Monday, January 31, 2011

Siemens bids $1.36 billion to increase stake in Indian subsidiary............

The Associated Press, On Monday January 31, 2011, 6:16 am EST

By The Associated Press

BERLIN - Germany's Siemens AG says it launches an offer valued at €1 billion ($1.36 billion) to increase its stake in its publicly listed Indian subsidiary Siemens Ltd. from currently 55 per cent to 75 per cent.
The company said Monday it plans to expand its stake in a bid to strengthen its business in India.
The industrial conglomerate, based in Munich, said it will offer shareholders of Siemens Ltd. 930 rupees ($20.30) per share, 28 per cent above Friday's closing price of 728 rupees.
It said the offer is expected to open on March 25 pending regulatory approvals, and is scheduled to close on April 13, 2011.
Siemens Ltd. posted a revenue of about 90 billion rupees in its fiscal year 2010 and saw an operational profit of about 12 billion rupees — then about $150 million.

My Comments:
I have been constantly recomending Seimens Ltd here since it was around 500.I have almost never left it in any of my call on A gr and has always put as an evergreen stock to hold for LT.
The above news confirms that Seimens wants to strengthen the stake to move forward with doing more business in India.
Seimens wants to increase the stake at 28% over the prevailing market price .That is excellent news for those holding the shares.
Seimens, ABB, Areva, Alsthom, L&T, Ril Ind,Thermax, Sesa Goa are such Cos where one can never go wrong.
Just imagine when chips are down Seimens is ready to pay 28% forward premium to up its stake and one have to just assume what they are thinking of making this Co......

18500 what?

I wrote here that 18500 is a good support and that shouldn't be broken but market broke that and hence I feel we can still go below 18k to somewhere around 17k.
The best way now from hereon would be to stay away from the market.Don't do anything.Just hold what you are holding and maybe around 17k buy more to average it if one feel the fundamentals are still the same.
Inflation,Swiss Money, Black Money, Money Laundering and taken away to London and from there transferred to somewhere else , Oil going up has taken toll on the market and hence market is in downtrrend but let me say here that the trend has not changed.
We are still in Bull run and no way we can again come back to the level we saw in Oct 2008.8k.
As soon as the p/e will contract, we will become cheaper and again then money will start flowing in.
The theory doing round in market is FII are selling because USA economy is coming back to normal and so FII are selling here to invest in US.That view I do not concur with as there is ample liquidity in USA itself with QE2 of another $600 bn coming in from FED.QE is quantitative easing, Quantitative easing (QE) is a monetary policy used by some central banks to increase the supply of money by increasing the excess reserves of the banking system.
So I don't feel that there would a a outflow of FII money.No way India's growth can be ignored by the world.
These type of corrections gives us a chance to buy at lower levels.Grab the oppertunity.Well, some of my stocks are still trading above the my recomded price such as Spanco, Sujana Towers,SNL Bearing ,Cronimet Alloy, Srei Infra etc etc....and I feel that if these stocks still goes down then that will be an excellent oppertunity to buy them.
Invest for 2-3 yrs.Don't see the prices daily.That will disturb you.Correction comes and go.We need to digest it.Learn to digest it.There can be no quick money in stock market.
Well, I have written that we can touch 17k and I may prove wrong and may happen that we never touch that or it may even happen that we may touch 16k.No one knows what is going to happen and when market will take the U turn.
That is why I rarely predict the market course.Let us see what happens next week.The sentiment is weak and in near term I am seeing no ray of hope or news that can turn the sentiment to positive.Normalcy will take time.
Government needs to take measures to tame the inflation and that can only be done if supply comes and not by raising the Interest raising the int rate , and thus quzzing the liquidity will have no effect because the real problem is scarcity of products, agri product.
RBI governor has confirmed that rasing Int rate has not worked.I am no economics guy and I know little about economy.What I am able to write is I read and that is why I understand it.I donno why Int rate is increased to tame the inflation?There is a big question mark why Subbarao took such decision?
When the demand is high and there has been artificial quiz of supply while we read that commodities has been locked in storage rooms so that supply becomes dry then what is the use to increasing the Int rate?
Is RBI thinking that due to excess liquidity there is Inflation? is not....the reason is somewhere else which I discussed above.
Looks like Congress government has totally failed in taming the Inflation which is artificiallty made,failed in 2G Scams where government lost huge huge revenue then CWG,then money going to London and then transferred to somewhere else.........

Saturday, January 29, 2011

Rakesh Jhunjhunwala Latest....RD -360

Life is a game and all you have to do is to know how to play it. No one has played the investing game better or bigger than Rakesh Jhunjhunwala, Partner, Rare Enterprises. He has parlayed a few thousand dollars into a few billion dollars. He lives his life king size.
In an candid chat with financial expert Ramesh Damani in a CNBC-TV18's special RD 360, stock market veteran Jhunjhunwala advises looking into stocks that are not very popular. "Never in my life have I not made an investment because the stock is not popular. In fact I like to make the investment when the stock is not popular."

Here is a verbatim transcript of his interview. Also watch the accompanying video.

Q: Your life in the stock market is over 25 years and there is the trading side of you and there is the investing side of you. There is the general philosophy. Let us start with the trading part of you because a lot of people know that you are a very active trader and you love trading markets always, right?
A: Like wives they are always right. With wives you can argue but with markets you can’t.
Q: And you can never win
A: With wives you can never win but with markets you can, if you accept that market is always right. Because after all everybody has an opinion. RK Laxman made a caption that there is a difference of opinion which makes racing interesting. You say A horse will win while someone bets on B horse, so all have opinions about markets. And we place our stakes based on our opinions but finally markets determines.
Q: But markets do things in excesses? Markets get a lot of things wrong, so what explains the markets always right?
A: If you read the book ‘George Soros’ he earned a billion dollars against the pound. What he said was when the European Monetary Union was made, he realised that this will not last. In order to align the currency within a value, you have to have a common monetary and fiscal policy. He knew that the Germans do not believe in God but they believe in the Bundus Bank. So, the Bundus Bank would not agree to align the fiscal and monetary policy or Germany with the fiscal and monetary policy of intent.
So, he knew this was not going to last but he said you have to time it you have to wait for it. Markets make excesses but those excesses come to an end. In 1991 we knew that money is coming irrelative from somewhere but do not know from where. The valuations are all humbug, they have to end. But while it was rising you have to participate and I participated. But the moment you know it is going to come to an end and the market would indicate- volumes would taper off.
Q: Understanding that is important?
A: Markets make excess. You have to judge how long will that excess last and when will it end.
Q: As Keynes says markets can remain irrational the longer than you can remain solvent?
A: Absolutely. So the question is ‘markets are right, they are going to make excesses and in those excess lays opportunities’. We got to judge when those excesses are going to end and we will try and make money both ways. Going long, going short, going short, going long.
Q: Why not? I think I got to know you in the 1990s in the ring of the old Bombay Stock Exchange and 20 years since then there is one maxim that stands out about you is that you have said it in numerous parties, bars and in the ring. I would say it and translate it in English it says ‘vadhere vadhare levanu vadhare vadhare beichavanu’- that means buy as the market is rising sell as the market is falling. What is the wisdom in that and how do you use it?
A: I do no think for a good trader we do not initiate more than 40% of trades which are white. Say I am bullish on XYZ stock I buy that stock – if it goes up it is an indication of the fact that I am right. We do what is called as pyramiding. I buy a stock at Rs 100, I buy more at Rs 105, I buy more at Rs 110 so what are markets, what it is trading? It is basically momentum, so you play momentum. If the market is rising ‘vadhere vadhare’ its momentum is upwards. You buy on the rise, if markets are going down, you sell on the fall. This I do not mind I do not indicate in long term trends, medium term and short term trends. This applies to short term trends, medium term trends and long term trends.
Q: So you should never average a losing trading position?
A: Well at our own cost. At least I never do it.
Q: That is a huge mistake, isn’t it?
A: Unless and until we believe suppose I buy a stock at Rs 90 and I feel it is going to have a big upside and if the fall is 4-5% I might average.
Q: Temporary?
A: As a rule in trading I will never ever average.
Q: Are you then saying then that a good trader should have this highest position outstanding at the highest price?
A: Absolutely, why not, who knows what is the highest price.
Q: It is counter intuitive though, isn’t it?
A: That is why out of one million traders only 90-100 make money.
Q: What would you look for?
A: I would look for broad direction, don’t try to be an expert or predict every move, every hour, every day. Take a loss, know what to stake. I think I feel confident to trade anywhere in the world or what you need to have is a broad direction of the trend and very broad ideas. Don’t try to be an expert in it, know what to stake and when to take a loss.
Q: Most people cannot hold on to taking profits, isn’t that the big problem?

