Sunday, October 31, 2010

Compact Disc.....cmp..Rs.57.25...Dark horse..

I donno whether this call I am giving , many will like it or not but after observing Compact Disc for many qrs I had come to the conclusion that it is now high time for investors to have a look at it.
I have read messages at mmb and at other places and expert has come upon a decision that Compact Disc is not worth looking at.It is a penny stock and will become penny again.
But my view is totally opposite to what expert thinks.
The positive I am seeing here is Compact Disc is listed in Forbes Asia Magazine as one of the fastest upcoming Co under billion dollar category.
What I was thinking was that if Compact Disc is not worth looking at then how Forbes took note of it?Without checking the credentials how Forbes can consider it?If the sales are fictitious then why it should be included in Forbes list?
That has prove to be a storng point for me to write it down about Compact Disc here.
Cos last year eps was 50 and quoting at rs 57? means going at 1 p/e?The BV is also 100 , so available at .5 BV to price ratio.
The sales was 228 cr last year and Mcap is 54 cr....
Well, it kept on declaring dividend and investor never got the Div.That was because there was a case going on against Compact Disc and it has come to an end and hence the Div will be depatched this year.
The Sep qr results has been fentestic and is coming in line with previous qr.

This is CM statement which I have copied from the AR of 2009-2010....

Dear Friends,

In the financial year 2009-10, Compact Disc India Ltd. (CDI) has witnessed accelerated growth andmarket leadership.

The company is anticipating significant growth in its business and with the growing business it needs to set-up Pre-Visualization Studios at Los Angeles, London and Singapore. All existing business from affiliates shall be consolidated in Chandigarh by the end of this year. CDI will also be holding company for all overseas subsidiaries. These subsidiaries will be serviced by establishing marketing offices in Sao Paulo, Tokyo and Johannesburg.

The company has also decided to set-up five world class state-of-the-art Animation & Gaming Centres of Excellence at par with IITs, which would be the first of their kind in India. The first such centre at Chandigarh is already in process of commencing Animation & Gaming courses for engineering students to impart highest level of quality education from the session 2011-12.

During the year 2009-10, CDI, the largest animation film company of South Asia, reports the following achievements:

 Sales Revenues higher by 18.78% at Rs. 228.17 crore

 Profit-After-Tax (PAT) increases by 19.82% to Rs. 47.33 crore

 Profit-Before-Tax (PBT) increases by 9.73% to Rs. 48.07 crore

 Earnings per Share (EPS) higher at Rs. 49.45 as compared to Rs. 41.27 last year; higher by

19.82% (annualized).

With best wishes of the shareholders, CDI is going to take a giant leap ahead.

Warm regards,

Suresh Kumar


The AR report of the Co can be read at its website if anyone wants to read it thorougly.
Well, I have written about Compact Disc and let us see where it goes in a year or two.
DD is a must for anything one wants to buy after reading here what I write.But I feel that Compact Disc is grossly underpriced and should be given a look at it...
Well friends, I have no access to go to the plant and have a look at it but anyone residing at Chandigadh should take a chance and visit the plant and meet someone there.
I think my blog reader who resides in Chandigarh should go there and write it down here what he saw and what he talked with the management.
I think management will be most willing to talk with someone who visit the plant because many things has been written against the Co and they would like to come out clean in investors eyes....
It is not so that those living in Chandigarh need to visit the Co, if someone is interested in buying good stake then he/she can go to Chandigadh from any part of India.
Depends upon the passion and how much one wants to do.

Thursday, October 28, 2010

Some Updates....of my old call......

1)Hitech Gear has declared a liberaal Bonus of 1:1 and stock made life time high of Rs 294 and has doubled from my recomended price.Hold on to this stocks for LT to reap excellent return.
2)Srei Infra has come out with excellent results with NP rising from rs 17 cr last sep to 50 cr this qr.
3)Surana Corp which I recomended around 35 has post excellent results with NP jumping from rs 7.5 cr to 18.81 cr this qr.I am seeing many houses and paid services has started recomending after it touched 75...means way above my call.
4)India Glycol my very old call and my favourite stock which I have been recomending time and again and in 2009 when it was at rs 60 I again recomended it has made a new high of 205 recently and is a buy still at dips.
5)Lumax Ind made a high of 330 and is now at 293 and those holding should hold on .I gave a call at rs 95.
6)Paramount Cosmetic , which I gave a call around 10 has made a new high of 39.70 today.400% return already.
7)First Object Techno has also post superb results with NP growing at exponential pace at rs 1.84 cr from last year same time of 0.52 cr a growth of over 250% from last in bottomline.
8)Loyal Tex is up by Rs 100 after my call giving clean 100 rs in a short time.

