Friends,
I have come through 2 reports regarding HUGE investment sanctioned and coming on in Power Transmission and Distribution sector.One is from Prabhudhar Liladhar and second is from First Global(Yes that is Shankar Shrama's brokerage Co)....
The first reports says that they expect 1200 bn means 1,20,000 cr in power transmission and 1900 bn ,means 1,90,000 cr in distribution of power.
That is a huge investment coming up.Among that Power Grid Corp Ltd will invest 55,000 cr for upgradation of various transmission asset and setting up national Grid.
Over and above that central Governmnet is suppose to invest 50,000 cr and other 28,000 cr coming for Restructured Accelerated Power Development Reform Programme (R-APDRP) and the Rajiv Gandhi Grameen Vidhyutikaran Yojna (RGGVY) in the 11th plan period.
There is enormous scope in this sector and hence all the power Co will have ample scope to have chunck of orders.
The major Player in these sectors are
1)L&T
2)Areva T&D
3)Alsthom
4)Seimens
5)ABB
6)Kalpataru
7)Jyoti Structure
8)KEC Int
and I have been recomending the first 5 stocks since Mar 09.
Thermax also comes in power sector.
It has been a known fact that power is lost while distrubuting due to various reason and there are IT Companies which shows how the loss in distribution loss can be saved.
I have once or twice recomended KLG Systel here which is in same field.
But lately I found one more company which is making inroads in same sector.I have done my DD and have come out with a BUY call on that Co.....
The name of the company is Spanco Ltd, old Spanco Tele Ltd.There is one more co named Sparsh BPO which was demerged from Spanco Tele 2-3 yrs back and it is a pure BPO co but both are headed by erstwhile person named Kapil Puri.
I am just giving one annoucement on Spanco Ltd and rest I would like my readers to find out what is going on in Spanco Ltd....
Read on:
Patni, Spanco among 4 cos empanelled for power project
Our Bureau
Mumbai, Dec. 24,2009
Patni Computer Systems and Spanco are among the four technology companies that have been empanelled as system integrators, by the Centre for its ambitious Rs 50,000-crore plan to cut power distribution losses in the country.
With this, the four companies can now bid for State-level projects as part of the centre-funded Restructured Accelerated Power Development and Reform Programme (R-APDRP).
These companies( means Spanco Ltd and Patni Computer) join Accenture, Capgemini, CMC and others that were earlier empanelled as IT consultants for the R-APDRP project.
Out of Rs 50,000 crore, Rs 10,000 crore is expected to be spent on IT and technology, according to Mr Deepak Khosla, Patni's President for the SAARC (South Asian Association for Regional Cooperation) region.
Job scope
The scope of the IT jobs under R-APDRP include setting up data centres, disaster recovery back-ups and GIS (geographic information system) mapping, besides developing applications for reading meters, billing and collection, energy accounting and auditing and consumer grievance redressal.
Apart from Patni and Spanco, the other companies that have been empanelled in the systems integration category are the New Delhi-based United Telecom and the Chennai-based Omne Agate Systems.
Lowest bidder
Earlier this year, TCS emerged as the lowest bidder for a project worth Rs 293 crore in Madhya Pradesh, while HCL Infosystems won a project worth Rs 529 crore from the Rajasthan government.
Other States such as Chhattisgarh, Tamil Nadu, Haryana Andhra Pradesh and Bihar are yet to award State-level R-APDRP projects. "
Now coming back to Spanco Ltd, almost 80% of the stocks is held by promoters and Priv corp bodies.More and more FII's wants stake in Spanco Ltd and co has given some preferential allotment to some FII's also in last 6 months.
There is many more to diggin in Spanco Ltd.So invest in Spanco Ltd after DD....and if convinced then BUY......
Tuesday, January 19, 2010
Monday, January 18, 2010
Updates...........
I know there are some readers who must be feeling that why I sometimes gives calls which have no earnings or co still making loss.
My call like those were Bombay Dyeing and Bombay Burmah which I gave on 11th Dec 09 at Rs 408 and Rs 292 respectively.
Both are firing all cylinders and now after 1 month they are making new highs.....Bombay Dyeing today touched Rs 593 up from 408 and Bombay Burmah touched Rs 417 up from 292.
Still a very long way to go.
Same is with Stride Arcolab which has started moving up.
My old call Apcotex Ind is making new high and has almost doubled from my call of 61.It is today 115.
My call like those were Bombay Dyeing and Bombay Burmah which I gave on 11th Dec 09 at Rs 408 and Rs 292 respectively.
Both are firing all cylinders and now after 1 month they are making new highs.....Bombay Dyeing today touched Rs 593 up from 408 and Bombay Burmah touched Rs 417 up from 292.
Still a very long way to go.
Same is with Stride Arcolab which has started moving up.
My old call Apcotex Ind is making new high and has almost doubled from my call of 61.It is today 115.
Friday, January 15, 2010
Textile and IT......
Friends,
I am again taking stock of my picks.Yesterday ,Surya Roshni and RS Software were in 20% UC.There were buyer of 1,31,000 in Surya Roshni at the end of the day which I was able to see from the bse site and hence all chances for another 20% UC.There were buyers of 83,313 in RS Software means equal chance for RS Software for another 20% UC.Watch out for RS Software as well as Surya Roshni.
Lumax Ind too made a UC for 5% making a 52 week high of 229.I told that Lumax Ind is a stock which will move up when market will be down and hence if one is having in ones PF then he need not sell all holding.As it has already more then doubled from my recomended price of 95, one can sell 50% and keep the rest FREE....
My Textile pack of Super Spinning ,Super Sales, Suryavanshi Spinning, Suryajyoti Spinning, Suryalata Spinning all are moving.This year can be a year for Textile along with IT sector.Ofcourse Capitals Goods , Infra are the core sector without which the economy will not grow.
Textile pack is still loooking good to me and one can still take exposer here with DD.
My old call MSK Project is making new highs too.
Before I forget to write let me mention two stocks.One is my old call GSPL and another is a PSU stock, Petronet LNG.Both will gives great returns in 5 yrs times.Both looks good still to me.My old call IFB Agro and IFB Ind both are making newer highs.Lesha Energy is making new highs too at 125!
I have given call on Religare Technova Solution and Religare Enterprise.Both has started moving.Religare Technova still looks good to me.
There was a bulk deal in Jupiter Bio yesterday at Rs 96.I have not to say more on that now.
Seeing Tinplate making new highs and also seeing some houses giving buy calls on it now where as I recomended it at 45 or 62 ,not sure, that too before right.
I know when everything is moving it makes no sense to count my picks but have still dared to write them here.If someone feels the other way he needs to ignore this post.
With inflation going up there can be a CRR hike by the end of the month RBI policy and hence a correction can happen of around 1000-1500 point at that time but before that we can see 18k.
I am again taking stock of my picks.Yesterday ,Surya Roshni and RS Software were in 20% UC.There were buyer of 1,31,000 in Surya Roshni at the end of the day which I was able to see from the bse site and hence all chances for another 20% UC.There were buyers of 83,313 in RS Software means equal chance for RS Software for another 20% UC.Watch out for RS Software as well as Surya Roshni.
Lumax Ind too made a UC for 5% making a 52 week high of 229.I told that Lumax Ind is a stock which will move up when market will be down and hence if one is having in ones PF then he need not sell all holding.As it has already more then doubled from my recomended price of 95, one can sell 50% and keep the rest FREE....
My Textile pack of Super Spinning ,Super Sales, Suryavanshi Spinning, Suryajyoti Spinning, Suryalata Spinning all are moving.This year can be a year for Textile along with IT sector.Ofcourse Capitals Goods , Infra are the core sector without which the economy will not grow.
Textile pack is still loooking good to me and one can still take exposer here with DD.
My old call MSK Project is making new highs too.
Before I forget to write let me mention two stocks.One is my old call GSPL and another is a PSU stock, Petronet LNG.Both will gives great returns in 5 yrs times.Both looks good still to me.My old call IFB Agro and IFB Ind both are making newer highs.Lesha Energy is making new highs too at 125!
I have given call on Religare Technova Solution and Religare Enterprise.Both has started moving.Religare Technova still looks good to me.
There was a bulk deal in Jupiter Bio yesterday at Rs 96.I have not to say more on that now.
Seeing Tinplate making new highs and also seeing some houses giving buy calls on it now where as I recomended it at 45 or 62 ,not sure, that too before right.
I know when everything is moving it makes no sense to count my picks but have still dared to write them here.If someone feels the other way he needs to ignore this post.
With inflation going up there can be a CRR hike by the end of the month RBI policy and hence a correction can happen of around 1000-1500 point at that time but before that we can see 18k.
Monday, January 11, 2010
China gearing up for reduction of Carbon emmision....
eSolar strikes deal to build power plants in China
By: The Associated Press 09 Jan 2010 07:15 AM ET
BEIJING - A U.S. solar power company said Saturday it will help build a series of solar thermal power plants in China, as the world's biggest emitter of greenhouse gases tries to decrease its heavy reliance on coal, imported gas and oil.
California-based eSolar Inc. will provide Shandong Penglai Electric Power Equipment Manufacturing Co. with the technology and information to build the concentrated solar thermal power farms with a capacity totaling 2,000 megawatts.
The $5 billion investment would be the largest such project in China, though the companies didn't say who would be investing how much.
"This is a huge jump for China," said Deborah Seligsohn, director of the China climate program for the U.S-based World Resources Institute. "That amount suggests a number of commercial plants."
Interest in China as a solar energy market is growing quickly as the government looks for alternatives to coal. Saturday's deal comes four months after the largest solar panel maker in the U.S., First Solar, struck a tentative deal to build a massive solar field in China.
The eSolar deal is for concentrated solar thermal power — not the traditional image of vast farms of solar panels, but a system of taking what essentially are mirrors and focusing them to heat water to create steam to power a generator.
"There's room in the world for both systems, and we need both," Seligsohn said.
China is moving much faster than the U.S. in solar power development, eSolar officials said.
"This is an excellent example of what we all must do to fight climate change," Merrick Kerr, eSolar's chief financial officer, told a news conference Saturday in Beijing.
The first solar plant under the deal will be in Yulin city in the central province of Shaanxi.
China has set ambitious goals for solar and other renewable energy in an effort to clean up its environment and curb surging demand for imported oil and gas, which communist leaders see as a strategic weakness.
Late last year, legislators approved changes to China's 2006 renewable energy law saying utilities will be required to buy all the power produced by wind farms and other renewable sources in an effort to reduce heavy reliance on coal.
Government goals issued in 2005 call for at least 15 percent of China's power to come from wind, solar and hydropower by 2020, up from 9 percent now. Officials say that target may be raised to 20 percent because the industry is developing so quickly.
By: The Associated Press 09 Jan 2010 07:15 AM ET
BEIJING - A U.S. solar power company said Saturday it will help build a series of solar thermal power plants in China, as the world's biggest emitter of greenhouse gases tries to decrease its heavy reliance on coal, imported gas and oil.
California-based eSolar Inc. will provide Shandong Penglai Electric Power Equipment Manufacturing Co. with the technology and information to build the concentrated solar thermal power farms with a capacity totaling 2,000 megawatts.
The $5 billion investment would be the largest such project in China, though the companies didn't say who would be investing how much.
"This is a huge jump for China," said Deborah Seligsohn, director of the China climate program for the U.S-based World Resources Institute. "That amount suggests a number of commercial plants."
Interest in China as a solar energy market is growing quickly as the government looks for alternatives to coal. Saturday's deal comes four months after the largest solar panel maker in the U.S., First Solar, struck a tentative deal to build a massive solar field in China.
The eSolar deal is for concentrated solar thermal power — not the traditional image of vast farms of solar panels, but a system of taking what essentially are mirrors and focusing them to heat water to create steam to power a generator.
"There's room in the world for both systems, and we need both," Seligsohn said.
China is moving much faster than the U.S. in solar power development, eSolar officials said.
"This is an excellent example of what we all must do to fight climate change," Merrick Kerr, eSolar's chief financial officer, told a news conference Saturday in Beijing.
The first solar plant under the deal will be in Yulin city in the central province of Shaanxi.
China has set ambitious goals for solar and other renewable energy in an effort to clean up its environment and curb surging demand for imported oil and gas, which communist leaders see as a strategic weakness.
Late last year, legislators approved changes to China's 2006 renewable energy law saying utilities will be required to buy all the power produced by wind farms and other renewable sources in an effort to reduce heavy reliance on coal.
Government goals issued in 2005 call for at least 15 percent of China's power to come from wind, solar and hydropower by 2020, up from 9 percent now. Officials say that target may be raised to 20 percent because the industry is developing so quickly.
Coal, however, provides two-thirds of China's power and is expected to remain the dominant energy source in coming years.
China is the world's biggest emitter of greenhouse gases and is not bound by global agreements on curbing emissions because it is a developing economy. But the State Council, or China's Cabinet, has promised to reduce emissions of carbon dioxide for each unit of economic output by 40 percent to 45 percent from 2005 levels by 2020.
My Comments:
China has declared that they will reduce the carbon emmission of certain amt by 2020.On that day the pressure came on India as well to declare the reduction of CO.But India has so far not declared any plans for reduction in emmission of CO.
But with the above order which China gave to one of the US Co , a multibillion order, $5 bn , for installing Solar Plants in China, India will have to buck up on this sector.China is doing the right thing to become a super power.When our politician will wake up is another call.The beurocracy should be trimmed down or cut down to size otherwise India will lose the golden chance to steer ahead of rest of the world.The problem in India is the Plans never gets finished in time.Take the case of Bandra Sea link.It took more then stipulated time and hence ended up with more expense.The cost went up by whopping 40-60% and maybe more.
When India will learn to finish the work in time?There are lots of hurdles that keeps on coming from the beurocracy.India needs to comeout from that shackles .When I read on Internet that Bandra Kurla Sealink was made open and it took 14 yrs to do that,there was a comparison with China.It was written that in that much time China would have made 6 Sealink of same type.
Now 6 timesmeans just imagine the saving in cost, human hours and moreover people starts using these much earlier that saves in petrol and time.
India will have to understand that complition of projects in time is upmost priority otherwise we will dole out more money as cost will go up with passing of time as commodities is still going to go up.For completing project in time, discipline is needed.That is what needs to come first.The hurdles of the beurocracy needs to be broken.The bribe should stop taking place.
Oh, India has to buck up in many ways.....when that will be done?China want to be a new super power and it is doing all things in right direction...when will India Wakeup?
The list where Co in India is in Carbon Credit:
1)NHPC (Recently RJ is buying)
2)Navin
3)SRF Ltd
4)Suraya Chakra Power
5)Torrent Power
6)Euro Multivision
7)PAE
8)XL Tele
9)Sahyadri Ind
10)Indo Wind
11)Guj Flouro
12)Suzlon
These are some names coming to my mind.
Houses expecting good nos for Dec qr 09....
Friends,
When I sometimes get stumbled upon such news it blows off my mind.I am reading this NEWS in each and every business paper.ET,BS etc.....all the FII's houses and local houses says that Earnings will be better for Dec qr.When they were giving a negative bias for SENSEX weren't they knowing this?The reason they are giving is Low base.
So now what the so called analyst are gearing for?A rally in market that will takeout 21k before Budget or Mar 10?I will never be able to understand what they are upto and what they wants to tell the investors community.No one was bullish for 2010 and now when they says that Dec nos will be better ,what can be derived from it?That market will runup............
There are many who are still on the sidelines and with each and every upmove , they are becoming more and more Skeptics.They are selling stocks and are remaining in CASH.For them CASH is the King and they believe in the theory that better Safe then Sorry.
I think I have nothing to say here .Each and everyone has the right to think in his own way and charter his plan of future.
But I like this scenario.When experts sell, I feel very Safe because their apprehesion gives me more confidence.The day these expert will start investing , I will become catious.The day they will have no CASH left, I will become catious.Untill the expert have Cash in hand I am trouble free.I sleep very calmly at night.These experts has been catious since 14000 and see where are we?After 14k for each and every 1000 points they are catious and market is not listening them.Now the reason for them is penny and small and midcap has start running and hence now almost end of the journey.No way...the rally in Cash gr is going to get aborted.It will go on.They have to catch up with the sensex otherwise even at 21k , these stocks will be at the same level where they were at 8k.When the cash gr rally gets the momentum , some cats and dogs also run.Sometimes it also happens that one feel that they are cats and dogs but there can be a story brewing up.
There are scores of Midcaps /Smallcaps which are available at 4-5 p/e ratio.They have to buck up the trend.......I am bullish for the year 2010, disregarding what experts feels.I may prove wrong but that is my view.
