Friends,
I don't understand why M.A.Chidambaram gr wants to exit from a wonderful Co so cheap?Sical stake is offloaded for just Rs 200cr?I can't believe this......V.G Siddharth is getting it damn cheap.....and the M.A.Chidambaram gr is going out from the sector which is most sought after.Amazing........
Here are the two examples of cash crunches.One I gave earlier of Tata Motors and one is of Sical.
While Ratan Tata was able to get funds while selling stake of his other Co to Tata Sons, here Mr.Muthiah is not able to do that and hence has to sell it cheap.......
Mumbai/Bangalore: Cafe Coffee Day retail chain owner V.G. Siddhartha has ventured into the logistics business by acquiring majority control of Sical Logistics Ltd for around Rs200 crore, thus effectively ending the logistics run of one of Chennai’s oldest business families, the M.A. Chidambaram Group.
Tanglin Retail Realty Developments Pvt. Ltd, a group company of Coffee Day Resorts Pvt. Ltd, which operates close to 1,000 Cafe Coffee Day outlets across India, will acquire majority control of Sical Logistics through a combination of a direct stake purchase from the promoter Ashwin C. Muthiah, a preferential issue of shares and through an open offer, a person familiar with the development said.
The buyer will initially purchase a 15% stake in the company through a preferential allotment at Rs76 a share and follow it up with an open offer in accordance with India’s takeover law. The deal will lower the promoter’s stake in Sical to around 15%. Ashwin Muthiah, Sical’s promoter, currently holds 42.66% of the company. Edelweiss is the exclusive adviser to the deal.
The preferential allotment of 16,08,0010 shares to Tanglin was cleared by Sical’s board on Saturday, it said in a statement. Tanglin also informed the stock exchanges on Saturday that it had acquired 39,52,000 shares in Sical on 12 November through a block deal.
Siddhartha is flush with cash raised in April 2010 from three private equity funds—Kohlberg Kravis Roberts India Advisors Pvt. Ltd (KKR India), Standard Chartered Pvt. Equity Ltd and New Silk Route. They invested Rs960 crore for a 25% stake in the company, which also owns a private equity fund, Global Technology Ventures, three resorts in southern India under the Serai brand and Terra Firma Pvt. Ltd, a waste-management business.
The acquisition will give Siddhartha access to logistics services such as stevedoring, port terminals, customs house agency, shipping agency, trucking, railroad and warehousing facilities that Sical built over the past decade as trade boomed in the world’s second fastest growing major economy.
Sical handles around 26 million tonnes of bulk cargo and 500,000 standard cargo containers a year. The firm
reported a net profit of Rs26.36 crore on revenue of Rs537.23 crore in the year to March 2010.
Sical’s delivery network includes an exclusive walk-in berth at Chennai port for ships carrying bulk cargo; a container terminal at Tuticorin port; 225,000 sq. ft of storage across 17 warehouses(What can be the replacement cost of such a big land?); owned and regularly contracted fleet of more than 1,000 transport vehicles and container freight stations at three locations across India.
Apart from being an attractive investment opportunity, Sical will also cater to the in-house supply chain requirements of the diversified group with interests ranging across production and export of coffee, hotel properties and furniture. It currently relies on multiple service providers for its supply chain requirements.
Significantly, IDFC Private Equity (PE) sold its 13.28% stake in the logistics company for Rs43.8 crore on the National Stock Exchange through a bulk deal last week. IDFC PE took a haircut on its three-and-half-year-old investment of Rs116 crore made in March 2007—it sold the stake for Rs83.4 per share against its acquisition price of Rs222 per share.
The entire stake was acquired by Jupiter Capital Pvt. Ltd, a Bangalore-based investment company promoted by entrepreneur and lawmaker Rajeev Chandrasekhar.
Though IDFC PE had two board seats on Sical, an executive at Jupiter Capital said that it was not interested in assuming the board seats because the stake purchase in Sical was in the form of a portfolio investment.
“We have no plans to raise our stake in Sical either,” said Sudhakar Gande, a director at Jupiter Capital.
Several people Mint spoke to said that Ashwin Muthiah, the chairman of Sical, has come under pressure to sell his holding in the company because he was strapped for cash to fund a $50 million (Rs223 crore) foreign currency convertible bond (FCCB) redemption coming up in March-April 2011.
“The FCCB holders would not convert because the prices are ruling very high,” said a second person familiar with the development who did not want to be identified. Muthiah also faces hurdles in raising funds from the market for redeeming the FCCB because banks and financial institutions would be wary of lending money to him due to the financial troubles surrounding Southern Petrochemical Industries Corp. (Spic), the parent company’s flagship fertilizer unit at Tuticorin in Tamil Nadu.
Sical demerged its non-logistics businesses into a separate company in 2007 in a bid to focus exclusively on end-to-end multimodal integrated solutions for the logistics of bulk and containerized cargo. But things did not pan out well for the firm.
Around the same time, Sical divested its non-core businesses—palm oil, refractory, auto, drums, agri-bio products, specialty chemicals and flexible shafts—to position itself as a pure play integrated logistics provider.
“Today, Sical is hard-pressed for cash,” the second person mentioned earlier said. To tide over the liquidity crunch, Ashwin Muthiah has been selling some of his assets.
In late 2009, Sical Logistics sold its only platform supply vessel, or PSV, to Norwegian shipping firm Farstad Shipping ASA for around $24.8 million or 150 million Norwegian kroner, effectively turning its back on a three-year-old strategy to expand into the lucrative global offshore logistics market.
A PSV provides offshore logistics such as supplies and cargo transport for deepwater oil and gas drilling operations.
The strategy had been flagged off in September 2006 with the acquisition of Singapore-based Bergen Offshore Logistics Pte Ltd, a provider of specialized logistics for offshore oil and gas exploration, for $96.9 million. The acquisition gave Sical access to the PSV, which was purchased by Bergen Offshore for $31.3 million.
Monday, November 15, 2010
That is Ratan Tata...........
Friends,
I just went through this article in Today's "Live Mint" e paper and I was facinated to read the whole story......I like reading such stories even though I am not a business man.I like people who makes miracles.I like people who turns around loss making Co in a profit making Co.
The bet of buying JLR was misfired according to the analyst and see the turnaround! From a mere 22 cr profit same time last year it jumped to 2230 cr this year in a single quater! Wow!....$500 mn !......That is what I call atitude.That is what I call character.That is what I call a regirous invovlement to be successful.
Well, reading this can also makes us take some decision good.Read and learn.
That is Ratan Tata for US.We are proud of Ratan.He is in real sense Ratan for India.......
Read on:
When Tata Motors Ltd bought Jaguar Land Rover (JLR) for $2.3 billion in 2008, it quickly became appar- ent that the Indian auto maker couldn't have chosen a worse time for an acquisition of that magnitude.
The collapse of the mortgage market in the US had set off a financial crisis and no one with cash was in any mood to lend it.
Amid talk of the UK govern- ment contemplating a bailout of JLR, Tata Motors' market value plunged to `6,503.2 crore, with the stock hitting rock bottom `126.45 on 20 No- vember 2008. The market capi- talization was less than what it had paid Ford Motor Co. for the legendary British marques.
In the fiscal ended March 2009, Tata Motors posted its first annual loss in at least sev- en years after sales at the luxu- ry unit plunged amid the glob- al slump.
The consolidated net loss was `2,500 crore in the year ended 31 March, compared with a profit of `2,200 crore in the year earlier. The JLR unit made a pretax loss of `1,800 crore as unemployment and the financial crisis damped sales in the US and Europe.
Only two years later, howev er, JLR has turned around spectacularly. With JLR ac counting for more than half o Tata Motors' business, the company posted a 100-fold jump in profit in the three months to 30 September. The UK subsidiary has been gener ating a cash profit for the las four quarters.
Favourable external factors including currency move ments and a rebound in de mand for the luxury marques may have aided the turn around, but JLR's comeback i more than a result of fortuitou circumstances. The foundation for the transformation was be ing laid even during the pain ful months of struggle that fol lowed the acquisition.
Mint chronicles the story o the turnaround, how an Indian company that specialized in cheap small cars on the one hand and trucks on the othe succeeded where an iconi auto maker, and others before it, had failed.
In the summer of 2007, before Tata Motors Ltd took over Jaguar Land Rover (JLR), Ratan Tata and Ravi Kant embarked on a trip through the US. Their objec- tive--to gauge whether the leg- endary British marques still evoked enough passion in the biggest market for the vehicles to justify the acquisition.
The Tata group was among those that Ford Motor Co., which owned JLR at the time, had approached earlier in the year to discuss a possible sale.
Among the people that chair- man Tata and Kant, then man- aging director of Tata Motors, met were the long-suffering dealers of the two brands. De- spite the dismal performance over the past few years, the dealers still kept the faith, the Indians were heartened to learn. A few months later, when Kant did the rounds of dealers in the UK, he met with much the same response-- they still believed in the brands.
But when the $2.3 billion (`10,258 crore today) deal took place the next year, it was quickly apparent that Tata Mo- tors couldn't have picked a worse time to make an acquisi- tion of this magnitude. The collapse of the mortgage mar- ket in the US had set off a fi- nancial crisis and anyone who had cash wasn't in the mood to lend it.
Two years and a few months since then, JLR's contribution has helped Tata Motors post a steep rise in profit in the quar- ter to 30 September. So how did an Indian company that specialized in cheap small cars, on the one hand, and trucks, on the other, succeed where an icon- ic auto maker, and others be- fore it, had failed.
The top ex- ecutives at Tata Motors, usually most reti- cent, opened up for the first time about the JLR story at an exclusive interaction in Bom- bay House, the Tata group's headquarters. Those present at the meeting included Carl-Pe- ter Forster, managing director of Tata Motors group, Ralf Speth, chief executive officer of JLR, and a top group execu- tive who was intimately associ- ated with the turnaround saga, but insisted that he remain un- named as he wasn't directly associated with the unit any longer.
Soon after the acquisition in 2008, Tata Motors found itself saddled with a debt of `21,900 crore, an uncomfortable posi- tion for a company that had been virtually debt free.
Meanwhile, at the other end of the spectrum, through 2008 and the early part of 2009, Tata Motors was also involved in developing and launching the world's cheapest car, Nano, a project that was fraught with its own melodramatic ups and downs. But that's another story (see WEF special supplement).