A: It is a problem but who knows – I don’t know I watch on this TV, the targets. What are the targets, who can predict anything? When I buy a stock that comes a level which I also feel that the price is unreasonable but at that moment I am alert that unreasonableness has to be combined with technical weakness then is only the move exhausted.

Q: That means the lower, poor volumes, barred price action etc, things like that?
A: Absolutely. General trend and then the general belief of just believe in the market, just go up, there is no tomorrow.
Q: Please don’t go to the sky. There is other thing that all good traders always pronounce is know how to take a loss, why is that so important?
A: Because nobody can predict momentum, it can turn, we never know all big moves start with small moves and therefore the price is the first indicator of what is coming.
Q: Give me an example of something that you parlayed up into a great trade, not investing but trading. Go back to the ACC days.
A: I think the greatest trade I made in my life was between 1989 and 1992.
Q: During the Harshad Mehta bull run?
A: Yes, because I first earned on the budget, everyone was so bearish, I made money. We made money right at the point, we sold nearly at the top then we shorted the market during the Gulf war then we cut at the bottom. Then when Manmohan Singh became the Finance Minister, we bought lot of stocks.
Q: I remember that Budget day, you were aggressively buying.
A: Right, and then we slowed it upto 2,800-2,900 then we went short once, we lost money, I cut my losses and I remember I was short 15,000 shares of ACC and at 4o’clock in the afternoon Saturday, I called my broker and I said, “Whatever be the price and whatever be the cost, at 6o’clock I want to 15,000 shares covered” and then at Rs 3,000 I was long. So, that is why I say you have to lose many a battles to win a war.
Q: That lesson came back in various ways to you in 2001, didn’t it? You had turned wildly bullish on the market and the market was not supporting that point of view?
A: I was wildly bullish only on the investment side. I don’t carry generally more than 2-5% leverage, I carried 35% leverage in my investment and I carried it for 12 months but in my trading positions, I always trade with price. If I would do a trade, so long my XYZ stock is at Rs 100 and it goes to Rs 120 and I buy more, no worry, by the time it will be Rs 90, we will all squared off. I cannot see it, I cannot eat, I get such uneasy and sometimes in the markets again we are uneasy till 9.15am and at 9.45am it is squared off, fine.
Q: Tell us another trading stock or position that worked for you or didn’t work for you and why it didn’t work for you?
A: I think in 2003, I started buying Tata Motors at Rs 240. At Rs 375, I had a position of 2 million shares and at Rs 340 I squared off everything. It was a great trade, I made a lot of money in just two months just in Tata Motors, that was a great trade.
Q: The maxim that the big money has made a big swing, is that true for trading?
A: Absolutely. In my case also I have owned money in trading – it is not that every year I made money. I made it in spurts and I have made it in certain periods, 1989 to 1992, 2003 to 2007, 2009-2010 and 2010-2011 has been a good year. So I have made it in spurts. 1994 to 1999 I wouldn’t have made any trading income.
Q: The idea is always as you said – when the ion is hot, strike.
A: Absolutely.
Q: Don’t try to make Rs 50,000 a day.
A: We are not earning and trading by employing billions of dollars in trading. My net capital employed in trading is Rs 1 lakh. So if I earn even Rs 1 crore, I cannot imagine the return on equity because everything else is borrowed and I pay interest on it. So my real capital of my partnership is always Rs 1 lakh.
Q: That is interesting, so it is pure leverage.
A: Pure leverage, I put mine and my wife’s assets and borrow money and I use that.
Q: Let us talk about your investment career and I have addressed many press conference, investors meet with you and the one thing that always gets response with audience is when you say ‘if the girl is pretty, the suitor will come’, agar ladki acchi hai, koi na koi aa hi jayega, explain that philosophy underlying there.
A: I and you were so much bullish in the public sector stocks, right? Now people ignore them. So, if a company is good, why will buyers not come? Everybody wants to make money in the market, it is only a thing that suppose sometimes we are lucky to recognize opportunities ahead of the market, even if recognition is right why will the buyers not come? Never in my life have I bought or made an investment because the stock is not popular. Infact, I like to make the investment when the stock is not popular.
Q: You get it cheaper.
A: Imagine a VIP was Rs 65 fifteen months ago and today VIP is Rs 650. Why there was no buyer at Rs 65, today there are buyers at Rs 650. So that maxim is proved. The only thing you have to do is choose the right company.
Q: Choose the pretty girl?
A: Choose the pretty girl.
Q: Give me some more examples in your career when you had so many great stocks Titan and Praj to name a few. Give me an example of where you felt the girl was pretty and the market for whatever reason called it an ugly duckling.
A:Lupin. When I invested in Lupin, there was so much doubt. For that matter nobody recognized Praj and Titan. Titan was in one hell of a jam, their debt was atleast ten times the marketcap and they were in serious trouble. But by God’s grace, the companies worked out.
Q: But what made you think that Titan was the pretty girl?
A: Because my basic call in my investing is on India’s macro and I thought India is going to have a huge consumer market. I think Titan itself is surprised by the kind of opportunity they are seeing. I thought Titan is well entrenched, nobody could come in the watch business; they are a very good marketing company.
I thought branding business in jewellery will eventually succeed and remember one thing, my investment strategy is a entry value, a constant review and a perceived exit value, which changes with every review. So, it is not that I and you have an investment in Titan, I invest in Titan at Rs 32-33. I thought it would have a price of Rs 200-215 in five years, ofcourse now about eight years have passed, I never thought that the shares will be in four figures but once I interacted, I invested, in six months I had an opinion that this stock will go to four figures and I bought upto Rs 150-160 and I could not envisage the Titan of today.
Q: What does your review tell you about Titan today?
A: I think valuations are not cheap but the opportunity is large. I think it is a unique company in India, I don’t know if any company in India where both its principle businesses and its competitor is 10% its size. A lot of people tell me that jewellery business margins are low, I said that is why I like the business. I think there is humongous entry barriers, there is a passion in the company, there is a dream in the company to be very big and there are extreme opportunity, nobody never bought Fast Track – I think the most exciting thing that I find about Titan is not Tanishq but Fast Track. It is India’s biggest youth brand. If you look at the potential market, if you look at the marketing skills, it is unbelievable.
Q: 50% of the population is below 21 years of age. The other maxim that goes hand in hand with this is which you have said ‘it is not what you buy – what you buy is ofcourse important but the price at which you buy is more important’.

A: I will give you two examples. HUL, the ultimate blue chip in 1992 when index was 4,200, the price of HUL was Rs 17-18. In 2001 September, it was Rs 329 when the index was 2,900. I think in 2005 if I am not wrong, the price was Rs 148 when the index was 6,000 and today also the price is not crossed Rs 329.

So you might have bought HUL the chips of blue chips – which after nine years we have got no returns.
Q: But you paid the wrong price.
A: Right. Look at United Breweries, I think both of us bought together at the price of Rs 15-17, people warned you are buying Mr Mallya’s company, you will not earn anything. I calculate for Rs 100 crore marektcap, you are getting 60% of India’s liquor industry. I made all the money there. So, I think it is important what you buy, it is more important what price you buy.
Q: There is no substitute for buying cheap, is there?
A: Is there a substitute for a pretty girl?
Q: Clearly not.
A: The prettiest part of the stock is that it has to be cheap – the entry point.
Q: You are not a cynical guy, you are an optimistic guy and that is what investors should be.
A: I think we are living in optimistic times and I think I tell everybody the first quality to invest in India is to be an optimist otherwise the RBI bonds are always there for you.
Q: More than 25 years career in the stock market, many ups and downs, many booms and bursts, has any maxim changed. You don’t believe in it anymore or anyone that has been reinforced by, has the wisdom stood out or something you realised is just not true?
A: I think the best quality that I carry in my profession is my ability to observe, imbibe and learn and that has given me a sea change. My risk appetite as an investor has come down dramatically. I still have a very high risk appetite comparatively but it has come down dramatically. Radha Krishan Damni will give importance to what is present and most likely rather than what is in the future but will give a great return. So, I was always giving very great important to what is in the future but now I am tempering that – time is tempering it.
Q: To explain it in ordinary terms, you would rather buy a stock after the oil has been struck by the company rather when the prospects have been struck.
A: Right, unless and until the valuations are too compelling. I would like to invest with lower risk. Suppose I invested in two-three software product companies, all went dud. I lost my money, yesterday one company came to me, I didn’t invest, I told them, “these are great ideas but to mass these ideas will take 10 years. I don’t want the returns by the time my children are grown up” and I refused to invest.
Q: Is investing the key maxim, we always talk in business school atleast about low risk-low reward, high risk-high reward, isn’t the correct maxim then low risk-high reward?
A: If you can find it. I don’t think it is high risk-high reward for the simple reason that the highest risk is in lottery. You don’t get the higher returns there. Remember one thing that even in my investing career, I have made 10-12-15 good decisions and I think there was a very big role of God and his grace in doing that. I don’t know one day Dhaki called me and said that there are half a million shares of Titan available and I had no inkling to buy Titan but when you offer it, I bought it and then the whole story started.
Q: Invest first, investigate later?
A: Yes, because I thought at that valuation Rs 140 crorewas marketcap. Ofcourse debt was 140 crore.
Q: That is hard to believe, you actually did, you actually invested and then you investigated in Titan?
A: Absolutely. After that I bought 1.25 million shares then I met the management. But the day I met the management, I predicted that night that this price will go to Rs 1,000 and then I started buying further.
Q: Is that a good maxim to follow that you first invest and then investigate, have a monetary interest in what you are doing?
A: No, the valuation should be so compelling, the girl should be so pretty that you think of the consequences later, you first start dating her. The stock should be such that at this valuation let us just buy.
Q: Lot of famous investors say, don’t do a top-down investing, don’t do a macro-investing, do you do any of that?
A: I don’t know macro-investing. My macro call is India. My portfolio has one software company, BPO company, otherwise all my companies are 98% Indiacentric. So, my basic macro call is India. If India doesn’t grow 9-10%, Titan’s sell cannot grow at the price at which it is growing. So, the call is India.