There are others as well which has runup like Spanco Ltd and Sujana Towers.

Spanco bagged a huge order from Bharti Tele for BPO contrcat in African countries.Well,the order should be worth 600cr  and that was the reason it went up and up and after we are seeing the high of 180 the news are pouring in....wait for same type of news from Sujana Towers as well.
Market should remain range bound with upper bias and should test a new high by end of this year.It can make a new high when US Prez Mr.Obama visits India.
Coal India is an excellent buy on listing which I already mentioned when I wrote about it.
Buy for LT.

Friday, October 15, 2010

Sumedha Fiscal....52 week high@40 from 17 10 months

I gave a call on CCAP on Jan 30, 2010 around 35-40 as I read in the annoucement that open offer was at Rs 80 and that call came good.
I remember at that time, I discussed about Sumedha Fiscal which was the Manager of the Open offer and I also wrote that Sumedha Fiscal is a good pick to buy at that prevailing rate which was Rs 17 on Jan 30th 2010.
I am pasting some text here for readers to read it.
These are simple things one need to have keep an eye on it.Then buy such stocks and sit on it.Baith na padta hai.Patience is the order of the day.Those who trades daily has very less patience and hence they lose the cool of mind very easily and sell it and that is one of the reason I always suggest readers to keep themself from day trading and F&O.....
Now if one can see that Sumedha Fiscal is making new highs and patience is paying for those who bought and hold it uptill now.......
If one write Sumedha Fiscal in search tab one can read the whole post......
I would also like to write that Sujana Towers is making newer highs at 155 and so is Spanco Ltd. and the magic here in both the counters is that they are still in 20% circuit trade.
Stocks remain for same price for months or years togather and when it starts moving it makeup all it left behind in just couple of months.......
Now read between the lines what I wants to say......

CCAP - Open Offer :

Announcement: 7th Aug 2009...
Sumedha Fiscal Services Ltd ("Manager to the Offer") on behalf of M/s Ramayana Promoters Pvt Ltd ("Acquirer") has issued this Public Announcement ("PA") to the Equity Shareholders of CCAP Ltd ("Target Company"), pursuant to Regulation 10 & 12 & other applicable provisions as required under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 & Subsequent amendments thereto ("Regulations").

Now on Sumedha Fiscal:

Herein also , there is one more stock to take note of that....any guess?

Well, the stock in talk is Sumedha Fiscal (I hope readers find this name in this post )and it is a listed entity and it is the Manager of the offer and they will get good money from this type of work.So the point to be noted here is one needs to see who is the manager of the offer and if the name keeps coming with some other offers then we need to understand that the Co is having a very good name for the open offer management as generally the manager use to value the co and put a price for open offer.....

So, friends according to me Sumedha Fiscal is looking good and I have given a call at other forum in last bull run around 10 and it went on to touch something like 28.....

Sumedha Fiscal is a Calcutta base brokerage co ....

Now in very desi language I will say, ki ab Sumedha Fiscal ki janam kundali nikalo along with CCAP..........

Got it.......!

Coal India IPO to open on October 18....IPO of the DECADE....go for it....

India's largest coal producing company Coal India (CIL) will open its initial public offering (IPO) for subscription on October 18, 2010. The company is offering 63.16 crore equity shares through the issue, which was an offer for sale by the President of India, acting through the ministry of coal, Government of India.

The offer shall constitute 10% of the post offer paid-up equity share capital of company. The issue will close on October 21
As per draft prospectus, CIL is the largest coal producing company in the world (Source: CRISIL Research), based on raw coal production of 431.26 million tons in fiscal 2010. It si also the largest coal reserve holder in the world (Source: CRISIL Research) based on reserve base as of April 1, 2010.
The company will not receive any proceeds from the offer and all proceeds will go to the selling shareholder (GoI), which stake will be 89.99% post issue.

For the year ended March 31, 2010, CIL has reported net profit of Rs 9,622.45 crore on total income of Rs 52,592.29 crore.