Hard times At JLR, the product wasn't moving and Bombay House was beginning to feel stretched.
Amid talk of the UK govern- ment contemplating a bailout of JLR, Tata Motors' market value plunged to `6,503.2 crore, with the stock hitting rock bottom `126.45 on 20 No- vember 2008. The market capi- talization was less than what it had paid Ford for JLR.
“The global slowdown put the company under tremen- dous pressure because the management of JLR had just separated from one big organi- zation and was attaching itself to another not-so-big group and they were not yet kind of experienced living indepen- dently,“ said the Tata executive mentioned above. “We were bleeding.
Banks were not giving any money, they were not avail- able, they were closed. And we needed mon- ey.“
That's when Ratan Tata came through for Tata Mo- tors, with the parent pumpparent pump- ing in capital, driven by the be- lief that the JLR acquisition was right and would work. While the turnaround, when it took place, came as a surprise, Tata Motors saw it three-four quar- ters in advance.
But before that, in the fiscal ended March 2009, Tata Mo- tors posted its first annual loss in at least seven years after sales at the luxury units plunged amid the global slump. The consolidated net loss was `2,500 crore in the year ended 31 March, com- pared with profit of `2,200 crore in the year earlier. The JLR unit made a pretax loss of `1,800 crore as unemployment and the financial crisis damped sales in the US and Europe.
Cash remained “priority No.
1“ as JLR was haemorrhaging money and the company sought outside help.
As JLR didn't have a cash management system of its own, Tata Motors turned to consult- ants KPMG, Forster said.
For the next few months, “cash started to be managed on an hour-to-hour basis-- what cheque was going out, what cheque was coming in“. KPMG declined to participate in the story. Around the same time, in the spring of 2009, Munich- based Roland Berger Strategy Consultants was brought in to keep a tab on costs. The man- date to Roland Berger was sim- ple: make JLR profitable.
Cash management “A three-tier model was de- veloped,“ said Wolfgang Bern- hart, partner, Automotive Competence Center, Roland Berger. First, a short-term goal to manage liquidity with the assistance of KPMG was put in place.
Then came a mid-term target to contain costs at various lev- els and the formation of 10-11 cross-functional teams, Bern- hart said. A number of man- agement changes, including new heads at JLR, were made.
Finally, a long-term goal that runs until 2014 was drawn up, focusing on new models and refreshing the existing ones.
The key aims--cash manage- ment and checking costs.
When Roland Berger added up the money that could be saved, the company was aston- ished at how high the figure was.
A team of young managers was put in charge, in an ap- proach similar to the one fol- lowed in the 2003 restructuring at Tata Motors, with reviews on a daily basis.
Tata Motors also embarked on a plan to divest stakes in group companies to raise cash: In September 2008, it sold a 1.3% holding in Tata Steel Ltd to holding company Tata Sons Ltd for a total `485 crore. In November 2008, the board ap- proved a `4,147 crore rights of- fer, which was completed in June this year.
All proceeds were chan- nelled into Tata Motors to make JLR profitable. Crucially, Tata Motors was able to keep product development plans go- ing, which has paid off with the global economy reviving and customers returning to JLR showrooms.
The programme also saw the workforce being trimmed since July 2008 by around 11,000 from a gargantuan workforce of 27,000 at JLR. According to chief financial officer C. Ram- akrishnan, who spoke to analysts after announcement of the September quarter results, the workforce was trimmed by an- other 1,800 to 16,000.
JLR's turnaround has been aided by external factors. In a 9 November earnings call with analysts, Ramakrishnan said margins had benefited from fa- vourable currency movements, widening by one percentage point to 16.6%, over the first quarter of 2010-11. However, the extent of the turnaround can be gauged when margins are compared with corre- sponding quarter of previous year. Margins rose by a whop- ping 1,370 basis points or 13.7% from 2.9% in 30 Septem- ber 2009-10, reflecting the changed dynamics of the com- pany as sales rose sharply on the back of new product launches and improved market sentiments. About half the firm's turnover is dollar-linked while one-fifth is linked to the euro. The rupee has strength- ened against both currencies this year. Since January, the pound has strengthened 4.9% against the dollar and 7.7% against the euro.
The turnaround Sales are buoyant thanks to the introduction of newer, more fuel-efficient and con- temporary models coupled with the revival of demand in the firm's key markets such as the UK, the US and Europe.
Despatches of JLR models to dealers globally rose to 115,508 units in the six months to Sep- tember from 80,252 in the year ago. The new Jaguar XJ has been especially successful, with 8,700 of them having been sold since the model's launch in mid-May.
With JLR accounting for more than half of Tata Motors' business, the company posted a 100-fold jump in profit in the three months to 30 September.
The debt-to-equity ratio is down to 1.6 times at the con- solidated level from from 4.5 times at the end of 31 Decem- ber 2009. That's high but com- fortable given surging volumes.
The share has risen to a re- spectable `1,302.15 at close on 10 November on the Bombay Stock Exchange, taking market capitalization to `79,573.08 crore ($18 billion).
The first real contact be- tween Tata and Ford took place in early 2007 when Ratan Tata got “an informal brief“ on JLR.
Tata asked Kant and other se- nior Tata Motors executives if the acquisition made sense.
When he got a positive answer, Tata Motors began a nine- month due diligence process.
There were five key issues that persuaded Tata Motors to go ahead. While Jaguar had a mixed reputation, both were still “great brands“. Ford had pumped in a great deal of cash to improve quality and it was just a matter of time before this made a difference. Second, JLR had very good automobile plants. Third was the steadfast- ness of the dealers despite loss- es over the past four-five years.
Jaguar cars had already start- ed moving up the ranks of the annual JD Power customer sat- isfaction rankings. Besides that, there was a crop of great new models in the pipeline, among them the Jaguar XJ and XF and the upcoming Land Ro- ver, which convinced Tata Mo- tors that JLR was on the cusp of change.
Ultimately, Forster says, it boiled to down to this: JLR had a good engineering base and “a very passionate and committed group of people wanting to cre- ate new products.
“So if you put it all together, we have a recipe for success,“ said the Tata executive cited above. “What else can you ask for? At least there was no doubt in Mr Tata's mind and my mind that we should go for it with a single-minded focus and we went for it.“ Union backing One of the early endorse- ments that Tata Motors got was from the unions, though they gave the firm a grilling.
“We had this meeting (in late 2007) with the union, a very difficult one for three hours. It was eyeball-to-eyeball. Dave (Osborne, Unite's lead negotia- tor for the car industry) and Tony (Woodley, Unite joint general secretary) were asking very tough questions. We didn't have too much hope,“ said the Tata executive. “But somewhere in my heart I felt the meeting had gone well. We came out very transparent, sin- cere, and honest.“
The union leaders told the media after the meeting that their preference was for the In- dian company.
While Tata Motors seems to have done all the right things up until now, making the ac- quisition fit with Tata's strategy of developing low-cost cars for emerging markets won't be easy.
“Tata has done a good job in a difficult period,“ said Prashant Kale, professor of strategy at the Jones School of Management at the Texas- based Rice University. “But to me, this is more of a stan- dalone turnaround of JLR until now,“ said Kale, who works with some Tata group compa- nies “On the face of it, there seem to be limited operational syn- ergies between JLR and Tata Motors' remaining passenger car business, given the differ- ence in the primary segments they cater to and the underly- ing value chain or business models of the two. How Tata Motors is able to leverage those synergies would be interest- ing.“
Forster is of the view that more than synergy, the group will stress on entrepreneurial spirit.
While Speth says it is time to enjoy the fruit of the invest- ment made in 2007-08, Forster, careful not to appear compla- cent, says seeds “are being sown to be reaped in 2014.“
Tata Motors plans to pump £800 million-1 billion (`5,728-7,160 crore) into JLR in the next three-four years for product development, technol- ogy upgradation and capital expenditure needs. The UK subsidiary, which contributes two-thirds of Tata Motors' con- solidated revenue, has been generating a cash profit for the last four quarters. In the three months to September, JLR made a cash profit of £351.9 million, up 12% from the year earlier.
With an eye to the future, JLR is setting up manufacturing as- sembly units in India and Chi- na, the markets touted as the fastest growing in the world.
The Freelander, the cheapest of the sports utility vehicles from the Land Rover stable, will start rolling out from the old Tata-Mercedes assembly plant near Pune next year. JLR is also in advanced negotia- tions to set up a joint venture in China, Speth said, adding that this will allow the compa- ny to reduce prices by 35%, making the vehicles more com- petitive.
“We can rethink our aspira- tions in China (a market with a size of 17 million cars) through this JV,“ Speth said.
Since the Tata Motors acqui- sition, JLR has been looking at the Bric (Brazil, Russia, India, China) nations with greater in- terest, he said. These nations account for 31% of sales and the company wants to raise that to 37%. Speth expects Chi- na to account for 16% of the company's total sales over the next few years.
I just went through this article in Today's "Live Mint" e paper and I was facinated to read the whole story......I like reading such stories even though I am not a business man.I like people who makes miracles.I like people who turns around loss making Co in a profit making Co.
The bet of buying JLR was misfired according to the analyst and see the turnaround! From a mere 22 cr profit same time last year it jumped to 2230 cr this year in a single quater! Wow!....$500 mn !......That is what I call atitude.That is what I call character.That is what I call a regirous invovlement to be successful.
Well, reading this can also makes us take some decision good.Read and learn.
That is Ratan Tata for US.We are proud of Ratan.He is in real sense Ratan for India.......
Read on:
When Tata Motors Ltd bought Jaguar Land Rover (JLR) for $2.3 billion in 2008, it quickly became appar- ent that the Indian auto maker couldn't have chosen a worse time for an acquisition of that magnitude.
The collapse of the mortgage market in the US had set off a financial crisis and no one with cash was in any mood to lend it.
Amid talk of the UK govern- ment contemplating a bailout of JLR, Tata Motors' market value plunged to `6,503.2 crore, with the stock hitting rock bottom `126.45 on 20 No- vember 2008. The market capi- talization was less than what it had paid Ford Motor Co. for the legendary British marques.
In the fiscal ended March 2009, Tata Motors posted its first annual loss in at least sev- en years after sales at the luxu- ry unit plunged amid the glob- al slump.