Wednesday, January 26, 2011

Kemrock Ind....CMP..Rs.522.95....A value BUY

Well Friends,
I have been tracking this stock since long and I know this is an excellent Co where one should invest but I was waiting for some more triggers to give me more confidence to write here.
Recently I read that they signed an MOU with HAL, a government of India Enterprise and that has inspired me to give a call here.
I am pasting the whole text that I have saved in my computer for my readers to read and some other joint venture Kemrock has taken as well.
Promoters are constantly buying from the market and increasing the stake which is another good sign for giving the call.

Read on:
1)Kemrock & HAL signed an MOU for formation of a joint venture company in India to develop and manufacture aerospace grade carbon fiber pre-pregs.

On November 15, 2010, KEMROCK INDUSTRIES AND EXPORTS LIMITED (Kemrock), Vadodara, and HINDUSTAN AERONAUTICS LIMITED (HAL), Bangalore, have signed a Memorandum of Understanding (MoU) to form a joint venture company in India to develop and manufacture the aerospace grade carbon fiber pre-pregs along with its associated pre-pregs for the defense and aerospace programmes in India, and to market and distribute the aerospace grade carbon fiber pre-pregs thus produced. Kemrock and HAL together have identified opportunities for development and marketing of aerospace grade Carbon Fiber Pre-pregs, which has immense potential in aerospace and defense programmes in India as well as globally.

About HAL

Hindustan Aeronautics Limited (HAL) is a leading Indian aeronautical company with operations including design, development, manufacture, and maintenance of aircraft, helicopters and their related power plants, accessories, systems & equipment. With 19 production units and 10 research & design centers in eight locations in India, the company has an impressive track record including 14 types of aircraft manufactured with in-house R&D and 14 produced under licence.

The largest defence PSU, Hindustan Aeronautics Limited (HAL) has served the Indian Defence forces for over six decades and has positioned itself as a comprehensive solution provider to the Indian Defence Services in aviation by contributing to their modernization efforts through aircraft/helicopter production of various types and technology base.

HAL has now diversified into aerospace related fields, with its aero-space division supplying critical components, structural assemblies and tankages for various launch vehicles and satellites of Indian Space Research Organisation (ISRO). Moving a step towards customer satisfaction, HAL plans to provide seamless maintenance support, encompassing first and second line support, for aircraft and helicopters at customer bases. Visit web site

About Kemrock

Kemrock is a leading company in India, engaged in the manufacture of FRP and Composite products; and has set up a Carbon Fiber manufacturing facility at Vadodara, Gujarat, having obtained technology from CSIR-NAL. Kemrock, a leader in the field of FRP/GRP composites delivers standard as well as customized solutions that are ideal replacements for conventional materials. The state-of-the-art facility located close to Vadodara provides high-quality engineered advanced composite solutions.

The company’s product range comprises of carbon fiber, windmill blades & nacelle covers, railway interiors/exteriors, telecom towers, pultruded profiles, pipes and many more FRP/ GRP composite products.

2)Kemrock Ltd

On November 01, 2010, DSM Composite Resins AG, Switzerland, and Kemrock Industries and Exports Ltd., a leading Indian manufacturer of Reinforced polymer composites signed a Memorandum of Understanding (MoU) to form a JV (51:49) for manufacturing of Unsaturated Polyester and Vinyl Ester Speciality Resins in India. Through the alliance with DSM, Kemrock will be able to fortify its expertise in Composite manufacturing and align it to global standards. DSM, one of the leading Composite Resins providers in the world, will strengthen its presence in India and leverage its depth of technological knowledge and global customer relationships. Both partners will utilize and leverage each other’s strengths to provide specialized resin solutions to the fast growing Indian market.

About DSM Composite Resins

DSM Composite Resins is part of DSM Resins - a group within the Performance Materials cluster of DSM - and is the largest producer of structural resins in Europe and a technology leader in resins for the composites industry. The company is expanding globally, especially in China and India, targeting high added-value segments. Customers are supported via dedicated Centers of Excellence and served either directly or via its Euroresins distribution network. DSM can claim unique competencies throughout the composites value chain. For more information visit the DSM Composite Resins website:

About DSM – the Life Sciences and Materials Sciences Company

Royal DSM N.V. creates solutions that nourish, protect and improve performance. Its end markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing. DSM manages its business with a focus on the triple bottom line of economic performance,

environmental quality and social responsibility, which it pursues simultaneously and in parallel. DSM has annual net sales of about €8 billion and employs some 22,700 people worldwide. The company is headquartered in the Netherlands, with locations on five continents. DSM is listed on Euronext Amsterdam. More information:

About Kemrock Industries and Exports Ltd

Kemrock, a leader in the field of FRP/GRP composites in India, delivers standard as well as customized solutions that are ideal replacements for conventional materials. The state-of-the-art facility located close to Vadodara in the western part of India provides high-quality engineered advanced composite solutions.

The company’s product range comprises of carbon fiber, windmill blades & nacelle covers, railway interiors/exteriors, telecom towers, pultruded profiles, pipes and many more FRP/ GRP composite products. The company’s securities are listed on the Bombay Stock Exchange, National Stock Exchange and Luxembourg Stock Exchange.


a JV with KEMROCK Industries and Exports Limited
SAERTEX-KEMROCK to manufacture structural components for global aeronautical industry
Mumbai, October 15, 2009: SAERTEX, the world leader in non-crimp glass, carbon and aramide fabrics, plans to set up a 50:50 Joint Venture company in India with KEMROCK Industries and Exports Limited, Vadodara, Gujarat; and accordingly, an MOU has been entered into by and between SAERTEX and KEMROCK to form the JV.
The joint venture to be named as SAERTEX-KEMROCK INDIA LIMITED, will set up a new facility for producing various components for Indian and global aeronautical industry.
KEMROCK Industries and Exports Limited, a publicly listed company, is India's largest composite manufacturing and exports company with state of the art facility in Vadodara, Gujarat. Kemrock is capable to manufacture various composite products like Wind Mill Blades, GRP / FRP Pipes, Moulded and Pultruded Gratings, Varieties of customized mouldings and Polymers like Epoxy, Polyester and Phenolic. It also posses strong Design and Testing facilities.
Announcing the joint venture, Dr. P K C Bose, Managing Director and CEO, SAERTEX India said, proposed “SAERTEX-KEMROCK India Limited would be the first facility outside Germany set up by SAERTEX to produce high-end carbon composite components for aeronautical applications. Overall it is the second facility to be set up by SAERTEX in India. KEMROCK is an ideal partner for us due to its cutting edge expertise in composite manufacturing and strong Indian operations.”

Kalpesh Patel, Chairman & Managing Director, KEMROCK Industries and Exports Limited said, “KEMROCK has a vision to set up a well flourished Global “Composite Village” in India. The joint venture with SAERTEX is part of our vision to partner with global leaders in design, development and manufacturing of niche technologies specially on carbon fiber based aeronautical components.”
SAERTEX-KEMROCK INDIA LIMITED facility will be located in Vadodara, Gujarat. The facility is expected to be commissioned in mid 2010. SAERTEX has close association with most of the aircraft manufacturers in the world and KEMROCK has strong manufacturing capability which is the ideal combination for such major projects.


SAERTEX is a German Multinational Corporation established in 1982 and is the world leader in glass, carbon and aramide fabrics with manufacturing bases in nine strategic locations around the world. SAERTEX India, located in Pune, is 100% owned by SAERTEX Group, Germany. SAERTEX India was established in 2006 and is currently the market leader in India for glass fibre fabrics mainly used for wind mill blade manufacturing, automotive and other industrial applications. Please refer for more information.

Monday, January 24, 2011

Some revealation that I got for Madam Sonia Gandhi.....which is very disgusting to read....