Market is cosolidating with each and every move.There is no hurry to break 21k.So there is no rush.When market takes it own times to move ahead ,then there can't be a huge correction in offing.
The only thing one need to do is Investment.Don't trade.Once you get the habit to trade , you will keep on doing that and no one has made money while trading.Actually one will have to sell the investment for paying up the loss in trading.I have seen that.....I have seen no trader making money .Maybe for couple of days or week one can see the profit but then it takes away all the profit and one end up in loss and one has to sell good fundamental shares.
So take a Vow that in New Year, there will be no day trading.There will be no playing in F&O.......
When I sometimes get stumbled upon such news it blows off my mind.I am reading this NEWS in each and every business paper.ET,BS etc.....all the FII's houses and local houses says that Earnings will be better for Dec qr.When they were giving a negative bias for SENSEX weren't they knowing this?The reason they are giving is Low base.
So now what the so called analyst are gearing for?A rally in market that will takeout 21k before Budget or Mar 10?I will never be able to understand what they are upto and what they wants to tell the investors community.No one was bullish for 2010 and now when they says that Dec nos will be better ,what can be derived from it?That market will runup............
There are many who are still on the sidelines and with each and every upmove , they are becoming more and more Skeptics.They are selling stocks and are remaining in CASH.For them CASH is the King and they believe in the theory that better Safe then Sorry.
I think I have nothing to say here .Each and everyone has the right to think in his own way and charter his plan of future.
But I like this scenario.When experts sell, I feel very Safe because their apprehesion gives me more confidence.The day these expert will start investing , I will become catious.The day they will have no CASH left, I will become catious.Untill the expert have Cash in hand I am trouble free.I sleep very calmly at night.These experts has been catious since 14000 and see where are we?After 14k for each and every 1000 points they are catious and market is not listening them.Now the reason for them is penny and small and midcap has start running and hence now almost end of the journey.No way...the rally in Cash gr is going to get aborted.It will go on.They have to catch up with the sensex otherwise even at 21k , these stocks will be at the same level where they were at 8k.When the cash gr rally gets the momentum , some cats and dogs also run.Sometimes it also happens that one feel that they are cats and dogs but there can be a story brewing up.
There are scores of Midcaps /Smallcaps which are available at 4-5 p/e ratio.They have to buck up the trend.......I am bullish for the year 2010, disregarding what experts feels.I may prove wrong but that is my view.
Market is cosolidating with each and every move.There is no hurry to break 21k.So there is no rush.When market takes it own times to move ahead ,then there can't be a huge correction in offing.
The only thing one need to do is Investment.Don't trade.Once you get the habit to trade , you will keep on doing that and no one has made money while trading.Actually one will have to sell the investment for paying up the loss in trading.I have seen that.....I have seen no trader making money .Maybe for couple of days or week one can see the profit but then it takes away all the profit and one end up in loss and one has to sell good fundamental shares.
So take a Vow that in New Year, there will be no day trading.There will be no playing in F&O.......
Pipe Dreams.......
Piping hot
R. Sree Ram
December 4, 2009
Who would have thought the stock market would be a slave to fashion? A few months ago, the runways’ fixation with metal accessories prompted a huge surge in metal stocks on D-street. This time, the source of inspiration seems to be drain pipe pants, the craze for Autumn 2009, and it has put the spotlight on the pipeline industry.
Click here to EnlargeSeriously though, the interest in the pipeline industry has little to do with fashion and everything to do with economics. With the resurgence of economic activity, the demand for crude oil is bound to go up. This spurt is expected to directly benefit the countries and companies that produce oil. More importantly, the rebound in prices is giving a fresh lease of life to the ancillary industries. According to International Energy Outlook, the demand for energy is expected to witness an average annual growth of 1.5% till 2030. Furthermore, crude oil being a capital-intensive industry, companies have to spend huge sums of money to dig, transport and market oil. In the process, a host of companies that provide rigs, refining services and pipelines for transportation are benefited. By betting on pipelines, particularly, you too can expect to go ka-ching.
According to analysts, 710 pipeline projects are being planned in the next five years and Indian pipe manufacturers collectively hope to increase their production capacities by 17% in two years. While research house Macquarie estimates the opportunity for the global pipeline industry to be $78 billion, domestic brokerage house Ventura pegs it at $117 billion. Also, GAIL, GSPL and other domestic players like Reliance Industries have announced plans for pipeline projects worth over Rs 22,000 crore.
The oil and gas industry mostly uses two types of pipes. Welded or submerged arc welded (SAW) pipes are used for transportation of fuels, while seamless pipes are primarily used in exploration and drilling activities. The shift towards cleaner fuels (gas) and new oil & gas findings are the most important factors that are expected to drive the demand for SAW pipes. “The demand for welded pipes remains strong because of the continued need to connect new areas of oil and gas supply to areas of net demand,” says Amit Mishra, an analyst at Macquarie. Not that seamless pipes are a lost cause—the demand is expected to pick up from the second half of 2010. In addition, the replacement of older pipes is being seen as an opportunity for pipe producers. An estimated 50,000 km of pipelines is expected to be replaced in the next five years. Ventura estimates a demand-supply mismatch of one lakh million tonne pipes per annum in the next two years.
Of the total estimated 3.25 lakh km of pipelines to be laid across the globe, North America, Middle East and Asia have bagged the lion’s share. The Indian pipe industry, with its cost advantage in terms of conversion (from steel to pipe moulding), is expected to benefit the most. All factors remaining on track, the stocks of pipe manufacturers are poised to outperform broader markets.
So, which are the companies to invest in?
Welspun Gujarat Stahl Rohren and PSL Ltd are being seen as the best bets in the sector. Welspun’s stock was the worst hit last year due to its higher exposure to export markets. However, with demand recovering and the outlook for the export market improving, the company is expected to turn in a good set of numbers. “Indian pipe companies are trading at a discount of around 50% to their global peers. Welspun is also trading at a discount to its Indian peers, and given its strong earnings growth, robust order book, backward integration and larger share of high-margin orders, the stock warrants a higher multiple premium to its peers,” says Mishra. India Infoline too maintains a buy rating on the stock, with a price target of Rs 314. On the other hand, PSL, a domestic player with a 40% market share, is being recommended for the lower valuations and a strong presence in SAW pipes. At an estimated 2009-10 EPS of Rs 23-29, the stock is trading at a PE of 4.4-7.5 times. The company’s order book of Rs 4,586 crore is 1.2 times more than last year’s revenues.
Whichever way you look at it, pipes are hot, and will remain so at least for the next three years.
My Comments:
Have I to say anything more on this article?
PSL Ltd is the Best Bet......going still at throwaway price.......
R. Sree Ram
December 4, 2009
Who would have thought the stock market would be a slave to fashion? A few months ago, the runways’ fixation with metal accessories prompted a huge surge in metal stocks on D-street. This time, the source of inspiration seems to be drain pipe pants, the craze for Autumn 2009, and it has put the spotlight on the pipeline industry.
Click here to EnlargeSeriously though, the interest in the pipeline industry has little to do with fashion and everything to do with economics. With the resurgence of economic activity, the demand for crude oil is bound to go up. This spurt is expected to directly benefit the countries and companies that produce oil. More importantly, the rebound in prices is giving a fresh lease of life to the ancillary industries. According to International Energy Outlook, the demand for energy is expected to witness an average annual growth of 1.5% till 2030. Furthermore, crude oil being a capital-intensive industry, companies have to spend huge sums of money to dig, transport and market oil. In the process, a host of companies that provide rigs, refining services and pipelines for transportation are benefited. By betting on pipelines, particularly, you too can expect to go ka-ching.
According to analysts, 710 pipeline projects are being planned in the next five years and Indian pipe manufacturers collectively hope to increase their production capacities by 17% in two years. While research house Macquarie estimates the opportunity for the global pipeline industry to be $78 billion, domestic brokerage house Ventura pegs it at $117 billion. Also, GAIL, GSPL and other domestic players like Reliance Industries have announced plans for pipeline projects worth over Rs 22,000 crore.
The oil and gas industry mostly uses two types of pipes. Welded or submerged arc welded (SAW) pipes are used for transportation of fuels, while seamless pipes are primarily used in exploration and drilling activities. The shift towards cleaner fuels (gas) and new oil & gas findings are the most important factors that are expected to drive the demand for SAW pipes. “The demand for welded pipes remains strong because of the continued need to connect new areas of oil and gas supply to areas of net demand,” says Amit Mishra, an analyst at Macquarie. Not that seamless pipes are a lost cause—the demand is expected to pick up from the second half of 2010. In addition, the replacement of older pipes is being seen as an opportunity for pipe producers. An estimated 50,000 km of pipelines is expected to be replaced in the next five years. Ventura estimates a demand-supply mismatch of one lakh million tonne pipes per annum in the next two years.
Of the total estimated 3.25 lakh km of pipelines to be laid across the globe, North America, Middle East and Asia have bagged the lion’s share. The Indian pipe industry, with its cost advantage in terms of conversion (from steel to pipe moulding), is expected to benefit the most. All factors remaining on track, the stocks of pipe manufacturers are poised to outperform broader markets.
So, which are the companies to invest in?
Welspun Gujarat Stahl Rohren and PSL Ltd are being seen as the best bets in the sector. Welspun’s stock was the worst hit last year due to its higher exposure to export markets. However, with demand recovering and the outlook for the export market improving, the company is expected to turn in a good set of numbers. “Indian pipe companies are trading at a discount of around 50% to their global peers. Welspun is also trading at a discount to its Indian peers, and given its strong earnings growth, robust order book, backward integration and larger share of high-margin orders, the stock warrants a higher multiple premium to its peers,” says Mishra. India Infoline too maintains a buy rating on the stock, with a price target of Rs 314. On the other hand, PSL, a domestic player with a 40% market share, is being recommended for the lower valuations and a strong presence in SAW pipes. At an estimated 2009-10 EPS of Rs 23-29, the stock is trading at a PE of 4.4-7.5 times. The company’s order book of Rs 4,586 crore is 1.2 times more than last year’s revenues.
Whichever way you look at it, pipes are hot, and will remain so at least for the next three years.
My Comments:
Have I to say anything more on this article?
PSL Ltd is the Best Bet......going still at throwaway price.......
Saturday, January 9, 2010
Water treatment, access becomes fast-growing biz .....Tata Chem...@317..
Water treatment, access becomes fast-growing biz
PB JAYAKUMAR Mumbai, 8 January
Orders are flowing for the water and wastewater treatment industry, as leading players in the domestic market such as VA Tech Wabag, Larsen and Toubro, Thermax and IVRCL Infra have bagged over Rs 2,500 crore worth of orders in the past twoto-three months.
VA Tech Wabag, headquartered in Chennai with a Rs 1,200-crore turnover, yesterday said it has been awarded the contract for implementing India’s largest seawater desalination project, by Chennai Metropolitan Water Supply and Sewerage Board (Chennai Metro Water). The total cost of the project is Rs 1,033 crore and it will have a capacity of 100 million litres a day. The plant will be constructed on a DBO (design, build and operate) basis and will be commissioned in the next 24 months.
VA Tech Wabag had earlier designed and built seawater desalination plants for Adani Power in Gujarat, for Hindustan Petroleum Corporation at the Vizag Refinery, and for Gujarat Mineral Development Corporation.
“With this, our order book now stands at Rs 3,300 crore and we expect another Rs 500-600 crore of orders within the coming three to four months,” Rajiv Mittal, managing director, told Business Standard.
The Indian water treatment business is estimated to be about Rs 2,000 crore and growing at 15-20 per cent annually. This includes the Rs 1,200crore industrial water treatment sector and the Rs 800-crore point-of-consumption market, which involves localised water treatment.
PSL Ltd, the largest manufacturer of pipes in India, today announced it had bagged orders worth over Rs 425 crore in the past 10 days for the manufacture of pipes for water supply projects from infrastructure companies like L&T, Lanco, Nagarjuna Construction Company, Subhash Projects (SPML), and South East Constructions.
“We expect various infrastructure players to place orders worth Rs 2500 crore for pipes for water supply projects within the next 18 months,” said Ashok Punj, managing director of the Rs 3,600 crore turnover PSL, which controls over half of the pipe market in the country.
In another announcement, IVRCL Infra and Projects yesterday said it had bagged infrastructure projects worth Rs 958 crore, which includes a Rs 253-crore order from the Gujarat government’s Gujarat Water Infrastructure for implementing the NC-24 water supply scheme in the state. The company also bagged a Rs 142.35-crore contract from Cauvery Neeravary Nigama and another Rs 133.64 -crore contract from Bangalore Water Supply and Sewerage Board (BWSSB). With these, the company’s overall order book now stands at Rs 22,000 crore, IVRCL said in a filing to the Bombay Stock Exchange.
Last week, engineering and construction major Larsen & Toubro had said the company got a Rs 189-crore order from the BWSSB. The contract includes fabrication and laying of a mild steel pipeline. The scheme, funded by Japan International Cooperation Agency, envisages transmission of 500 million litres per day of clear water from the river Cauvery (Shiva Balancing Reservoir) to Bangalore. The project, to be completed in 24 months, involves laying a pipeline from Harohalli to Tataguni and Vajarahalli, along with associated civil work.
L&T’s water and water treatment business are handled by the Metallurgical, Material Handling and Water Operating Company, a part of its construction division. In October, the Uttar Pradesh Jal Nigam had entrusted L&T with a Rs 488-crore order for implementing projects under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), a massive city modernisation scheme funded by the Government of India. Of this, Rs 274 crore will go to provide a sewage system to Varanasi city in 30 months, another Rs 121 crore to provide water supply to Allahabad city in 24 months and Rs 93 crore to a wastewater management system for Mathura town, also in 24 months.
The allocation for JNNURM was increased by 87 per cent by the Union government for 2009-10 to Rs 12,887 crore. It had sanctioned 463 projects requiring an investment of Rs 49,743 crore, ( That is a BIG Figure...)mainly for basic urban services like water supply, sewerage and stormwater drainage. Agencies such as the Asian Development Bank, World Bank and Japan Bank for International Cooperation are also funding water and wastewater treatment projects.
Another leading player in the segment, Pune-based power solutions player Thermax, had bagged Rs 155 crore worth of orders for sewage treatment in Maharashtra and in Jammu and Kashmir.
The Indian water treatment business is about Rs 2,000 crore and is growing at 15-20 per cent annually .
My Comments:
There will be big gap coming up for the water treatment for Ind purpose as well as commercial use.
Ion Exchange where RJ has taken stake looks good , Tata Chemical looks extremly good to me as it has just put its "Swatch " titled water purifier in market which is going to be growth driver for Tata Chem in years to come.Moreover,with food grain scarcity coming on in world , more and more fertilizer will be needed perticularly Co using Potash for making Fertilizer will have field day.....and Tata Chem is one of them.
I think Tata Chem is a multibagger in making from hereon.
I remember I gave a call on Tata Power at mmb in last bull run around 300-400 and it went on to touch 1300-1400...and then came down in 2008 and again is back at 1400...I am seeing the same rerun in Tata Chem....Future looks extremly bright for Tata Chem.....These are my views and I may prove wrong in big way....
Actually I was trying to write on Tata Chem but was waiting for appropriate opportunity and this article gave me that .....Rest of the Due Diligence I leave it for my readers.....
What I would like to see here is how many readers read this news in BS paper today and how many makes out from it, the analysis.....see everyone reads the news in paper but how one interprets is important.How much one can apply information one have in mind ,can again able to recall and try to corelate with the NEWS one read, is important.......
I gets lots of mail asking me how they can do things I am doing....first try to read business papers as much as you can, like ET,BS,FT etc and then read stock market Magazine like Business India, Business World, Capital Market , Business Today, Money Life etc.....read them properly...I have written in past but just repeating for new readers.........I never missed a single issue of Business India and Capital Market Magazine as I was subscriber of those.Then I always bought 2 business papers , viz:ET and BS and will go to library and read FT and other Magazines.....These are the basics and intial steps for climbing up the ladder ....As a matter of fact , I can say that, how many times I have read the Capital Market Magazine Score Board , I can't say...I use to go through the Score Board umpteen times......now don't ask me what needs to be looked in it....try to find of your own what needs to be read....it is all trail and error....and from that learning...
Gather as much information as much you can from the world market, try to read what is happening in the world, what is in demand and what is going out of favour.These all helps .....what readers are seeing is not a mere 2-3 yrs of hard work.It is a long way for my take in stock market and I developed it with experiance......and let me write ,that not all can do that , like someone having same experiance like me and still maybe not as good as me.It depends upon ones PASSION...I always thrive in search of new sector , a niche sector and a Co having niche product which if successful can do wonders for the bottomline....