My Comments:
1)CIL has the largest reserve in the world which is 19bn tonnes.
2)CIL is the lowest coal producer of the world.
3)Eq is Rs 6316 Cr
4) Sale at stake is 63.16 cr
5)Mar '10 year NP stands at 9622 cr on sales of 52,592 cr.Means NPM of roughly 18%.
6)MD Says CIL will grow at 25% this year.
7)Mcap is 1,54,751 cr.which is peanuts when we see the reserve as world largest.

Looking at the above parametres.....Coal India is an IPO of the decade......once in a life time chance....
CIL is a Navratna of India and I can't imagine that a Co having the world largest reserve of Coal can come with an IPO at just Rs 240-250.....
This is a stock one can keep it for children and grandchildren as well........
Go FOR IT.........Buy and forget type of stock.....

Thursday, October 14, 2010

Khaitan old call making new high.....

This was the heading I gave and post I wrote in July 2008........along with that I gave a call on Laxmi Electricals and India Glycols as well.........
Khiatan Electricals made a new high of Rs 207 today giving 400% return.......
I am seeing now Laxmi Electrical is recomended by houses......

Khaitan Electricals.......cmp.....Rs.55.15..code:504269

A new call to Buy Khaitan Electric.....going very very cheap.....Buy this stock for multibagger return......
Gave a call to buy on High Energy Battery at Rs 170......seems the upward movement has started after some initial hicupps......
There was some movements today.
I again give a buy call on Laxmi Electricals and India Glycols.Buy both for a multibagger return in 2 yrs time.......
Best of Luck.......
Not to write at your own comfort level.......and with due diligence.......

Wednesday, October 13, 2010

Is Bharat Forge ..cmp Rs.376.85 , 2 FV..going cheap?.........

I am pasting the last interview of Baba Kalyani , MD of Bharat Forge.
Here its says that they have come out as the lowest bidder for NTPC order which is as big as Rs 7200 cr which is big enough for even L&T will envy at.
Reading at the interview it looks like they are also going in making turbine use for Nuclear Power for Alsthom.
I have been recomending Bharat Forge in many of my list which I perticularly write for A gr stocks.
But reading the future plans, it seems Bharat Forge is going cheap even at Rs 376....

Read on:
Lowest bidder for Rs 7,200cr NTPC order: Bharat Forge

Published on Wed, Oct 13, 2010 at 10:55
Updated at Wed, Oct 13, 2010 at 11:46
Source : CNBC-TV18

Q: If you could confirm for us that you are indeed the L1 for the Rs 7,200 crore NTPC order in your joint venture Bharat Forge Alstom?

A: Yes, I believe so. That’s the information we have got at the opening of the bids.

Q: So, you should go on to clinch that order?
A: I don’t know about that. I think it’s a long process between now and getting order, but we will be a major player in the power equipment business in India. I think this also proves that we will be a competitive player; I think the pricing levels also prove that we would be rather globally competitive in this business.

Q: What procedural issues are involved, once you emerges L1, which seems to be the fact corroborated from various sources?
A: I think there are internal procedures of NTPC. I don’t know what they are, but it’s their internal procedures and not much to do with us. So, I guess it’s just a normal process of going through a tender bid, evaluation and decision making.

Q: How significant a start would be for the joint venture, if you indeed go on to bag this order, the way it is staggered the revenue flows from NTPC?
A: I think it’s extremely significant. One would expect to get a significant portion of this bid. I think somewhere in the region of five turbine/generator (TG) sets that will be more than a billion euro. That’s a good start for any manufacturing entity that’s setting up a greenfield facility with fully integrated manufacturing. One of the key successes for us is we are integrated on the component side with Bharat Forge’s component capability and that what makes us competitive in this business.

Q: If you do go on to bag it, would it be a profitable one or have you been super aggressive to bag this as your maiden entry?
A: I think it will be profitable. It’s just like in our business we are most competitive globally, but we also have the largest earnings before interest, taxes, depreciation, and amortization (EBITDA) margin. I think as this business, the power equipment business, develops we will kind of move in the same direction.

Q: How is the joint venture with Alstom structured?
A: It’s structured on the basis of 50:50. Alstom has very high level of technology; it is the largest player in the steam turbine business in the world today with more than 25% installed capacity. Bharat Forge has demonstrated a high capability in manufacturing metal components on a global basis in a highly competitive environment. I think a combination of Alstom and Bharat Forge for something like this is quite potent.

Q: So 50% of the revenues and the upside from that joint venture will be captured for Bharat Forge shareholders?
A: That’s right.

