiscal 2010 is down 8% from the same period a year ago, the Washington Post reported on Monday.

Citing senior Obama administration officials, the Washington Post said in an article posted on its website the smaller deficit was due to higher tax revenue and lower than projected spending to bail out the financial system.
The newspaper said if the trend continued for the rest of the year it would mean the annual deficit would be USD 1.3 trillion—about USD 300 billion less than the administration's projection two months ago for 2010.
The Treasury earlier released a statement that showed a cumulative USD 181 billion of money disbursed to stabilise the financial system had been repaid through March, and noted that estimates for the program's final cost were falling.
"While the positive news is welcome, it is premature and irresponsible to be making deficit projections for the fiscal year as a whole," said Kenneth Baer, spokesman for the White House Office of Management and Budget.
"The Administration will issue revised deficit numbers as part of the Mid-Session Review this summer," Baer said.
No official statement on the deficit is scheduled until the release of a late-summer review. The Post said the officials spoke on condition of anonymity because the findings are preliminary and the results for the full year might not turn out so well.
The White House has forecast a $1.6 trillion budget deficit this year, or about 10.6% of gross domestic product, the highest level since World War Two.
Republicans are expected to use the ballooning budget deficits as a rallying cry in mid-term elections in November as they try to unseat Democrats by blaming them for running up record deficits.

In February President Barack Obama named a bipartisan panel to tackle exploding budget deficits and promised it broad leeway to recommend ways to put the country on a path to fiscal responsibility.


He asked the commission to come up with a strategy to balance the budget, excluding interest payments, by 2015.
The Washington Post story said the officials "expressed cautious optimism" about the figures but noted that the outlook remains uncertain.
The story said a senior administration official acknowledged that the lower deficit number would not substantially ease the budget problems facing the government.
"But the favorable trend could allow Democrats to say they have turned the corner, and the number is one they would want to highlight for voters souring on Obama because of the government's red ink," the newspaper said.

The below news can makes bears run pillar to post.....

GREECE WINS MORE THAN $41 BILLION IN EU, IMF AID
BLOOMBERG Brussels, 11 April
European governments put together aloan package worth at least ¤30 billion ($41 billion) for debt-burdened Greece as they try to stamp out its fiscal crisis and restore confidence in the euro.
Forced into action by a surge in Greek borrowing costs to an 11-year high, finance ministers from the ¤16 countries said they would offer the loans at threeyear interest rates of around 5per cent in case Greece needs the money. A further, unspecified sum would come from the International Monetary Fund.
“This is a step of clarification that markets are waiting for — it shows there is money behind this,” Luxembourg Prime Minister Jean-Claude Juncker told reporters in Brussels today after chairing the ministers’ conference call. “The initiative for activating the mechanism rests with the Greek government.” With the euro facing the sternest test since its debut in 1999, the bloc maneuvered around rules barring the bailout of debt-stricken countries, aiming to prevent Greece’s financial plight from spreading and to mute concerns about the currency’s viability.
The euro has dropped 5.7 per cent against the dollar this year as the discord within Europe over the response to the Greek crisis sapped faith in Europe’s economic management.
A “loaded gun” to ward off speculators is now “on the table”, Greek Prime Minister George Papandreou told To Vima newspaper today. What would trigger the unprecedented European lending was left unanswered in today’s teleconference of euro-region officials, which included European Central Bank President Jean- Claude Trichet. Also left open was how much the Washington-based IMF would chip in for 2010, and how much Greece might need in 2011.
“We cannot speak on behalf of the IMF, but we know that they are ready to cooperate and contribute with a substantial amount,” European Union Economic and Monetary Commissioner Olli Rehn said. “It is really up to the IMF to speak for itself. We have to respect their independence.” Rehn said that the IMF would likely put up about a third of any aid plan, indicating another ¤15 billion in possible IMF funding.
European pledges in February and March to provide aid in an emergency failed to prevent Greek 10-year bond yields from soaring to 7.51 per cent on April 8, according to Bloomberg generic prices, amid concern that Papandreou’s government will be swamped by its bills.
The jump in Greek yields to the highest since December 1998 helped overcome resistance to a loan package in Germany, which as Europe’s biggest economy would contribute almost a third of the loans, the largest single share.
The premium investors demand to buy Greek 10-year bonds instead of German bunds jumped to 442 basis points April 8, easing to 398 basis points the next day as speculation over arescue gained steam.
 My Comments:
The above news can put bears train in reverse gear......and also of some chartist who are bearish due to Greek fiasco.....Beware BEARS.......if you are going to short the market this week , u will be in a very bad times........Nifty can cross 5500 this week!....
This is just my analysis.....so please do not take position in F&O on this.......
But all chances are there that Bulls will have upper hand this week...unless Infy gives a very negative guidence..........

