Monday, May 10, 2010

Parekh Aluminex high....309...

I recomended Parekh Aluminex at around 100 and on Fri it made a new high of a down market....
I have different queries on Parekh Alu about its credentials and its products price realisation......readers were sceptic on Parekh Alu....and kept on asking me such queries....I had tried to give replies in my way....but this counter has seen atlast the light of the day and I am very happy to declare here that my conviction has paid and money has  tripled from my call.....I compared it with Ess Dee Alu at that time......
The results are there for readers.....and I am sure same is going to happen with Venus Remedies.....when investor become wary and will not buy will make new highs....


  1. Telecanor Global has made few announcements, any thoughts on those announcements. is it moving in the right direction?

    Do you track Confidence Petroleum? seems a interesting story

  2. Minar,
    It is still confusing on Telecanor...
    I do not track confidence petro...

  3. Hi Rajeev,
    My sincere thanks to you for suggesting Parekh Aluminex.
    I invested at 150 and sold 50% at 300. So now I have free Parekh Aluminex stocks.
    I have a query. I read New Buffettology book by Mary Buffett and David Clark, where they said that WB has investment in First Data which exclusively deals with all the millions / say billions of credit card transactions in US.
    Do you or any other fellow bloggers know such a company in India which handles these credit card transactions?
    Does Spanco do that?
    Thanks once again.
    With Regards,

  4. maybe rumours

    Buffett eyes majority stake in PSU insurance company

  5. Very true desaiji, I do hold both, Ess Dee Alu & Parekh aluminex... your call have proved it's perfomance.. hats off to this...

  6. something interesting..........

    Sometimes silence speaks much more than words. Since my last post, nothing much has changed in terms of fundamentals. People on the inside already know what is going to happen. Things are just starting to take shape. I have always maintained that the best way to win an argument is not by arguing, but by action. I have seen people wasting time arguing amongst themselves about how the stock they are investing is much better than another stock, why waste time when you can make money instead by investing? We invest not to prove someone right or wrong or for the sake of academic theories, but to create wealth.

    Over the years, things have become easier for people like me – long term value based investors. Thanks to the explosion in technology, internet forums and business news channels more and more people are unable to think long term. This has led to wild and violent falls in stock prices of as much as 25% on a single day, just on the basis of some negative news or court cases, which might be of a temporary nature. Internet trading makes people take decisions within seconds – this was not the case earlier. Because of all this we can take advantages of such situations.

    For example I remember when analysts across TV channels were criticizing Hindalco for taking over Novelis. Anybody who invested in Hindalco, that time would have been a very happy man. It has been a good company for me and has added to my Happionaire experience. The AC studio sitting analyst will know much less than someone who has put his blood and sweat to build a business.

    Once again, when markets are rising most people feel tempted and a sense of desperation to rush in a put money. They feel left out, and can’t resist temptation to buy. Over the years, anyone who has been a part of the market will tell you how dangerous such panic buying can be. Money doesn’t come to people who are constantly scared and afraid. Be open, happy, large hearted and confident – you will automatically start attracting wealth.

    The best investors are the ones who do the least amount of activity. To be a good investor, you need to have hobbies and interests outside of investing or still better would be to run an actual business. Warren Buffett plays Bridge for over 12 hours every week. I love writing and getting people addicted to the right type of investments. Sitting in front of a screen with numbers and watching the business channel 24 hours, isn’t really what a fulfilling life is about and is definitely not a great and recommended way to create wealth.

    As the crisis develops in Europe, UK and in parts of the Middle East, a lot more money has been flowing from there to India. A lot of NRIs there are afraid of a falling Euro, Pound and unsure of what will happen to the Dollar. Plus, parking their money in a fixed deposit is not giving them any interest, similarly the real estate of stock markets, aren’t exactly promising.

    This money if invested rightly will obviously give much better returns and will also be a safer long term choice. But at the same time, if invested in an unbalanced manner and on the basis of ‘tipsters’ will definitely lead to huge losses.

    I am reminded of something very relevant to every investor in today’s global economic environment. When Lord Krishna offered the choice between having his entire army or just himself alone, to the Kauravas and Pandavas just before battle, we all know that the choice of the Pandavas was the wiser one. Arjuna chose Lord Krishna to be on their side, and was the charioteer filled with universal wisdom and knowledge, while Duryodhana chose a massive army of soldiers and in-spite of this lost.