Updates on JSW Energy Ltd : First time after the IPO, one of the brokerage has come out with a buy report for JSW Energy which vindicates my call that JSW Energy can be applied on IPO...
PB JAYAKUMAR Mumbai, 8 January
Orders are flowing for the water and wastewater treatment industry, as leading players in the domestic market such as VA Tech Wabag, Larsen and Toubro, Thermax and IVRCL Infra have bagged over Rs 2,500 crore worth of orders in the past twoto-three months.
VA Tech Wabag, headquartered in Chennai with a Rs 1,200-crore turnover, yesterday said it has been awarded the contract for implementing India’s largest seawater desalination project, by Chennai Metropolitan Water Supply and Sewerage Board (Chennai Metro Water). The total cost of the project is Rs 1,033 crore and it will have a capacity of 100 million litres a day. The plant will be constructed on a DBO (design, build and operate) basis and will be commissioned in the next 24 months.
VA Tech Wabag had earlier designed and built seawater desalination plants for Adani Power in Gujarat, for Hindustan Petroleum Corporation at the Vizag Refinery, and for Gujarat Mineral Development Corporation.
“With this, our order book now stands at Rs 3,300 crore and we expect another Rs 500-600 crore of orders within the coming three to four months,” Rajiv Mittal, managing director, told Business Standard.
The Indian water treatment business is estimated to be about Rs 2,000 crore and growing at 15-20 per cent annually. This includes the Rs 1,200crore industrial water treatment sector and the Rs 800-crore point-of-consumption market, which involves localised water treatment.
PSL Ltd, the largest manufacturer of pipes in India, today announced it had bagged orders worth over Rs 425 crore in the past 10 days for the manufacture of pipes for water supply projects from infrastructure companies like L&T, Lanco, Nagarjuna Construction Company, Subhash Projects (SPML), and South East Constructions.
“We expect various infrastructure players to place orders worth Rs 2500 crore for pipes for water supply projects within the next 18 months,” said Ashok Punj, managing director of the Rs 3,600 crore turnover PSL, which controls over half of the pipe market in the country.
In another announcement, IVRCL Infra and Projects yesterday said it had bagged infrastructure projects worth Rs 958 crore, which includes a Rs 253-crore order from the Gujarat government’s Gujarat Water Infrastructure for implementing the NC-24 water supply scheme in the state. The company also bagged a Rs 142.35-crore contract from Cauvery Neeravary Nigama and another Rs 133.64 -crore contract from Bangalore Water Supply and Sewerage Board (BWSSB). With these, the company’s overall order book now stands at Rs 22,000 crore, IVRCL said in a filing to the Bombay Stock Exchange.
Last week, engineering and construction major Larsen & Toubro had said the company got a Rs 189-crore order from the BWSSB. The contract includes fabrication and laying of a mild steel pipeline. The scheme, funded by Japan International Cooperation Agency, envisages transmission of 500 million litres per day of clear water from the river Cauvery (Shiva Balancing Reservoir) to Bangalore. The project, to be completed in 24 months, involves laying a pipeline from Harohalli to Tataguni and Vajarahalli, along with associated civil work.
L&T’s water and water treatment business are handled by the Metallurgical, Material Handling and Water Operating Company, a part of its construction division. In October, the Uttar Pradesh Jal Nigam had entrusted L&T with a Rs 488-crore order for implementing projects under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), a massive city modernisation scheme funded by the Government of India. Of this, Rs 274 crore will go to provide a sewage system to Varanasi city in 30 months, another Rs 121 crore to provide water supply to Allahabad city in 24 months and Rs 93 crore to a wastewater management system for Mathura town, also in 24 months.
The allocation for JNNURM was increased by 87 per cent by the Union government for 2009-10 to Rs 12,887 crore. It had sanctioned 463 projects requiring an investment of Rs 49,743 crore, ( That is a BIG Figure...)mainly for basic urban services like water supply, sewerage and stormwater drainage. Agencies such as the Asian Development Bank, World Bank and Japan Bank for International Cooperation are also funding water and wastewater treatment projects.
Another leading player in the segment, Pune-based power solutions player Thermax, had bagged Rs 155 crore worth of orders for sewage treatment in Maharashtra and in Jammu and Kashmir.
The Indian water treatment business is about Rs 2,000 crore and is growing at 15-20 per cent annually .
My Comments:
There will be big gap coming up for the water treatment for Ind purpose as well as commercial use.
Ion Exchange where RJ has taken stake looks good , Tata Chemical looks extremly good to me as it has just put its "Swatch " titled water purifier in market which is going to be growth driver for Tata Chem in years to come.Moreover,with food grain scarcity coming on in world , more and more fertilizer will be needed perticularly Co using Potash for making Fertilizer will have field day.....and Tata Chem is one of them.
I think Tata Chem is a multibagger in making from hereon.
I remember I gave a call on Tata Power at mmb in last bull run around 300-400 and it went on to touch 1300-1400...and then came down in 2008 and again is back at 1400...I am seeing the same rerun in Tata Chem....Future looks extremly bright for Tata Chem.....These are my views and I may prove wrong in big way....
Actually I was trying to write on Tata Chem but was waiting for appropriate opportunity and this article gave me that .....Rest of the Due Diligence I leave it for my readers.....
What I would like to see here is how many readers read this news in BS paper today and how many makes out from it, the analysis.....see everyone reads the news in paper but how one interprets is important.How much one can apply information one have in mind ,can again able to recall and try to corelate with the NEWS one read, is important.......
I gets lots of mail asking me how they can do things I am doing....first try to read business papers as much as you can, like ET,BS,FT etc and then read stock market Magazine like Business India, Business World, Capital Market , Business Today, Money Life etc.....read them properly...I have written in past but just repeating for new readers.........I never missed a single issue of Business India and Capital Market Magazine as I was subscriber of those.Then I always bought 2 business papers , viz:ET and BS and will go to library and read FT and other Magazines.....These are the basics and intial steps for climbing up the ladder ....As a matter of fact , I can say that, how many times I have read the Capital Market Magazine Score Board , I can't say...I use to go through the Score Board umpteen times......now don't ask me what needs to be looked in it....try to find of your own what needs to be read....it is all trail and error....and from that learning...
Gather as much information as much you can from the world market, try to read what is happening in the world, what is in demand and what is going out of favour.These all helps .....what readers are seeing is not a mere 2-3 yrs of hard work.It is a long way for my take in stock market and I developed it with experiance......and let me write ,that not all can do that , like someone having same experiance like me and still maybe not as good as me.It depends upon ones PASSION...I always thrive in search of new sector , a niche sector and a Co having niche product which if successful can do wonders for the bottomline....
Updates on JSW Energy Ltd : First time after the IPO, one of the brokerage has come out with a buy report for JSW Energy which vindicates my call that JSW Energy can be applied on IPO...
Friday, January 8, 2010
PSL expands capacity as pipeline orders boom here, abroad ..........
PSL expands capacity as pipeline orders boom here, abroad
PB JAYAKUMAR Mumbai, 7 January
India’s largest pipe manufacturer, PSL Ltd, is augmenting its manufacturing capacity by 300,000 metric tonnes (mt), or about 20 per cent, to meet demand from the oil and gas and water treatment sectors.
The current manufacturing capacity is 1.475 mt and anew 300,000 mt unit is being erected at Visakhapatnam. It will start commercial production by April.
Further, the Rs 2,600-crore turnover company is relocating about 300,000 mt of capacity to Chennai, from its other 11 pipe mills in the country. This is to gain locational advantages, as many new pipeline projects are coming up in South India. The company had earlier raised Rs 200 crore from the secondary market through issue of securities to fund the expansions, said Managing DirectorAshok Punj.
“With this, we will be able to meet demand for the next few years in India and abroad,” he told Business Standard.
Orders worth Rs 5,000 crore from the oil and gas sector and Rs 2,500 crore from the water treatment sector are likely be placed with pipe manufacturers within the next 18 months, Punj said. At present, PSL has an order book of Rs 2,200 crore from the oil and gas and water segments.
Sources said the Indian pipe industry is among the top three manufacturing hubs after Japan and Europe. The market for pipes in the country is about Rs 10,000 crore and is dominated by PSL, Jindal Saw and Wellspun( Now compare PSL with JSW and Welspun Gujarat -Stalhl Rohren Ltd). Raw materials account for more than 70 per cent of the total cost. Normally, orders for pipes are placed by infrastructure companies when steel prices are low.
My Comments:
Readers use to ask me how one can find orderbook position of Cos.I donno any way except looking out for news in pink papers like this I read today in BS....or try to explore through internet....or call and ask CS of the Co.....I have never called any CS of any Co.I have seen people calling CS of the Co to know about how Co is doing and asking queries of their concerns.......I never do that....never call CS of any Co...
PB JAYAKUMAR Mumbai, 7 January
India’s largest pipe manufacturer, PSL Ltd, is augmenting its manufacturing capacity by 300,000 metric tonnes (mt), or about 20 per cent, to meet demand from the oil and gas and water treatment sectors.
The current manufacturing capacity is 1.475 mt and anew 300,000 mt unit is being erected at Visakhapatnam. It will start commercial production by April.
Further, the Rs 2,600-crore turnover company is relocating about 300,000 mt of capacity to Chennai, from its other 11 pipe mills in the country. This is to gain locational advantages, as many new pipeline projects are coming up in South India. The company had earlier raised Rs 200 crore from the secondary market through issue of securities to fund the expansions, said Managing DirectorAshok Punj.
“With this, we will be able to meet demand for the next few years in India and abroad,” he told Business Standard.
Orders worth Rs 5,000 crore from the oil and gas sector and Rs 2,500 crore from the water treatment sector are likely be placed with pipe manufacturers within the next 18 months, Punj said. At present, PSL has an order book of Rs 2,200 crore from the oil and gas and water segments.
Sources said the Indian pipe industry is among the top three manufacturing hubs after Japan and Europe. The market for pipes in the country is about Rs 10,000 crore and is dominated by PSL, Jindal Saw and Wellspun( Now compare PSL with JSW and Welspun Gujarat -Stalhl Rohren Ltd). Raw materials account for more than 70 per cent of the total cost. Normally, orders for pipes are placed by infrastructure companies when steel prices are low.
My Comments:
Readers use to ask me how one can find orderbook position of Cos.I donno any way except looking out for news in pink papers like this I read today in BS....or try to explore through internet....or call and ask CS of the Co.....I have never called any CS of any Co.I have seen people calling CS of the Co to know about how Co is doing and asking queries of their concerns.......I never do that....never call CS of any Co...
Reliance MediaWorks...cmp..279.95...old Adlabs Ltd...
Friends,
I like Adlabs Ltd.I like the way AnilAmbani has chartered the route of growth for Reliance Media Works.
For any Film to get released it has to go through the processing.Untill it is proccessed in a Lab there can't be any print taken out.If anyone going to theatre to see movie or try to see at own TV while putting a CD or DVD in player, one can see the title coming first.Like Actors name, Actress Name,other artist, Photograhpy by..., then Asst Dir, Asst Producer, then one can see where it is processed.....and in almost all film that one go to see, the name that comes for where the Film was processed is none other then Adlabs Ltd.....This name one should have always seen whenever they see a movie .The Producer gets changed,the Dir Gets changed,the actors get changed, the name of the film gets changed but the Lab where the Film is processed is always Adlabs Ltd......This name one will always find in any film.
3-4 yrs back Anil Ambani Media gr tookover this Co from the then owner Manmohan Shetty.ADAG gr after that has made many annoucement for making venture film which can have both of the Hollywood and Bollywood.He has also tied up with the Hollywood best director, Steven Speilberg and some of the best actors of Hollywood.
Rel MediaWorks has got its overseas distribution Co as well and latest , they have distributed Paa and 3 Idiots overseas including USA.
I today just went through the ET and a news caught my eyes which says that Rel MediaWorks is taking over a Lab in UK...
Read on:
Reliance MediaWorks acquires ilab UK
Buyout To Help Reliance Tap Entertainment Cos Looking To Outsource Production & Development
Our Bureau MUMBAI
RELIANCE MediaWorks (RMW), formerly Adlabs, has acquired the assets of ilab UK Ltd., one of only two film processing facilities operating in London’s Soho. With this acquisition, RMW has expanded and strengthened its international presence which is already spread well across the globe.
With ilab, RMW offers a dedicated film and media services facility in London, that will offer front-end, processing, restoration, 2D to 3D conversion and post-production services to broadcasters and studios. In fact, ilab has been the lab of choice for high end processing for film, television, commercial and shorts productions. “Our expansion is growing at a remarkable pace. The UK is one of the world’s leading post-production markets and now we have a presence there. Through RMW UK we would provide next generation services for the local film makers and broadcasters, while also catering to Hollywood and Hindi film businesses,” said CEO RMW, Anil Arjun.
While strengthening their services portfolio in UK, Arjun says they gain talent, experience and local learning that ilabs team brings on board. “We look forward to the creative synergies that integrating of UK operations would bring to the entire film and media services value chain that RMW has developed across continents, ” Arjun added.
RMW UK has already secured image processing and restoration work for two high profile projects from BBC at RMW’s LA-based subsidiary Lowry Digital, Hollywood’s leading film restoration expert. Lowry Digital has handled projects for leading studios like Walt Disney, Paramount Pictures, MGM and 20th Century Fox and entertainment leaders like George Lucas, Steven Spielberg and James Cameron. Also recently, Lowry Digital has handled the restoration of footage sent back to Earth from Apollo 11, as part of the 40th anniversary celebrations of the mission for NASA.
To further enhance the synergy between the services offered by RMW across three continents, the company has established an optical fibre network, first of its kind, through Reliance Globalcom’s Ethernet Private Line. This network has already been used for close to a year for distributing digital cinema releases of Indian films from Mumbai to the US.
In the past year, ilabs has been the rushes house of choice for the majority of high-end film originated Drama Series for the BBC and offers bespoke, specialist rushes service night and day for the commercials, feature and broadcast market. Apart from tying in with RMW’s lab facility in Mumbai, it will be able to offer lab, rushes and transfer services to the many Indian films that are shot on location in London and UK each year.
Reliance MediaWorks has a dominant and comprehensive presence in Film Services: Motion Picture Processing and DI; Visual Effects; Film Restoration and Image Enhancement; Digital Mastering: Studios and Equipment rentals with facilities located at US and India.
My Comments:
At 269 , a 5 paidup stock with a high of 463 and low of 136, it is at the midway between them.I had given a call on UTv and I am giving another call in same sector RelMediaworks Ltd.I remember ADAG gr has annouced an investment of 4500 cr for making film which consist of Hollywood and Bollywood actors.....
I like Adlabs Ltd.I like the way AnilAmbani has chartered the route of growth for Reliance Media Works.
For any Film to get released it has to go through the processing.Untill it is proccessed in a Lab there can't be any print taken out.If anyone going to theatre to see movie or try to see at own TV while putting a CD or DVD in player, one can see the title coming first.Like Actors name, Actress Name,other artist, Photograhpy by..., then Asst Dir, Asst Producer, then one can see where it is processed.....and in almost all film that one go to see, the name that comes for where the Film was processed is none other then Adlabs Ltd.....This name one should have always seen whenever they see a movie .The Producer gets changed,the Dir Gets changed,the actors get changed, the name of the film gets changed but the Lab where the Film is processed is always Adlabs Ltd......This name one will always find in any film.
3-4 yrs back Anil Ambani Media gr tookover this Co from the then owner Manmohan Shetty.ADAG gr after that has made many annoucement for making venture film which can have both of the Hollywood and Bollywood.He has also tied up with the Hollywood best director, Steven Speilberg and some of the best actors of Hollywood.
Rel MediaWorks has got its overseas distribution Co as well and latest , they have distributed Paa and 3 Idiots overseas including USA.
I today just went through the ET and a news caught my eyes which says that Rel MediaWorks is taking over a Lab in UK...
Read on:
Reliance MediaWorks acquires ilab UK
Buyout To Help Reliance Tap Entertainment Cos Looking To Outsource Production & Development
Our Bureau MUMBAI
RELIANCE MediaWorks (RMW), formerly Adlabs, has acquired the assets of ilab UK Ltd., one of only two film processing facilities operating in London’s Soho. With this acquisition, RMW has expanded and strengthened its international presence which is already spread well across the globe.
With ilab, RMW offers a dedicated film and media services facility in London, that will offer front-end, processing, restoration, 2D to 3D conversion and post-production services to broadcasters and studios. In fact, ilab has been the lab of choice for high end processing for film, television, commercial and shorts productions. “Our expansion is growing at a remarkable pace. The UK is one of the world’s leading post-production markets and now we have a presence there. Through RMW UK we would provide next generation services for the local film makers and broadcasters, while also catering to Hollywood and Hindi film businesses,” said CEO RMW, Anil Arjun.