One of my friend gave me the link of Wikipedia of Madam Sonia Gandhi and when I read it I am shocked to read it.
What to say when a website like Wikipedia says like that..............that clearly shows that what I was assuming came out 100% correct.
PM Mr.Manmohan Singh was trying to save Madam Sonia Gandhi and with that many others are saved......

I am pasting some part which one can read and then the link of Wikpidia when one can read directly from the source.
And that was what Lawyer Ram Jethmalaini was quoting at......but he forget to quote the correct figure which is now $9 $18 bn..which is 45,000 cr to 90,000 cr...which is just one figure of one politician.
I know there will be many arguements that these are not the money transferred from India.The origin is not of India etc etc....but I don't think Madam Soinia Gandhi has inherited such a big property from her parents or any relative.It is bound to be India's money.....and now one can understand that why A Raja is having no problem early after the 2G scam broke out.
Looks like A Raja also gave hefty amounts to Madam Sonia Gandhi as is all a coeitre and nexus of politicians......
What to talk of Ketan Parekh and Harshad Mehta or Sanjay Dangi! Jisko pakadna hai usko pakdo......

"Swiss accountsSwiss magazine Schweizer Illustrierte in 1991 claimed that she was controlling accounts worth $2.2 billion in her minor son's name.[34][35] Recent reports have calculated her financial net worth to be anywhere between $9.41 billion (Rs 42,345 crore) to $18.66 billion (Rs 83,900 crore). [36]

Harvard scholar Yevgenia Albats cited KGB correspondence about payments to Rajiv Gandhi and his family, which had been arranged by Viktor Chebrikov,[37] which shows that KGB chief Viktor Chebrikov sought in writing an "authorization to make payments in U.S. dollars to the family members of Rajiv Gandhi, namely Sonia Gandhi, Rahul Gandhi and Paola Maino, mother of Sonia Gandhi" from the CPSU in December 1985. Payments were authorized by a resolution, CPSU/CC/No 11228/3 dated 20 December 1985; and endorsed by the USSR Council of Ministers in Directive No 2633/Rs dated 20 December 1985. These payments had been coming since 1971, as payments received by Sonia Gandhi's family and "have been audited in CPSU/CC resolution No 11187/22 OP dated 10/12/1984.[38] In 1992 the media confronted the Russian government with the Albats disclosure. The Russian government confirmed the veracity of the disclosure and defended it as necessary for "Soviet ideological interest."[37]
In 2008 her party appointed Prime Minister Manmohan Singh. Singh was the only international leader to initially refuse data provided by the German authorities during 2008( this says all) Liechtenstein tax affair.[39][40]
This controversy had risen in the wake of the 2006 Swiss Banking Association report.

Madam Sonia Gandhi,YOU NEED TO COME OUT CLEAN HERE.India highest authority of judiciary,SUPREME COURT, is asking for NAMES OF PERSON WHO HAS SWISS BANK ACCOUNT AND  Madam Sonia Gandhi should come out first to show that she is nowhere in that list..............

And the thing to note here is, not a single MEDIA channel is talking about this wikipidia link........these channals will diggin everything for a simple layman wrong doing but not of any TOP political honcos......very very sad to SEE that.......
Ms Sucheta Dalal, You need to find some scams of Politicians as well instead of roaming around for finding scams of stock market which are very very BIGGER then Harshad Mehta or Ketan Parekh......Ms Dalal your circumference needs to be widened.......that is the urge of the poor people of INDIA........Will you please do that for them?Will you oblige to their PLEA?

Saturday, January 22, 2011

Lifetime Chance for Congress(Sonia Gandhi) to show that they are for the Country......

..Swiss govt ready to return money, UPA not responding : Kumar

PTI – Fri, Jan 21 8:34 PM IST

..Dharamsala, Jan 21 (PTI) BJP vice president Shanta Kumar today claimed that Switzerland government is ready to return black money stashed away in Swiss banks to India and accused the UPA of lacking the willingness to act on the issue.

Quoting Swiss representative to UN General Assembly to support his claim, Kumar said the official had stated this in October last year during a debate which he had also attended as a member of the Indian contingent.
"Swiss representative to UN General Assembly Session Mithayas Batchman had said during a debate on corruption and black money in foreign banks that Switzerland government is ready to give back the money stashed away in Swiss banks but the return of money depends entirely on the will of the concerned country," the BJP leader said.
The Swiss government has already started paying back the black money to some of the countries, he said quoting Batchman.
Claiming that the Swiss government has also conveyed to the Indian government its readiness to send back such money, the BJP vice-president accused the UPA government of not moving forward to fulfil the required formalities in this regard.
"It shows that our government is not willing to act on the issue," Kumar said.
Charging Prime Minister Manmohan Singh with "misleading" the people by saying that it was a matter of tax evasion of Rs 40,000 crore only, he said around Rs 70 lack crore of black money is stashed away in Swiss banks alone.
He said that around 2000 lack crore of money was looted from India to be deposited in banks abroad since 1947.
He said if the government doesn''t act fast in this regard the Indian account holders shall re-circulate the same.
Himachal Chief Minister P K Dhumal added that this black money is much more than the total amount of all the budgets of the country since independence.
He said if this money is taken back, India will not only become free from the burden of debts but also emerge as a super power.
Claiming that the USA sued Switzerland on this issue and got 800 million dollars as fine and its money back in an out of court settlement, Dhumal questioned what was preventing Indian government from doing so.

My Comments:
It is very clear that PM is trying to save top honcos of congress from the Swiss unaccountable money.Otherwise when Supreme Court ask PM why India should not declare the name of people who have black money, why Manmohan singh has to say that he cannot?
When Supreme Court is asking for the name who has money in SWISS bank that means that declaring the name is not illigal and in National Interest.......
What is stopping PM to come out with the names?Is he giving time to people to transfer their money to somewhere else?
What national interest PM is talking while saying that these are things which government can't put in public?Dear PM,SC itself is asking for the names.........
Somewhere in the above text Dr.Manmohan singh says that the amt is just Rs 40,000 cr for tax evading......Well, what does it mean?Those who put the money outside earned that much ?I don't believe it.It is all bribe money and if we find it out whose money are they then we will be able to see that mostly it should be of politicians and looking at the salary of politicians I don't feel that any politician could have saved that much money and as they didn't want to pay tax so transferred to SWISS bank and in that case these BRIBE money should come back 100% in the exchequer of Indian Government and bythen to the poor people of India.That is peoples money as Supreme Court has rightly said.....these are not earned money ...these are BRIBED MONEY......I have no doubt that 80-90% money should be in the name of Politicians or their relatives.....
I think that no way one can prove that Rs.40,000 cr are earned money and only Tax needs to apply for that!And it is actually not Rs40,000 cr is much much bigger......but even if we believe Dr.Manmohan Singh, Rs 40,000 cr , all bribed money will straight come in the kitty of government and that will do whole load of good to the economy....these are not earned money.....if Income Tax office try to find and ask about the sources , I don't think any person can give the account of Rs.40,000 cr ........

And I got this from one of my friend:

The only place in India where food is cheap.....

Tea Rs.1.00

Soup Rs.5.50

Dal Rs.1.50

Meals Rs.2.00

Chappathi Rs.1.00

Chicken Rs.24.50

Dosa Rs.4.00

Veg Briyani Rs.8.00

Fish Rs.13.00

This is actual price list. These items are meant for "POOR PEOPLE" & is available at Indian Parliament Canteen. The salary of those poor people is Rs.80000 per Month!! PLUS HEFTY BONUS IN SCAMS....
So the most poorest Indians are politicians..........and not the one who is earning rs 40-50 /day.....

Politicians ne sab majak bana diya hai.....pure India KO.....

and last ,someone wrote me that I am good in financial so I don't need to write on politics....I deleted the message......but look like someone didn't like it.........very close friend of Congress?
I am just trying a little bit writing on my blog to bring awareness to the readers and that also I am advised not to do!......Re India....Poor India.....

Friday, January 21, 2011

No end in sight to India's growth boom - Goldman

On Friday 21 January 2011, 4:33 PM

By Christoph Steitz
FRANKFURT (Reuters) - Indian stocks remain a clear buy for the next few years because inflation fears and concerns about overvaluation are unjustified, Goldman Sachs Asset Management's chief investment officer for India said.
Thomson Reuters StarMine showed Indian equities trade at 13.5 times estimated 12-month forward earnings, the highest multiple among high-growth emerging markets dubbed BRIC (Brazil, Russia , India, China).
This has fuelled concerns that parts of the Indian equity landscape -- such as the IT sector -- may be overvalued, a view not shared by Prashant Khemka.
"Indian equities have always traded at higher relative multiples. But I believe a premium does not equal an overvaluation. In fact, I see more value in the country given the prospects going forward," he told Reuters in an interview.
A Reuters poll in December showed India's benchmark 30-share Bombay Stock Exchange index benchmark index is seen rising nearly 20 percent by the end of this year, boosted by a fast-growing economy and strong corporate earnings.
"I believe we are at the early stages of what could be a long and strong earnings cycle, hence the market multiple -- which is in line with historical averages -- is at a reasonably attractive level."
Khemka reckons Indian companies' earnings could post annual growth of up to 20 percent over the next three to four years, adding he favoured stocks catering to the country's buoyant middle class.