Rathi Steel & Power...cmp..Rs.21.60....A Value Pick...

Friends,
I am today writing on Rathi Steel & Power Ltd.Its old name was Rathi Udyog Ltd . Rathi Steel & Power Ltd has come a long way after it changed its name from Rathi Udyog Ltd to Rathi Steel & Power Ltd....
The huge investment made by the Co is now bearing fruits and that is seen in the bottomline too.....
The NP has gone up from 1 cr to 5 cr in Dec 09 qr from last qr..
Eq is 24 cr but the Mcap is just 52 cr while sales is 798 cr for the whole last year.....means again we can say that a Co of 800 cr with making profit is available at just 52cr......
Promoters has taken stake at Rs 22 which speaks confidence of Promoters in the Co while the price is still at the same rate.....
In Aug 2008 Co decided to enhance the capacity to 1.6 MTPA by investing 2500 cr. Co also decided to enhance the melting capacity at Ghaziahad from existing 40,000 Tons to 75,000 Tons with an investment of approx. Rs 15 Crores.

PLANTS/ PROJECTS:

GHAZIABAD PLANT

The Ghaziabad Plant consists of Steel Rolling Mills having an installed capacity of 1,25,000 TPA, a high speed No Twist Block Wire Rod Mill and Steel Melting Shop with 40,000 TPA installed capacity comprising of Induction Furnace, AOD Converter, Continuous Casting machine and other facilities for manufacturing high end value- added stainless steel and alloy steel products. We intend to further add value to the products being manufactured by us by converting them into bright bars, wires, flanges etc.


ORISSA PROJECT


Considering the Orissa Government’s aggressive efforts for rapid industrialization of the State and future industrial growth of the Country, the Company has planned to setup an integrated Steel Project at village Potapali-Sikirdi, district Sambalpur (Orissa). The Company has already entered into an MOU with the Orissa Government for setting up the project. The project comprises of facilities for manufacture of 300,000 TPA Sponge Iron, a Steel Melting Shop of 5,00,000 TPA, Pig Iron of 200,000 TPA and captive Power Plant of 50 MW, to be implemented in phases, as per detailed Techno-Economic Feasibility Report submitted to the Orissa Government. The progress on the first phase of the project at a project outlay of Rs.220.50 crore, is going on at full swing and is expected to be completed by September 2006


INDORE PLANT


We intend to make the Orissa plant a primary source of raw material for the existing rolling mills of the Punam Chand Rathi Group and also for the future rolling mill plants that we intend to setup all across the country. A chain of value addition from iron ore, sponge iron, captive power, steel making at the Orissa plant, to various rolling mills across the country will lead to tremendous synergy and will enable us to service our customers better by providing high quality products at competitive prices.


The promoters have also promoted a new company viz. Rathi Iron And Steel Industries Limited who has installed a Steel Rolling Mill project having capacity of 50,000 TPA at Pithampur Industrial Area, Distt. Dhar (M.P.). The production facilities are similar to that of Ghaziabad project and are well equipped with the latest technologies for producing quality CTD and TMT bars. The commercial production has already taken place and the products are being well accepted in the market.


Chairman Speech:


For Rathi Udyog Ltd., the art of steel making is a magnificent obsession. And for over six decades, we have been honing our skills to become the perfect steel artisan. A reputation that is based on our ability to recognize and meet the needs of the growing steel market. Since our inception, we have been diligently sharpening our competitive edge by proactively responding to our customers needs even during tough economic weather and geopolitical storms.