While strengthening their services portfolio in UK, Arjun says they gain talent, experience and local learning that ilabs team brings on board. “We look forward to the creative synergies that integrating of UK operations would bring to the entire film and media services value chain that RMW has developed across continents, ” Arjun added.
RMW UK has already secured image processing and restoration work for two high profile projects from BBC at RMW’s LA-based subsidiary Lowry Digital, Hollywood’s leading film restoration expert. Lowry Digital has handled projects for leading studios like Walt Disney, Paramount Pictures, MGM and 20th Century Fox and entertainment leaders like George Lucas, Steven Spielberg and James Cameron. Also recently, Lowry Digital has handled the restoration of footage sent back to Earth from Apollo 11, as part of the 40th anniversary celebrations of the mission for NASA.
To further enhance the synergy between the services offered by RMW across three continents, the company has established an optical fibre network, first of its kind, through Reliance Globalcom’s Ethernet Private Line. This network has already been used for close to a year for distributing digital cinema releases of Indian films from Mumbai to the US.
In the past year, ilabs has been the rushes house of choice for the majority of high-end film originated Drama Series for the BBC and offers bespoke, specialist rushes service night and day for the commercials, feature and broadcast market. Apart from tying in with RMW’s lab facility in Mumbai, it will be able to offer lab, rushes and transfer services to the many Indian films that are shot on location in London and UK each year.
Reliance MediaWorks has a dominant and comprehensive presence in Film Services: Motion Picture Processing and DI; Visual Effects; Film Restoration and Image Enhancement; Digital Mastering: Studios and Equipment rentals with facilities located at US and India.
My Comments:
At 269 , a 5 paidup stock with a high of 463 and low of 136, it is at the midway between them.I had given a call on UTv and I am giving another call in same sector RelMediaworks Ltd.I remember ADAG gr has annouced an investment of 4500 cr for making film which consist of Hollywood and Bollywood actors.....
Thursday, January 7, 2010
Transgene Biotek tie-ups with Dr Reddy's Laboratories ....updates on Bombay Dyeing..
Friends,
Here comes the news for Transgene Bio which I have been recomending since my mmb days.I have even once recomended here as well.It was not moving at all and now with this new tieup with Dr Reddy's .....it should show some movement.Transgene has also tied up with Cuba for some other drugs which if explored will be found.....
Transgene Biotek tie-ups with Dr Reddy's Laboratories
Thursday, January 07, 2010 17:45 IST
Our Bureau, Mumbai
Transgene Biotek Ltd (TBL) has entered into a licensing and technology transfer agreement with Dr Reddy's Laboratories (DRL) for the out-licensing of a technology for the manufacture of Orlistat. Through this tieup, DRL will gain worldwide rights to a unique technology for the manufacture and commercialization of Orlistat API which was developed exclusively by TBL. The company will receive an upfront payment, additional payments for certain commercial milestones, and royalties on the sale of Orlistat API in all countries worldwide.
Orlistat is a lipase inhibitor used for obesity management that acts by preventing the absorption of fats from the human diet, thereby reducing caloric intake, and is the most studied weight loss medicine in the world, with more than 100 clinical studies, involving more than 30,000 patients. Is is used in the treatment of Obesity including management of weight loss and weight maintenance.
TBL earlier out-licensed its recombinant Hepatitis B Vaccine technology to Serum Institute of India, one of the largest vaccine producers in world.
Updates on Bombay Dyeing....:
CLSA has come out with a report for Bombay Dyeing.It says that the project for the land they owns that is coming up , the NAV is 1350/share after deducting the loss of textile unit......
Here comes the news for Transgene Bio which I have been recomending since my mmb days.I have even once recomended here as well.It was not moving at all and now with this new tieup with Dr Reddy's .....it should show some movement.Transgene has also tied up with Cuba for some other drugs which if explored will be found.....
Transgene Biotek tie-ups with Dr Reddy's Laboratories
Thursday, January 07, 2010 17:45 IST
Our Bureau, Mumbai
Transgene Biotek Ltd (TBL) has entered into a licensing and technology transfer agreement with Dr Reddy's Laboratories (DRL) for the out-licensing of a technology for the manufacture of Orlistat. Through this tieup, DRL will gain worldwide rights to a unique technology for the manufacture and commercialization of Orlistat API which was developed exclusively by TBL. The company will receive an upfront payment, additional payments for certain commercial milestones, and royalties on the sale of Orlistat API in all countries worldwide.
Orlistat is a lipase inhibitor used for obesity management that acts by preventing the absorption of fats from the human diet, thereby reducing caloric intake, and is the most studied weight loss medicine in the world, with more than 100 clinical studies, involving more than 30,000 patients. Is is used in the treatment of Obesity including management of weight loss and weight maintenance.
TBL earlier out-licensed its recombinant Hepatitis B Vaccine technology to Serum Institute of India, one of the largest vaccine producers in world.
Updates on Bombay Dyeing....:
CLSA has come out with a report for Bombay Dyeing.It says that the project for the land they owns that is coming up , the NAV is 1350/share after deducting the loss of textile unit......
DQ Entertainment......INDIAN FIRM BUYS RIGHTS TO MAKE CHAPLIN ANIMATION...IPO Coming..
DQ Entertainment, Method Animation and MK2 to collaborate to produce TV series, movies
INDIAN FIRM BUYS RIGHTS TO MAKE CHAPLIN ANIMATION
AMINAH SHEIKH Mumbai, 6 January
“A day without a laugh is a wasted day,” said Charlie Chaplin in his famous comedy character. Now, several decades later, that icon of the silent film era will dawn on our television screens in an animated avatar.
An Indian animation and special effects company, DQ Entertainment, headquartered in Hyderabad, has acquired the animation remaking rights of Charlie Chaplin from the Chaplin family, in collaboration with two French companies, Method Animation and MK2.
The legendary comedy show will be produced by them in animated format, as a television series and as movies.
While a formal announcement is expected in this week, the production is already reported underway. Tapaas Chakravarti, the Chairman and CEO of DQ Entertainment was not available for comment.
Sources say DQ is also in talks with multiple channels internationally to telecast the animated series worldwide, including Europe, Japan, Australia, UK and China. The telecast rights in India are yet to sold.
The Charlie Chaplin series had started in the early 1900s, featuring a character who captured the hearts of generations with his toothbrush mustache,a funny walk and two prized possessions, a hat and a bamboo cane.
The sources said the TV series will first go on air, followed by the movies.
DQ plans to raise around Rs 150 crore through an Initial Public Offer, for which it is divesting close to 25 per cent of its equity. Earlier, the company had announced filing of its Draft Red Herring Prospectus, on September 30 last year, with the Securities and Exchange Board of India. The lead manager for the issue is SBI Capital Markets and the syndicate banks are YES Bank and India Infoline. According to sources, the company will raise an additional Rs 62 crore from internal accrual and bank loans.
DQ is a production house for visual effects, digital animation for television, feature films, and animation games for PCs and consoles. It has worked with Walt Disney Television Animation, Marvel Comics, Nickelodeon Animation Studios, Electronic Arts, the BBC Group and NBC Universal, among others. Some of the projects have been The Jungle Book ,Casper Iron Man animation series, Omkar ,Little Nick Tara Duncan.
In December 2007, DQ had listed on the Alternative Investment Market of the London Stock Exchange and raised $56 million. The funds were used to boost its distribution network globally, to develop production facilities in India and other business plans.
Currently, it employs around 2,800 permanent staff and 700 freelancers. It has offices in Kolkata, Mumbai, Chennai, Paris, Los Angeles, and Tokyo.
My Comments:
I think the IPO of DQ Entertainment would be a great thing to apply for.I donno what is the issue price so can't speak much on that.Let us see at what price the IPO comes.But this is one IPO where investor needs to lookout for....and I think DQ stands for Data Quest and there is one co who is publising Data Quest Magazine, I can't remember the name but it is an IT Co a listed one...and hence they maybe holding stake in DQ Entertainment....try to find that Co....
INDIAN FIRM BUYS RIGHTS TO MAKE CHAPLIN ANIMATION
AMINAH SHEIKH Mumbai, 6 January
“A day without a laugh is a wasted day,” said Charlie Chaplin in his famous comedy character. Now, several decades later, that icon of the silent film era will dawn on our television screens in an animated avatar.
An Indian animation and special effects company, DQ Entertainment, headquartered in Hyderabad, has acquired the animation remaking rights of Charlie Chaplin from the Chaplin family, in collaboration with two French companies, Method Animation and MK2.
The legendary comedy show will be produced by them in animated format, as a television series and as movies.
While a formal announcement is expected in this week, the production is already reported underway. Tapaas Chakravarti, the Chairman and CEO of DQ Entertainment was not available for comment.
Sources say DQ is also in talks with multiple channels internationally to telecast the animated series worldwide, including Europe, Japan, Australia, UK and China. The telecast rights in India are yet to sold.
The Charlie Chaplin series had started in the early 1900s, featuring a character who captured the hearts of generations with his toothbrush mustache,a funny walk and two prized possessions, a hat and a bamboo cane.
The sources said the TV series will first go on air, followed by the movies.
DQ plans to raise around Rs 150 crore through an Initial Public Offer, for which it is divesting close to 25 per cent of its equity. Earlier, the company had announced filing of its Draft Red Herring Prospectus, on September 30 last year, with the Securities and Exchange Board of India. The lead manager for the issue is SBI Capital Markets and the syndicate banks are YES Bank and India Infoline. According to sources, the company will raise an additional Rs 62 crore from internal accrual and bank loans.
DQ is a production house for visual effects, digital animation for television, feature films, and animation games for PCs and consoles. It has worked with Walt Disney Television Animation, Marvel Comics, Nickelodeon Animation Studios, Electronic Arts, the BBC Group and NBC Universal, among others. Some of the projects have been The Jungle Book ,Casper Iron Man animation series, Omkar ,Little Nick Tara Duncan.
In December 2007, DQ had listed on the Alternative Investment Market of the London Stock Exchange and raised $56 million. The funds were used to boost its distribution network globally, to develop production facilities in India and other business plans.
Currently, it employs around 2,800 permanent staff and 700 freelancers. It has offices in Kolkata, Mumbai, Chennai, Paris, Los Angeles, and Tokyo.
My Comments:
I think the IPO of DQ Entertainment would be a great thing to apply for.I donno what is the issue price so can't speak much on that.Let us see at what price the IPO comes.But this is one IPO where investor needs to lookout for....and I think DQ stands for Data Quest and there is one co who is publising Data Quest Magazine, I can't remember the name but it is an IT Co a listed one...and hence they maybe holding stake in DQ Entertainment....try to find that Co....
Stride Arcolab.....cmp..234.95.......making giant strides...
Friends,
I have been tracking this Co since 2005-06.It was suppose to have prospered as a great pharma co but that didn't happened.But since last 6 months I am reading good news on this upcoming pharma Co.
I would not write what Co was going through in last 6 months .That I keep it for my readers to explore what this Pharma Co was doing.
But today when I read news in BS I can't resist myself to write on it.
I am pasting that article of BS here.....
Read on:
Pfizer to source 40 off-patent cancer care drugs from Strides
BS REPORTER Bangalore, 6 January
Global pharma major Pfizer is to source source 40 off-patent (generic) cancer care products from Bangalore-based Strides Arcolab and sell the products in the United States.
Announcing this deal today, the two companies said they had formed a collaboration wherein Pfizer will commercialise off-patent sterile injectable and oral products in the US through its Established Products Business Unit (EPBU), which focuses on generics. The EPBU launched its US injectables team less than 10 months earlier and is already marketing products there.
These dosage-form cancer care products will be licensed and supplied by Strides and Onco Laboratories Ltd and Onco Therapies Ltd, two joint ventures between Strides and Aspen, South Africa, in which each has a 50 per cent ownership interest. The financial terms of the supply agreement were not disclosed.
Strides, with a top line of close to Rs 2,000 crore, will deliver the 40 off-patent products, many of which are oncology therapeutics, to healthcare providers and patients in the US, by joining Pfizer’s commercial infrastructure with Strides’s manufacturing capabilities. The first of the products commercialised under this collaboration is expected to be launched in 2010.
“This Strides collaboration is new and exciting, and we are encouraged about the potential of this relationship,” said David Simmons, president and general manager of Pfizer’s EPBU. “In addition, this agreement brings the total number of products in-licensed by our Established Products Business Unit to more than 200 — resulting in a total business unit portfolio of approximately 600 products for patients.”
I have been tracking this Co since 2005-06.It was suppose to have prospered as a great pharma co but that didn't happened.But since last 6 months I am reading good news on this upcoming pharma Co.
I would not write what Co was going through in last 6 months .That I keep it for my readers to explore what this Pharma Co was doing.
But today when I read news in BS I can't resist myself to write on it.
I am pasting that article of BS here.....
Read on:
Pfizer to source 40 off-patent cancer care drugs from Strides
BS REPORTER Bangalore, 6 January
Global pharma major Pfizer is to source source 40 off-patent (generic) cancer care products from Bangalore-based Strides Arcolab and sell the products in the United States.
Announcing this deal today, the two companies said they had formed a collaboration wherein Pfizer will commercialise off-patent sterile injectable and oral products in the US through its Established Products Business Unit (EPBU), which focuses on generics. The EPBU launched its US injectables team less than 10 months earlier and is already marketing products there.
These dosage-form cancer care products will be licensed and supplied by Strides and Onco Laboratories Ltd and Onco Therapies Ltd, two joint ventures between Strides and Aspen, South Africa, in which each has a 50 per cent ownership interest. The financial terms of the supply agreement were not disclosed.
Strides, with a top line of close to Rs 2,000 crore, will deliver the 40 off-patent products, many of which are oncology therapeutics, to healthcare providers and patients in the US, by joining Pfizer’s commercial infrastructure with Strides’s manufacturing capabilities. The first of the products commercialised under this collaboration is expected to be launched in 2010.
“This Strides collaboration is new and exciting, and we are encouraged about the potential of this relationship,” said David Simmons, president and general manager of Pfizer’s EPBU. “In addition, this agreement brings the total number of products in-licensed by our Established Products Business Unit to more than 200 — resulting in a total business unit portfolio of approximately 600 products for patients.”
My Comments:
Stride Aroclab has made inroads in Cancer drugs and has been able to have MNC like Pfizer collobarating for Off Patenet drug in cancer.
That is to me a major breakthrough for Stride Arcolab.Seems happy days are here again for Stride Aroclab.A 2000 cr topline pharma Co going just at Rs 234....! Wow!The patent are no less then 40! That is big....numbers.
Rest of the DD I would like to be done by my readers.......Promoters holdoing 25.73% and other Corp investor holding 54.31 % , means 80% is with biggies and hence only 20% remains with public.....that is added trigger for this upcoming Pharma Co...
Wednesday, January 6, 2010
Deep Ind...cmp 113......In Gas Compression Service.....
Freinds,
I gave a call on Deep Ind in sep 09 .It is at the same place.Not much movement.
With more and more Gas found in our reservoiers , Gas Compression Service will have a big future as Gas found needs to be compressed to fill in the tank to take it from one place to another place.It needs to be compressed while also taking out from the earth.
I know nothing about how the things work at the site and how it is done.This is just a come sense thinking.I maybe wrong in understanding the whole process of when the gas is taken out from the reservoier and filled in the tank etc.....
But simple logical thinking is that Gas should be compressed before filling in any tank.
So I would like to know from my readers if any Co other then Deep Ind , which is listed or not listed in our market do the same type of work,Compressing Gas.....
I gave a call on Deep Ind in sep 09 .It is at the same place.Not much movement.
With more and more Gas found in our reservoiers , Gas Compression Service will have a big future as Gas found needs to be compressed to fill in the tank to take it from one place to another place.It needs to be compressed while also taking out from the earth.
I know nothing about how the things work at the site and how it is done.This is just a come sense thinking.I maybe wrong in understanding the whole process of when the gas is taken out from the reservoier and filled in the tank etc.....
But simple logical thinking is that Gas should be compressed before filling in any tank.
So I would like to know from my readers if any Co other then Deep Ind , which is listed or not listed in our market do the same type of work,Compressing Gas.....
Cramped on Land, Big Oil Bets at Sea ..............
Cramped on Land, Big Oil Bets at Sea
by Ben Casselman and Guy Chazan
Wednesday, January 6, 2010
provided by The WallStreet Journal.
Chevron
Chevron is leasing the Clear Leader, which floats in 4,300 feet of water in the Gulf of Mexico, to drill for oil through nearly five miles of rock.