The $90 million GS India Equity Portfolio is almost 10 percentage points overweight industrials compared with the MSCI India IMI Index.
"This is partly due to the fact the sector has a more domestically oriented exposure," Khemka said.
"The same goes for the consumer discretionary sector -- including auto companies, auto components and retail -- which all benefit from the secular strength of domestic demand."
Top holdings include carmaker Tata Motors , engineering companies Larsen & Toubro and Thermax Ltd as well as Infosys Technologies, India's second-largest outsourcer, the fund's biggest position.
Khemka said the Indian IT sector also benefited from low capital expenditure and high returns, making it an attractive investment opportunity.
"In other emerging markets, mainly Asia, which have a more hardware-oriented focus in their tech sector, the situation looks different."
Asked whether high inflation could curb capital inflow into Asia's third-biggest economy, Khemka said he expected it to subside to 5-6 percent in the second half of 2011.
A Reuters poll this week showed inflation in India is seen at 8.8 percent, up from 8.3 percent expected in the October poll, while the prospect of further fiscal tightening is unnerving foreign investors.
Khemka also shrugged off fears of a spill-over of the European sovereign debt crisis into India's economy, which is set to grow 8.7 percent in the year to March, before slowing to 8.5 percent in the following year.
"This is certainly on the radar but is not a major concern. In fact, sluggish growth in the U.S. or Europe is good for India for two reasons: first, exports as a percentage of the economy is much smaller for India compared with most countries; second, it helps to keep in check commodity prices, mainly crude oil."

My Comments:
The same Godlman Scahs says sell India and China and invest in USA just a couple of days back where I read in a mail..............DUBIOUS!

Australia not moved by India''s repeated pleas on Uranium...........

PTI – Thu, Jan 20 1:12 PM ISTNatasha Chaku

Melbourne, Jan 20 (PTI) Australia today refused to concede to India''s repeated requests for revoking a ban on Uranium sale to it, saying Canberra remains steadfast on its policy of not selling yellowcake to NPT non-signatories.
External Affairs Minister S M Krishna raised the issue of Uranium sale with Australia for a second day during his meeting with his Australian counterpart Kevin Rudd but the latter said his country''s stand remains unchanged.
He had yesterday taken up the issue with Australia''s Resource, Energy and Tourism Minister Martin Ferguson.
Rudd acknowledged India''s clean record on nuclear proliferation, but maintained it was Australia''s national policy to not sell Uranium to NPT non-signatories.
Rudd said "Australia fundamentally respects India''s long standing credentials on the non-proliferation question".
Addressing a joint press conference here along with the visiting Krishna, Rudd acknowledged that India has not been responsible for a single act of nuclear weapons proliferation anywhere in the world.
"Something which we place on record again as being our views of India''s public policy posture and operational behaviour for a very long period of time," he said.
Australia is unwilling to sell uranium to India because it has not signed the Nuclear Non-Proliferation Treaty.
Rudd said the issue, however, has not damaged ties between the countries.
"However, Australia''s stands on NPT remains. We continue to discuss these matters as friends do," he said emphasising on the strategic partnership that the two countries shared.
"There is a huge amount underway in the Australia- India relationship at the political, security and economic levels... There''s sufficient ballast in this relationship to deal with areas of periodic disagreement as there are in all relationships," he said.
Commenting on the issue, Krishna said he has pleaded with the Australian government to change the policy, stressing that nuclear energy as a clean energy source was crucial to the rising energy demands of India.
"If you have to have clean energy, then according to India the only option is to have nuclear energy, and if you have to have nuclear energy, then you certainly need uranium," he said.
On the question of the security of Indian students in Australia, Rudd gave his full assurance to his counterpart.
He said as the Foreign Minister he takes the issue of security of any guest including international students ''fundamentally and seriously''.
"I take the responsibility and that is our job," he said after holding the seventh ministerial dialogue with Krishna at a joint press conference here today. .
My Comments:
I have been quoting about the enriched Uranium for our civil use.We don't have any knowhow to enrich the Uranium which can be used for Civil Nuclear project.
What we have?Except IT and Pharma what we have?Nothing.......Corruption?Money in Swiss Bank?Billions and billions of dollar which can wipe off the whole budget deficit in one stroke?
Mr.Krishna pleaded to Austrailian counter part.......isn't that an paradox?
And let me write here that Pakistan will get all enriched Uranium from China for their civil nuclear project.Take my word, one will see that .......
I want to see Western countries pleading for something to India........

Wednesday, January 19, 2011

Looks like market has taken support of 18500.
The results of Infy was not good as per the market and market welcomed the TCS results and went up by 200 points.
Isn't that surprising that the same stock which was battered the previous day, Infy due to bad results, is up by rs 50, the next day?
Remember one thing.Players wants to do what they wants.They will show some reason to break the market while hammering same stock and the take it up again next day buying same stocks.
The analyst and experts that comes in TV Channels are good for nothing.
Shaifali was writing that she has not made any money in 2008 nor in this bull run.I read her comments but as it went in spam fiolder I mistakenly deleted itI am writing what I was able to remember.
I would like to write to all readers and Shaifali as well, don't play for ST.I have been saying this time and again.Market is not for ST.
We have seen that Masters like Warren Buffet and Rakesh Jhunjhunwala were not sellers in 2008.
Just learn from that.
Buy stocks which have fundamentals.The stocks which I use to discuss which are below Rs50 are still upcoming stories.That story, growth, will materialize or not only future can tell.
We have to keep our fingures crossed.But these stocks which I discuss below 50 are at very nascent stage of growth and that may happen or may not happen.Don;'t expect miracle in those shares.SNL Bearing, Sujana Towers, Spanco are excpetional case.
Soem stocks are still discounted low and market still can take longer time to recognize the value and it may even happen that before the growth stats coming the whole story can get aborted due to unforeseen circumstances.
Moreover, some people are not lucky enough to earn from stock market.I have my own experinace.I give same stock call to 3-4 friends.All buy them but only couple of them earns from it.
It all depends on luck......some are very lucky and some are not lucky.When luck works nothing works like it.There is no reason.Jiska naseb chalne lagta hai uska koi reason nahi milta.
One can fight with an individual but we can't fight whose luck is powerful.Jisko naseb ka sath mila hota hai uske sath hum nahi compete kar sakte.......
I am revealing a secret to you all.I have always said, I am a very small investor like all of you.I am not big and that is the reason why that happened.
See the anamoly.I wanted to buy some other stocks and Sujana Towers was not moving.I wanted to buy those stocks but have no money to buy them.So I have to sell something to buy those stocks.
As there was no such big annoucement coming from Sujana Towers , I sold Sujana Towers , to buy other stock and immidiately Sujana Towers started running in about a month and from 52 it went on to touch 220.
I was knowing that Sujana Towers is a excellent Co but as I wanted to buy other stock and as I have no money to buy , I sold Sujana Towers.That mistake was a forced mistake for the lack of money.There was no choice for me......
Now what is that?That is LUCK.I was not destined to make money in Sujana Towers even though it was my call.Can anyone imagine how much I would have felt bad when I saw Sujana Towers  making newer highs in Oct and Nov last year?Even after so many years in market still LUCK is eluding me......I know everthing and still not able to earn what I should be......
But what can I do?I was helpless.Same happened with Spanco Ltd ....repeat of Sujana Towers.......there are many stories like that.....kya kya bataun.....
Shaifali,it is not so that you and your relatives or friends passes through such things.....we are all in same boat.
Don't get disheartened.I lost my fortune twice in market .Came to ZERO twice and made even Loss .Learn from the mistake.I came back again and this time in 2008, the portfolio became 20% but not ZERO .......
I gave Stride Arocolab here at 238....many must have bought but how many are still holding it?

Tuesday, January 18, 2011

India Inc's open letter to PM ...............