Undeterred by rough seas, we grew stronger with coherent strategies that have created new high earning profit centers in the Indian construction industry. As a result of these unstinting initiatives, we were the first to manufacture CTD reinforcement rebars in India in collaboration with Tor Isteg Steel Corporation, Luxemburg through its Indian representative Tor Steel Research Foundation In India ensuring 40% savings in steel consumption and giving the Indian Construction Industry a much-needed impetus. Also we are the first to produce TMT Bars in North India using the patented “Thermex” Technology of HSE, Germany.
In the year ahead our focus would be to sustain growth and we will do our utmost to further establish a profit-maximization philosophy through cost reduction and bold restructuring of uncompetitive and non-core sectors, while strengthening our balance sheet with operations generated cash flow. We also firmly intend to progress forward with our management strategy which primarily includes completing the ongoing expansion plans of enhancing our production facilities in the states of Orissa, Madhya Pradesh and Uttar Pradesh.
Living in an era of cut-throat competition among formidable competitors we have built our strength through sustaining our focus on market-leading products. In the year ahead and the ones to follow we will further our efforts to augment our competitive position by moving closer to our customers and expanding our presence to global shores. Together with the support of our esteemed clientele and steely resolve we aim for a Strong, Resurgent and Focused Rathi.”


PC Rathi


Chairman

While looking at all the above views I feel Rathi Steel & Power looks excellent pick for Medium to LT ....Co has started making profit since last 2 qrs with last qr being excellent.....with lots of Infrastructure coming up in Orrisa and in whole of India, I feel that Rathi Steel & Power Ltd will have a very good time ahead..

Essar Oil remains `undervalued' on Indian bourses......

THE Essar group on Thursday announced its plan to raise about $2.5 billion through a public offer on the London Stock Exchange (LSE). The money will be spent on the group’s power, refinery and oil & gas exploration projects.

The issue will be the largest initial public offer in London since 2006.
The Scottish insurer, Standard Life, raised $4.5 billion in July that year. In the Indian context, the Essar equity offer to London-based investors will be the biggest after the Anil Agarwal-led Vedanta Resources raised 700 million pounds in 2003.
Essar Energy, a holding company formed by combining the group’s entire oil, gas and power businesses, will offer 20 to 25 per cent stake to institutional investors in London, Prashant Ruia, the company’s vice-chairman, said over a conference call from London on Thursday.
Essar has initiated the process of seeking regulatory clearances that will take a few weeks. The company will begin a road show on April 19. Financial Chronicle reported on March 8 that the conglomerate plans to raise funds through an overseas listing. LSE said it would be the biggest Indian IPO in London. “Essar Energy’s intended float here will give investors the chance to invest in India’s strong projected growth through a leading energy company listed on the world’s most international stock exchange,” Xavier Rolet, chief executive officer of the LSE group, said.
Essar Energy’s objective is to cash in on the increasing energy demand of through its two subsidiaries: Essar Power and Essar Oil.
Essar Power will be a 100 per cent subsidiary owned by Essar Energy. The group will continue to operate its oil and gas business through Essar Oil which will continue to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Essar Oil, with a market value of $4.1 billion, has 11.42 per cent stock with investors.


"It is our goal that a successful completion of this transaction will provide investors with a unique, London-listed, liquid vehicle to access the Indian growth story," Ruia said.
Analysts told Financial Chronicle Essar Oil was constantly undervalued on the Indian bourses. "Its upstream business is not able to attract many investors," said a Mumbai-based investment banker on condition of anonymity. Essar has acquired a coal bed methane block in India.
This is a new phenomenon in India and investors are not keen to put in their money. “This is not a problem in London,” he said.