Q: What kind of an order book are you targets because you had indicated earlier that 40% of your Bharat Forge revenues will come from the non-auto business in FY12?
A: Yes, you are right and I think we are pretty much on target; we might even be little earlier than that. We are making good progress on our non-automotive business in the energy sector, in the railways, in the marine, in the construction equipment.
As far as power equipment is concerned, we are setting up a capacity for roughly about 5,000 MW a year. That will translate in terms of revenues or something like Rs 6,000-7,000 crore a year. Our capacity also will include turbine generators required for the nuclear power plant including up to 1,600 MW. So, there is a lot of high technology manufacturing that will happen in our facilities.

Q: By when do you expect to hear from NTPC with a final nod on the order?
A: I would expect in another six-eight weeks.

Q: There is also been some reports that BF Utilities will sell a 10% stake in the Nandi Corridor Project to JP Morgan private equity. Is that true?
A: I don’t want to comment on that. That’s a business, that’s trying to raise some capital nothing is finalised as of now. But there is a lot of interest from any people for this, so we will see how it goes.

Q: Are you talking actively to private equity investors for a stake sell?
A: Yes, we are.

Foreign inflows: Subbarao, Pranab not on same page..............


Foreign inflows: Subbarao, Pranab not on same page
RBI Governor Worried About Excessive Inflows But FM Wants Growth Momentum
Gayatri Nayak & Ruchira Roy MUMBAI
RBI governor Subbarao and finance minister Pranab Mukherjee are beginning to sing from different song sheets on policy for the first time since the collapse of Lehman Brothers in September 2008.
Mr Subbarao is showing signs of joining the global chorus of policy makers about excessive inflows potentially causing short-term instability in the financial markets while Mr Mukherjee is stubborn in building the economic growth momentum, even if it means hitting a few bumps along the way.
The prospective cracks in policy issues surfaced during the public meetings in the US last week where both addressed investors, policy makers and economists. Neither of them committed to an explicit stand on capital flows as they hid behind ifs and buts.
But the market has begun reading between the lines.
It is possible to construe there are differences between the central bank and the finance ministry after the governors speech in Washington, said Abheek Barua, chief economist at HDFC Bank. However, their respective stands are at two different levels and hence cannot be compared.
The Indian rupee ended 25 paise higher to 44.67, the benchmark Sensex fell 0.67% to 20203.34.
Economies that have current account surpluses or only small deficits have intervened, Subbarao said at the weekend in Washington. That does not mean we wont intervene. If inflows are lumpy and volatile, or if they disrupt the macro-economic situation, we will do so, he had said.
This is probably the most unambiguous statement that can come from a central banker. But what does an investor do when the boss, the minister, says something that could be read differently.
I do not think that the situation has arisen in the Indian economy today, Mr Mukherjee told an audience in Washington regarding inflows impacting the currency market. I dont think it is going to be too volatile. It has not distorted market sentiment and, therefore, there is no question of putting any curbs.
Subbarao is not alone in the club of the worried. Many countries such as South Korea and Mexico have taken measures such as taxing inflows to stem the tide, which some believe is hot money. Bank of Japan intervened to depreciate the yen against the US dollar after it touched a 13-year high, threatening its fragile recovery.
The Institute of International Finance has forecast a 30% increase in inflows into emerging markets this year at $825 billion.
Overseas investors have poured in a record $22 billion this year into Indian equities and $10 billion into debt as they chase higher yields, making Indian stocks and the currency best performers in Asia this month. However, the strengthening rupee is hurting exports, but making imports profitable. Also, the risk to financial markets, in case of a reversal, is growing.
The interest rate differential between advanced economies and EMEs (emerging market economies) have naturally triggered capital flows into EMEs, putting upward pressure on their currencies and complicating their macro-economic management, said Subbarao. We are back to facing the usual dilemma of managing the impossible trinity, he said, referring to managing currency, inflation and growth.