India Inc write to politicians over governance deficit

PTI, On Tuesday 18 January 2011, 1:00 PM

A group of prominent personalities, including industrialists Azim Premji, Keshub Mahindra and Deepak Parekh, have expressed concern over a series of scams leading to "governance deficit". They asked the government to deal with burning issues like corruption urgently.
In an 'open letter' addressed to the leaders, they said: "We are alarmed at the widespread governance deficit almost in every sphere of national activity covering government, business and institutions. Widespread discretionary decision-making have been routinely subjected to extraneous influences.
Asking politicians to rise above party politics, the letter said "time is overdue for India's elected representatives to distinguish between dissent and disruption while the era of coalitions, tolerance of compromise still remains a challenge."
"Elected legislators and leaders must acknowledged and demonstrate their collective role and responsibility in restoring the sense of purpose and confidence in national institutions."
"The topmost responsibility of those at the helm of the nation's affairs must be to urgently restore the self-confidence and self-belief of Indians in themselves and in the State as well as in Indian business and public institutions which touch the lives of every Indian."
The signatories to the letter also include Jamshyd Godrej, Justice Sam Variava, Prof M Narasimham, Yezdi Malegam, Anu Aga, Dr A Vaidyanathan, Bimal Jalan, N Vaghul, Nachiket Mor, Justice B N Srikrishna and Dr Ashok Ganguly.
The letter comes against the backdrop of 2G, CWG and Adarsh scams, and also leakage of tapes involving corporate lobbyist Niira Radia's conversations with various personalities, including industrialist Ratan Tata, politicians and journalists.
Deepak Parekh had earlier echoed Tata in voicing concern over the leakage of the tapes stating such incidents were only generating negativity, which threatened to derail India's growth story.
"In the last few months, the country has witnessed eruption of a number of egregious events. There are, at present, several loud and outraged voices, in the public domain, clamouring on these issues which have deeply hurt the nation," the letter said.
Amid all the scams, the letter further said, "The judiciary is a source of some reassurance but creation of genuinely independent and constitutionally constituted regulatory bodies, manned by persons who are judicially trained in the concerned field, would be one of the first and important steps to restore public confidence."
Terming corruption as "possibly, the biggest issue corroding the fabric of our nation" it said "this malaise needs to be tackled with a sense of urgency, determination and on a war footing".
"Dealing determinedly with governance and aggressively against corruption, while openly debating these issues by elected legislators is the only means left to reassure our citizens," it said.
Amongst several urgent steps needed, this is possibly the most critical one that the nation can immediately initiate in order to reassure its citizens that corruption will be most severely dealt with, both at the branch and at the root level, the letter added.
The letter further said the benefits of growth are not reaching the poor and marginalised sections adequately due to impediments to economic development.
"This is because of some critical issues like environmental concerns and differences in perspectives between central and state governments," it said.

Monday, January 17, 2011

UTV may exit Indiagames ..............

UTV may exit Indiagames
Shivani Shinde / Mumbai January 17, 2011, 0:58 IST
Founder, other investors in talks to buy back stake even as boom seen in sector
Media and entertainment firm UTV Software Communications is in the process of selling its stake in UTV Indiagames — the online and mobile gaming subsidiary of the group, said two sources involved in the deal.
Sources said Vishal Gondal, founder of Indiagames, along with existing investors Cisco and Adobe, are in talks with both private equity consortia and strategic investors to buy back the stake they’d once sold to the parent firm. The deal is expected to be in the range of $80-100 million (Rs 360 crore-Rs 450 crore).

UTV in 2006 had invested Rs 68 crore to acquire 51 per cent stake in Indiagames. UTV had further increased its holding in the company to 58 per cent. The acquisition was an attempt by UTV to get into the mobile gaming segment. At the same time, it had acquired 70 per cent stake in UK-based Ignition Entertainment, a console gaming firm.
Indiagames is expected to clock revenues of $10 million (Rs 45 crore) for the year ending March 31 and has an operating profit of Rs 2 crore. According to a research report by Equirus, an advisory firm, it is estimated to have a compounded annual growth rate of 18 per cent from 2009-10 to 2013-14.
“The process is still underway. In all probability, the promoter will buy back the stake from UTV along with either a PE player or a strategic investor. However, this time the promoters are hoping to keep the majority shareholding with themselves,” said a source.
“It seems there is a general consensus within the group and the promoters about the sale. If UTV would not have given a go-ahead, it would have been difficult for the sale to happen,” said another source in the know.
When asked, Vishal Gondal, also CEO of UTV Indiagames, denied any such development. Calls to Ronnie Screwvala, founder and chairman, UTV Software Communications, did not elicit any response. An email to the company was not answered.

Online success

The deal is happening at a time when dotcom firms have again become favourites in the investing community. Especially so after the successful listing of online travel portal MakeMyTrip. In the recent past, Intrasoft Technologies, an online greeting card portal which owns 123Greetings, listed successfully on the Indian bourses. Online automotive auction portal MotorExchange raised around $5 million from Epiphany Ventures and existing investors Canaan Partners. In 2009, the firm had received its Series-A funding. Local search firm is also planning for a listing this year.
Indigames is one of the major players in the Indian online and mobile gaming segment and has a market share of around 50 per cent, according to market experts. It competes with players like Reliance Group’s gaming firm, Zapak, and casual game developer Games2Win, founded by Alok Kejriwal.
UTV has presence in console and online gaming, as well as PC, mobile and direct-to-home platforms. It has entered the PC and online gaming space through the acquisiton of UK-based Ignition Entertainment and US-based True Games. For the first half of financial year 2010-11, the gaming and interactive segment contributed 12 per cent to revenue. For the second quarter ended September 30, 2010, UTV’s gaming and interactive segment clocked revenue of Rs 35.7 crore, a drop of 40 per cent compared to the same quarter last year. However, the company expects this segment to contribute 20-30 per cent to the revenues for 2010-11.
Based out of Mumbai, Indiagames has close to 250 employees. The company’s Games on Demand subscription model has a base of 60,000 users. It is one of the three firms from India to have logged a million downloads on Nokia’s Ovi store. Indiagames is also a distributor of games of Electronic Arts.
“The mobile gaming space has a very small base. Hence, the growth will only get better. With 3G coming in, we think the mobile gaming space will see improvement. More important, gadgets like tablet PCs and increaed usage of applications on these handhelds will give a boost to the gaming segment,” said Jhehil Thakkar, Executive Director- Performance and Technology, KPMG.
According to the Ficci-KPMG 2010 report, the mobile gaming market is expected to be Rs 240 crore in 2010 and will be a Rs 1,430 crore market by 2014. Meanwhile, the PC and online game market is expected to have a compounded annual growth rate of 37.8 per cent from 2009 to 2014, to clock revenue of Rs 610 crore by 2014.

My Comments:
Fetching 360-450 cr from the investment made for 68 cr is an execellent deal.This will keep UTV with lots of cash for investing in other project.
I like the way Ronnie Screwala is shaping the things at UTV.
Freinds, one should remember that Games Cos and Media Cos have always higher discounting in market.This India Games is going to have a sales of 45 cr and for 58% stake UTV will be having Rs 360-450 cr.........

Market.......ALWAYS FAVOUR BEARS?...YES.....

I have always written that invest with your own money.Don't borrow it.Don't do day trading.
Don't play in F&O.Don't play for ST.
One needs to always remember that without money no BULL MARKET  can take place.Harshad Mehta brought money through bank receipt ,Ketan Parekh did the same things , used money of Madhav Pura it is obvious that without money pouring in no bull market can take place.
The bull run from 2800 to 21000 from 2003 to 2008 was also the results of huge FII investment coming in.
One should always remember that market always favour BEARS.It is very easy to understand.Is it not?It is.....let me explain......
From 8k to 21k in maybe around 2005 to 2008 , means market took 3 good yrs to come up from 8k to 21k, but in just less then one year from Jan 2008 to Oct /nov 2008 market went down from 21k to 8k......
So within 9 months market shed all gains made in 3 yrs.
When market moves up or stock moves up , its goes up gradually but when it tanks it fell from a cliffhanger.There is no downside.It keeps on going down and down and there is no bottom.
Why that happens?Why there is no bottom?The reason is when prices goes down everyone wants to sell and when everyone wants to sell , it is hard to find buyers and when there are no buyers or less buyers then the stock will keep going down and down.
So when market tanks ,everyone will try to come and sell and hence the selling pressure will become more and more and that HEPLS BEARS  in BIG BIG way.That is what these BEARS wants.Just a small dent in confidence of investors and all and sundry will come out to sell as no one wants to lose the profit or come in loss or more loss, and hence the selling is bound to come.So just a little selling will bring down the prices in big way.
Just a couple of thousands of crores of rupees selling from FII and market tanked by over 2k points and the prices are way down from high.
In  such type of market one needs to buy always in SIP manner because we never know what is the bottom.It is like catching a falling knife.
Stock goes up gradually barring some instances like Spanco Ltd , Sujana Towers , SNL Bearing ,Stride Aroclab etc...and the surprising fact here is all stocks start from the alphabet "S"..............
These stocks are way above from the price I recomended here first.
But we can see from the above that market always favours BEARS because when market tanks everyone wants to SELL and that becomes and advantage for BEARS and that is why I wrote in the heading that Market always favours BEARS.........
See, market is not just investing.One need to understand it.How it works.When what happens, how it happens.Ofcourse it is not easy task as veterans like Ramesh Damani went totally wrong in predicting the course of the market in 2008 and 2009.
So don't start believing yourself an expert.Market has never obliged anyone.Making a correct call for couple of stocks don't makes you expert.
Well, 18500 was a good resistance level in past for market to break and go up so I feel that 18500 should be a good support level......and shouldn't break that support of 18500 easily............
let us see what is left for us in store........