Big Oil never wanted to be here, in 4,300 feet of water far out in the Gulf of Mexico, drilling through nearly five miles of rock.
It is an expensive way to look for oil. Chevron Corp. is paying nearly $500,000 a day to the owner of the Clear Leader, one of the world's newest and most powerful drilling rigs. The new well off the coast of Louisiana will connect to a huge platform floating nearby, which cost Chevron $650 million to build. The first phase of this oil-exploration project took more than 10 years and cost $2.7 billion -- with no guarantee it would pay off.
More from WSJ.com:
Drill, Baby, Drill: Does Virginia's Gov-Elect's Call for Offshore Drilling Add Up?
Apple to Ship Tablet Device in March
World's Tallest Skyscraper Opens in Dubai
Chevron came here, an hour-long helicopter ride south of New Orleans, because so many of the places it would rather be -- big, easily tapped oil fields close to shore -- have become off-limits. Western oil companies have been kicked out of much of the Middle East in recent decades, had assets seized in Venezuela and seen much of the U.S. roped off because of environmental regulations. Their access in Iran is limited by sanctions, in Russia by curbs on foreign investment, in Iraq by violence.
So, Chevron and other major oil companies are moving ever farther from shore in search of oil. That quest is paying off as these companies discover unexpectedly large quantities of oil -- oil that only they have the technology and financial muscle to find and produce.
In May, the first wells from Chevron's latest Gulf of Mexico project came online. The wells are now pumping 125,000 barrels of oil a day, making the project one of the gulf's biggest producers. In September, BP PLC announced what could be the biggest discovery in the gulf in years: a field that could hold three billion barrels.
Beyond the Gulf of Mexico, companies have announced big finds off the coasts of Brazil and Ghana, leading some experts to suggest the existence of a massive oil reservoir stretching across the Atlantic from Africa to South America. Production from deepwater projects -- those in water at least 1,000 feet deep -- grew by 67%, or by about 2.3 million barrels a day, between 2005 and 2008, according to PFC Energy, a Washington consulting firm.
The discoveries come as many of the giant oil fields of the past century are beginning to dry up, and as some experts are warning that global oil production could soon reach a peak and begin to decline. The new deepwater fields represent a huge and largely untapped source of oil, which could help ease fears that the world won't be able to meet demand for energy, which is expected to grow rapidly in coming years.
For oil companies, the discoveries mean something more: After a decade of retreat, large Western energy companies are taking back the lead in the quest to find oil. "A lot of people can get the very easy oil," says George Kirkland, Chevron's vice chairman. "There's just not a lot of it left."
There are challengers to Big Oil's deepwater dominance. Brazil recently has moved to give a larger share of its offshore oil to its state-run oil company, Petrobras. A handful of smaller companies, such as Anadarko Petroleum Corp. and Tullow Oil PLC, have had success offshore, particularly in Ghana, where giants like BP and Exxon Mobil Corp. are now playing catch-up.
The enormous investments of time and money required for such projects have made many experts skeptical that they can ease the long-term pressure on global oil supplies. The scale of the projects means that few smaller companies have the resources to take them on. Devon Energy Corp., an independent producer based in Oklahoma City, recently announced plans to abandon its deepwater-exploration business to focus on less-expensive onshore projects, which is says will produce a better return.
"This is technology capable of going to the moon," says Robin West, chairman of consulting firm PFC Energy, involving "extraordinary uncertainty, immense levels of information processing, staggering amounts of capital."
Offshore drilling is almost as old as the oil industry itself. In the 1890s, companies began prospecting for oil from piers extending off the beach near Santa Barbara, Calif. Gulf Oil drilled the world's first fully offshore well from cedar pilings on a shallow lake near Oil City, La., in 1911.
From there, the industry pushed gradually outward, from the Louisiana bayous in the 1920s into the Gulf of Mexico, where Kerr McGee drilled the first well out of sight of land in 1947.
The push into deeper water has come in the past decade.
"What has enabled us to do that is technology," says David Rainey, BP's head of exploration for the Gulf of Mexico. "We have been pushing the limits of seismic-imaging technology and drilling technology."
Perhaps a bigger reason for the recent emphasis on deepwater exploration is that companies had few other places to go. In the early decades of oil exploration, Western companies were the only ones with the technology to manage big oil projects. But as technology spread and state-run oil companies became more sophisticated, foreign governments have relied less on outside help and have demanded greater control of their own oil resources.
With a few exceptions, state-run companies have largely stayed out of the deep water, with its enormous technical challenges and multibillion-dollar investment requirements. Western companies have steadily pushed farther offshore, not just in the Gulf of Mexico but in places like Nigeria, Malaysia, Norway and Australia.
At the same time, traditional oil fields have begun to dry up. In Mexico, the world's seventh-largest oil producer, daily production has dropped 23% since 2004 as output from its giant Cantarell field fell sharply. Other countries have seen their own, mostly smaller, declines.
Falling output from old fields has stoked fears that world-wide production could be nearing its peak. Global oil reserves -- a measure of oil that has been found but not yet produced -- fell in 2008 for the first time in a decade, according to BP's annual statistical review. Moreover, there are signs demand could soon catch up to supply. Global oil consumption has risen by 5.4 million barrels a day in the past five years, while production has risen by just 4.8 million barrels a day.
Such fears helped drive a rapid run-up in oil prices to nearly $150 a barrel in July 2008. The global recession cooled demand, driving down prices, although many experts expect prices to rise again when the economy recovers. Already, prices have rebounded to about $80 a barrel, from under $35 in December 2008.
Rising prices have spurred offshore exploration. By 2008, about 8% of global oil production came from deepwater fields.
Yet even the biggest deepwater projects aren't enough to put a dent in global supply problems on their own. The world's largest deepwater platform, BP's Thunder Horse in the Gulf of Mexico, produces 250,000 barrels of oil a day, just 0.3% of global consumption.
"These discoveries are changing the debate," says Ed Morse, chief economist for LCM Commodities, a brokerage firm. What remains unclear, he says, is whether the deepwater projects will ensure that new discoveries continue to meet demand.
Many in the industry argue the new fields have expanded the limits of where the industry can find oil, potentially delaying a decline in global production.
"There are vast unexplored areas in deep water, so tremendous opportunities for growth," says Steven Newman, president of Transocean Ltd., which owns the Clear Leader rig.
The push into deeper water hasn't always been smooth sailing. Offshore projects are expensive, time-consuming and prone to failure. Chevron boasts of a 45% exploration overall success rate in recent years, a remarkable run by industry standards, but one that also means the company has spent billions on projects that haven't panned out.
Chevron's successes have outweighed its failures. It was expected to be the fastest-growing big oil company in 2009, as measured by oil production, in large part because of new offshore projects in the Gulf of Mexico and off Brazil. Other companies that have embraced offshore exploration, such as BP, are also seeing big growth, while those that haven't are scrambling.
Exxon, which hasn't emphasized deepwater exploration as much as competitors, recently offered $4 billion for a stake in an oil field off the coast of Ghana.
Chevron made its big offshore bet in the 1990s, when it began buying up leases in the Gulf of Mexico that were in such deep water, the technology didn't yet exist to drill there. Confident that technology would catch up, the company in 1996 bid in and won a U.S. government auction for the right to explore for oil in several areas of the gulf, in hopes that a fraction would turn into producing fields.
Chevron then spent six years analyzing its new holdings, figuring out which were most likely to hold oil. The key tool in its arsenal: seismic imaging, a sonar-like process in which sound waves are shot into the rock, and their echoes are picked up by sensors on the surface.
Adding to the challenge: The oil that Chevron was pursuing lay beneath a thick layer of salt, which disrupts seismic sound waves and blurs the images like a smudge on a camera lens. The company had to analyze the data with supercomputers to clear up that distortion.
The analysis revealed a potentially huge oil reservoir. Even so, Chevron estimated it had only a one-in-eight chance of finding commercial quantities of oil. The only way to know for sure was to drill.
So, in 2002, Chevron spent about $100 million to sink its first well in the field, which came to be known as Tahiti. That well needed to hit a 200-foot-long target from five miles away -- akin to hitting a dart board from a city block away.
"You have to roll the dice, and the dice roll now is north of $100 million," says Gary Luquette, president of Chevron's North American exploration and production division.
Chevron's first Tahiti well struck enough oil to make it worth more drilling to see how big the field might be. By 2005, the company had learned enough to go forward with the project. That required building a 700-foot-tall, 45,000-ton floating oil-production platform, and drilling a half dozen wells to feed oil to it. Tahiti produced its first commercial quantities of oil in May.
On a recent morning, the Clear Leader rolled on the waves 190 miles south of New Orleans, held almost perfectly in place by its satellite-controlled navigation system and six Korean-made engines.
In a cabin on the ship's deck, a team of drillers in coveralls monitored computer terminals as they used joysticks to control a drill bit more than 12,800 feet below. The oil they were targeting lay another 14,000 feet underground -- an easy reach for a ship that can drill down 7.5 miles.
The well is part of a second phase of the Tahiti project, which will require drilling several more wells and expanding the floating platform -- an additional $2 billion in spending, still with no guarantee of success.
Kevin Ricketts, a Chevron engineer who worked on both phases of the Tahiti project, recalled looking up at the massive platform while it was still on shore, and reflecting on how his team's analysis had led to its construction.
"I'd never seen anything that big," Mr. Ricketts said. "I thought, holy moly, our production forecast led to that thing being built. I sure hope we're right."
Commnets:
Which are the Indian Drilling Co which rents Oil Drilling Rig for Deep water .....
Aban Llyod seems to me a big bet still.....
by Ben Casselman and Guy Chazan
Wednesday, January 6, 2010
provided by The WallStreet Journal.
Chevron
Chevron is leasing the Clear Leader, which floats in 4,300 feet of water in the Gulf of Mexico, to drill for oil through nearly five miles of rock.
Big Oil never wanted to be here, in 4,300 feet of water far out in the Gulf of Mexico, drilling through nearly five miles of rock.
It is an expensive way to look for oil. Chevron Corp. is paying nearly $500,000 a day to the owner of the Clear Leader, one of the world's newest and most powerful drilling rigs. The new well off the coast of Louisiana will connect to a huge platform floating nearby, which cost Chevron $650 million to build. The first phase of this oil-exploration project took more than 10 years and cost $2.7 billion -- with no guarantee it would pay off.
More from WSJ.com:
Drill, Baby, Drill: Does Virginia's Gov-Elect's Call for Offshore Drilling Add Up?
Apple to Ship Tablet Device in March
World's Tallest Skyscraper Opens in Dubai
Chevron came here, an hour-long helicopter ride south of New Orleans, because so many of the places it would rather be -- big, easily tapped oil fields close to shore -- have become off-limits. Western oil companies have been kicked out of much of the Middle East in recent decades, had assets seized in Venezuela and seen much of the U.S. roped off because of environmental regulations. Their access in Iran is limited by sanctions, in Russia by curbs on foreign investment, in Iraq by violence.
So, Chevron and other major oil companies are moving ever farther from shore in search of oil. That quest is paying off as these companies discover unexpectedly large quantities of oil -- oil that only they have the technology and financial muscle to find and produce.
In May, the first wells from Chevron's latest Gulf of Mexico project came online. The wells are now pumping 125,000 barrels of oil a day, making the project one of the gulf's biggest producers. In September, BP PLC announced what could be the biggest discovery in the gulf in years: a field that could hold three billion barrels.
Beyond the Gulf of Mexico, companies have announced big finds off the coasts of Brazil and Ghana, leading some experts to suggest the existence of a massive oil reservoir stretching across the Atlantic from Africa to South America. Production from deepwater projects -- those in water at least 1,000 feet deep -- grew by 67%, or by about 2.3 million barrels a day, between 2005 and 2008, according to PFC Energy, a Washington consulting firm.
The discoveries come as many of the giant oil fields of the past century are beginning to dry up, and as some experts are warning that global oil production could soon reach a peak and begin to decline. The new deepwater fields represent a huge and largely untapped source of oil, which could help ease fears that the world won't be able to meet demand for energy, which is expected to grow rapidly in coming years.
For oil companies, the discoveries mean something more: After a decade of retreat, large Western energy companies are taking back the lead in the quest to find oil. "A lot of people can get the very easy oil," says George Kirkland, Chevron's vice chairman. "There's just not a lot of it left."
There are challengers to Big Oil's deepwater dominance. Brazil recently has moved to give a larger share of its offshore oil to its state-run oil company, Petrobras. A handful of smaller companies, such as Anadarko Petroleum Corp. and Tullow Oil PLC, have had success offshore, particularly in Ghana, where giants like BP and Exxon Mobil Corp. are now playing catch-up.
The enormous investments of time and money required for such projects have made many experts skeptical that they can ease the long-term pressure on global oil supplies. The scale of the projects means that few smaller companies have the resources to take them on. Devon Energy Corp., an independent producer based in Oklahoma City, recently announced plans to abandon its deepwater-exploration business to focus on less-expensive onshore projects, which is says will produce a better return.
"This is technology capable of going to the moon," says Robin West, chairman of consulting firm PFC Energy, involving "extraordinary uncertainty, immense levels of information processing, staggering amounts of capital."
Offshore drilling is almost as old as the oil industry itself. In the 1890s, companies began prospecting for oil from piers extending off the beach near Santa Barbara, Calif. Gulf Oil drilled the world's first fully offshore well from cedar pilings on a shallow lake near Oil City, La., in 1911.
From there, the industry pushed gradually outward, from the Louisiana bayous in the 1920s into the Gulf of Mexico, where Kerr McGee drilled the first well out of sight of land in 1947.
The push into deeper water has come in the past decade.
"What has enabled us to do that is technology," says David Rainey, BP's head of exploration for the Gulf of Mexico. "We have been pushing the limits of seismic-imaging technology and drilling technology."
Perhaps a bigger reason for the recent emphasis on deepwater exploration is that companies had few other places to go. In the early decades of oil exploration, Western companies were the only ones with the technology to manage big oil projects. But as technology spread and state-run oil companies became more sophisticated, foreign governments have relied less on outside help and have demanded greater control of their own oil resources.
With a few exceptions, state-run companies have largely stayed out of the deep water, with its enormous technical challenges and multibillion-dollar investment requirements. Western companies have steadily pushed farther offshore, not just in the Gulf of Mexico but in places like Nigeria, Malaysia, Norway and Australia.
At the same time, traditional oil fields have begun to dry up. In Mexico, the world's seventh-largest oil producer, daily production has dropped 23% since 2004 as output from its giant Cantarell field fell sharply. Other countries have seen their own, mostly smaller, declines.
Falling output from old fields has stoked fears that world-wide production could be nearing its peak. Global oil reserves -- a measure of oil that has been found but not yet produced -- fell in 2008 for the first time in a decade, according to BP's annual statistical review. Moreover, there are signs demand could soon catch up to supply. Global oil consumption has risen by 5.4 million barrels a day in the past five years, while production has risen by just 4.8 million barrels a day.
Such fears helped drive a rapid run-up in oil prices to nearly $150 a barrel in July 2008. The global recession cooled demand, driving down prices, although many experts expect prices to rise again when the economy recovers. Already, prices have rebounded to about $80 a barrel, from under $35 in December 2008.
Rising prices have spurred offshore exploration. By 2008, about 8% of global oil production came from deepwater fields.
Yet even the biggest deepwater projects aren't enough to put a dent in global supply problems on their own. The world's largest deepwater platform, BP's Thunder Horse in the Gulf of Mexico, produces 250,000 barrels of oil a day, just 0.3% of global consumption.
"These discoveries are changing the debate," says Ed Morse, chief economist for LCM Commodities, a brokerage firm. What remains unclear, he says, is whether the deepwater projects will ensure that new discoveries continue to meet demand.
Many in the industry argue the new fields have expanded the limits of where the industry can find oil, potentially delaying a decline in global production.
"There are vast unexplored areas in deep water, so tremendous opportunities for growth," says Steven Newman, president of Transocean Ltd., which owns the Clear Leader rig.
The push into deeper water hasn't always been smooth sailing. Offshore projects are expensive, time-consuming and prone to failure. Chevron boasts of a 45% exploration overall success rate in recent years, a remarkable run by industry standards, but one that also means the company has spent billions on projects that haven't panned out.
Chevron's successes have outweighed its failures. It was expected to be the fastest-growing big oil company in 2009, as measured by oil production, in large part because of new offshore projects in the Gulf of Mexico and off Brazil. Other companies that have embraced offshore exploration, such as BP, are also seeing big growth, while those that haven't are scrambling.
Exxon, which hasn't emphasized deepwater exploration as much as competitors, recently offered $4 billion for a stake in an oil field off the coast of Ghana.