    Every investor today needs to forget having an army of advisors and watching hundreds of news channels, but just needs to have the power of wisdom and knowledge with him. Probe deeper inside you and you will find it. It is universal and within all of us. Cut out the noise around you and listen to the silence.
    keep generating extraordinary wealth...

  7. Rajeev,

    You have one more feather in hit stocks cap, n that list grows which is great.

    Now as a investor if u have Rs 100 which all stocks you will invest at this stage.

    It will be great to see how u will put those funds.

    With Regards

  8. Rajeev,
    Thanks for Parekh Aluminax. It is good to see the stock getting what it deserved. I had it in my portfolio at around 100, right when you recommenced it.
    Then due to some personal reason had to sell it :-(
    But, my conviction in the stock was so much that there was never ever a doubt even when it went down after you recommenced.

    Cheers to everyone who has it!!

  9. Dear Rajeev,

    Just returned from my trip to Kashmir. It truely is Heaven On Earth.
    Nice to see that you have once again started posting messages on your blog.
    I bought 1k parekh after ur recommendation in november and am happily sitting on 200% gains in less than six months. Thank you so much.

  10. further to earlier post i have come across this news

    Venus Remedies reaches deal over FCCB default
    By Sneha Shah Mar 08 2010 , MUMBAI

    Tags: Stock Market
    Venus Remedies, a research and development driven pharmaceutical co-mpany, is planning to raise rupee loans to repay $7 million to holders of its defaulted foreign currency convertible bonds.

    This follows a mutual agreement between the company and the bondholders to roll over the remaining $5 million of the bonds. The company had raised a total of $12 million in 2006-07 through issue of the foreign currency convertible bonds (FCCBs). The company had defaulted in May 2009 after which the bondholders had filed a suit against it. The US-based hedge funds DE Shaw and Citadel Investment Group had filed a winding-up petition against Venus Remedies in Punjab and Haryana High Court in Chandigarh.

    Venus had defaulted on payments to FCCB holders as the bonds did not get converted into shares as the company’s share price was drastically below the conversion price of Rs 437 per share. The conversion price of the $5 million of bonds rolled over for another five years has been set at Rs 362 a share. “The company has approached a few Indian banks to raise money to meet the redemptions on the FCCBs,” a senior company official told Financial Chronicle. Venus Remedies has informed the Bombay Stock Exchange (BSE) that the company and its FCCB holders have arrived at an amicable settlement agreement pertaining to the redemption of the $12 million FCCB issue.

    “The rollover is subject to applicable statutory approvals. The price of the rollover will be as per the SEBI floor price as applicable when FCCBs were originally issued. In accordance with the terms of the settlement agreement, the FCCB holders will withdraw the winding up petition, which is yet to be admitted. Both the parties will file a joint application in the court to that effect,” the company.

  11. Hi Rajeevji,
    What do u think abt Mold-tek Technologies and sudal industries?

  12. Sir Rajeev, iam very sad to say that i was not a subscriber on your blog when you recommended Parekh...Sir, give more calls like this...that is the only way now...


  13. Dear Rajeev,

    I have seen some mention of garnet construction in your previous posts. Also last year the co promoters converted 60 lakh warrants into equity around Rs 64. Previously i had read that this company has around 400 acres of land near the proposed new mumbai airport (PANVEL).

    Is it worth buying a bit and wait for the story to unfold ??

    Posting an announcement made by the company in 2007 on the bse website

    The Company recently bought land (over 400 acres) at Khopoli, near Panvel to develop a mega residential township. It is developing the entire township project-apartments, row houses, independent bungalows, malls, Information Technology centre and also educational facilities-over there. The ‘Magic Hills’ residential project offers plots, row houses and bungalows.

    "We expect the Khopoli project to commission during this fiscal, which will also start contributing to the Company's bottomline," added Mr. Kedia. The project is valued at Rs 1,200 crore with the residential portion (250 acres) accounting for Rs 900 crore.


    Thanks in advance

  14. lucky,
    Moldtek Tech looks good as it is in KPO and Sudal is my old call from MMB and have mentioned it here as well.

  15. Mitz,
    I have seeen Garnet at 30 and now it is 170....hard to give a call now....

  16. Mitz,

    "Buying land in 2007".Could it be possible that they bought at the peak of the bubble?
    Not sure, just a passing thought.

  17. Rajiv
    any view on hindustan tin and mudra life at cmp.

  18. Dear Rajeev,
    I asked about garnet construction not garnet international.Garnet construction is now trading at Rs 17.

    Uno yes they have bungled big time no doubt. But still we are now getting a company with 400 acres at 20 cr market cap.