Thursday, January 13, 2011

UTV ...& Stride Arcolab old call......

UTV Ignition Readies for Game Release – Locks MG of $ 10 million and much more in the offing…

Right through Christmas and New Year, the studio in Japan and the Core Team at its HQ of UTV

Ignition in UK have been working overtime, and has the following developments to report. This is the first phase of concrete and positive developments.
The Following is specifically on EL SHADDAI, A third person action adventure game developed out of UTV Ignition Japan’s studio

1. After our recent launch at the Tokyo Game Show in September 2010, one can see from the links below that El Shaddai is one of the most anticipated games in Japan already. El Shaddai received an award for the “Best Future Game” at the TGS.

2. As a result of its huge buzz, we are in active negotiation for a multiple of merchandising/ licensing / co-branding / co-marketing deals – where the commercials include (a) Minimum Guarantees, (b) Revenue Share, and (c) Advertising & Marketing Support. We are pleased to report the finalization of the first two of such arrangements

A. With the number 1 Jeans company in Japan – “EDWIN”

B. With the number 1 Toy company in Japan – “Bandai Toys”

3. Motion Picture rights as Ancillary revenues – The Company has clear feedback from all our potential partners viz. – platforms, co-publishers and consumers, that El Shaddai will set new benchmarks in level and style of “Art” and “Graphics”. The Game has 50-60 minutes of best graphics – backed by a strong storyline for a motion picture. This forms part of our “Ancillary Revenue”.

4. Publishing of the Game on Consoles:

a. Most AAA games retail for around USD 60 per unit, but due to (a) the highest quality of graphics, plus (b) the pre buzz in Japan and (c) supported by Sony and Microsoft, and (d) a very strong Yen – El Shaddai will retail in Japan as close to USD 81.00 per unit, giving boost to our overall commercials by 35% albeit for the Japan market, which is an important market for a game like El Shaddai.

b. In order to optimize exploitation across revenue streams and thanks to the strong pre buzz, coupled with deals closed so far, the company has decided to break its Publishing and Distribution Strategy in four key geographies (a) Japan, (b) North America, (c) Europe (including UK), and (d) Rest of the World.

c. In Japan, backed by a healthy retail price and a strong support from the platform owners, UTV Ignition has concluded partnership with Sony and Microsoft jointly. In Japan, Sony has 3 times more PS3 installed than Microsoft’s Xbox 360. Microsoft is also aggressively growing their presence in Japan. Our partnership with Sony will give us (a) Maximum retail support, (b) Strong marketing spend, (c) Highest share per unit compared to any other Publisher we would have gone with and they will push on their PS3 platform. Similarly, the same arrangements and benefits with Microsoft, and they will push on their Xbox 360. With this strong support and marketing push from these platforms, the combined sales are expected to cross 500,000 units in Japan alone.

UTV Ignition, along with its partners - Sony and Microsoft, have concluded on first releasing this game in Japan, followed by the Rest of the World launch, due to strong pre launch buzz and then word of mouth will act as a strong support.
We have, therefore, locked the date of April 28th 2011 for Japan launch as it’s a clear period with no Big Title releases, plus is just a few days prior to the “Golden Week” in Japan – which is a long holiday week (just like Christmas is to the western world and Chinese New Year to the Chinese).

d. For the territories of USA and Europe, UTV Ignition is in the final stages of closing  co-Publishing deal with a minimum guarantee and expected closure very soon.

5. UTV Ignition is pleased to announce aggregate minimum guarantees (MG) of USD 10 million. This MG will be in addition to the revenues generated through game sales as per point 4 above.

Overall, this is a very good progress and we believe El Shaddai is well placed for a great 2011. In this update, we have focussed only on El Shaddai, as you are well aware UTV Ignition has in progress many more Titles and IPs for release, as also True Games has 2 major releases in Jan- Mar quarter of 2011.

My Comments:
I gave the call for UTV when it was around 300-400 and I wrote at that time that this can touch 4 digit and then split to 1 paidup.UTV has a long way to go that was what I wrote.
Looking at todays's annoucement at bse I am sure what I was seeing is going to come true.
UTV has made many annoucement in last 1 year which I have been reading constantly.
UTV has entered in the gaming Ind with collobartion with Microsoft.
This is a huge step taken and that was also bound to come which I was foreseeing it when I recomended it.
I am happy to read all these annoucement and stock exhibiting excellent strength in this jittery market.
Sometimes, readers keep on asking me about my picks , but many times or most of the times , my picks are way ahead of market discovering it and hence one can see that the stock has underperformed in big way with the market.But that also doesn't mean that I can never go wrong.So DD is must for everyone before investing in it.
Same happened with ABC India.It moved after 3 yrs! and non other then Madhu Kela , the head of Ril MF took stake individually in his personal name and remember this is the same Madhu Kela who picked Divi's Lab very very early at around 300 and 10 paid up and after that Divis lab splitted to 2 paid up and gave 1:1 Bonus means 100 shares became 500 on split and then 1:1 Bonus makes it 1000 shares which on CMP of Rs.630 give a price of Rs 6,30,000 for an investment made of just Rs.30,000 a phenominal return of over 20 times.........and there are many more examples like that....I have full confidence in my call like Venus Remedies, Transgene Bio etc which will give multibagger returns from here on but when that is difficult to say as I am not an operator nor have any link with any operator.
Now on Stride Arcolab.......I gave the call on Stride Arcolab on 7th Jan 2010 when it was Rs.238 and now even after we are seeing mayhem in market Stride is still giving profit of Rs 200 and readers who must have bought are not in loss.
But the main reason for my writing on Stride Arcolab today is India's Wareen Buffet, RJ, has taken stake in Stride Arcolab in last Apr10 to June 10 qr when the price was around 327 , means 100 up from my call.I am seeing his name in SHP with 5 lacs shares .
This again says that though I am not a MBA  nor have any finance degree I am still good enough to visulize the future of the Co as much as experts are able to do and that too way ahead of them.
In Srei Infra also I have been recomending it since 2008 and we saw that RJ took stake in it at 65 in Mar 2010 which also vindicates my call on Srei before expert like Rakesh Jhunjhunwala think of taking stake.
I am happy to see that my calls like Srei , Stride Arcolab,ABC India are good enough for a person like Rakesh and Madhu Kela thinking of taking stake lateron .....
I don't say RJ never makes mistake but I feel this two stocks are multibaggers of future.These are such stocks where one need to buy and forget.

Tuesday, January 11, 2011

ChrysCapital To Invest Rs 112.5Cr In KPIT Cummins..............

January 10 2011, 08:19:14 IST


PE major will pick up to a 8.95% stake in product engineering and IT consulting firm at Rs 145 a share.
Private equity major ChrysCapital has started 2010 with a busy note, closing a deal in the first week of the year. The PE firm is picking up a stake in mid-cap information technology firm KPIT Cummins Infosystems Limited for upto Rs 112.5 crore. The stake will be picked up through a preferential issue to ChrysCap entity Warhol Ltd (Mauritius) and subject to shareholders and other regulatory approvals. KPIT has called for an extra-ordinary general meeting (EGM) on February 4.
The deal could fetch ChrysCapital upto a 8.95% stake in the company on a post-dilution basis, subscribing to 7,758,621 equity shares of Rs. 2/- each. The deal has been struck at Rs 145 per share, a 1.75% premium to Friday's closing price of Rs 142.5. The firm's share price has reached a 52-week high of Rs 192.9 per share, with the market capitalisation at current price of Rs 142.5 coming to Rs 1,124 crore.
Pune-based KPIT, a product engineering and IT consulting firm focused on industries like manufacturing and automobile, had early investors like Rakesh Jhunjhunwala, IFC and Lehman Brothers. KPIT reported revenues for FY10 at Rs 731.64 crore, a Y-o-Y decline of 7.76% but the net profit increased by 30% to Rs 85.7 crore for the fiscal. For Q2FY11, KPIT reported a 33% increase in revenues to Rs 235 crore and a 12% increase in net profit to Rs 23.75 crore on Y-o-Y basis.
KPIT Cummins started as a financial auditing firm decades before moving into the field of software and in 2002 acquired the IT arm of diversified machinery maker Cummins Inc, which continues to hold nearly a 15% stake in the firm. Since then KPIT Cummins has done eight other acquisitions, with two coming in 2010. It also formed a joint venture with world's second largest forging company Bharat Forge to make and sell a new hybrid technology for automobiles in 2010.
"KPIT is better positioned in the mid-tier Indian IT space to capture growth in spending related to discretionary services such as engineering and enterprise solution due to its domain focus. The company’s revenue growth and profitability growth are expected to outpace that of its peers," said Angel Broking in a report dated December 28, 2010. The report added that KPIT's prospects are good since there is a recovery in the manufacturing sector globally and the automobile sector also expected to return to strong growth.
Also, the company has been able to turn around acquisitions such as Harita TVS (2008) and CG Smith Software (2006) with an over 41% CAGR. Angel initiated a buy recommendation with a target price of Rs 164 on the company. Current investors in the company include Blackstone's India Fund Inc, Cargill Ventures and Blackrock India Equity Fund Mauritius Ltd.
ChrysCapital has made several successful bets on India's IT sector with investments like Mphasis BFL, Spectramind and most recently its $400 million exit from IT bellwether Infosys Technologies. It has also invested in companies like HCL Technologies and Hexaware, among others.