“The LSE listing will help the group raise funds at better valuations,” said Anil Chopra, group chief executive officer of Bajaj Capital. In addition, stock manipulation was comparatively less on foreign bourses, he said.
“The group is looking for a significant capital expansion and wants to monetise these projects,” said Saeed
Jaffrey, analyst with Ambit Capital Research.
Essar Energy is incorporated in the UK. It has its registered office in London and head office in Mauritius. Ravi Ruia, vicechairman of the Essar group, has already shifted to London.
Ravi will head the global operations of the group. Essar is also engaged in discussions to acquire three refineries owned by Royal Dutch Shell.
Essar Energy has revenues of $5.6 billion and possesses assets worth $8 billion. It reported earnings before interest, taxes, depreciation, and amortisation of $307 million. The company has debts of $3 billion. J P Morgan Cazenove and Deutsche Bank are advising the company of the offer. ( Asset $8 bn and Debt is $3 bn....isn't that juicy?that is great....Essar Oil going at throw away price....)
“At the time of the offer, we will have already invested over $2 billion in Essar Energy, and the group remains fully committed to the future success and ongoing growth of Essar Energy,” said Ravi Ruia, chairman of Essar Energy.
The group intends to use the IPO money to expand its installed power capacity to 11,470 mw. Essar Energy’s power expansion projects are divided into two phases. The six power projects in phase I have an expected total installed capacity of 4,880 mw and be operational between by 2012. In the second phase, the company wants to add 5,370 mw, which will be operational in 2013 and 2014.
Essar is also currently expanding the refining capacity at Vadinar to 18 million tonnes. The new capacity will be ready by next March.It will then add a new refinery train with a capacity of 18 million tonnes.
The Essar Oil scrip took a 3.23 per cent leap on Thursday on BSE and closed at Rs 150.40. The stock has advanced 17 per cent in the past year.
My Comments:
I recomended Essar Oil to someone in a reply....and even wrote once or twice on front page that Essar Oil is a buy and looks cheap.....
Someone was assking me about the promoters Ruia's credential but I said we never know when the  mind changes......and when market see value and growth then they forget who is the promoters....
If someone can recall  Crompton Greaves Ltd ...which was a dead Co which belonged to Thapar Gr some 5-6 yrs back ....with huge accumalated losses and no one was ready to touch it.But as soon as the management started restructuring it and market started believing that the growth is for real and if they do things well then there can be a big improvement in performance, it forget who the manegement was .....I remember that Crompton Greaves was below 10-20 and that too 10 paidup and now even in down market , means we have not touched 21k....it is Rs 268 and 2 paidup,means Rs 1340....10 paidup.......that is why I have always said , not to put too much importance on management.....No one was ready to bet on Thapars and see what happened......
So same can happen with Ruias......don't discard anyone.....
Now this article vindicates my call on Essar Oil......It is a BUY.....to reap multibaggers returns in years to come.....
But as usual ,DD is must before investing........

Some Updates....

Aegis Logistic...recomended here at 195 on 20th Mar is now 310...means 60% return in 15 days....
Surana Corp ...recomended here at 34 on 16th Oct 09 is 84......means 147 % return in 6 months....
Jayaswal Neco which I have recomended here many times below 20 is making newer highs ...at 51.....and still a BUY even at this rate...Ril MF has taken stake at Rs 33...
ExcelCorp recomended at 115 is now at 208.....giving 100% return...
Rasandik Eng recomended here at 45 on 21st Dec 09 ....is 79....in 3 months giving almost 100% return...

There are many such stocks which had not run will run when time will come for them......and there are many other stock which had run but I have not mentioned......

Marg Ltd, Man Ind,KNR Construction ,JMC Pro....all looks good still......Hitech Gear which also I recomended recently at 112 is going strong at 135 and is still a fentestic buy........
Forget to mention Scan Point Geomatics recomended at below 20 is 65...to be exact Scan Point Geomatics was recomended by me on 6th Aug '09 at Rs.16.45.....and it is today at Rs.65...a WHOPPING 4 TIMES RETURN  IN 8 MONTHS......and also SNL Bearing recomended at just rs 11 is making new highs at 42....

SECURITY THREAT - Indian secrets fall prey to Chinese hackers .........