Chevron made its big offshore bet in the 1990s, when it began buying up leases in the Gulf of Mexico that were in such deep water, the technology didn't yet exist to drill there. Confident that technology would catch up, the company in 1996 bid in and won a U.S. government auction for the right to explore for oil in several areas of the gulf, in hopes that a fraction would turn into producing fields.
Chevron then spent six years analyzing its new holdings, figuring out which were most likely to hold oil. The key tool in its arsenal: seismic imaging, a sonar-like process in which sound waves are shot into the rock, and their echoes are picked up by sensors on the surface.
Adding to the challenge: The oil that Chevron was pursuing lay beneath a thick layer of salt, which disrupts seismic sound waves and blurs the images like a smudge on a camera lens. The company had to analyze the data with supercomputers to clear up that distortion.
The analysis revealed a potentially huge oil reservoir. Even so, Chevron estimated it had only a one-in-eight chance of finding commercial quantities of oil. The only way to know for sure was to drill.
So, in 2002, Chevron spent about $100 million to sink its first well in the field, which came to be known as Tahiti. That well needed to hit a 200-foot-long target from five miles away -- akin to hitting a dart board from a city block away.
"You have to roll the dice, and the dice roll now is north of $100 million," says Gary Luquette, president of Chevron's North American exploration and production division.
Chevron's first Tahiti well struck enough oil to make it worth more drilling to see how big the field might be. By 2005, the company had learned enough to go forward with the project. That required building a 700-foot-tall, 45,000-ton floating oil-production platform, and drilling a half dozen wells to feed oil to it. Tahiti produced its first commercial quantities of oil in May.
On a recent morning, the Clear Leader rolled on the waves 190 miles south of New Orleans, held almost perfectly in place by its satellite-controlled navigation system and six Korean-made engines.
In a cabin on the ship's deck, a team of drillers in coveralls monitored computer terminals as they used joysticks to control a drill bit more than 12,800 feet below. The oil they were targeting lay another 14,000 feet underground -- an easy reach for a ship that can drill down 7.5 miles.
The well is part of a second phase of the Tahiti project, which will require drilling several more wells and expanding the floating platform -- an additional $2 billion in spending, still with no guarantee of success.
Kevin Ricketts, a Chevron engineer who worked on both phases of the Tahiti project, recalled looking up at the massive platform while it was still on shore, and reflecting on how his team's analysis had led to its construction.
"I'd never seen anything that big," Mr. Ricketts said. "I thought, holy moly, our production forecast led to that thing being built. I sure hope we're right."
Commnets:
Which are the Indian Drilling Co which rents Oil Drilling Rig for Deep water .....
Aban Llyod seems to me a big bet still.....
Tuesday, January 5, 2010
Rico Auto,SNL ...Lumax Ind....
Friends,
I am seeing Rico Auto is making new highs at 32.40 up from my recomended price of 25.60.There were lots of apprehension whether my call was good enough to be here.In one and a half month it is giving 26% return.
Lumax Ind has again started giving upper circuits.SNL is in constant UC .....and has more then doubled.
Well, the main reason writing here today this post is ,I just read on moneycontrol website which says that Experts sees market at new high by Mar 2010......now how that come?Why suddenly they become bullish.......misguiding or what?Why didn't they said in Dec?Within 10 days what happened that they changed the outlook?
Well, another thing I would like to mention here .....with the new look of my blog...while adding some more SEARCH ENGINES......now one can... WRITE ANY COMPANY NAME IN THE BOX AT TOP THE EXTREME RIGHT OF MY BLOG" Search This Blog" and one would find if I have written anything on that stock.....
This is a great advantage for my readers as this makes the things much easier to back track me for any stock......
I hope my readers will be pleased to see such thing ......
Monday, January 4, 2010
Emerging markets may hit fresh highs ..........
Emerging markets may hit fresh highs
Taken from Todays's ET
TALKING STOCKS, GROWTH & INVESTMENT BETS WITH MARKETS GURU MARK MOBIUS
HE BELIEVES that emerging market valuations are currently around the mid-way mark of their historical 10-year range, and there are enough opportunities in terms of good and solid companies that can survive a downturn. Widely regarded as an emerging markets guru, Mark Mobius, executive chairman, Templeton Asset Management, ranks China and Brazil among his favourite markets, and also has sizeable exposure to Russia, India and Turkey. In an interview with Deeptha Rajkumar, he talks of how frontier markets are the next emerging markets. He says that global interdependency is growing, not shrinking.
Where do you see global equity markets headed in 2010? Which are the ones that you are betting on to outperform the rest?
We think emerging market equities seem likely to hit new highs as we go forward. Emerging economies are forecast to grow approximately four times faster than developed economies — a big difference — which should be reflected in their stock markets. But valuations in emerging markets are still lower than those of Europe and the US because the majority of investors still tend to discount emerging markets, regarding them as too risky. However, this is now changing, as governments around the world, from the US and Europe to China, have substantially increased the level of money supply to prevent deflation. With bank deposit rates, especially in the West, hovering near 1% or lower, most investors are looking for a better return on their investment and are, hence, putting their money to work in the capital markets, fueling a rise in equity prices.
We are finding opportunities in almost all emerging markets. Our ground-up research process locates opportunities in countries where the political or economic outlooks may not, at first appearance, look good. Nevertheless, we generally favour China and Brazil, but also have large positions in Russia, India and Turkey.
What about valuations? Do you think emerging mkts still have room to rise?
Even though valuations are no longer as cheap as they were at the end of 2008, we believe current valuations are around the middle of their historical 10-year range. We continue to find opportunities, and our objective is to find good, solid companies that can survive even in a downturn. Valuations in select markets such as Russia are below the average in emerging markets and as such are particularly appealing, in our view.
India/China have clearly benefited from sustained capital flows in 2009 with the former witnessing inflows of over $17 billion. Would you say this is a sign that emerging markets have finally decoupled from the developed western markets?
Emerging markets will always be coupled with developed western markets and vice versa, since trade and money flows are so much connected globally. However, that does not mean that a decline in western markets will mean a decline in emerging markets. We must look at each on a case-by-case basis. Global interdependency is growing, not shrinking. We must be ready, therefore, to grasp all the opportunities when there is an impact on that interdependency.
What are the sectors you expect to shine in 2010, globally and specific to India?
In terms of sectors, we believe commodity stocks look good because we expect the global demand for commodities to continue its long-term growth. We also favour consumer stocks. With rising per-capita income and strong demand for consumer goods and services in many emerging markets, we believe that the earnings growth outlook for these stocks is positive. Within Indian sectors specifically, we’re seeing opportunities in materials, financials and information technology.
You have been advocating investments in frontier markets. What are the pulls?
Frontier markets are the next emerging markets and include the likes of Kazakhstan, Romania, Nigeria and Vietnam. The key characteristics are the fact that they are overlooked by investors and have offered fewer investment opportunities. Frontier markets, generally, have companies that are oriented towards their respective domestic economies rather than the global economy, so we believe that they have less correlation to emerging markets in general. Most investors have refrained from investing in frontier markets because of the perceived risks. However, I do not believe that the level of risk is necessarily higher as compared to emerging markets. Frontier markets generally share the same political and economic issues as emerging markets, but their valuations may be more attractive as a result of this perception. At the end of the day, it all boils down to picking the right company or stock.
Will commodities outperform equities in 2010? What are the dangers right now in your opinion?
We expect commodity prices to continue to trend upwards, partly because of weakness in the US dollar, and also because we expect the global demand for commodities to outgrow supply over the long term. However, speculation in derivatives markets is likely to exacerbate volatility in the sector, and we recognise that the upward trend in commodities is unlikely to be smooth.
Post the Dubai crisis, which are the other landmines that investors will have to watch out for?
The negative news impacted markets globally, particularly in Asia and Europe, because a number of banks are exposed to Dubai debt and several international construction companies have had large contracts in Dubai. Most markets rebounded quite quickly after it was ascertained that damage to companies outside of the Gulf region would be very limited. As we have said in the past, in any bull market we expect that there will be corrections along the way. In our view, these corrections can be quite healthy, because to us it means that valuations will become more reasonable, presenting buying opportunities. This kind of volatility in emerging markets is what we expect and why it is so important to have a long-term investment horizon. We view these opportunities as a time to continue holding quality investments and to increase our holdings in selected stocks that we believe, over a five-year time frame, will continue to show stable financing.
How do you see interest rate changes in the US impacting the rest in 2010?
If there is a rise in interest rates without a concomitant rise in inflation so that real interest rates become highly positive, then the impact on stock markets around the world could be significant. Nominal interest rates alone would not have an impact except for a temporary psychological one. The key factor is the interplay between interest rates and inflation. High inflation would be good for equity markets provided that those high inflation rates are not accompanied by as high interest rates.
Taken from Todays's ET
TALKING STOCKS, GROWTH & INVESTMENT BETS WITH MARKETS GURU MARK MOBIUS
HE BELIEVES that emerging market valuations are currently around the mid-way mark of their historical 10-year range, and there are enough opportunities in terms of good and solid companies that can survive a downturn. Widely regarded as an emerging markets guru, Mark Mobius, executive chairman, Templeton Asset Management, ranks China and Brazil among his favourite markets, and also has sizeable exposure to Russia, India and Turkey. In an interview with Deeptha Rajkumar, he talks of how frontier markets are the next emerging markets. He says that global interdependency is growing, not shrinking.
Where do you see global equity markets headed in 2010? Which are the ones that you are betting on to outperform the rest?
We think emerging market equities seem likely to hit new highs as we go forward. Emerging economies are forecast to grow approximately four times faster than developed economies — a big difference — which should be reflected in their stock markets. But valuations in emerging markets are still lower than those of Europe and the US because the majority of investors still tend to discount emerging markets, regarding them as too risky. However, this is now changing, as governments around the world, from the US and Europe to China, have substantially increased the level of money supply to prevent deflation. With bank deposit rates, especially in the West, hovering near 1% or lower, most investors are looking for a better return on their investment and are, hence, putting their money to work in the capital markets, fueling a rise in equity prices.
We are finding opportunities in almost all emerging markets. Our ground-up research process locates opportunities in countries where the political or economic outlooks may not, at first appearance, look good. Nevertheless, we generally favour China and Brazil, but also have large positions in Russia, India and Turkey.
What about valuations? Do you think emerging mkts still have room to rise?
Even though valuations are no longer as cheap as they were at the end of 2008, we believe current valuations are around the middle of their historical 10-year range. We continue to find opportunities, and our objective is to find good, solid companies that can survive even in a downturn. Valuations in select markets such as Russia are below the average in emerging markets and as such are particularly appealing, in our view.
India/China have clearly benefited from sustained capital flows in 2009 with the former witnessing inflows of over $17 billion. Would you say this is a sign that emerging markets have finally decoupled from the developed western markets?
Emerging markets will always be coupled with developed western markets and vice versa, since trade and money flows are so much connected globally. However, that does not mean that a decline in western markets will mean a decline in emerging markets. We must look at each on a case-by-case basis. Global interdependency is growing, not shrinking. We must be ready, therefore, to grasp all the opportunities when there is an impact on that interdependency.
What are the sectors you expect to shine in 2010, globally and specific to India?
In terms of sectors, we believe commodity stocks look good because we expect the global demand for commodities to continue its long-term growth. We also favour consumer stocks. With rising per-capita income and strong demand for consumer goods and services in many emerging markets, we believe that the earnings growth outlook for these stocks is positive. Within Indian sectors specifically, we’re seeing opportunities in materials, financials and information technology.
You have been advocating investments in frontier markets. What are the pulls?
Frontier markets are the next emerging markets and include the likes of Kazakhstan, Romania, Nigeria and Vietnam. The key characteristics are the fact that they are overlooked by investors and have offered fewer investment opportunities. Frontier markets, generally, have companies that are oriented towards their respective domestic economies rather than the global economy, so we believe that they have less correlation to emerging markets in general. Most investors have refrained from investing in frontier markets because of the perceived risks. However, I do not believe that the level of risk is necessarily higher as compared to emerging markets. Frontier markets generally share the same political and economic issues as emerging markets, but their valuations may be more attractive as a result of this perception. At the end of the day, it all boils down to picking the right company or stock.
Will commodities outperform equities in 2010? What are the dangers right now in your opinion?
We expect commodity prices to continue to trend upwards, partly because of weakness in the US dollar, and also because we expect the global demand for commodities to outgrow supply over the long term. However, speculation in derivatives markets is likely to exacerbate volatility in the sector, and we recognise that the upward trend in commodities is unlikely to be smooth.
Post the Dubai crisis, which are the other landmines that investors will have to watch out for?
The negative news impacted markets globally, particularly in Asia and Europe, because a number of banks are exposed to Dubai debt and several international construction companies have had large contracts in Dubai. Most markets rebounded quite quickly after it was ascertained that damage to companies outside of the Gulf region would be very limited. As we have said in the past, in any bull market we expect that there will be corrections along the way. In our view, these corrections can be quite healthy, because to us it means that valuations will become more reasonable, presenting buying opportunities. This kind of volatility in emerging markets is what we expect and why it is so important to have a long-term investment horizon. We view these opportunities as a time to continue holding quality investments and to increase our holdings in selected stocks that we believe, over a five-year time frame, will continue to show stable financing.
How do you see interest rate changes in the US impacting the rest in 2010?
If there is a rise in interest rates without a concomitant rise in inflation so that real interest rates become highly positive, then the impact on stock markets around the world could be significant. Nominal interest rates alone would not have an impact except for a temporary psychological one. The key factor is the interplay between interest rates and inflation. High inflation would be good for equity markets provided that those high inflation rates are not accompanied by as high interest rates.
Small Update......Excel Crop Ltd and Parekh Alum
Excel Crop Ltd and Parekh Alum has started moving up.Both are now at 155 and 149 respectively.....just try to find stocks which I recomended in last one year and which were not moving uptill now......some movement should have started coming in.....
Sunday, January 3, 2010
From Monday........
Market will open from 9 am instead of 10 am.
It has always been difficult to predict the range of market and course of market.Buffet invest for 20-50 yrs.RJ invest for 3-5 yrs.
FII's brought in 80,000 cr means almost $17 billion this year which is far greater then they sold in 2008 which was $ 11bn.That is almost over by 60% this year.Means whatever they sold they bought it back and invested more and still market has not made a new high.The reason is the retail participation is still not there otherwise market should have crossed 21k by now.
That is what I use to write here and that is, we are not in a state of euphoria.
Market was up by 80% and that is the biggest gain in last 18 yrs of Indian stock market.Now from here to where?
I have written many times here that we may touch 19k this year, means 2009 and may even touch 21k....but that didn't happen.But overall market remained steady in last 2 months defying all apprehension showed by analyst.
This year, in 2010 , market will definately cross the 21k all time high and will go beyond that proving all analyst wrong.I remember I also wrote that we can touch even 31k by end 2010.
Let us see what happens now in 2010.But we can see 14700 on lower scale and 27000 to 29,000 on higher scale in this year itself and as I wrote we should and will never see 12k again this year and following years. This range is hypothetical.14700 is in worst case scenario and we may even not see 14700 at all...
Market will give knee jerks and will shatter your confidence this year as well.The scenario will become such that now market is gone but those who will buy at that time will come out winner.Take a Vow that we will never play in F&O.Leave it for big players.....
2008 is gone and we are not going to see it again.
If export has started picking up, shows that world economy is coming back on track.I just read in BS that China's Industrial production has again started booming and their economy will grow again at 9% and that will be very good sign.I have seen analyst becoming sceptic on Chinese economy and giving calls that China is a bubble.They give the reason that every economy running at this scorching pace can't sustain that long but China is proving them wrong time and again.Now after 5-10 yrs or 15 yrs if Chinese economy becomes bubble and burst , will that make sense?Why to worry about 5-10-15 yrs down the line.....that is something very wishful thinking. Iwill never be able to understand analyst mind or peoples mind that they start talking of Bubble just went a past bubble has burst in near past.....We have seen 2008 a bubble bursting of Subprime Mortagage...we are not even a year over it if we take Mar 09 low then how analyst and so called experts start talking of another bubble?But those who wants to talk negative and see negative...we can't do anything to them....We have seen in recent past the Dubai fisaco.World market tanked and so did our but within a week the world market and our market were back to normal.....that is the resilience we are seeing in now in world economy.This every analyst needs to understand that ....before speaking for market....
I also believe that China is not a bubble and their economy will continue to prosper and that will help world economy as well.
Coming back to India, as I have written many times here,that lots of thing still to be done that there is no way, we can underperform.Money will keep on pouring in from overseas and then the retail participation has still not come.Even the local savings money has not started coming in market.These will lead to higher sensex.