The PE firm most recently invested Rs 100 crore in Pratibha Industries Ltd, an infrastructure solutions provider in the water management and urban infrastructure space.

My Comments:
My only comments is, what else readers need from my blog when my call on KPIT Cummins is also authenticated by ChrysCapital...........nothing more to say....

Saturday, January 8, 2011

APW President.....My old call.....

Schneider Buys 55% In APW President For Rs 62Cr ....
The French energy giant continues buying spree; Will make an open offer for 20% APW stake.

Schneider Electric India, the subsidiary of French energy major Schneider Electric Industries SAS, is continuing its inorganic expansion in India through mid-and-small cap buyouts. In the latest deal, Schneider Electric is acquiring a 55% promoters stake in APW President Systems Ltd for Rs 62.2 crore. The deal, which will trigger an open offer for another 20% stake, will see Schneider taking over the company.
APW designs and manufactures standard and customized racks and enclosure, particularly for IT and telecom firms.
Schneider Electric is taking the promoters' stake for Rs 195 per share, which is a 30% premium to Thursday's closing price of Rs 150.
The share price of APW hit the upper circuit today to reach Rs 157.5, up by 5% giving it a market capitalisation of Rs 94.5 crore today. APW has revenues of Rs 108 crore for 12 month period ending Sep '10 and has around 380 employees. APW has manufacturing facilities in Pune and Bangalore with sales and market offices across the country.
This is the fourth deal by Schneider Electric in last 19 months. It acquired Bangalore-based Conzerv Systems, an energy management firm with revenues of Rs 70 crore in June 2009. It followed one month later with acquisition of Bangalore-based Meher Capacitors, which manufactures power factor correction capacitors and offers comprehensive products and solutions.
Schneider last year acquired two electronic security system business units of Mumbai-based Zicom Electronic Security Systems for Rs 225 crore. The units, Building Solutions Group and Special Projects Group, focus on government and institutional sales with a turnover of Rs 180 crore.
Schneider Electric entered India in 1963 through a JV with Tata Group and established its subsidiary Schneider Electric India Pvt Ltd in 1995. In 2000, it acquired Chennai based S&S Switchgear and Nashik based Crompton Greaves Low Voltage division. Schneider Electric India also acquired global firm American Power Conversion (APC) in critical power and cooling solutions domain and security solutions provider Pelco in 2007. Schneider along with Alstom also acquired Areva, which included the India unit Areva T&D.
Schneider Electric offers integrated solutions across multiple market segments including energy and infrastructure, industrial processes, building automation and data centres and networks as well as residential applications. It achieved sales of more than 15.8 billion euros ($20.7 billion) in 2009.
My Comments:
Well friends,
Once again my call  of APW President has come good.I recomended it in 2009.There must be many who didn't believe the call and must have given a pass on it but today when I read this news in VC Circle I can't resist myself to paste it here and show that after 1 and a half year , a MNC French Giant,Schneider is taking over all promoters stake of 55% for Rs 195, permimum of 30% on cmp.
This once again shows that I can see faroff what is going to happen or what can be the use of the product of the Co in future which can result in exponential growth or a hostile takeover.
Ofcource I am not boasting of anything but trying to write some thing which my readers needs to look out for.

Friday, January 7, 2011

Why I Give: Warren Buffett ............



Why I Give: Warren Buffett

IN 2006, I made a commitment to gradually give all of my Berkshire Hathaway stock to philanthropic foundations. I couldn't be happier with that decision. Now, Bill and Melinda Gates and I are asking hundreds of rich Americans to pledge at least 50% of their wealth to charity. So I think it is fitting that I reiterate my intentions and explain the thinking that lies behind them. First, my pledge: More than 99% of my wealth will go to philanthropy during my lifetime or at death. Measured by dollars, this commitment is large. In a comparative sense, though, many individuals give more to others every day. Millions of people who regularly contribute to churches, schools, and other organisations thereby relinquish the use of funds that would otherwise benefit their own families. The dollars these people drop into a collection plate or give to United Way mean forgone movies, dinners out, or other personal pleasures. In contrast, my family and I will give up nothing we need or want by fulfilling this 99% pledge. Moreover, this pledge does not leave me contributing the most precious asset, which is time. Many people, including — I’m proud to say — my three children, give extensively of their own time and talents to help others. Gifts of this kind often prove far more valuable than money. A struggling child, befriended and nurtured by a caring mentor, receives a gift whose value far exceeds what can be bestowed by a check. My sister, Doris, extends significant person-to-person help daily. I've done little of this. What I can do, however, is to take a pile of Berkshire Hathaway stock certificates — “claim checks” that when converted to cash can command far-ranging resources — and commit them to benefit others who, through the luck of the draw, have received the short straws in life... At the latest, the proceeds from all of my Berkshire shares will be expended for philanthropic purposes by 10 years after my estate is settled. Nothing will go to endowments; I want the money spent on current needs. My wealth has come from a combination of living in America, some lucky genes, and compound interest. Both my children and I won what I call the ovarian lottery. (For starters, the odds against my 1930 birth taking place in the US were at least 30 to 1. My being male and white also removed huge obstacles that a majority of Americans then faced.)... The reaction of my family and me to our extraordinary good fortune is not guilt, but rather gratitude. Were we to use more than 1% of my claim checks on ourselves, neither our happiness nor our well-being would be enhanced. In contrast, that remaining 99% can have a huge effect on the health and welfare of others. That reality sets an obvious course for me and my family: Keep all we can conceivably need and distribute the rest to society, for its needs. My pledge starts us down that course.

My Comments:

Well, I got this wonderful insight of great Warren Buffet why he is giving.Most of the ideas are a simple common sense and anyone can understand but the bottomline here is who wants to understand?
Let me first notes down few lines which are eye catching.

1)The reaction of my family and me to our extraordinary good fortune is not guilt, but rather gratitude.

Gratitude....thy word.....that is what we Indians needs to learn.We have forget this word named gratitude.Giving back to society.

2)A struggling child, befriended and nurtured by a caring mentor, receives a gift whose value far exceeds what can be bestowed by a check.
Struggling child.....that is where I have written in past.....not all children has that fortune to take birth in wealthy family and WB is helping them.......he doesn't come out and say.....plan your is in your hand.......that again reiterates my belief that some are Lucky and some are not lucky and hence the luckier ones needs to come out and help it a Child or person....

3)and commit them to benefit others who, through the luck of the draw, have received the short straws in life...

Short straw in life............what is that?isn't it an anamoly that such a successful person , WB, writes more then couple of times about LUCK?
Short starw in life means the Luck factor is missing for them.They are not as lucky as others, they have ended up with short straw...kuch bhi kare, kitni bhi mahanat kare safalta hath nahi lagti un logo ko......remember everyone tries and do hard work but not all are successful, agar sab ko safalta mil jati hai to koi Garib(poor) nahi rehta even in USA lots of people lives below average poverty line.....kaun paisa banana nahi cahta?Paisa sab ko pyara hai....
so those who are short of LUCK....which here Buffet says.....who got short straw in life..and hence they needs help.....u can't give up saying that I made my fortune on my own and let them earn their own way.......

4)My wealth has come from a combination of living in America, some lucky genes, and compound interest. Both my children and I won what I call the ovarian lottery. (For starters, the odds against my 1930 birth taking place in the US were at least 30 to 1. My being male and white also removed huge obstacles that a majority of Americans then faced.)...

WB puts himself as lucky as he was born in 1930 and being a Man and white gave him undue advantage.....and he feels that he was lucky ......he feels that as he was born in  America is an advantage....that speaks for eveything..USA main birth liya that was an advantage.......

the last thing he wrote is with the 1% left for him and his family is more then enough with those 99% if he gives back to scoiety....make no difference....that needs to be learned by Indians.....

I have highlighted in different colors some points....I wish my readers ponders upon those sentences and try to understand what WB wants to say and what message he wants to give to us.....