Friends,
I read this news in Livemint internet edition and was shocked to read it...I have pasted it here the whole text.....I donno what our Government is upto.....We already heard the news that China is already taking our land inch by inch in Kashmir and there is big furore over it in Media..China is also constructing Dam at Bhramputra river in East which is still a dispute.....Chinese import in India has been more then India's export and that is making imbalance in trade between China and India as China is becoming trade surplus in C/A with India....just like China has trade surplus with USA which is HUGE and that is where USA is anxious of.
But hacking securities papers and information is a very big concern and Government should take care of it...Why a neighbour should spy for securities information ?The clues are not far to understand....I donno when India will waken up about all these?What steps India took for the Chinese invasion and eating the land up inch by inch......Government needs to comeout with white paper what is happening at Kashmir border, Eastern boader and also in hacking of securities information....it is a very easy to assume what China would like to do with these information....
This is a SERIOUS MATTER......India.....u need to wakeup....

It should not happen that we strike late and then repent as we did in Kargil and paid heavy price for that losing brave soldiers in that battle with Pakistan.

Rajeev

SECURITY THREAT - Indian secrets fall prey to Chinese hackers

B Y J OHN M ARKOFF & D AVID B ARBOZA ························· TORONTO/SHANGHAI


Turning the tables on a China-based computer espionage gang, Canadian and US computer security re- searchers have monitored a spying operation for the past eight months, observing while the intruders pilfered classified and restricted documents from the highest levels of the Indian defence ministry.

In a report issued Monday night, the researchers, based at the Munk School of Global Af- fairs at the University of Toron- to, provide a detailed account of how a spy operation it called the Shadow Network systematically hacked into personal computers in government offices on sever- al continents.
The Toronto spy hunters not only learnt what kinds of mate- rial had been stolen, but were able to see some of the actual documents, including classified assessments about security in several Indian states, and confi- dential embassy documents about India's relationships in West Africa, Russia and West Asia. The intruders breached the systems of independent an- alysts, taking reports on several Indian missile systems. They also obtained a year's worth of the Dalai Lama's personal email messages.
The intruders even stole doc- uments related to the travel of Nato (North Atlantic Treaty Or- ganization) forces in Afghan- istan, illustrating that even though the Indian government was the primary target of the at- tacks, one chink in computer security can leave many nations exposed.
“It's not only that you're only secure as the weakest link in your network,“ said Rafal Ro- hozinski, a member of the To- ronto team. “But in an intercon- nected world, you're only as se- cure as the weakest link in the global chain of information.“
The spy operation appears to be different both from the Inter- net intruders identified by Google and from a surveillance ring known as Ghostnet, also believed to be operating from China, which the Canadian re- searchers identified in March of last year. Ghostnet used com- puter servers largely based on the island of Hainan to steal documents from the Dalai Lama, the exiled leader of Tibet, and government and corpora- tions in at least 103 countries.
The Ghostnet investigation led the investigators to this sec- ond Internet spy operation, which is the subject of their new report, titled Shadows in the Cloud: An investigation into cy- ber-espionage 2.0. The new re- port shows the India-focused spy ring made extensive use of social networks such as Twitter, Google Groups, Blogspot, Baidu Blogs and Yahoo Mail, to auto- mate the control of computers once they had been infected.
The Canadian researchers co- operated in their investigation with a volunteer US group of se- curity experts at the Shad- owserver Foundation, which fo- cuses on Internet criminal ac- tivity. The researchers said the sec- ond spy ring was more sophisti- cated and difficult to detect than the Ghostnet operation.
By examining a series of email addresses, the investiga- tors traced the attacks to hack- ers who appeared to be based in Chengdu, which is home to a large population from neigh- bouring Tibet. Researchers be- lieve one hacker used the code name lost33 and that he may have been affiliated with the city's prestigious University of Electronic Science and Tech- nology. The university publish- es books on computer hacking and offers courses in “network attack and defence technology“ and “information conflict tech- nology“, according to its web- site.
The People's Liberation Army also operates a technical reconnaissance bureau in the city and helps fund the university's re- search on computer network defence. A spokesman for the university could not be reached Monday because of a national holiday.
The investigators linked the account of another hacker to a Chengdu resident whose name appeared to be Li. Reached by telephone on Monday, Li de- nied taking part in computer hacking. Li, who declined to give his full name, said he must be confused with someone else.
He said he knew little about computer hacking. “That is not me,“ he said. “I'm a wine sell- er.“
The Canadian researchers stressed that while the new spy ring focused primarily on India, there were clear international ramifications. Rohozinski noted that civilian personnel working for Nato and the reconstruction mission in Afghanistan usually travel through India and that Indian government visa issuing com- puters were compromised in both Kandahar and Kabul in Af- ghanistan.
“That is an operations securi- ty issue for both Nato and the International Security Assis- tance Force,“ said Rohozinski, who is also chief executive of the SecDev group, a Canadian computer security consulting and research firm.
The report notes that docu- ments the researchers recover- ed were found with “Secret“, “Restricted“, and “Confidential“ notices. “These documents,“ the report says, “contain sensi- tive information taken from a member of the (Indian) National Security Council Secretariat concerning secret assessments of India's security situation in the states of Assam, Manipur, Nagaland and Tripura, as well as concerning the Naxalites and the Maoists.“
Other documents contained personal information about a member of India's military in- telligence agency.
The researchers also found evidence that Indian embassy computers in Kabul, Moscow, Dubai and the high commission of India in Abuja, Nigeria, were compromised.
Also compromised were com- puters used by the Indian Mili- tary Engineer Services in Bengdubi, Kolkata, Bangalore and Jalandhar; the 21st Moun- tain Artillery Brigade in Assam; and three air force bases. Com- puters at two Indian military colleges were also taken over by the spy ring.
Even after eight months of watching the spy ring, the To- ronto researchers said they could not determine exactly who was using the Chengdu computers to infiltrate the Indi- an government.
“But an important question to be entertained is whether the PRC (People's Republic of Chi- na) will take action to shut the Shadow network down,“ the re- port says. “Doing so will help to address long-standing concerns that malware ecosystems are actively cultivated, or at the very least tolerated, by governments like the PRC who stand to bene- fit from their exploits though the black and grey markets for information and data.“