My Comments:
I remember very well that I have discussed about this policy of RBI then governor Mr.Y V Reddy is too defensive in curbing FII inflow.
At that time also when Mr YV Reddy was the governor he started taking steps for curbing the Inflow of overseas Institution I was against it.
When India needs more FDI and FII money why RBI is trying to curb it?That was a defensive step at that time.But unfortunately US Subprime crisis came out and that decision proved to be a boon instead a bane.
I argued at that time what if Sub prime Crisis would have not occured?Will that steps would be useful?
But with the debacle in US financial market, world analyst appluaded Y V Reddy's step for checking the FII inflow as after that there was a plight of FII taking out the money back and if more money had been come, there could have been more debacle.
World acknowledged Y V Reddy's steps for taking steps for trimming down the inflow at that time as that saved us from distructing the market more badly.
Now from the above news again the same debate has come to FORE.Present RBI governor Mr . Subbarao wants to check the inflow due to inflation and currency fluctuation etc and our FM Pranab says we need foreign inflows for economic growth.Let me write here that Mr Pranob Mukerji is no new to finance and he remained Fin Minister when late Indira Gandhi was PM.
So it is not so that Pranab Mukerji don't understand anything.After Manmohan Sigh the next best politician fit to be FM is none other then Pranob Mukerji.
These topic I discussed at other place as well at that time and wrote the same view that Y V Reddy's was defensive.We don't need defensive RBI governor.
Agreed that FII has pumped in huge money this year and that is why rupee is appreciating which is not good for exports like IT services, Textile export etc.
Subbarao says that these are hot money and they have a plight to fly at any time.Well if something bad comes even then they will sell in our market.
He says he is trying to check ST volatility while  trying to curb inflow but it is very hard to distinguish between hot money and LT money which are here to stay.
While doing that both will be affected and these step can boomrang.
Let us see what future unfolds from this.I am a keen observer of this play.But Pranab stands vindicates my stand that we need money for economic growth even with some bump......

Tuesday, October 12, 2010

How is market?

Market is not ready to give any respite to BEARS.A small correction of 300-400 comes and goes away.The bulls has taken excellent grip on market and not letting market to correct as per Bears wish.
This is clearly seen from the market movement.
I still feel the same reason which I wrote here recently , that some 70 more stocks are going to be added in Index which will bring down the P/E ratio of India much much lower then what it is now.
We have a P/E ratio of 21 now and with those stocks added to Index stocks the P/E ratio is deifnately going to come down and even by that time if market is at 22k or 23k then also it will look cheap and Bulls knows this and hence not letting market to correct.
It is a big game.Pulling the market or not letting to go down even after a big upmove from 18200 to 20600 almost 2400 points rally is a great achievement by bulls.
I wrote previously that market can come back to 5500 or 5600 (Nifty) but it seems that it should not go below 6000-5800.As much as the market will consolidate between 20k and 20600 the chances of 19500 or 19k will get lesser and lesser.
All the calculation of charts has gone haywire and nothing is happening according to them but whenever I happen to read chartist views , I always read that they said that market will come here and they have been proved 100% correct .Market has moved exactly as per what they wrote.I will not write more on charts and technicals.
Investors has to understand what is good for them and what is not.
Certain stocks will keep outperforming the market and that will keep on going on.
I have seen that readers keeps on asking me about whether a certain stock is still a buy or not?These are questions which are very hard to answer.That decision needs to be taken by readers.
I think I will keep one day, Sunday , for answering queries so that I will have not to read them daily.
I donno why investors do not buy stocks when they are cheap?
Now take a case of Surya Roshni.I gave a call in 30's and now it is making new highs of rs 117.65 yesterday .I very clearly wrote all reasons why I like Surya Roshni at that time and that is coming out true.
I gave a call on Supreme Petrochem at 25 range and wrote why I like it.Supreme Petro is also making new highs at rs 79.20 yesterday....
Latest was Rathi Steel at 21 and I gave all reasons for that .It also made a new high of 33 and has corrected.
I would like to know how many readers has bought all these shares?
Stocks don't start running as soon as I write it here.It takes time to mature.It takes time for market to discover its true worth.
I know I am not academically qualified to write things which others use to write.I have very limited parametres to look at and they are very simple to understand by lay investors.
What I explain is never hard to understand.It is very simple but still people are nor convinced then I can't do anything here.
Someone asked me about my latest pick, Arihant Super Strcuture that it's p/e is 117 then why I recomended it?What is the reason I recomended it?He says he wants to I can't teach here.This is not a tution class.P/E is not the only criteria to look at.
I have not to explain everything and keep doing that for ever.
The reason recomending Arihant was, there was growth.I have pasted those annoucement where it says that they had acquired lands in Maharashtra and Rajasthan etc.
They have just reverse merged  Arihant Structure with Shaktiman Mercantile and the name got changed.
The growth is still to come with merger of another 2 Cos with Arihant which also I pasted.
Now when I am doing everything to let readers know and even after that readers do not understand then what can I do?