The consolidated net loss was `2,500 crore in the year ended 31 March, compared with a profit of `2,200 crore in the year earlier. The JLR unit made a pretax loss of `1,800 crore as unemployment and the financial crisis damped sales in the US and Europe.
Only two years later, howev er, JLR has turned around spectacularly. With JLR ac counting for more than half o Tata Motors' business, the company posted a 100-fold jump in profit in the three months to 30 September. The UK subsidiary has been gener ating a cash profit for the las four quarters.
Favourable external factors including currency move ments and a rebound in de mand for the luxury marques may have aided the turn around, but JLR's comeback i more than a result of fortuitou circumstances. The foundation for the transformation was be ing laid even during the pain ful months of struggle that fol lowed the acquisition.
Mint chronicles the story o the turnaround, how an Indian company that specialized in cheap small cars on the one hand and trucks on the othe succeeded where an iconi auto maker, and others before it, had failed.
In the summer of 2007, before Tata Motors Ltd took over Jaguar Land Rover (JLR), Ratan Tata and Ravi Kant embarked on a trip through the US. Their objec- tive--to gauge whether the leg- endary British marques still evoked enough passion in the biggest market for the vehicles to justify the acquisition.
The Tata group was among those that Ford Motor Co., which owned JLR at the time, had approached earlier in the year to discuss a possible sale.
Among the people that chair- man Tata and Kant, then man- aging director of Tata Motors, met were the long-suffering dealers of the two brands. De- spite the dismal performance over the past few years, the dealers still kept the faith, the Indians were heartened to learn. A few months later, when Kant did the rounds of dealers in the UK, he met with much the same response-- they still believed in the brands.
But when the $2.3 billion (`10,258 crore today) deal took place the next year, it was quickly apparent that Tata Mo- tors couldn't have picked a worse time to make an acquisi- tion of this magnitude. The collapse of the mortgage mar- ket in the US had set off a fi- nancial crisis and anyone who had cash wasn't in the mood to lend it.
Two years and a few months since then, JLR's contribution has helped Tata Motors post a steep rise in profit in the quar- ter to 30 September. So how did an Indian company that specialized in cheap small cars, on the one hand, and trucks, on the other, succeed where an icon- ic auto maker, and others be- fore it, had failed.
The top ex- ecutives at Tata Motors, usually most reti- cent, opened up for the first time about the JLR story at an exclusive interaction in Bom- bay House, the Tata group's headquarters. Those present at the meeting included Carl-Pe- ter Forster, managing director of Tata Motors group, Ralf Speth, chief executive officer of JLR, and a top group execu- tive who was intimately associ- ated with the turnaround saga, but insisted that he remain un- named as he wasn't directly associated with the unit any longer.
Soon after the acquisition in 2008, Tata Motors found itself saddled with a debt of `21,900 crore, an uncomfortable posi- tion for a company that had been virtually debt free.
Meanwhile, at the other end of the spectrum, through 2008 and the early part of 2009, Tata Motors was also involved in developing and launching the world's cheapest car, Nano, a project that was fraught with its own melodramatic ups and downs. But that's another story (see WEF special supplement).
Hard times At JLR, the product wasn't moving and Bombay House was beginning to feel stretched.
Amid talk of the UK govern- ment contemplating a bailout of JLR, Tata Motors' market value plunged to `6,503.2 crore, with the stock hitting rock bottom `126.45 on 20 No- vember 2008. The market capi- talization was less than what it had paid Ford for JLR.
“The global slowdown put the company under tremen- dous pressure because the management of JLR had just separated from one big organi- zation and was attaching itself to another not-so-big group and they were not yet kind of experienced living indepen- dently,“ said the Tata executive mentioned above. “We were bleeding.
Banks were not giving any money, they were not avail- able, they were closed. And we needed mon- ey.“
That's when Ratan Tata came through for Tata Mo- tors, with the parent pumpparent pump- ing in capital, driven by the be- lief that the JLR acquisition was right and would work. While the turnaround, when it took place, came as a surprise, Tata Motors saw it three-four quar- ters in advance.
But before that, in the fiscal ended March 2009, Tata Mo- tors posted its first annual loss in at least seven years after sales at the luxury units plunged amid the global slump. The consolidated net loss was `2,500 crore in the year ended 31 March, com- pared with profit of `2,200 crore in the year earlier. The JLR unit made a pretax loss of `1,800 crore as unemployment and the financial crisis damped sales in the US and Europe.
Cash remained “priority No.
1“ as JLR was haemorrhaging money and the company sought outside help.
As JLR didn't have a cash management system of its own, Tata Motors turned to consult- ants KPMG, Forster said.
For the next few months, “cash started to be managed on an hour-to-hour basis-- what cheque was going out, what cheque was coming in“. KPMG declined to participate in the story. Around the same time, in the spring of 2009, Munich- based Roland Berger Strategy Consultants was brought in to keep a tab on costs. The man- date to Roland Berger was sim- ple: make JLR profitable.
Cash management “A three-tier model was de- veloped,“ said Wolfgang Bern- hart, partner, Automotive Competence Center, Roland Berger. First, a short-term goal to manage liquidity with the assistance of KPMG was put in place.
Then came a mid-term target to contain costs at various lev- els and the formation of 10-11 cross-functional teams, Bern- hart said. A number of man- agement changes, including new heads at JLR, were made.
Finally, a long-term goal that runs until 2014 was drawn up, focusing on new models and refreshing the existing ones.
The key aims--cash manage- ment and checking costs.
When Roland Berger added up the money that could be saved, the company was aston- ished at how high the figure was.
A team of young managers was put in charge, in an ap- proach similar to the one fol- lowed in the 2003 restructuring at Tata Motors, with reviews on a daily basis.
Tata Motors also embarked on a plan to divest stakes in group companies to raise cash: In September 2008, it sold a 1.3% holding in Tata Steel Ltd to holding company Tata Sons Ltd for a total `485 crore. In November 2008, the board ap- proved a `4,147 crore rights of- fer, which was completed in June this year.
All proceeds were chan- nelled into Tata Motors to make JLR profitable. Crucially, Tata Motors was able to keep product development plans go- ing, which has paid off with the global economy reviving and customers returning to JLR showrooms.
The programme also saw the workforce being trimmed since July 2008 by around 11,000 from a gargantuan workforce of 27,000 at JLR. According to chief financial officer C. Ram- akrishnan, who spoke to analysts after announcement of the September quarter results, the workforce was trimmed by an- other 1,800 to 16,000.
JLR's turnaround has been aided by external factors. In a 9 November earnings call with analysts, Ramakrishnan said margins had benefited from fa- vourable currency movements, widening by one percentage point to 16.6%, over the first quarter of 2010-11. However, the extent of the turnaround can be gauged when margins are compared with corre- sponding quarter of previous year. Margins rose by a whop- ping 1,370 basis points or 13.7% from 2.9% in 30 Septem- ber 2009-10, reflecting the changed dynamics of the com- pany as sales rose sharply on the back of new product launches and improved market sentiments. About half the firm's turnover is dollar-linked while one-fifth is linked to the euro. The rupee has strength- ened against both currencies this year. Since January, the pound has strengthened 4.9% against the dollar and 7.7% against the euro.
The turnaround Sales are buoyant thanks to the introduction of newer, more fuel-efficient and con- temporary models coupled with the revival of demand in the firm's key markets such as the UK, the US and Europe.
Despatches of JLR models to dealers globally rose to 115,508 units in the six months to Sep- tember from 80,252 in the year ago. The new Jaguar XJ has been especially successful, with 8,700 of them having been sold since the model's launch in mid-May.
With JLR accounting for more than half of Tata Motors' business, the company posted a 100-fold jump in profit in the three months to 30 September.
The debt-to-equity ratio is down to 1.6 times at the con- solidated level from from 4.5 times at the end of 31 Decem- ber 2009. That's high but com- fortable given surging volumes.
The share has risen to a re- spectable `1,302.15 at close on 10 November on the Bombay Stock Exchange, taking market capitalization to `79,573.08 crore ($18 billion).
The first real contact be- tween Tata and Ford took place in early 2007 when Ratan Tata got “an informal brief“ on JLR.
Tata asked Kant and other se- nior Tata Motors executives if the acquisition made sense.
When he got a positive answer, Tata Motors began a nine- month due diligence process.
There were five key issues that persuaded Tata Motors to go ahead. While Jaguar had a mixed reputation, both were still “great brands“. Ford had pumped in a great deal of cash to improve quality and it was just a matter of time before this made a difference. Second, JLR had very good automobile plants. Third was the steadfast- ness of the dealers despite loss- es over the past four-five years.
Jaguar cars had already start- ed moving up the ranks of the annual JD Power customer sat- isfaction rankings. Besides that, there was a crop of great new models in the pipeline, among them the Jaguar XJ and XF and the upcoming Land Ro- ver, which convinced Tata Mo- tors that JLR was on the cusp of change.
Ultimately, Forster says, it boiled to down to this: JLR had a good engineering base and “a very passionate and committed group of people wanting to cre- ate new products.
“So if you put it all together, we have a recipe for success,“ said the Tata executive cited above. “What else can you ask for? At least there was no doubt in Mr Tata's mind and my mind that we should go for it with a single-minded focus and we went for it.“ Union backing One of the early endorse- ments that Tata Motors got was from the unions, though they gave the firm a grilling.
“We had this meeting (in late 2007) with the union, a very difficult one for three hours. It was eyeball-to-eyeball. Dave (Osborne, Unite's lead negotia- tor for the car industry) and Tony (Woodley, Unite joint general secretary) were asking very tough questions. We didn't have too much hope,“ said the Tata executive. “But somewhere in my heart I felt the meeting had gone well. We came out very transparent, sin- cere, and honest.“
The union leaders told the media after the meeting that their preference was for the In- dian company.
While Tata Motors seems to have done all the right things up until now, making the ac- quisition fit with Tata's strategy of developing low-cost cars for emerging markets won't be easy.
“Tata has done a good job in a difficult period,“ said Prashant Kale, professor of strategy at the Jones School of Management at the Texas- based Rice University. “But to me, this is more of a stan- dalone turnaround of JLR until now,“ said Kale, who works with some Tata group compa- nies “On the face of it, there seem to be limited operational syn- ergies between JLR and Tata Motors' remaining passenger car business, given the differ- ence in the primary segments they cater to and the underly- ing value chain or business models of the two. How Tata Motors is able to leverage those synergies would be interest- ing.“
Forster is of the view that more than synergy, the group will stress on entrepreneurial spirit.