Spice Jet& Surya Roshni.... bulk Deal...

Saw a bulk deal from Goldman Scahs of 15 lacs shares at 61......that was a huge buying....and that too from the most credited financial institution of USA where WB took stake when chips were down in 2008...

6/4/2010 500285 Spicejet GOLDMAN SACHS INVESTMENTS MAURITIUS I LTD B 1500000 61.39


Also saw a bulk deal for Surya Roshni....of over 2 lacs shares....


6/4/2010 500336 Surya Roshni MATRIX EQUITRADE PRIVATE LIMITED LIMITED B 201481 93.82


My Comments:
After seeing the 2 bulk deals there should remain no doubt in mind about the fundamentals of Spice Jet and Surya Roshni.....I read some comments regarding Surya Roshni regarding expansion....etc...
Updates:
I erred here...it was not a BUY deals...some 4 bulk deal happened yesterday...and the Surya Roshni was sold and bought with same quantity.....so the shares sold and bought were equal...

Transgene Bio..on RNAi platform.........on niche area....

Friends,
I just got to read one article on what RNAi is and how the discoveries are made in this field and how it is important to have work done under RNAi platform.....I think I have already posted this news which is here and from it we can see that Transgene Bio works on RNAi platform and making milestone after milestone for patenting various drugs invented under RNAi platform....and I hope Dr Vikas must be interested in this as well and will give some more insight in it....