    Ofcourse what i really do not know is the management quality and whether all this purchase was just in the books or in real.

    Thats why I am hoping that rajeev sir can throw some light on it.

  19. Dear Rajeev,

    Please give your opinion on JP infratech. Do you this project is hit or miss. J P group is very optimistic about this project and triggers are Airport & SEZ . And one news is hurting me it is GMR group which is in between whether to build airport in range of 150Km. AS they had investments in Delhi airport , they recover it by traffic of aeroplanes. And they are saying their profit hurts if airport in build winthin 150 km range.
    See this matter in larger context that to recover their investment they are stopping growth.

  20. Hi Rajeev,
    Do you track PVP Ventures?

  21. Hi Rajeev,
    Can you pls give your view on the following:
    1. Today XL telecom has announced joint venture with a company in spain to tap the $2billion indian solar market in next 2 years. Also they allocated shares to promoters and banks which in turn will dilute the equity five folds(as mentioned in moneycontrol). They also expect to win around 70cr rupee order in next few months. My main concern is the dilution of their equity and that too five times. With all these news coming in what do u think about the growth prospects of xl tele....

    2. IKF technologies has posted excellent consolidated results for FY09-10. NP has gone up by 24%. They has posted good results in the past also. They also claim that in 2-3 years they target turnover of 2500cr. They are going to recruit 1500 ppl this year. With all these positive news the stock price is not moving at all. Though its a long term story but with the NP increasing quarter after quarter the stock price should also move. Had this case been with some other company the stock would have moved a lot. Would like to know ur view on this. Are operators playing with this stock.

  22. Sajith,
    PVP Ventures looks good...

  23. Share,
    Still XL Tele has long way to go....IKF is looking good for LT.....

  24. Hi Rajeev,
    Thanks for the comment on PVP Ventures.

  25. Dear Mr Rajeev

    Do you track Jai Balaji Industries


  26. Mitz,

    Regarding "garnet construction", I see a comparatively large amount being shown as interest.
    Any idea?

  27. Dear Rajeev,
    Rathi steel has come out with great results. Topline is 189 cr and Net profit is 6.05 cr. Thus the eps for this qtr has come at 2.5, despite the fact that equity is higher due to pref allotment to promoters.

    As always one more of your discovered stocks should hit the limelight shortly

  28. Dear Uno,
    For garnet constrction all i am seeing is that for the present 20cr market cap of the company we are getting 400 acres near navi mumbai. If they did not really own this land maybe they wudnt have gone and taken a pref allotment at approx Rs 64.

    That is my only hunch and hence i have taken a nominal qty of 3500 shares at 17.5. It can become a BIG zero or if the story is real then it may give me multibagger returns.

    If i am able to get more info which can further increase my belief in the stock then i will increase my holding. Its in the HIGH RISK HIGH RETURN category where we might need lots of patience

  29. Dear Rajeev,

    Glencore subsidary singhfuel buying california software share is it a big plus.

  30. Rajeevji,how are you, SNL bearing too has come up with good results....kudos to you..... already it has moved from Rs.11 to around 45 or so, hope it goes on and on and on..... :-)

  31. Thanks Mitz for your comments. Let us try to get much more clarity on the stock. Hope let this be a multibagger.

  32. sajith
    can u Please tell me what are the elements u noticed in PVP Ventures,if u dont mind.I just followed the details of the co. but failed to catch anything interesting.Instead,there is something that embarassed me.Example--Loss of 600Cr due to exceptional items within a quarter.
    can we wait for further dip as get it below 10 rupees in near future...Please reply...

  33. Hi Kolu kuttan,
    Sorry to be late. Regarding PVP ventures, I found a lot of news about joint venture to develop a property with Unitech, sale of hotel property in Ooty, Joint venture in power sector etc. I had seen some broker recommendation to buy at Rs.17 - 18/-.
    No idea about the exceptional items loss in balance sheet.

  34. Hi Mitzzzzzz
    any news on garnet construction plz

  35. Dear Chtti,
    Sorry but I have no new news on Garnet. The price saw a high of 28 in july and now back to 20.

    Its HRHR stock and if the story succeeds you can get 5 to 10 times returns and if it fails the stock might go down 50% even frm current levels.

    But as I told earlier looking at the promoter holding and the fact that the navi mumbai airport plan is slowly moving to reality, garnet may strike gold with its 400 aces of land.

    But this is a stock where the money invested should be very small and the time frame should be a minimum of five years.
    (I currently hold no shares in garnet)