While Speth says it is time to enjoy the fruit of the invest- ment made in 2007-08, Forster, careful not to appear compla- cent, says seeds “are being sown to be reaped in 2014.“
Tata Motors plans to pump £800 million-1 billion (`5,728-7,160 crore) into JLR in the next three-four years for product development, technol- ogy upgradation and capital expenditure needs. The UK subsidiary, which contributes two-thirds of Tata Motors' con- solidated revenue, has been generating a cash profit for the last four quarters. In the three months to September, JLR made a cash profit of £351.9 million, up 12% from the year earlier.
With an eye to the future, JLR is setting up manufacturing as- sembly units in India and Chi- na, the markets touted as the fastest growing in the world.
The Freelander, the cheapest of the sports utility vehicles from the Land Rover stable, will start rolling out from the old Tata-Mercedes assembly plant near Pune next year. JLR is also in advanced negotia- tions to set up a joint venture in China, Speth said, adding that this will allow the compa- ny to reduce prices by 35%, making the vehicles more com- petitive.
“We can rethink our aspira- tions in China (a market with a size of 17 million cars) through this JV,“ Speth said.
Since the Tata Motors acqui- sition, JLR has been looking at the Bric (Brazil, Russia, India, China) nations with greater in- terest, he said. These nations account for 31% of sales and the company wants to raise that to 37%. Speth expects Chi- na to account for 16% of the company's total sales over the next few years.
Sunday, November 14, 2010
Some insights of what needs to be looked while investing.....
Friends,
I have written many times but seems readers don't follow it properly.Someone asked me though Arman Finance nos are excellent then Capital Trust why Arman is lagging and Capital Trust is firing all cylinders.
Well, this reader is not a new reader of this blog and still do not understand why this is happening even though I have written many times that in stock market it is never 1+1 = 2.
If it is that easy then everyone can make money and all CA's should become a billioner reading the BS or AR.
I have written many times, I rarely reads AR or BS because they are of past year.It doesn't says what is happening this year.Ofcourse management do discuss future plans in AR but not all management will do it.
So reading BS or AR makes no sense to me all the time.
Now coming back to Capital Trust which I recomended at 70 odd along with Arman Fin in MFI space, Capital trust is going up and made a new high while Arman Fin has not moved an inch.
That means that market is knowing more then what we are knowing.
This is a very simple equation one should always keep in mind.
In case of Capital Trust, market is knowing what is future plans of CT and what will be the earning if that will happen and hence giving it a thumbs up to the stock on the street.
Had anyone seen Delta Magnets Ltd recently?It is going up and up without any correction.That happened in Sujana Towers which raced away from 52 to 208 in couple of months.Those who sold to book profit never able to buy it again low.
Now Delta magnet is the same gr Co of Delta Corp where big starwarlts like RJ, RD, RKD etc has taken stake and is firing all cylinders.Delta Corp is 1 paid up and is at 136 , means Rs 1360 and 10 paid up.
If someone look at the balance sheet there one will find nothing.Then why that is happening?Why market is giving so big a discounting to Delta Corp and now Delta magnets?
There is one Co of same gr , named Arrow Textile which I discussed with someone in reply and Arrow Tex is also in buyers circuit last week.
Remember one thing.Market always knows better and earlier then us and when one sees a stock running ahead of fundamentals it means we are not knowing what market is knowing.One may call it insider trading.
What I am doing here is trying to figure out what is coming up way before market participants realise it and write it much much early then it starts moving and hence the wait is always long but once my picks start moving they goes in circuits for weeks togather.
One more readers wrote about my call on Arihant Superstructure which I gave a call recently at 74 and was in upper circuits last whole week and is Rs 90.When I wrote about it many or almost all readers barring couple of them didn't understand why I recomended it.
But what I was seeing is coming out true as it has started moving.
One readers asked me about Compact Disc about his concerns.His concerns are good but that is the reason a Co is available at 1 p/e! CD has an eps of 50 and is available at 60.
One other wrote about saying he gave a negative view and I gave him the reply that what you think is not negative as these raids etc keeps happening everywhere.
These are not negatives.If you feel the Co is good then this type of things is not a problem.
We have seen that in Venus Remedies.I gave a call on Venus at 220 and then the news came that they are not able to pay the FCCB money and hence the lender has gone to court to close down the Co.
Even after such news came out Venus never went below Rs.200.What does that mean?Market knows that these are a temporary thing and it will be sorted out and that happened and now Venus is at 300.
The things one need to understand is what market thinks, we need to understand that .How market works is very important to know.
I have written many times but seems readers don't follow it properly.Someone asked me though Arman Finance nos are excellent then Capital Trust why Arman is lagging and Capital Trust is firing all cylinders.
Well, this reader is not a new reader of this blog and still do not understand why this is happening even though I have written many times that in stock market it is never 1+1 = 2.
If it is that easy then everyone can make money and all CA's should become a billioner reading the BS or AR.
I have written many times, I rarely reads AR or BS because they are of past year.It doesn't says what is happening this year.Ofcourse management do discuss future plans in AR but not all management will do it.
So reading BS or AR makes no sense to me all the time.
Now coming back to Capital Trust which I recomended at 70 odd along with Arman Fin in MFI space, Capital trust is going up and made a new high while Arman Fin has not moved an inch.
That means that market is knowing more then what we are knowing.
This is a very simple equation one should always keep in mind.
In case of Capital Trust, market is knowing what is future plans of CT and what will be the earning if that will happen and hence giving it a thumbs up to the stock on the street.
Had anyone seen Delta Magnets Ltd recently?It is going up and up without any correction.That happened in Sujana Towers which raced away from 52 to 208 in couple of months.Those who sold to book profit never able to buy it again low.
Now Delta magnet is the same gr Co of Delta Corp where big starwarlts like RJ, RD, RKD etc has taken stake and is firing all cylinders.Delta Corp is 1 paid up and is at 136 , means Rs 1360 and 10 paid up.
If someone look at the balance sheet there one will find nothing.Then why that is happening?Why market is giving so big a discounting to Delta Corp and now Delta magnets?
There is one Co of same gr , named Arrow Textile which I discussed with someone in reply and Arrow Tex is also in buyers circuit last week.
Remember one thing.Market always knows better and earlier then us and when one sees a stock running ahead of fundamentals it means we are not knowing what market is knowing.One may call it insider trading.
What I am doing here is trying to figure out what is coming up way before market participants realise it and write it much much early then it starts moving and hence the wait is always long but once my picks start moving they goes in circuits for weeks togather.
One more readers wrote about my call on Arihant Superstructure which I gave a call recently at 74 and was in upper circuits last whole week and is Rs 90.When I wrote about it many or almost all readers barring couple of them didn't understand why I recomended it.
But what I was seeing is coming out true as it has started moving.
One readers asked me about Compact Disc about his concerns.His concerns are good but that is the reason a Co is available at 1 p/e! CD has an eps of 50 and is available at 60.
One other wrote about saying he gave a negative view and I gave him the reply that what you think is not negative as these raids etc keeps happening everywhere.
These are not negatives.If you feel the Co is good then this type of things is not a problem.
We have seen that in Venus Remedies.I gave a call on Venus at 220 and then the news came that they are not able to pay the FCCB money and hence the lender has gone to court to close down the Co.
Even after such news came out Venus never went below Rs.200.What does that mean?Market knows that these are a temporary thing and it will be sorted out and that happened and now Venus is at 300.
The things one need to understand is what market thinks, we need to understand that .How market works is very important to know.
Thursday, November 11, 2010
SUNIL HITECH ENGINEERS LTD..cmp Rs174.15...excellent Infrastructure Co...
Friends,
I am talking today on SUNIL HITECH ENGINEERS LTD.
This is an excellent Infrastructure Co which is lying low due to bad results for one qr.
But I like this Co very very much.I remember I gave call on Mcnally Bharat at 50, Marg Ltd at 50,Gayatri Project at 160,JMC Project at 80 from my mmb days,Man Ind at 55 and many more in contruction sector like Shreeram EPC below 100,Madhucon project below 100 and 10 paid up etc etc....
SUNIL HITECH ENGINEERS LTD. is one of such Co which will give excellent returns in LT.
As of now the Mcap is 213 cr and sales is 728 cr last year and hence we can say that we get a 730 cr odd Co at 213 cr ! It is cheap.Go for it...
The AR report boast as under:
1) 11,245 MW
Through the complex complement of domain software with hardware.
At Sunil Hitech, this is the customer portfolio size we created in over a decade.
2.) 8 percent This percentage represents the proportion of India’s power generation capacity addressed by Sunil Hitech.
3) 21 Percent is the business adderessed by Sunil Hitech as a proportion of India's projected 11th plan wattage.
4) Sunil Hitech have 45 operational sites.
6)10,000 people works there.
7)13 Indian states in which Sunil Hitech enjoys an embedded presence.
8)11,245 Capacity commissioned by Sunil Hitech (megawatts).
9)30 The size of the first EPC-based multi-fuel power plant (in megawatts) that Sunil Hitech constructed for Gangakhed Sugar and Energy Limited (GSEL) in 2009.
10)18 The record time (in months) in which Sunil Hitech commissioned a 6,000-tpd-cane-crushing facility, 60,000 litres per day ethanol unit and a 30-MW power plant for GSEL.( This shows they plan the contract and execute it well in time......I like such Co)
11)487 The first large balance-of-plant (BoP) order (in Rs. cr) Sunil Hitech bagged from Mahagenco,covering 250 MW in March 2010.
Well after looking at the above parametres , I don't think I have to write more on this Co.
I am talking today on SUNIL HITECH ENGINEERS LTD.
This is an excellent Infrastructure Co which is lying low due to bad results for one qr.
But I like this Co very very much.I remember I gave call on Mcnally Bharat at 50, Marg Ltd at 50,Gayatri Project at 160,JMC Project at 80 from my mmb days,Man Ind at 55 and many more in contruction sector like Shreeram EPC below 100,Madhucon project below 100 and 10 paid up etc etc....
SUNIL HITECH ENGINEERS LTD. is one of such Co which will give excellent returns in LT.