Transgene Biotek files patents for AIDS vaccine and Multiple Sclerosis drug

Transgene Biotek Limited has filed two new patents based on our proprietary and novel auto-immune technology platform. The first patent for the therapeutic AIDS vaccine reaffirms the novelty of the technology after the drug crossed a significant milestone in proving its effectiveness. This therapeutic vaccine is aimed at restoration of cellular immune responses against HIV leading to containment of the spread of HIV infection and restoration of normal healthy status. To date, more than 25 million lives have been claimed by AIDS and 33 million people are estimated to have HIV.
The second patent, for a drug against the serious and debilitating neurological disorder Multiple Sclerosis, developed on Transgene's proprietary auto-immune technology platform imparts selective cytotoxcity, the key aspect of this platform. Multiple Sclerosis is the most common progressive and disabling neurological condition in young adults. Approximately 2.5 million people worldwide have Multiple Sclerosis. The multiple sclerosis (MS) market has total global revenues of over $6bn in 2008, as per the published report of LeadDiscovery, UK and is expected to increase further in the next decade.
These 2 patents serve to reaffirm and protect the novelty in the technology platform developed by Transgene. Transgene also filed 2 patents earlier this year for cancer drugs, Liver and Breast cancers, built on its proprietary RNAI platform, one of the first few companies in the world to advance the drugs to critical stages using RNAi platform. With more novel drugs under development pipeline, Transgene expects to file more patents shortly.

Now the article I happened to read is coming from a USA brokerage arm which I am pasting here...and how analyst are gungho on RNAi ......it also shows how RNAi works ....

Here it goes:

Huge RNAi Breakthroughs!
Once again, huge scientific news has disrupted my plans. Last week, I put off giving you additional news on the quest for an Alzheimer's disease cure as well as some fascinating and related data on the health benefits of coffee. The reason, as you know, was that two companies in our portfolio announced truly historic breakthroughs in stem cell science.