I have no doubt about it.
The real crux here is one needs to be able to look at market and should be able to judge how market will be.If one is sceptic then even though he has multibagger in hand he will sold it out cheaply and that is not a good scenario in market.One need to try and get the maximum return from the stock where one holds so that it can make up of stock giving negative returns and laggards in portfolio.
Merely finding a multibagger is not enough.One should be able to hold on to that stock and that is only possible if one is able to read the market.I still stick to my view that holding stocks is the best way to maximise the profit.Selling at 10-20% profit and changing stocks makes no sense.
It has always been difficult to predict the range of market and course of market.Buffet invest for 20-50 yrs.RJ invest for 3-5 yrs.
FII's brought in 80,000 cr means almost $17 billion this year which is far greater then they sold in 2008 which was $ 11bn.That is almost over by 60% this year.Means whatever they sold they bought it back and invested more and still market has not made a new high.The reason is the retail participation is still not there otherwise market should have crossed 21k by now.
That is what I use to write here and that is, we are not in a state of euphoria.
Market was up by 80% and that is the biggest gain in last 18 yrs of Indian stock market.Now from here to where?
I have written many times here that we may touch 19k this year, means 2009 and may even touch 21k....but that didn't happen.But overall market remained steady in last 2 months defying all apprehension showed by analyst.
This year, in 2010 , market will definately cross the 21k all time high and will go beyond that proving all analyst wrong.I remember I also wrote that we can touch even 31k by end 2010.
Let us see what happens now in 2010.But we can see 14700 on lower scale and 27000 to 29,000 on higher scale in this year itself and as I wrote we should and will never see 12k again this year and following years. This range is hypothetical.14700 is in worst case scenario and we may even not see 14700 at all...
Market will give knee jerks and will shatter your confidence this year as well.The scenario will become such that now market is gone but those who will buy at that time will come out winner.Take a Vow that we will never play in F&O.Leave it for big players.....
2008 is gone and we are not going to see it again.
If export has started picking up, shows that world economy is coming back on track.I just read in BS that China's Industrial production has again started booming and their economy will grow again at 9% and that will be very good sign.I have seen analyst becoming sceptic on Chinese economy and giving calls that China is a bubble.They give the reason that every economy running at this scorching pace can't sustain that long but China is proving them wrong time and again.Now after 5-10 yrs or 15 yrs if Chinese economy becomes bubble and burst , will that make sense?Why to worry about 5-10-15 yrs down the line.....that is something very wishful thinking. Iwill never be able to understand analyst mind or peoples mind that they start talking of Bubble just went a past bubble has burst in near past.....We have seen 2008 a bubble bursting of Subprime Mortagage...we are not even a year over it if we take Mar 09 low then how analyst and so called experts start talking of another bubble?But those who wants to talk negative and see negative...we can't do anything to them....We have seen in recent past the Dubai fisaco.World market tanked and so did our but within a week the world market and our market were back to normal.....that is the resilience we are seeing in now in world economy.This every analyst needs to understand that ....before speaking for market....
I also believe that China is not a bubble and their economy will continue to prosper and that will help world economy as well.
Coming back to India, as I have written many times here,that lots of thing still to be done that there is no way, we can underperform.Money will keep on pouring in from overseas and then the retail participation has still not come.Even the local savings money has not started coming in market.These will lead to higher sensex.
I have no doubt about it.
The real crux here is one needs to be able to look at market and should be able to judge how market will be.If one is sceptic then even though he has multibagger in hand he will sold it out cheaply and that is not a good scenario in market.One need to try and get the maximum return from the stock where one holds so that it can make up of stock giving negative returns and laggards in portfolio.
Merely finding a multibagger is not enough.One should be able to hold on to that stock and that is only possible if one is able to read the market.I still stick to my view that holding stocks is the best way to maximise the profit.Selling at 10-20% profit and changing stocks makes no sense.
Saturday, January 2, 2010
Rakesh Jhunjhunwala on how to pick the right stock .....
Freinds,
This maybe a repeat post, but seems that this is a very specific post....
Rakesh Jhunjhunwala on how to pick the right stock
Published on Tue, Nov 17, 2009 at 15:25 Updated at Mon, Nov 23, 2009 at 11:35 Source : CNBC-TV18
If you’re a proponent of value investing, which involves buying stocks that offer value when they’re cheap and holding on to them till they achieve their potential — Warren Buffet style — here are tips from India’s own Buffet, Rakesh Jhunjhunwala, that you may use.
— Jhunjhunwala’s advice to investors is not to look for companies that would give profits but understand factors that help in creating profits. “Don’t emphasise too much on analysis of profits,” he says. “Profits are created due to various stages of circumstances. I always look at how large is the opportunity for that business in the sector.” ( I think, I are doing the same here.....I have never talked of what the NP is, I have always talked of what a Co can become.....Least to say, I am not comparing myself with RJ, but can say I am on the right path after reading this...)
He recalls how he bought Praj Industries, a bio-ethanol company that gave him large returns. “When I bought Praj, we thought there would be a humongous demand for ethanol. The opportunity was huge but it was not recognized.”
IT bellwether Infosys, he said, benefited because of the internet revolution. “Nobody knew about Infosys in 1993 but Infosys could become Infosys because the opportunity for the internet went through the roof.”
“When opportunities come, they can come through technology, marketing, brands, value protections, capital, etc. You need to be able to spot those.”
— “Then I look at scalability of a particular company that I choose in a sector,” Jhunjhunwala says. “A friend of mine asked me: should I invest in a small cap or largecap? I said we must invest in the smallcaps, which will be the largecaps. The biggest challenge of investing is that you should recognise whether organization has the ability to scale.”
Jhunjhunwala says he makes an investing decision by understanding how a company’s profits may grow in the next four-five years, and by that account, its price-to-earnings and valuation. “If I succeed in making the right call, then after four-five years, I do a proper re-examination of the business model and accordingly reallocate capital because the business model can undergo change. Intense competition could emerge in that sector,” he says. “This is when I examine the earlier opinion I had made when I first bought, whether those assumptions still were valid.”
— How should you spot a good company? “You can have an idea by looking at companies’ capital raising. Are they distributing profits, are they using the surpluses in the right manner,” he says. “For me, quarters don’t matter. There can be always be an aberration in one quarter when the company has less profits. You should examine the reason for it and whether it can revert back on its growth.”
— Choices of asset classes is important too, says Jhunjhunwala. “If you bought gold in 1970 and sold it in 1980. you bought the Nikkei Index in 1980 and sold it in 1989 and then bought the Nasdaq [till before the dotcom bust], you would have made 33% compounded returns in three decades,” he says. “Warren Buffet rode the entire wave of those different asset classes.”
— “Value investing is relevant in all circumstances. But thought processes and principles are dynamic and not static. Be open to change,” he says.
— Don’t get carried away short term market trends, he says. “In 1999, people used to buy Himachal Futuristic, Global Tele, Pentasoft, I used to buy Shipping Corporation and Bharat Electronics because I saw long-term value,” he adds. “Never get carried away by aberrations, recognize and respect them but do remember that the market corrects its aberration though it takes time.”
This maybe a repeat post, but seems that this is a very specific post....
Rakesh Jhunjhunwala on how to pick the right stock
Published on Tue, Nov 17, 2009 at 15:25 Updated at Mon, Nov 23, 2009 at 11:35 Source : CNBC-TV18
If you’re a proponent of value investing, which involves buying stocks that offer value when they’re cheap and holding on to them till they achieve their potential — Warren Buffet style — here are tips from India’s own Buffet, Rakesh Jhunjhunwala, that you may use.
— Jhunjhunwala’s advice to investors is not to look for companies that would give profits but understand factors that help in creating profits. “Don’t emphasise too much on analysis of profits,” he says. “Profits are created due to various stages of circumstances. I always look at how large is the opportunity for that business in the sector.” ( I think, I are doing the same here.....I have never talked of what the NP is, I have always talked of what a Co can become.....Least to say, I am not comparing myself with RJ, but can say I am on the right path after reading this...)
He recalls how he bought Praj Industries, a bio-ethanol company that gave him large returns. “When I bought Praj, we thought there would be a humongous demand for ethanol. The opportunity was huge but it was not recognized.”
IT bellwether Infosys, he said, benefited because of the internet revolution. “Nobody knew about Infosys in 1993 but Infosys could become Infosys because the opportunity for the internet went through the roof.”
“When opportunities come, they can come through technology, marketing, brands, value protections, capital, etc. You need to be able to spot those.”
— “Then I look at scalability of a particular company that I choose in a sector,” Jhunjhunwala says. “A friend of mine asked me: should I invest in a small cap or largecap? I said we must invest in the smallcaps, which will be the largecaps. The biggest challenge of investing is that you should recognise whether organization has the ability to scale.”
Jhunjhunwala says he makes an investing decision by understanding how a company’s profits may grow in the next four-five years, and by that account, its price-to-earnings and valuation. “If I succeed in making the right call, then after four-five years, I do a proper re-examination of the business model and accordingly reallocate capital because the business model can undergo change. Intense competition could emerge in that sector,” he says. “This is when I examine the earlier opinion I had made when I first bought, whether those assumptions still were valid.”
— How should you spot a good company? “You can have an idea by looking at companies’ capital raising. Are they distributing profits, are they using the surpluses in the right manner,” he says. “For me, quarters don’t matter. There can be always be an aberration in one quarter when the company has less profits. You should examine the reason for it and whether it can revert back on its growth.”
— Choices of asset classes is important too, says Jhunjhunwala. “If you bought gold in 1970 and sold it in 1980. you bought the Nikkei Index in 1980 and sold it in 1989 and then bought the Nasdaq [till before the dotcom bust], you would have made 33% compounded returns in three decades,” he says. “Warren Buffet rode the entire wave of those different asset classes.”
— “Value investing is relevant in all circumstances. But thought processes and principles are dynamic and not static. Be open to change,” he says.
— Don’t get carried away short term market trends, he says. “In 1999, people used to buy Himachal Futuristic, Global Tele, Pentasoft, I used to buy Shipping Corporation and Bharat Electronics because I saw long-term value,” he adds. “Never get carried away by aberrations, recognize and respect them but do remember that the market corrects its aberration though it takes time.”
Nov exports grow 18%, turn positive after 13 mths .......
Nov exports grow 18%, turn positive after 13 mths
Fall In Imports Of Goods & Services Slows; Trade Deficit Shrinks To $66 Billion
Our Bureau & Agencies NEW DELHI
INDIA’S exports sector has bounced back with outward trade growing by 18% in November 2009, the commerce ministry said. The export figures turned positive after staying in the red for 13 months.
The value of exports in November 2009 jumped to $13.19 billion compared to $11.16 billion in November 2008. The global economic slowdown hit the country’s exports sector hard in October 2008.
Imports of goods and services, however, remained in negative territory during this period. But the contraction was lower at 2.6%—amounting to $22.8 billion—compared to 15% in the previous month.
The cumulative data for April-November of the current fiscal showed exports dropping by 22.3% to $104.24 billion, much lower than the 26% fall up to October this financial year. Trade deficit for April-November 2009 stood at $66.18 billion, lower than $100.15 billion in the same period in 2008.
As per official data, oil imports also turned positive after 13 months and increased by 7.3% to $6.38 billion in November. Imports during April-November 2009 stood at $50.18 billion, 34.4% lower than $76.52 billion in the year-ago period.
Non-oil imports during November contracted by 5.9% to $16.5 billion from $17.5 billion in the same month of 2008. Non-oil imports were 23.8% lower at $120.2 billion in April-November 2009 compared to $157.8 billion in the corresponding period of 2008.
While exports have turned positive partly due to the low base effect of 2008, experts cautioned against complacency. “Exporters need to keep their competitiveness both in terms of quality and prices, and focus on market and product diversification,” said Indian Institute of Foreign Trade’s RM Joshi.
India’s apex exporters’ body, the Federation of Indian Export Organisations (FIEO), said the November data indicates the adaptability of exporters to the changing global economy and the positive impact of the stimulus extended by the government. FIEO president A Sakthivel hoped that the government would continue with the stimulus package, particularly, interest subsidy for exports.
Despite the positive growth, the country’s overseas shipments in the current fiscal are likely to remain much lower than the $185 billion worth of shipments last year. As per FIEO estimates, exports in 2009-10 are expected to remain in the range of $165-170 billion.
Fall In Imports Of Goods & Services Slows; Trade Deficit Shrinks To $66 Billion
Our Bureau & Agencies NEW DELHI
INDIA’S exports sector has bounced back with outward trade growing by 18% in November 2009, the commerce ministry said. The export figures turned positive after staying in the red for 13 months.
The value of exports in November 2009 jumped to $13.19 billion compared to $11.16 billion in November 2008. The global economic slowdown hit the country’s exports sector hard in October 2008.
Imports of goods and services, however, remained in negative territory during this period. But the contraction was lower at 2.6%—amounting to $22.8 billion—compared to 15% in the previous month.
The cumulative data for April-November of the current fiscal showed exports dropping by 22.3% to $104.24 billion, much lower than the 26% fall up to October this financial year. Trade deficit for April-November 2009 stood at $66.18 billion, lower than $100.15 billion in the same period in 2008.
As per official data, oil imports also turned positive after 13 months and increased by 7.3% to $6.38 billion in November. Imports during April-November 2009 stood at $50.18 billion, 34.4% lower than $76.52 billion in the year-ago period.
Non-oil imports during November contracted by 5.9% to $16.5 billion from $17.5 billion in the same month of 2008. Non-oil imports were 23.8% lower at $120.2 billion in April-November 2009 compared to $157.8 billion in the corresponding period of 2008.
While exports have turned positive partly due to the low base effect of 2008, experts cautioned against complacency. “Exporters need to keep their competitiveness both in terms of quality and prices, and focus on market and product diversification,” said Indian Institute of Foreign Trade’s RM Joshi.
India’s apex exporters’ body, the Federation of Indian Export Organisations (FIEO), said the November data indicates the adaptability of exporters to the changing global economy and the positive impact of the stimulus extended by the government. FIEO president A Sakthivel hoped that the government would continue with the stimulus package, particularly, interest subsidy for exports.
Despite the positive growth, the country’s overseas shipments in the current fiscal are likely to remain much lower than the $185 billion worth of shipments last year. As per FIEO estimates, exports in 2009-10 are expected to remain in the range of $165-170 billion.
My Commnets:
What one will make out from this?Export has increased by 18% after 13 months....just try to think what this tells......stop reading further and think over it.What you will analyse of this...news....
Done! Well, my analysis says that this is a hint of global market stabilising.If the export has increased after 13 months then I can say that world economy has started doing good as orders has started pouring in again after long time......
Now I don't think I have to write what that means for Indian Economy as well as world economy......
I maybe wrong in my analysis...so take your own call.....
Friday, January 1, 2010
Mcnally Bharat....my old call....Expect order book of Rs 5000cr by April
Friends,
People following me since mmb should be knowing that I use to recomend Mcnally Bharat since those days when it was in 50's and even after the meltdown in 2008, I have recomended here many times and that too again around the same price.I just wrote recently that Mcnally Bharat is making new highs......
The CM just gave an interview that Mcnally Bharat is expecting an order book position of 5000 cr by Apr, means in next few months......That is HUGE.....I don't think so , that I have to write what needs to be done in this counter.....There are not many co at this valuation who have such a huge order book ....This again says that sometimes my calls are ahead of 1-2 yrs.The news come afterwards but I can foresee it very clearly......that is why some stocks do not run immidiately but once they start the upward journey there is no looking back....
Expect order book of Rs 5000cr by April: McNally Bharat
Published on Thu, Dec 31, 2009 at 15:21 Updated at Thu, Dec 31, 2009 at 21:28 Source : CNBC-TV18
Leading engineering company McNally Bharat Engineering is going to raise Rs 44 crore via a rights issue in ratio of 1:10 at Rs 140.
Commenting on the same, the company’s Chairman Deepak Khaitan says that the rights issue will help correct its debt-equity structure. He expects an order book of Rs 5,000 crore by April and believes that the acquisition synergies will flow in FY10 and FY11.
“The company’s machinery business margins currently stand at 20% and the engineering-procurement-construction (EPC) business is targetting margins of 10%,” Khaitan says.
Part of Williamson Magor Group, McNally Bharat Engineering has projects in coal washing, port cranes, civic and industrial water supply. It recently demerged its projects and products business.
McNally is going to bring resource consolidation, synergy by way of restructuring. The company has regrouped project business into four strategic units. Its strategic units are material handling and non-ferrous metals, steel, mines and port solutions and power and infrastructure.