As of now the Mcap is 213 cr and sales is 728 cr last year and hence we can say that we get a 730 cr odd Co at 213 cr ! It is cheap.Go for it...
The AR report boast as under:
1) 11,245 MW
Through the complex complement of domain software with hardware.
At Sunil Hitech, this is the customer portfolio size we created in over a decade.
2.) 8 percent This percentage represents the proportion of India’s power generation capacity addressed by Sunil Hitech.
3) 21 Percent is the business adderessed by Sunil Hitech as a proportion of India's projected 11th plan wattage.
4) Sunil Hitech have 45 operational sites.
6)10,000 people works there.
7)13 Indian states in which Sunil Hitech enjoys an embedded presence.
8)11,245 Capacity commissioned by Sunil Hitech (megawatts).
9)30 The size of the first EPC-based multi-fuel power plant (in megawatts) that Sunil Hitech constructed for Gangakhed Sugar and Energy Limited (GSEL) in 2009.
10)18 The record time (in months) in which Sunil Hitech commissioned a 6,000-tpd-cane-crushing facility, 60,000 litres per day ethanol unit and a 30-MW power plant for GSEL.( This shows they plan the contract and execute it well in time......I like such Co)
11)487 The first large balance-of-plant (BoP) order (in Rs. cr) Sunil Hitech bagged from Mahagenco,covering 250 MW in March 2010.
Well after looking at the above parametres , I don't think I have to write more on this Co.
Wednesday, November 10, 2010
Obama Visit fetched $15 bn and 72k new jobs for USA.......
Friends,
Obama visits to India is over.He has been able to garner $15 bn worth of business and from that 72k new jobs will be created in USA.
Well, I haven't gone through all the views and experts says on his visit but what I was able to gather was some were not satisfied and some were not very much satisfied.
Well, India is trying to pressurize USA to do something on the extremist attack which is taking place from our neighbour.Why USA will tell them?It has different relation with them and that is never going to happen.
Everyone has to fight his own battle.Be it a country or be it individual.Whatever comes across us, we need to fight it out at our own.No one can do nothing.
Sabko apni ladai khud ladni hai.Doosra kya karega?
If India cannot fight it out itself then we need to sit and observe it like a coward.
That's all I will say here nothing more.
Obama was under very tight rope at home and naturally he was here to boost his economy.There is nothing wrong in it.If a person like US president think that way, what is wrong?Don't we think of terrorism and seek help from America?I donno, what we keeps on thinking.Mentality needs to get changed.Attitude needs to get changed.
"Otherwise we will be still there even after 50 yrs because even if we grow from hereon for 50 yrs, world by that time have moved many times more then what we would have done in next 50 yrs."
Try to understand what I am saying.It is complex to understand what I have written up but once understood , one will be able to understand what I am saying.
We can't afford to remain like what we are doing now......at this pace we will be no where in next 50 yrs.
Can you Imagine what would have happend to Indian Telecom sector if "Sam Pitroda" would have not been brought by Rajiv Gandhi from USA ?Just imagine.........
Let me first explain things in International arena.What is what and who is who.
We have NSC.Nuclear Security Council (NSC) and the member who are there have the permission to look at other countries nuclear capabilities.
Obama has promised to see that India gets seat in NSC.That is a big thing. Due to the detonating of Atom Bomb , India has been debarred from any use of nulcear capacity and that was an obvious reaction by the world as we have got the knowhow of detonating the Nuclear Bomb which world has seen in 2nd world war in Nagasaki and Heroshima in Japan.
And hence we can't use the dual N-technology for our ISRO and others plants in Karnataka etc.
We don't have Uranium.I am even not sure whether we have the knowhow to enrich the Uranium to be used in Civil Nuclear power?Due to those contrainst no one in the world sell us Uranium for peaceful purpose as we needs more of it to use it in a Power project and we don't have that much wiht us.
The question arises is what we have?What knowhow we have to show to the world?Culture?What can we do from that?We are ZERO except in Information Technology.
I read sometime back that a scientist made a sucide because he was not let do what he wanted to.Some innovation, something new.
That is the mental attitude in India.If someone is doing something new, he will never get the support.Be it an Institution or parents.Every parents wants their children to become a Doctor or Engineer.Students makes sucide.
We should actually thank Prez George Bush to have the nuclear power plant before his tenure ended and he made it sure that it is passed in senate even though we were having sanction on such use.That was the biggest moment and biggest step USA has taken and here in India critics keep on saying that USA is trying to take advantage of India?
Hamare pas hai kya jo America hamare se lelega?koi batao bhai....
What we have?Except for population, growing population and thus growing demand what we have?Had anyone seen China?Shanghai etc?They started just recently a new train whose speed is 550 km /hr.So if I say,considering Mumbai and Gujarat.....between Mumbai and Ahmedabad the entire KM is 550 km and that takes atleast 12 to 13 hr for the train that runs and if the train China has, runs here, it will take just 1 hr!
Can anyone be able to tell me when will this happen in India?China open the doors for USA Co to bulid their Infrastucture and China is reaping the benifit of that.When China does that what is the problem with India?China being a Communist country can open up so much then why can't India?
What I have observed of India is, we think of what someone is going to get from the business with us.We never see what we are going to get.How much other will get .We start calculating what profit he will get.We never count what we will have.
That is a knid of a KNOT in mind and that KNOT needs to get dissolved.We will have to dissolve it.We have to make effort for that.No one can do it for us.But here the first rule is, we need to know it that we have a KNOT in our mind and then we need to have that understanding that we need to take it out or unfold it for our good.
Even in our daily life , wee always think what someone will get with our relation.That is a very bad attitude of life.Why we have to think what he will get.Let him make 10 times from our business untill we make what we want and if we feel that the product we are selling is much cheaper then go to the world and sell yourself.It is that simple.
I read that Ril Power made a contract with GE for something worth Rs 10,000 cr , means $2.5 bn.Why Ril Power has to go to GE?Because we don't have the capacity to produce those equipment in time Ril Power wants it.
Just try to see, all great Cos are in USA.GE, IBM, MS,CaterPillar and many more.These are Eng Co and they are huge.They can produce in big quantity and that too with quality.The standard remains the same.They can do big projects and completes it in time.
I was in India in July and I has to go byroad to reach my house .The works on highway keeps going on and there diversion keeps on coming and the road that take from diversion is worst.
How we are going to come up?While coming back to Mumbai Airport , I started from my home at 12.30 pm as my plane was at 12.20 AM and I have to be there at Airport 2.3 hrs before that time, means by 10 pm .
The road were so bad , due to heavy rain , that I just was able to reach the Airport in time .As soon ass I reached Airport I checked in.
Now if I would have started just couple of hrs late what would have happened?I would have missed the plane.
India has to openup the gates for US CO for helping us bulid Infrastructure.That is the need of the hour.Bottlenecks needs to be dealt with.Beurocracy should take back sit.No bribe.
If we do not do that then I am not sure even after 50 yrs or 100 yrs we will be able to match China,leave USA in Infrastruture.
I liked what Shankar sharma spoke in that episode.Tell China to give us their Infrastructure and take our growth.
Untill the growth doesn't reach the poor , the growth makes no sense.Government need to look at it.
American companies are rich with latest technical knowhow.We need those technicality.We needs to join hands with them.
India....open up....open up......
India has to open up doors for American Cos.They will have to collobarte with them.Well , they are technical rich and if we wants those things it will come at a price.We will have to embrass the American Co.
Obama visits to India is over.He has been able to garner $15 bn worth of business and from that 72k new jobs will be created in USA.
Well, I haven't gone through all the views and experts says on his visit but what I was able to gather was some were not satisfied and some were not very much satisfied.
Well, India is trying to pressurize USA to do something on the extremist attack which is taking place from our neighbour.Why USA will tell them?It has different relation with them and that is never going to happen.
Everyone has to fight his own battle.Be it a country or be it individual.Whatever comes across us, we need to fight it out at our own.No one can do nothing.
Sabko apni ladai khud ladni hai.Doosra kya karega?
If India cannot fight it out itself then we need to sit and observe it like a coward.
That's all I will say here nothing more.
Obama was under very tight rope at home and naturally he was here to boost his economy.There is nothing wrong in it.If a person like US president think that way, what is wrong?Don't we think of terrorism and seek help from America?I donno, what we keeps on thinking.Mentality needs to get changed.Attitude needs to get changed.
"Otherwise we will be still there even after 50 yrs because even if we grow from hereon for 50 yrs, world by that time have moved many times more then what we would have done in next 50 yrs."
Try to understand what I am saying.It is complex to understand what I have written up but once understood , one will be able to understand what I am saying.
We can't afford to remain like what we are doing now......at this pace we will be no where in next 50 yrs.
Can you Imagine what would have happend to Indian Telecom sector if "Sam Pitroda" would have not been brought by Rajiv Gandhi from USA ?Just imagine.........
Let me first explain things in International arena.What is what and who is who.
We have NSC.Nuclear Security Council (NSC) and the member who are there have the permission to look at other countries nuclear capabilities.
Obama has promised to see that India gets seat in NSC.That is a big thing. Due to the detonating of Atom Bomb , India has been debarred from any use of nulcear capacity and that was an obvious reaction by the world as we have got the knowhow of detonating the Nuclear Bomb which world has seen in 2nd world war in Nagasaki and Heroshima in Japan.
And hence we can't use the dual N-technology for our ISRO and others plants in Karnataka etc.
We don't have Uranium.I am even not sure whether we have the knowhow to enrich the Uranium to be used in Civil Nuclear power?Due to those contrainst no one in the world sell us Uranium for peaceful purpose as we needs more of it to use it in a Power project and we don't have that much wiht us.
The question arises is what we have?What knowhow we have to show to the world?Culture?What can we do from that?We are ZERO except in Information Technology.
I read sometime back that a scientist made a sucide because he was not let do what he wanted to.Some innovation, something new.
That is the mental attitude in India.If someone is doing something new, he will never get the support.Be it an Institution or parents.Every parents wants their children to become a Doctor or Engineer.Students makes sucide.
We should actually thank Prez George Bush to have the nuclear power plant before his tenure ended and he made it sure that it is passed in senate even though we were having sanction on such use.That was the biggest moment and biggest step USA has taken and here in India critics keep on saying that USA is trying to take advantage of India?