Remarkably, the same basic thing has happened again. This last week, three major scientific developments were announced regarding progress in the field of RNA interference. Once again, some of the companies involved are in our portfolio. (I will refer to them as “Company X” and “Company Z.”)
As I've said many times, we know that RNA interference is one of the most important areas of scientific inquiry. The reason is that the RNAi mechanism offers us a means of controlling individual genes. This, in turn, offers the theoretical means of curing nearly every disease suffered by humans, animals or plants.
Though scientists were aware of some of the actions involved in RNAi, it was one article published in the critically important journal Nature that put all the pieces together. That was in 1998, and the article was titled, "Potent and Specific Genetic Interference by Double-stranded RNA in Caenorhabditis Elegans." In 2006, two of the authors, Craig Mello and Andrew Fire, were awarded the Nobel Prize for that critical work.
This article rocked the scientific world. Allow me to characterize the big picture that emerged from that article.
Basically, the master genetic program in our cells, DNA, never willingly exposes itself to any outside influence. Rather, it operates behind biological fire walls that protect it from viruses and other invaders. It communicates, however, via messenger molecules. These are called messenger RNA or mRNA. The mRNA molecules, in turns, “encode” or synthesize proteins that actually spread the DNA's commands.
RNA interference, as the name implies, is a natural means of disrupting that process. Our cells use a complex, but fascinating mechanism called RNA-induced silencing complex (RISC) for all kinds of natural functions. It can be thought of as part of the immune system, as it protects from viral invaders, but it is also part of our gene regulation system. It can also, however, be manipulated to accomplish other ends.
I find it useful to think of this process, simplistically of course, as a kind of computer virus-protection program. Computer programs such as Symantec's Norton AntiVirus and Trend Micro's PC-cillin have large databases of “evil code.” They scan your computer, incoming data and external drives looking for code sequences that are in the database of evil code. If it finds evil code, the security program attempts to block it from interacting with your computer.
Anti-virus software periodically updates by downloading new additions to its database of evil code. In a sense, RNAi offers scientists a way to hack those evil code updates and inject their own code sequences. It could be exploited to send RNA sequences that would provoke the body to block the operation of particular encoded proteins.
For example, there is a protein code that enables the capillary growth that causes blindness through wet macular degeneration or tumor growth. Scientists know what code sequence to add to the evil code database that will stop excess capillary growth. Eventually, I believe, we will know what code blocks Parkinson's disease, glaucoma, kidney disease, autism and on and on and on. By introducing the right small RNA molecules, we can provoke the body to disrupt the chain of communication that results in those conditions. It is even possible to increase the production of proteins that increase health or reverse damage.
Hopefully, cell biologists in the audience will forgive my crude metaphors. Regardless, when that Nature article was published, scientists began the quest to figure out just how to use RNAi to cure diseases. Universally, they encountered one enormous obstacle. These small RNA sequences are exceptionally fragile. Under normal conditions, they are quickly destroyed by the immune system.
This is not dissimilar, by the way, to security and virus protection software. The ultimate goal of the “black hat” hacker is to penetrate and exploit the anti-virus security programs themselves. If a hacker could hijack the process by which these get information about new threats, the database updates, he would “own” the computer and could do anything he wanted. Consequently, your anti-virus program has a level of safeguards built into it that far exceeds those of normal programs.
Because the RNAi mechanism performs similar functions, such as scanning and blocking unwanted actions, that biological system offers similar controls over the system. It is, therefore, not only scientists who want to exploit the system. It is logical target of sophisticated microorganisms that evolve constantly in an effort to hijack your immune system. As a result, we have particularly strong defenses against interfering with the RNAi process.
It is extremely difficult to get small therapeutic RNA sequences past the immune system into the right cells to cure diseases. Some scientists believed that it might be possible to deliver RNA interfering sequences locally, by injection into a tumor, for example. The problems associated with developing a systemic delivery system that could be taken orally or injected but that would then act only on target cells seemed almost insurmountable. In fact, many scientists believed it was impossible in higher life-forms, particularly humans.
Last week, we learned definitively that it is not impossible. In a major scientific journal, “Company X’s” scientists presented peer-reviewed proof that they have done it.
Simply put, the anti-cancer drug that Company X tested is valuable. More valuable, however, is Company X's proprietary platform that produced the successful RNAi delivery solution. With this successful test of a systemic RNAi cancer drug in humans, Company X's ability to deliver other interfering sequences to target molecules will be attracting serious attention from Big Pharma.
Every big pharmaceutical company has an ongoing RNAi delivery research program. Merck has admitted that it has tested hundreds of methods unsuccessfully. Company X, however, was the first to prove it could make a systemic RNAi drug for humans. I would be astonished if Company X does not sign some sort of agreement with Big Pharma within the year.
While Company X has clearly scored a major coup, it is by no means alone in the quest for RNAi delivery methods. In fact, “Company Z” announced a successful delivery mechanism last week as well. Company Z tests involved local surgical delivery into the skin of rats, but the results indicate that it has found a way to beat the delivery problem. I spoke with the CEO of Company Z. He is clearly confident that further tests will show the systemic effect of this technology in humans.
I think that the events of the week emphasize several crucial aspects of the field of RNA interference. One, obviously, is that progress is being made very rapidly. After I interviewed Craig Mello a year and a half ago, I told you this. Still, it's difficult even for insiders to keep up. This is the result partly of the fact that progress in so many related fields, such as human genomics, continues to accelerate.
Another characteristic of this field is that it appears there will be multiple winners. The delivery mechanisms used by Company X and Company Z are quite different, but both have demonstrated efficacy. It remains to be seen which will be more effective for which diseases. Personally, I believe there will be multiple winners.
In fact, as I was writing this column, two more important news stories broke concerning our other RNAi companies. Therefore, to say that developments are breaking quickly in RNA interference is an understatement. It is extremely meaningful that all this action on the RNAi front seems to be coming from aggressive small caps, not bureaucratic Big Pharma. Nobody knows, at this point, how everything will shake out in the next few years. The rational investment strategy, therefore, is to own a portfolio of the most promising of these entrepreneurial companies.
It's possible that all these RNAi innovators in our portfolio will do well simply because the promise of RNA interference is so incredible. As one unnamed biotech CEO recently told me, “We're not going to run out of sick people to treat. There is, unfortunately, no disease shortage.”
We now know with certainty, because of the week's events, that RNAi can be delivered effectively. There are still details to be worked out, but this is truly great news.

My Comments:
If that is what Transgene is doing and doing it successfully as it has been able to file patents for many drugs as we read it recently...then I think Transgene is on a high trajectory growth path.....