I can't keep on explaining each and every points to each and everyone.
Many are just asking me about stocks whether that is a buy or not?They just wants my NOD.But that is also not possible for me to give. That will also be yours decision......

If I am not answering any queries then it means I don't wants to answer as I feel the query is not worth answering or I do not know anything about it.I will not reply "I do not track" next is that simple....

Sunday, October 10, 2010

Arihant Superstructure Ltd....cmp..Rs 76.50

Arihant Superstructure Ltd.I am tracking this one when I saw an open offer for Shaktiman Mercantile Ltd.
The trigger was in Shaktiman Mercantile was it has a very very tiny eq of 25 lacs.
So if one will go to annoucement at bse one can find out how Shaktiman Mercantile turned into Arihant Superstructure Ltd.
As the Eq was just 25 lacs means only 2.50 lacs shares they gave right at the ratio of 59:1.Means 59 shares for every 1 shares held.
But as the floating stock was very small, it went up and up from a low of rs 4.63 to rs 122.75 and after that the stock has corrected to this level.
The new management has merged their Co in Arihant Superstructure Ltd and thereby listed their Realty Co.

1)Acquisition of Subsidiary Companies:

Your Board is pleased to inform you, that the Company has acquired an investment in two companies, Arihant Abode Limited (AAL) and Arihant Vatika Realty Private Limited (AVRPL). Your company has a 60%  stake in both these Companies, making them subsidiaries of your Company.
AAL and AVRPL are in the business of realty and constructions. Acquiring these subsidiaries has opened up
new avenues for your Company in different areas within the Real Estate Sector. There has been no material
change in the nature of the business of the subsidiaries.

2)Annoucement at bse:

Arihant Superstructures Ltd has informed BSE that the Board of Directors of the Company at its meeting held on August 25, 2010, has transacted the following business:

1. Noted and approved the items passed by the executive committee of the Board.
2. Discussed a approved the purchase of approx 11.50 acres Land at Jodhpur, in the State of Rajasthan which is conveyed and registered in company's name. The project is planned for Group Residential Housing project of about 800 flats consisting 8.50 Lac sqft of salable area in Phase I.
3. Approved the recommendation of audit committee to make the Adeshwar Realty Pvt. Ltd. as wholly owned subsidiary of Arihant Superstructures Ltd. on the valuation as approved by the audit committee and Board members.
4. Noted the updates received from subsidiary - Arihant Abode Ltd that the Land of 18 acres is acquired & conveyed. Architectural planning is done & sent for Location approval to MMRDA, Maharashtra Govt. which consists of 28 storeyed 25 Buildings having 3080 flats, saleable area of approx 34 lac sqft.
5. Approved to take up more projects at Jodhpur in the State of Rajasthan n the form of Pubic Private Partnership and / or outright basis.

More information about the completed project,projects on hand and ongoing projects can be found from their website which is as under:

One can always explore more of what they wants to from reading the annoucement at bse and also reading the website or reading the AR which some good corporate governance Co put on bse site.Arihant Super has put their latest AR on bse website.
Now please don't ask me where it is......find out of your own.....I found it on my spoonfeeding please........
72% stake is held by promoters and 7% by private Corp is with public.....
Have a look at it, do DD  and if find good then buy it.........

Thursday, October 7, 2010

Nuvia to form JV with Punj Lloyd group co in n-power .......

MUMBAI: Nuvia India Pvt Ltd, a part of Nuvia, a French major providing engineering and technical support for the nuclear power sector is set to form 50:50 joint venture with a Punj Lloyd group company, PL Engineering, a top company official said. “Nuvia India and PL Engineering signed a Memorandum of Understanding (MoU) last week to form a 50:50 joint venture partnership to offer nuclear engineering and support services,” Nuvia India’s Managing Director, Mr Kenneth G Jackson, said here today.
The JV will focus initially on providing services to the growing Indian nuclear sector and will later look at the global market, Jackson said, adding that its target audience will be nuclear power companies.
Given the emphasis on accelerating the civil nuclear power program in India and the political encouragement on international collaboration, Nuvia has committed itself to establish a significant base in India in collaboration with the Punj Lloyd Group to offer its engineering and technical support services and range of specialist products to the global nuclear market. - PTI