Hamare pas hai kya jo America hamare se lelega?koi batao bhai....
What we have?Except for population, growing population and thus growing demand what we have?Had anyone seen China?Shanghai etc?They started just recently a new train whose speed is 550 km /hr.So if I say,considering Mumbai and Gujarat.....between Mumbai and Ahmedabad the entire KM is 550 km and that takes atleast 12 to 13 hr for the train that runs and if the train China has, runs here, it will take just 1 hr!
Can anyone be able to tell me when will this happen in India?China open the doors for USA Co to bulid their Infrastucture and China is reaping the benifit of that.When China does that what is the problem with India?China being a Communist country can open up so much then why can't India?
What I have observed of India is, we think of what someone is going to get from the business with us.We never see what we are going to get.How much other will get .We start calculating what profit he will get.We never count what we will have.
That is a knid of a KNOT in mind and that KNOT needs to get dissolved.We will have to dissolve it.We have to make effort for that.No one can do it for us.But here the first rule is, we need to know it that we have a KNOT in our mind and then we need to have that understanding that we need to take it out or unfold it for our good.
Even in our daily life , wee always think what someone will get with our relation.That is a very bad attitude of life.Why we have to think what he will get.Let him make 10 times from our business untill we make what we want and if we feel that the product we are selling is much cheaper then go to the world and sell yourself.It is that simple.
I read that Ril Power made a contract with GE for something worth Rs 10,000 cr , means $2.5 bn.Why Ril Power has to go to GE?Because we don't have the capacity to produce those equipment in time Ril Power wants it.
Just try to see, all great Cos are in USA.GE, IBM, MS,CaterPillar and many more.These are Eng Co and they are huge.They can produce in big quantity and that too with quality.The standard remains the same.They can do big projects and completes it in time.
I was in India in July and I has to go byroad to reach my house .The works on highway keeps going on and there diversion keeps on coming and the road that take from diversion is worst.
How we are going to come up?While coming back to Mumbai Airport , I started from my home at 12.30 pm as my plane was at 12.20 AM and I have to be there at Airport 2.3 hrs before that time, means by 10 pm .
The road were so bad , due to heavy rain , that I just was able to reach the Airport in time .As soon ass I reached Airport I checked in.
Now if I would have started just couple of hrs late what would have happened?I would have missed the plane.
India has to openup the gates for US CO for helping us bulid Infrastructure.That is the need of the hour.Bottlenecks needs to be dealt with.Beurocracy should take back sit.No bribe.
If we do not do that then I am not sure even after 50 yrs or 100 yrs we will be able to match China,leave USA in Infrastruture.
I liked what Shankar sharma spoke in that episode.Tell China to give us their Infrastructure and take our growth.
Untill the growth doesn't reach the poor , the growth makes no sense.Government need to look at it.
American companies are rich with latest technical knowhow.We need those technicality.We needs to join hands with them.
India....open up....open up......
India has to open up doors for American Cos.They will have to collobarte with them.Well , they are technical rich and if we wants those things it will come at a price.We will have to embrass the American Co.
Saturday, November 6, 2010
I WISH A VERY HAPPY AND PROSPEROUS NEW YEAR TO ALL MY READERS...
MAY THIS NEW YEAR BRINGS ALL PROSPERITY TO EVERYONE IN THE WORLD.
With passing of time and market moving up and up it is becoming very hard to find good funndamentals stocks still going abegging.
Off late Apar Ind has also started moving so I think PSL Ltd is now the only stock that as not moved at all or rather given a negative return.
I would like to reiterate THREE STOCKS HERE AND THEY ARE ALL MY OLD CALLS :
1) Vishnu Chem Ltd..cmp..Rs 117
2) Srei Infra Ltd...cmp Rs 137
3) Ennore Coke Ltd....cmp Rs.122
These stocks still looks excellent even at this valuation.Let us see where these 3 stocks will go by next Diwali ...along with other stocks.
Sujana Towers and Spanco has moved much higher in a very short period and they both have moved in such a manner that if someone wants to sell high and buy low, they never get a chance to buy it again because the price which they were sold never came back.
So those who tried to trade in it lost the delivery.
Well , one of my friend told me that Shankar Sharma gave recently an interview in which he said that he is bearish on Tata Motors and is short in it.
Yesterday I read RJ's interview as well and he says he is bullish on Tata Motors and he has holdings in Tata Motors .
These two persons has always has a fight whenever they came in TV and seems that the business channel do not want them to come again this time to avoid any hotup scene so we saw Raakesh giving an interview alone and Shankar Sharma giving interview somewhere else.
I love Shankar Sharma as much as I love Rakesh Jhunjhunwala.
Because without Shankar Sharma and other experts , retail participation will never have been so low.They always gave reason , valid reason according to them, to show that market will not make a new high.
I have been writing again and again here that market will make a new high and this can happen in this year as well and that has come true.
I have been critisized for giving such predictions but I still wrote what I was able to foresee and I am glad that my predictions has come true.
Coming back to SS and other expert , they kept on giving cautious advice and kept investors out for the whole year.They themself didn't buy nor let anyone buy anything.These expert needs to understand that when they speak in public , investors hears them and believe them so when they can see that they are proving wrong then they need to accept the defeat and stop giving same view of market is overvalued again and again.
Actually , after getting wrong again and again , they needs to be ashamed to come out and speak on market.Instead they keeps on coming again and again to prove wrong!
Being an expert in the market they need to understand that they are proving wrong again and again ,means they are not able to read the market or macro or micro economics signs and hence proving wrong.......These are the basic understanding one needs to have...It is very simple to understand these.But that simple understanding is not seen with best of experts.
I have seen that education alone is not enough to take correct decision.You needs to be level headed.If one is not level headed it makes no sense what degrees you have acquired.
I have always written here, History never repeats.....because if history repeats then there should be way to stop it before it happens but that is not the case.Everytime market comes out with new reasons.One can see that even all expert were bearish market made a new high and it will go up much further to touch 31k by end 2011 which also I have predicted much much earlier , if someone is reading me from Jan 2009.
Market will go much higher even then 31k.....
Market is headed high and the type of correction expert are expecting will never come.Stock keeps on surprising on upper side.One think that it has runup too much so needs to correct but that may not happen as is seen in the case of Sujana Towers and Spanco Ltd.
Well, let me give you one clue.While reading Rakesh , he said, he will sell his entire stake in Titan Ltd not less then $1 bn ,means at Rs 4400 cr .Investment in a single stock will fetch him Rs 4400 cr! Now if someone can see how much he holds now ,means shares, and try to find out at what price these holding will fetch him Rs 4400 cr or $1 bn then one can come to the price what he is expecting in future for Titan Ltd.
What is the sense of saying market is overvalaued at 10k and at 14k and at 18k and even at 21k?
It means that when they spoke of market is overvalued at 10k, they were wrong as it went to 14k.At 14k they felt market is overheated but market tocuhed 18k, so at 14 k also they went wrong and that means market was not overvalued at 14k and now from 18k market has made all time high at 21k and still they feel that market will come down and they will get a chance to buy?
They keeps on giving lower targets and they keeps on going wrong.I have seen Shankar Sharma always giving bearish call on Ril Ind and L&T.He always spoke that both should come to around 500 as the fundamental is not such to have that price.But L&T is making new highs and I have been recomending this stocks since long that L&T is the stock of the DECADE.
Those who have bought must be sitting on excellent return and it has long way to go.
I have recomended Seimens when analyst were bearish and see where Seimens is now.I have recomended Sesa Goa when expert were bearish and see where it is now.I gave a call on Coal India for applying and some readers told me some experts are not advising to apply and see where Coal India is listed.
Some people says they like Shankar Sharma because he has guts to speak against market view...that is utter rubbish.After going wrong again and again he keeps on speaking same thing is not GUTS but ARROGANCE or STUBORNNESS.... THAT IS NOT GUTS....when I see such view for Shankar Sharma I feel that what thinking that person is having ......that he is calling Arrogance as GUTS! It means they themselves do not know what is arrogance and what is guts....they are not able to differentiate between the meaning of Arrogance and Guts....
I think that interview came in NDTV Profit along with Ramdeo Agarwal, Sanju Verma and Jayaram.See , if anyone can give me the link......I would like to see it.....
MAY THIS NEW YEAR BRINGS ALL PROSPERITY TO EVERYONE IN THE WORLD.
With passing of time and market moving up and up it is becoming very hard to find good funndamentals stocks still going abegging.
Off late Apar Ind has also started moving so I think PSL Ltd is now the only stock that as not moved at all or rather given a negative return.
I would like to reiterate THREE STOCKS HERE AND THEY ARE ALL MY OLD CALLS :
1) Vishnu Chem Ltd..cmp..Rs 117
2) Srei Infra Ltd...cmp Rs 137
3) Ennore Coke Ltd....cmp Rs.122
These stocks still looks excellent even at this valuation.Let us see where these 3 stocks will go by next Diwali ...along with other stocks.
Sujana Towers and Spanco has moved much higher in a very short period and they both have moved in such a manner that if someone wants to sell high and buy low, they never get a chance to buy it again because the price which they were sold never came back.
So those who tried to trade in it lost the delivery.
Well , one of my friend told me that Shankar Sharma gave recently an interview in which he said that he is bearish on Tata Motors and is short in it.
Yesterday I read RJ's interview as well and he says he is bullish on Tata Motors and he has holdings in Tata Motors .
These two persons has always has a fight whenever they came in TV and seems that the business channel do not want them to come again this time to avoid any hotup scene so we saw Raakesh giving an interview alone and Shankar Sharma giving interview somewhere else.
I love Shankar Sharma as much as I love Rakesh Jhunjhunwala.
Because without Shankar Sharma and other experts , retail participation will never have been so low.They always gave reason , valid reason according to them, to show that market will not make a new high.
I have been writing again and again here that market will make a new high and this can happen in this year as well and that has come true.
I have been critisized for giving such predictions but I still wrote what I was able to foresee and I am glad that my predictions has come true.
Coming back to SS and other expert , they kept on giving cautious advice and kept investors out for the whole year.They themself didn't buy nor let anyone buy anything.These expert needs to understand that when they speak in public , investors hears them and believe them so when they can see that they are proving wrong then they need to accept the defeat and stop giving same view of market is overvalued again and again.