People following me since mmb should be knowing that I use to recomend Mcnally Bharat since those days when it was in 50's and even after the meltdown in 2008, I have recomended here many times and that too again around the same price.I just wrote recently that Mcnally Bharat is making new highs......
The CM just gave an interview that Mcnally Bharat is expecting an order book position of 5000 cr by Apr, means in next few months......That is HUGE.....I don't think so , that I have to write what needs to be done in this counter.....There are not many co at this valuation who have such a huge order book ....This again says that sometimes my calls are ahead of 1-2 yrs.The news come afterwards but I can foresee it very clearly......that is why some stocks do not run immidiately but once they start the upward journey there is no looking back....
Expect order book of Rs 5000cr by April: McNally Bharat
Published on Thu, Dec 31, 2009 at 15:21 Updated at Thu, Dec 31, 2009 at 21:28 Source : CNBC-TV18
Leading engineering company McNally Bharat Engineering is going to raise Rs 44 crore via a rights issue in ratio of 1:10 at Rs 140.
Commenting on the same, the company’s Chairman Deepak Khaitan says that the rights issue will help correct its debt-equity structure. He expects an order book of Rs 5,000 crore by April and believes that the acquisition synergies will flow in FY10 and FY11.
“The company’s machinery business margins currently stand at 20% and the engineering-procurement-construction (EPC) business is targetting margins of 10%,” Khaitan says.
Part of Williamson Magor Group, McNally Bharat Engineering has projects in coal washing, port cranes, civic and industrial water supply. It recently demerged its projects and products business.
McNally is going to bring resource consolidation, synergy by way of restructuring. The company has regrouped project business into four strategic units. Its strategic units are material handling and non-ferrous metals, steel, mines and port solutions and power and infrastructure.
Decade of equities: When India took centre-stage.......
Friends,
I have been through an article from Monercontrol site which I am pasting here with my COMMENTS in Bracket......
Decade of equities: When India took centre-stage.......
A decade is a long time. Especially in equity markets. When 1999 ended, the world had just witnessed the burst of a dotcom bubble that, in hind sight, many people reckoned couldn’t have gotten more nonsensical. End of 2009, and we are being thrust out of yet another larger financial bubble which, when it burst last year, threatened to obliterate the very face of capitalism.
It goes to prove the legendary Warren Buffet’s words, who once said, ‘Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.’ How many investors, though, burnt their fingers in the late 90s’ dotcom bubble and the euphoria over realty stocks back here in India between 2005 and 2007 remains to be ascertained.
But the overall story doesn’t change. Over the longer term, India’s benchmark Sensex — what with its forceful, violent corrections along the way — maintains its head up. Start 2000, and the Sensex hovered around the 5,000 mark. End of 2009, it’s above 17,000. Compare that with US stocks, and Wall Street has moved all over the place but remained exactly where it was a decade ago.
Markets often smell things in advance, it is often said. No wonder then that stock markets in China and India — the new superpowers of the east — headed up while their developed counterparts sensed something was going wrong with the world’s superpower, America, as it loaded up on its gargantuan debt by spending more than it earned, fought costly, bloody wars it was not winning, and implemented economic policies that defied both rationality and economics.
2009 resumption of bull market?
Was the correction of 2008 just another — mega, as it may — blip for the Indian market machine, one that bummed it up but which it will shrug and move on? Billionaire investor Rakesh Jhunjhunwala believes so. The Indian Warren Buffett, as he is dubbed by the media, has often said the Indian economy, with its large savings, young working age populace and a clean financial system unlike the troublesome one in the west, “is in its teens”.
“I see no reason why — if Indian software exports grow by 10-15%, commodity prices hold at reasonable levels and we have good government policies — India cannot grow at double digits,” he told CNBC-TV18 in an interview in June. The Indian economy grew 7.9% last quarter when the developed nations strategised ways to fight their way out of the recession, which in simpler terms means negative growth. India, Jhunjhunwala said, would continue to attract capital from the world because of its astounding growth.
“The fall from 21,000 to 7,500-8,000 for the index [in 2008] was just a correction in the longer-term bull market in India,” he said. “Actually, the first correction started in September 2001 because the real bottom the market made was post-September 11, 2001, and then the market went up to 3,500 and had a historic correction back in April 2003.”
A staggering four-and-a-half year bull market then saw the Sensex reach all-time highs of 21,000 in January 2008, just when the global financial crisis hit home. “Now, I do not think the Sensex will cross 21,000 in a straight line. We have to correct and we have to make a range and only then we can have the next move.”
‘India in midst of ‘something special’’
Another veteran of the stock market, Ramesh Damani, thinks India is in the midst of “something truly special”.
“This bull market in terms of how well it bounced back from lows is suggesting that there is something going on that is extraordinary in India. We are in the process of taking India from a trillion-dollar economy to not a 2-trillion dollar or a 3-trillion dollar economy but something far greater,”( Here is the crux...India not in making a 2 or 3 trillion economy but far greater then this) Damani told CNBC-TV18 recently. “Maybe in a generation, we will take a population from affliction to affluence, from poverty to prosperity, maybe we would go from 100 million people in the middle class right now to a billion people in the middle class and that has profound implications for various investment horizons.” (Understand the finer lines of this sentence)
After the spectacular run seen in 2009, investors would be doing wishful thinking to expect the same pace of rise ahead, believes renowned fund manager Madhu Kela of Reliance MF. He, however, said now was a market in which stock pickers would shine. ( This is what I am doing here)“Stock-specific, there are humongous opportunities. If one is right in predicting the Indian bull run, you can even today find companies, which are in the vicinity of Rs 5,000-15,000 crore market cap that could go up three-five times over the next few years,” he recently said.
Damani says the idea now is to hunt for bargains where you can buy companies with the proverbial tri-factors: good management, good business and good value.
The market guru summed up the overall sentiment over the country nicely when he likened India of today to the America of the 50s:( One need to understand this quote) “You knew that [back then in America] the Korean War took place and the Vietnam War took place and the race riots took place but the index kept plodding higher over periods of time and if you bought the right companies at that time, you made an enormous amount of fortune by the time 2000 came around."
"So maybe we will see a lot of corrections during this way, riots in India, slippages and liquidity crises but if you invest in the right kind of companies and the right kind of stocks, probably there is a pot at the end of the rainbow that is waiting for investors.”
My Comments:
In One para RJ says that we are in teens.In one para RD says that we are going to become BIG not as 2 -3 trillion economy but much greater then that.
What if we become a 2-3 trillion economy from a trillion dollar economy?and what can happen if we become much greater then that?At 1 trillion economy we are at 17k , what if we become a 2-3 trillion economy and then much bigger then that?It is anybody's guess.......Have I to elaborate that where can be the sensex?
“Maybe in a generation, we will take a population from affliction to affluence, from poverty to prosperity, maybe we would go from 100 million people in the middle class right now to a billion people in the middle class and that has profound implications for various investment horizons.”
Can one be able to understand what it means?From going 100 million of middle class people to 1 billion middle class people?Can anyone imagine the impact of this when that happens?I think there are many of my readers who are smart enough to understand the bottomline what it means......
RD and likes says that we are at where US economy was in 50's.....what does it mean?I leave that to my readers.....
I am again listing some stocks which are looking good and the list may consist of new ones as well as old ones.That doesn't mean that which are leftout are not good as it will be difficult for me to recall all stock I recomended in past and write it here.....
1)Surya Chakra Power
This stock I recomended when I use to write at mmb and that is in last bull run.
2)Laffans Petro.
Signing MOU with Huntsman Chemical is a trigger for this Co....
3)Sujana Towers.
If someone can read the consolidate results(not standalone) there is something which I have seen which looks mind blowing to me at this time.Maybe I have overread it or not interpreted well.But if anyone can find and read it and tell me what it is, I will be glad ....
4)Rasandik Eng....
5) PAE
6)Goldstone Infra
7)SNL Bearing
8)Geometric Ltd
9)Kale Consultancy
I already recomended here at 74...now over 90...
10)Heidelberg Cement
11) Prism Cement
12)Yash Raj Containeur
13)Venus Remedies
14)Surya Pharma
15)Ind Swift Ltd
16)Ind Swift Lab
17)Resonance Speciality
This also I use to recomend at mmb
18)Jupiter Bio
19)Apar Ind
20)PSL Ltd
21)Kirloskar Ferro
22)LT Foods
23)Marg Ltd
24)MSK Project
25)JMC Project
26)Shriram EPC
27)Ennore Coke
28)India Glycols
29)Lumax Ind
30)Investment Precision and Casting
31)Super Spinning
32)Super Sales
33)Suryalata Spinning
34)Suryajyoti Spinnig
35)Surayvanshi Spinning
36)Mazda Ind
There are many which I may have missed....but the calls remains the same......Well, these are stocks whose management are not proved.This is blank calls except few...so do the DD and then take the plunge.....
Best of Luck for New Year......
We Welcome 2010.......and against what our beloved bear opinion of seeing 12k first before 21k comes...I say we will see 21k first and never see 12k.....anytime........
Updates:
Today I saw that Money Matters was firing all cylinders and closed at 168...Supreme Potro made a new high of 31.85,Kirlos Ferro made a 52 week high at 37.65,Mcnally Bharat made a 52 week high at 239,Tinplate recomended at 43 cum right made a life time high of 94.80 and many more to come......
I have been through an article from Monercontrol site which I am pasting here with my COMMENTS in Bracket......
Decade of equities: When India took centre-stage.......
A decade is a long time. Especially in equity markets. When 1999 ended, the world had just witnessed the burst of a dotcom bubble that, in hind sight, many people reckoned couldn’t have gotten more nonsensical. End of 2009, and we are being thrust out of yet another larger financial bubble which, when it burst last year, threatened to obliterate the very face of capitalism.
It goes to prove the legendary Warren Buffet’s words, who once said, ‘Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.’ How many investors, though, burnt their fingers in the late 90s’ dotcom bubble and the euphoria over realty stocks back here in India between 2005 and 2007 remains to be ascertained.
But the overall story doesn’t change. Over the longer term, India’s benchmark Sensex — what with its forceful, violent corrections along the way — maintains its head up. Start 2000, and the Sensex hovered around the 5,000 mark. End of 2009, it’s above 17,000. Compare that with US stocks, and Wall Street has moved all over the place but remained exactly where it was a decade ago.
Markets often smell things in advance, it is often said. No wonder then that stock markets in China and India — the new superpowers of the east — headed up while their developed counterparts sensed something was going wrong with the world’s superpower, America, as it loaded up on its gargantuan debt by spending more than it earned, fought costly, bloody wars it was not winning, and implemented economic policies that defied both rationality and economics.
2009 resumption of bull market?
Was the correction of 2008 just another — mega, as it may — blip for the Indian market machine, one that bummed it up but which it will shrug and move on? Billionaire investor Rakesh Jhunjhunwala believes so. The Indian Warren Buffett, as he is dubbed by the media, has often said the Indian economy, with its large savings, young working age populace and a clean financial system unlike the troublesome one in the west, “is in its teens”.
“I see no reason why — if Indian software exports grow by 10-15%, commodity prices hold at reasonable levels and we have good government policies — India cannot grow at double digits,” he told CNBC-TV18 in an interview in June. The Indian economy grew 7.9% last quarter when the developed nations strategised ways to fight their way out of the recession, which in simpler terms means negative growth. India, Jhunjhunwala said, would continue to attract capital from the world because of its astounding growth.
“The fall from 21,000 to 7,500-8,000 for the index [in 2008] was just a correction in the longer-term bull market in India,” he said. “Actually, the first correction started in September 2001 because the real bottom the market made was post-September 11, 2001, and then the market went up to 3,500 and had a historic correction back in April 2003.”
A staggering four-and-a-half year bull market then saw the Sensex reach all-time highs of 21,000 in January 2008, just when the global financial crisis hit home. “Now, I do not think the Sensex will cross 21,000 in a straight line. We have to correct and we have to make a range and only then we can have the next move.”
‘India in midst of ‘something special’’
Another veteran of the stock market, Ramesh Damani, thinks India is in the midst of “something truly special”.
“This bull market in terms of how well it bounced back from lows is suggesting that there is something going on that is extraordinary in India. We are in the process of taking India from a trillion-dollar economy to not a 2-trillion dollar or a 3-trillion dollar economy but something far greater,”( Here is the crux...India not in making a 2 or 3 trillion economy but far greater then this) Damani told CNBC-TV18 recently. “Maybe in a generation, we will take a population from affliction to affluence, from poverty to prosperity, maybe we would go from 100 million people in the middle class right now to a billion people in the middle class and that has profound implications for various investment horizons.” (Understand the finer lines of this sentence)
After the spectacular run seen in 2009, investors would be doing wishful thinking to expect the same pace of rise ahead, believes renowned fund manager Madhu Kela of Reliance MF. He, however, said now was a market in which stock pickers would shine. ( This is what I am doing here)“Stock-specific, there are humongous opportunities. If one is right in predicting the Indian bull run, you can even today find companies, which are in the vicinity of Rs 5,000-15,000 crore market cap that could go up three-five times over the next few years,” he recently said.
Damani says the idea now is to hunt for bargains where you can buy companies with the proverbial tri-factors: good management, good business and good value.
The market guru summed up the overall sentiment over the country nicely when he likened India of today to the America of the 50s:( One need to understand this quote) “You knew that [back then in America] the Korean War took place and the Vietnam War took place and the race riots took place but the index kept plodding higher over periods of time and if you bought the right companies at that time, you made an enormous amount of fortune by the time 2000 came around."
"So maybe we will see a lot of corrections during this way, riots in India, slippages and liquidity crises but if you invest in the right kind of companies and the right kind of stocks, probably there is a pot at the end of the rainbow that is waiting for investors.”
My Comments:
In One para RJ says that we are in teens.In one para RD says that we are going to become BIG not as 2 -3 trillion economy but much greater then that.
What if we become a 2-3 trillion economy from a trillion dollar economy?and what can happen if we become much greater then that?At 1 trillion economy we are at 17k , what if we become a 2-3 trillion economy and then much bigger then that?It is anybody's guess.......Have I to elaborate that where can be the sensex?
“Maybe in a generation, we will take a population from affliction to affluence, from poverty to prosperity, maybe we would go from 100 million people in the middle class right now to a billion people in the middle class and that has profound implications for various investment horizons.”
Can one be able to understand what it means?From going 100 million of middle class people to 1 billion middle class people?Can anyone imagine the impact of this when that happens?I think there are many of my readers who are smart enough to understand the bottomline what it means......
RD and likes says that we are at where US economy was in 50's.....what does it mean?I leave that to my readers.....
I am again listing some stocks which are looking good and the list may consist of new ones as well as old ones.That doesn't mean that which are leftout are not good as it will be difficult for me to recall all stock I recomended in past and write it here.....
1)Surya Chakra Power
This stock I recomended when I use to write at mmb and that is in last bull run.
2)Laffans Petro.
Signing MOU with Huntsman Chemical is a trigger for this Co....
3)Sujana Towers.
If someone can read the consolidate results(not standalone) there is something which I have seen which looks mind blowing to me at this time.Maybe I have overread it or not interpreted well.But if anyone can find and read it and tell me what it is, I will be glad ....
4)Rasandik Eng....
5) PAE
6)Goldstone Infra
7)SNL Bearing
8)Geometric Ltd
9)Kale Consultancy
I already recomended here at 74...now over 90...
10)Heidelberg Cement
11) Prism Cement
12)Yash Raj Containeur
13)Venus Remedies
14)Surya Pharma
15)Ind Swift Ltd
16)Ind Swift Lab
17)Resonance Speciality
This also I use to recomend at mmb
18)Jupiter Bio
19)Apar Ind
20)PSL Ltd
21)Kirloskar Ferro
22)LT Foods
23)Marg Ltd
24)MSK Project
25)JMC Project
26)Shriram EPC
27)Ennore Coke
28)India Glycols
29)Lumax Ind
30)Investment Precision and Casting
31)Super Spinning
32)Super Sales
33)Suryalata Spinning
34)Suryajyoti Spinnig
35)Surayvanshi Spinning
36)Mazda Ind
There are many which I may have missed....but the calls remains the same......Well, these are stocks whose management are not proved.This is blank calls except few...so do the DD and then take the plunge.....
Best of Luck for New Year......
We Welcome 2010.......and against what our beloved bear opinion of seeing 12k first before 21k comes...I say we will see 21k first and never see 12k.....anytime........
Updates:
Today I saw that Money Matters was firing all cylinders and closed at 168...Supreme Potro made a new high of 31.85,Kirlos Ferro made a 52 week high at 37.65,Mcnally Bharat made a 52 week high at 239,Tinplate recomended at 43 cum right made a life time high of 94.80 and many more to come......
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