My Comments:
This is what I read today in Hindubusiness Line on internet.
Well this says that Punj Llyod is coming in Nuclear Energy.Great news!Yup, great news for Punj Lloyd Group.But what about Punj Lloyd itslef?That joint venture is taking place between Punj Loyd gr and Nuvia Co of France,what stake holders of Punj Lloyd will get?
Nothing?It looks like shareholder of Punj Lloyd will get nothing .
I have seen in past that IVRCL , Simple Concrete and now Punj Lloyd and many others demerged the realty arm or Infra Structure arm of the Co and went for IPO.
That is rediculous.Is this Co taking care of shareholders value?Why can't they gives shares to stake holders and list them?If they will do like that then automatically the value and price will go up of that Co and Mcap will come up.
I don't know why promoters do not think in that way.They need to give shares FREE to Co shareholders and list it on brouses.
I think one should write to SEBI that if a new Co is demerged from the original Co then they have to give all the shares of that demerged Co  FREE to the shareholders.How a Co can demerge an arm from the Original Co and come out with IPO?
I have seen that when promoters sees that the Subsidiary is doing good they demerge it much early and then comes out with IPO! That is not a good corporate gorvernance.Promoters value the Sub much much less then the real value and after that orders and collobaration and joint ventures starts pouring in and that Co becomes a 1000 cr Mcap Co.
I think someone needs to do something about this.......
and BTW, I wrote here very clearly that Sesa Goa and Sterlite Ind will gain from the Cairns Energy takeover and we are seeing Sesa Goa going up.I donno what the analyst calculate the takeovers and how they come on to the conclusion like that giving negative rating for the takeover of another Co.They gave negative rating for Tisco on Corus takeover, they gave negative rating for Tata Motors on LandRover and Jaguar takeover and recently they gave negative rating for Sesa Goa and Strelite Ind and both stock price are moving up.
Well, in past it has happened that takeover misfired and Co went in for a very bad drubbing on brouses due to high cost of price for taking over like Subex Ltd when took over Azure , the move misfired and Subex went in of a pile of debts and to com out from that they went on alloting the Eq and the end result is Subex eq is as big as 58 cr.
But the outcome for takeovers are not always negative.I donno what they calculate and what statistcs they go through and give such negative reports......
I have written many times here that I do not like Co which have big eq.That is a hinderance for the Co when it has to expand the capacity and have to do QIP or Pref allotment.Even for giving Bonus if the eq is big the bonus ratio will be small .With smaller eq the Bonus ratio can be 1:1 or even biggger.

Wednesday, October 6, 2010

Sujana Towers and Ennore old call.....

What is happening in these 2 counters!
See, that is how it happens.I think in just 15 days to 1 months Sujana has moved from 50 to 129!That is market.Ennore Coke has closed at 144.
So, from my call for Ennore Coke 1 has come ahead of 42 means 142.I wrote recently many times, Ennore Coke looks good.
Sujana Towers after lots of consolidation for many months moved very very fast.That is how it happens in market.Stock stakes time to consolidate and then fires all cylinders.Sujana has taken all by surprise.The movement was very fast.It kept on moving up and up.It went up like a rocket givng no chance to buy.Those who sold to bookprofit in Sujana Towers lost the delivery .Those who thought let me BP at 90 as it has almost doubled, it went even much much higher then that letting the delivery sold out what ever left with small if someone wants to buy will he be able to buy at 129?Never....who will buy at 129!So the delivery is gone.....your holding in Sujana Towers has trimmed down.
Ennore Coke after moving to 95-100 range and retracing back to 80-85 consolidating for 2-3 months has started firing.When Haldia Coke and Chemical, the sub Co of Shri Ram EPC gr took over from Shriram EPC all its stake of 60% they did it at market rate and that was between 90-100.That was giving me the clue that Ennore Coke should not come down more and will move ahead anytime soon and that ultimately come true.I still like Ennore Coke beacause they are doubling the capacity of Wellman Coke and also Ennore Coke.
The thing which I like about Ennore Coke is the Eq is just 15 cr while Guj NRE Coke is 534 cr and the Mcap is more then double of sales in Guj NRE Coke while we can see in Ennore Coke the Mcap is still less then the sales.So Ennore Coke needs higher discounting then Guj NRE Coke.
Sujana Towers is one of my favourite stocks which I kept on recomending here time and again.
I have observed that my calls sometimes remains dorment for months or yrs togather but when they takeoff there is no looking back.
So patience is neccesary in market.Those who have no patience will be a loser here.
I am seeing YashRaj Containuer coming up as well.Today it was in UC at Rs 36.05.
Rathi Steel has also moved from my call at 21 to now at 29 andd long way to go........cheapest steal stock going abegging......