Actually , after getting wrong again and again , they needs to be ashamed to come out and speak on market.Instead they keeps on coming again and again to prove wrong!
Being an expert in the market they need to understand that they are proving wrong again and again ,means they are not able to read the market or macro or micro economics signs and hence proving wrong.......These are the basic understanding one needs to have...It is very simple to understand these.But that simple understanding is not seen with best of experts.
I have seen that education alone is not enough to take correct decision.You needs to be level headed.If one is not level headed it makes no sense what degrees you have acquired.
I have always written here, History never repeats.....because if history repeats then there should be way to stop it before it happens but that is not the case.Everytime market comes out with new reasons.One can see that even all expert were bearish market made a new high and it will go up much further to touch 31k by end 2011 which also I have predicted much much earlier , if someone is reading me from Jan 2009.
Market will go much higher even then 31k.....
Market is headed high and the type of correction expert are expecting will never come.Stock keeps on surprising on upper side.One think that it has runup too much so needs to correct but that may not happen as is seen in the case of Sujana Towers and Spanco Ltd.
Well, let me give you one clue.While reading Rakesh , he said, he will sell his entire stake in Titan Ltd not less then $1 bn ,means at Rs 4400 cr .Investment in a single stock will fetch him Rs 4400 cr! Now if someone can see how much he holds now ,means shares, and try to find out at what price these holding will fetch him Rs 4400 cr or $1 bn then one can come to the price what he is expecting in future for Titan Ltd.
What is the sense of saying market is overvalaued at 10k and at 14k and at 18k and even at 21k?
It means that when they spoke of market is overvalued at 10k, they were wrong as it went to 14k.At 14k they felt market is overheated but market tocuhed 18k, so at 14 k also they went wrong and that means market was not overvalued at 14k and now from 18k market has made all time high at 21k and still they feel that market will come down and they will get a chance to buy?
They keeps on giving lower targets and they keeps on going wrong.I have seen Shankar Sharma always giving bearish call on Ril Ind and L&T.He always spoke that both should come to around 500 as the fundamental is not such to have that price.But L&T is making new highs and I have been recomending this stocks since long that L&T is the stock of the DECADE.
Those who have bought must be sitting on excellent return and it has long way to go.
I have recomended Seimens when analyst were bearish and see where Seimens is now.I have recomended Sesa Goa when expert were bearish and see where it is now.I gave a call on Coal India for applying and some readers told me some experts are not advising to apply and see where Coal India is listed.
Some people says they like Shankar Sharma because he has guts to speak against market view...that is utter rubbish.After going wrong again and again he keeps on speaking same thing is not GUTS but ARROGANCE or STUBORNNESS.... THAT IS NOT GUTS....when I see such view for Shankar Sharma I feel that what thinking that person is having ......that he is calling Arrogance as GUTS! It means they themselves do not know what is arrogance and what is guts....they are not able to differentiate between the meaning of Arrogance and Guts....
I think that interview came in NDTV Profit along with Ramdeo Agarwal, Sanju Verma and Jayaram.See , if anyone can give me the link......I would like to see it.....
Friday, November 5, 2010
E-Payments Could Save India $23 Billion a Year.........
India could save enough money every year to cut its fiscal deficit by 20%, lift the income of those living in poverty by a fifth, boost welfare spending by 25% or feed every hungry person in the country without selling a single share in MTNL, BSNL, Air India or any other state-run company, according to a report released Monday by McKinsey & Co.
All the country needs to do to save one trillion rupees, or about $23 billion, per year is stop paying people with cash and checks and start paying them electronically.
In a report entitled “Inclusive Growth and Financial Security: The Benefits of E-payments to Indian Society,” the consulting company outlines how a new e-payments system could theoretically pay for itself within its first year of operation. A national network of computers in government offices, broad-band connections and transaction points in every village would only cost around 700 billion rupees, or $16 billion, to build, the report says.
“Delivering government payments electronically to the poor will not only pay for itself but will also connect households to a formal and secure financial grid,” the report’s authors say. “The basic infrastructure and connectivity this provides will also create an attractive business proposition to encourage private players to enter this space and provide services to the poor”.
The Indian government has failed miserably at bringing its hundreds of millions of poor citizens into the formal, modern financial world. Only around 40% of Indians have access to bank accounts, 10% have access to life insurance and only 1% have access to non-life insurance.
The failure of the government and mainstream banks to provide basic financial services to the poor is one of the biggest reasons the microfinance industry, which hands out tiny loans to village entrepreneurs, has flourished in India (although it is facing a backlash now, at least in one part of India).
While much of those billions in savings are from all the time and effort (and signatures and stamps) required to move cash and checks around, the lions share of the savings would be from reducing what McKinsey has euphemistically labeled “leakage.” A better word to describe the billions a year that “leaks” out of the hole-riddled physical delivery system is theft, usually by government officials or at least with their collusion.
McKinsey estimates that around $18 billion a year is stolen from the government through over-invoicing, false recipients and other means. Those holes in the system could be plugged by e-payments, the report claims.
Mckinsey’s is the latest in a long line of grand plans that suggest the right technology could solve India’s problems. It fails to address what to do about the country’s power leakage problem which leaves much of India without power for most of the day and would make e-payments difficult.
It also fails to suggest how you would get the new network approved and built, when the people in charge of doing that are probably the ones who benefit most from the old, leaky system.
All the country needs to do to save one trillion rupees, or about $23 billion, per year is stop paying people with cash and checks and start paying them electronically.
In a report entitled “Inclusive Growth and Financial Security: The Benefits of E-payments to Indian Society,” the consulting company outlines how a new e-payments system could theoretically pay for itself within its first year of operation. A national network of computers in government offices, broad-band connections and transaction points in every village would only cost around 700 billion rupees, or $16 billion, to build, the report says.
“Delivering government payments electronically to the poor will not only pay for itself but will also connect households to a formal and secure financial grid,” the report’s authors say. “The basic infrastructure and connectivity this provides will also create an attractive business proposition to encourage private players to enter this space and provide services to the poor”.
The Indian government has failed miserably at bringing its hundreds of millions of poor citizens into the formal, modern financial world. Only around 40% of Indians have access to bank accounts, 10% have access to life insurance and only 1% have access to non-life insurance.
The failure of the government and mainstream banks to provide basic financial services to the poor is one of the biggest reasons the microfinance industry, which hands out tiny loans to village entrepreneurs, has flourished in India (although it is facing a backlash now, at least in one part of India).
While much of those billions in savings are from all the time and effort (and signatures and stamps) required to move cash and checks around, the lions share of the savings would be from reducing what McKinsey has euphemistically labeled “leakage.” A better word to describe the billions a year that “leaks” out of the hole-riddled physical delivery system is theft, usually by government officials or at least with their collusion.
McKinsey estimates that around $18 billion a year is stolen from the government through over-invoicing, false recipients and other means. Those holes in the system could be plugged by e-payments, the report claims.
Mckinsey’s is the latest in a long line of grand plans that suggest the right technology could solve India’s problems. It fails to address what to do about the country’s power leakage problem which leaves much of India without power for most of the day and would make e-payments difficult.
It also fails to suggest how you would get the new network approved and built, when the people in charge of doing that are probably the ones who benefit most from the old, leaky system.
Sunday, October 31, 2010
Compact Disc.....cmp..Rs.57.25...Dark horse..
Friends,
I donno whether this call I am giving , many will like it or not but after observing Compact Disc for many qrs I had come to the conclusion that it is now high time for investors to have a look at it.
I have read messages at mmb and at other places and expert has come upon a decision that Compact Disc is not worth looking at.It is a penny stock and will become penny again.
But my view is totally opposite to what expert thinks.
The positive I am seeing here is Compact Disc is listed in Forbes Asia Magazine as one of the fastest upcoming Co under billion dollar category.
What I was thinking was that if Compact Disc is not worth looking at then how Forbes took note of it?Without checking the credentials how Forbes can consider it?If the sales are fictitious then why it should be included in Forbes list?
That has prove to be a storng point for me to write it down about Compact Disc here.
Cos last year eps was 50 and quoting at rs 57? means going at 1 p/e?The BV is also 100 , so available at .5 BV to price ratio.
The sales was 228 cr last year and Mcap is 54 cr....
Well, it kept on declaring dividend and investor never got the Div.That was because there was a case going on against Compact Disc and it has come to an end and hence the Div will be depatched this year.
The Sep qr results has been fentestic and is coming in line with previous qr.
This is CM statement which I have copied from the AR of 2009-2010....
Dear Friends,
In the financial year 2009-10, Compact Disc India Ltd. (CDI) has witnessed accelerated growth andmarket leadership.
The company is anticipating significant growth in its business and with the growing business it needs to set-up Pre-Visualization Studios at Los Angeles, London and Singapore. All existing business from affiliates shall be consolidated in Chandigarh by the end of this year. CDI will also be holding company for all overseas subsidiaries. These subsidiaries will be serviced by establishing marketing offices in Sao Paulo, Tokyo and Johannesburg.
The company has also decided to set-up five world class state-of-the-art Animation & Gaming Centres of Excellence at par with IITs, which would be the first of their kind in India. The first such centre at Chandigarh is already in process of commencing Animation & Gaming courses for engineering students to impart highest level of quality education from the session 2011-12.
During the year 2009-10, CDI, the largest animation film company of South Asia, reports the following achievements:
Sales Revenues higher by 18.78% at Rs. 228.17 crore
Profit-After-Tax (PAT) increases by 19.82% to Rs. 47.33 crore
Profit-Before-Tax (PBT) increases by 9.73% to Rs. 48.07 crore
Earnings per Share (EPS) higher at Rs. 49.45 as compared to Rs. 41.27 last year; higher by
19.82% (annualized).
With best wishes of the shareholders, CDI is going to take a giant leap ahead.
Warm regards,
Suresh Kumar
Chairman
The AR report of the Co can be read at its website if anyone wants to read it thorougly.
Well, I have written about Compact Disc and let us see where it goes in a year or two.
DD is a must for anything one wants to buy after reading here what I write.But I feel that Compact Disc is grossly underpriced and should be given a look at it...
Well friends, I have no access to go to the plant and have a look at it but anyone residing at Chandigadh should take a chance and visit the plant and meet someone there.