Sunday, October 3, 2010

Again going off topic.......

I am again going offtopic.I donno but something keep on coming in mind and that strikes when a discussion takes place about something that happened in past or when I try to analyse how things works for successful people who made name in history.After the discussion with friend gets over I try to think that what really happened and try to analyse it.
Well, we were talking about Hitler of Germany the creator of World War II.Well, one of my friend was talking that there are people still in USA who migarted from Germany still adores Hitler and they still believe that what Hilter was upto was right.They loves him.They respect him even after decades of his death.
The thought that came to my mind and was in discussion was who taught Hitler how to speak?Had anyone heard or seen him speaking?Go to Youtube and one can find that.
Hitler was not a charismatic figure and he came out from nowhere but still the whole Germany was believing him what he was speaking.Now who taught Hitler his oratery?
And hence the question comes , can oratery be taught?Can one develop it?Mesmerising people on speech , can anyone teach ?
There are many books written on how to give speeches and what words actually be used to make an impression on the crowd .There are many classes going on in everywhere.But the world has not craeted that much orater or CEO's.The top position is always empty.There is always space at TOP position anywhere in any institutuion. Can anyone make me aware that was there any classes that Hitler took to make him trained and impress the people?In 1930's can there be any such type of classes ?
Then again the question arises that then how Hitler or Gandhiji or Abraham Linclon were able to do that?
The conclusion that I have come to with is , it is not possible to learn it.It comes within yourself.It is there with you when you took birth.No one can teach certain things.You have got it with your birth.
The path  one has become successful can never be a path of someone else.He has to charter his own territory.He has to make his own way.His own way to be successful.
One can't learn from reading someone's autobiography or his life.It is impossible to imbibe anyone and become successful.It is futile to tell someone about your sucess and tell him to follow you and become successful.That is senseless thinking.What is good for one can't be always good for other.That is a very simple equation.
Most of the readers must have read many thing about great man.Maybe that must have come while studying in  school or college .Many remember it even now what they learnt about the big people but how many can recall and put it in practise and become successful.See, if we look at that, then we all know that it is not possible to do that.Everyone has different situation to deal with.Everyone has different temprament to deal with.
And that is the reason , why Warren Buffet success is not repeatable.The stock price of Berkshire Hathway is $1,23,914.00 ....that is the highest price any stock in any market is getting.
That is unachievable.No one can beat it.
There are lots of books written by Warren Buffet himself.Lots of things written on Buffet but we are still to see the NEXT Buffet.How come that?
Buffet has explained everything what he does while picking up a stock.His ideas are public.Everyone knows how he pick stocks.Then why we are not having second Buffet?He is writing since decades how he deals in stock market and since decades we haven't got yet another Buffet.
Because everyone has not got the same temprament of Buffet.Everyone has not got the same vision that Buffets possess.Everyone has not got the same conviction that Buffet has got.Everyone has not got the same risk apitite that Buffet has got.
Every year IIM and IIT of India gives 100's of gradutaes.Every year Harvard Uni and other reputed Uni gives 100's of gradudates and these are TOP class schools.They are taught everything there.Then why there is a debacle like Lehman Br?Why there is a bankrupcy in GM or FORD?Why there should be Sub Prime housing debacle?Weren't these guys intelligent?
The simple thing one must understand here is that nothing repeats in market.Everytime maket has different situation to deal with.The saying that "history repeats" is not correct.If it is so then market should never go up and make a new high.If something is repeated then there should always be a way to deal with but we see that it doesn't happen.
Coming back to , can anyone learn going to classes about public speaking?Can anyone be successful by doing that.Yes,one can see a difference but that can be 10-15% .One can improve by that much and never more then that.Any improvement if one is observing more then 10-15% then it is something else.

If that was so, then why not all students gets same marks in exam as the teacher was same?Yes someone can argue that those who didn't get same marks like other did was because they were not attentive.Agreed but that is also not the case 100%, because some were attentive but they have less memory power.We have seen many people have excellent memory power and that we can see with even not a big person.
So it all depends on what and how and when something is coming out from WITHIN.