I think my blog reader who resides in Chandigarh should go there and write it down here what he saw and what he talked with the management.
I think management will be most willing to talk with someone who visit the plant because many things has been written against the Co and they would like to come out clean in investors eyes....
It is not so that those living in Chandigarh need to visit the Co, if someone is interested in buying good stake then he/she can go to Chandigadh from any part of India.
Depends upon the passion and how much one wants to do.
I donno whether this call I am giving , many will like it or not but after observing Compact Disc for many qrs I had come to the conclusion that it is now high time for investors to have a look at it.
I have read messages at mmb and at other places and expert has come upon a decision that Compact Disc is not worth looking at.It is a penny stock and will become penny again.
But my view is totally opposite to what expert thinks.
The positive I am seeing here is Compact Disc is listed in Forbes Asia Magazine as one of the fastest upcoming Co under billion dollar category.
What I was thinking was that if Compact Disc is not worth looking at then how Forbes took note of it?Without checking the credentials how Forbes can consider it?If the sales are fictitious then why it should be included in Forbes list?
That has prove to be a storng point for me to write it down about Compact Disc here.
Cos last year eps was 50 and quoting at rs 57? means going at 1 p/e?The BV is also 100 , so available at .5 BV to price ratio.
The sales was 228 cr last year and Mcap is 54 cr....
Well, it kept on declaring dividend and investor never got the Div.That was because there was a case going on against Compact Disc and it has come to an end and hence the Div will be depatched this year.
The Sep qr results has been fentestic and is coming in line with previous qr.
This is CM statement which I have copied from the AR of 2009-2010....
Dear Friends,
In the financial year 2009-10, Compact Disc India Ltd. (CDI) has witnessed accelerated growth andmarket leadership.
The company is anticipating significant growth in its business and with the growing business it needs to set-up Pre-Visualization Studios at Los Angeles, London and Singapore. All existing business from affiliates shall be consolidated in Chandigarh by the end of this year. CDI will also be holding company for all overseas subsidiaries. These subsidiaries will be serviced by establishing marketing offices in Sao Paulo, Tokyo and Johannesburg.
The company has also decided to set-up five world class state-of-the-art Animation & Gaming Centres of Excellence at par with IITs, which would be the first of their kind in India. The first such centre at Chandigarh is already in process of commencing Animation & Gaming courses for engineering students to impart highest level of quality education from the session 2011-12.
During the year 2009-10, CDI, the largest animation film company of South Asia, reports the following achievements:
Sales Revenues higher by 18.78% at Rs. 228.17 crore
Profit-After-Tax (PAT) increases by 19.82% to Rs. 47.33 crore
Profit-Before-Tax (PBT) increases by 9.73% to Rs. 48.07 crore
Earnings per Share (EPS) higher at Rs. 49.45 as compared to Rs. 41.27 last year; higher by
19.82% (annualized).
With best wishes of the shareholders, CDI is going to take a giant leap ahead.
Warm regards,
Suresh Kumar
Chairman
The AR report of the Co can be read at its website if anyone wants to read it thorougly.
Well, I have written about Compact Disc and let us see where it goes in a year or two.
DD is a must for anything one wants to buy after reading here what I write.But I feel that Compact Disc is grossly underpriced and should be given a look at it...
Well friends, I have no access to go to the plant and have a look at it but anyone residing at Chandigadh should take a chance and visit the plant and meet someone there.
I think my blog reader who resides in Chandigarh should go there and write it down here what he saw and what he talked with the management.
I think management will be most willing to talk with someone who visit the plant because many things has been written against the Co and they would like to come out clean in investors eyes....
It is not so that those living in Chandigarh need to visit the Co, if someone is interested in buying good stake then he/she can go to Chandigadh from any part of India.
Depends upon the passion and how much one wants to do.
Thursday, October 28, 2010
Some Updates....of my old call......
Friends,
1)Hitech Gear has declared a liberaal Bonus of 1:1 and stock made life time high of Rs 294 and has doubled from my recomended price.Hold on to this stocks for LT to reap excellent return.
2)Srei Infra has come out with excellent results with NP rising from rs 17 cr last sep to 50 cr this qr.
3)Surana Corp which I recomended around 35 has post excellent results with NP jumping from rs 7.5 cr to 18.81 cr this qr.I am seeing many houses and paid services has started recomending after it touched 75...means way above my call.
4)India Glycol my very old call and my favourite stock which I have been recomending time and again and in 2009 when it was at rs 60 I again recomended it has made a new high of 205 recently and is a buy still at dips.
5)Lumax Ind made a high of 330 and is now at 293 and those holding should hold on .I gave a call at rs 95.
6)Paramount Cosmetic , which I gave a call around 10 has made a new high of 39.70 today.400% return already.
7)First Object Techno has also post superb results with NP growing at exponential pace at rs 1.84 cr from last year same time of 0.52 cr a growth of over 250% from last in bottomline.
8)Loyal Tex is up by Rs 100 after my call giving clean 100 rs in a short time.
There are others as well which has runup like Spanco Ltd and Sujana Towers.
Spanco bagged a huge order from Bharti Tele for BPO contrcat in African countries.Well,the order should be worth 600cr and that was the reason it went up and up and after we are seeing the high of 180 the news are pouring in....wait for same type of news from Sujana Towers as well.
Market should remain range bound with upper bias and should test a new high by end of this year.It can make a new high when US Prez Mr.Obama visits India.
Coal India is an excellent buy on listing which I already mentioned when I wrote about it.
Buy for LT.
1)Hitech Gear has declared a liberaal Bonus of 1:1 and stock made life time high of Rs 294 and has doubled from my recomended price.Hold on to this stocks for LT to reap excellent return.
2)Srei Infra has come out with excellent results with NP rising from rs 17 cr last sep to 50 cr this qr.
3)Surana Corp which I recomended around 35 has post excellent results with NP jumping from rs 7.5 cr to 18.81 cr this qr.I am seeing many houses and paid services has started recomending after it touched 75...means way above my call.
4)India Glycol my very old call and my favourite stock which I have been recomending time and again and in 2009 when it was at rs 60 I again recomended it has made a new high of 205 recently and is a buy still at dips.
5)Lumax Ind made a high of 330 and is now at 293 and those holding should hold on .I gave a call at rs 95.
6)Paramount Cosmetic , which I gave a call around 10 has made a new high of 39.70 today.400% return already.
7)First Object Techno has also post superb results with NP growing at exponential pace at rs 1.84 cr from last year same time of 0.52 cr a growth of over 250% from last in bottomline.
8)Loyal Tex is up by Rs 100 after my call giving clean 100 rs in a short time.
There are others as well which has runup like Spanco Ltd and Sujana Towers.
Spanco bagged a huge order from Bharti Tele for BPO contrcat in African countries.Well,the order should be worth 600cr and that was the reason it went up and up and after we are seeing the high of 180 the news are pouring in....wait for same type of news from Sujana Towers as well.
Market should remain range bound with upper bias and should test a new high by end of this year.It can make a new high when US Prez Mr.Obama visits India.
Coal India is an excellent buy on listing which I already mentioned when I wrote about it.
Buy for LT.
Friday, October 15, 2010
Sumedha Fiscal....52 week high@40 from 17 .....in 10 months
Friends,
I gave a call on CCAP on Jan 30, 2010 around 35-40 as I read in the annoucement that open offer was at Rs 80 and that call came good.
I remember at that time, I discussed about Sumedha Fiscal which was the Manager of the Open offer and I also wrote that Sumedha Fiscal is a good pick to buy at that prevailing rate which was Rs 17 on Jan 30th 2010.
I am pasting some text here for readers to read it.
Freinds,
These are simple things one need to have keep an eye on it.Then buy such stocks and sit on it.Baith na padta hai.Patience is the order of the day.Those who trades daily has very less patience and hence they lose the cool of mind very easily and sell it and that is one of the reason I always suggest readers to keep themself from day trading and F&O.....
Now if one can see that Sumedha Fiscal is making new highs and patience is paying for those who bought and hold it uptill now.......
If one write Sumedha Fiscal in search tab one can read the whole post......
I would also like to write that Sujana Towers is making newer highs at 155 and so is Spanco Ltd. and the magic here in both the counters is that they are still in 20% circuit trade.
Stocks remain for same price for months or years togather and when it starts moving it makeup all it left behind in just couple of months.......
Now read between the lines what I wants to say......
CCAP - Open Offer :
Announcement: 7th Aug 2009...
Sumedha Fiscal Services Ltd ("Manager to the Offer") on behalf of M/s Ramayana Promoters Pvt Ltd ("Acquirer") has issued this Public Announcement ("PA") to the Equity Shareholders of CCAP Ltd ("Target Company"), pursuant to Regulation 10 & 12 & other applicable provisions as required under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 & Subsequent amendments thereto ("Regulations").
Now on Sumedha Fiscal:
Herein also , there is one more stock to take note of that....any guess?
Well, the stock in talk is Sumedha Fiscal (I hope readers find this name in this post )and it is a listed entity and it is the Manager of the offer and they will get good money from this type of work.So the point to be noted here is one needs to see who is the manager of the offer and if the name keeps coming with some other offers then we need to understand that the Co is having a very good name for the open offer management as generally the manager use to value the co and put a price for open offer.....
So, friends according to me Sumedha Fiscal is looking good and I have given a call at other forum in last bull run around 10 and it went on to touch something like 28.....
Sumedha Fiscal is a Calcutta base brokerage co ....
Now in very desi language I will say, ki ab Sumedha Fiscal ki janam kundali nikalo along with CCAP..........
Got it.......!
I gave a call on CCAP on Jan 30, 2010 around 35-40 as I read in the annoucement that open offer was at Rs 80 and that call came good.
I remember at that time, I discussed about Sumedha Fiscal which was the Manager of the Open offer and I also wrote that Sumedha Fiscal is a good pick to buy at that prevailing rate which was Rs 17 on Jan 30th 2010.
I am pasting some text here for readers to read it.
Freinds,
These are simple things one need to have keep an eye on it.Then buy such stocks and sit on it.Baith na padta hai.Patience is the order of the day.Those who trades daily has very less patience and hence they lose the cool of mind very easily and sell it and that is one of the reason I always suggest readers to keep themself from day trading and F&O.....
Now if one can see that Sumedha Fiscal is making new highs and patience is paying for those who bought and hold it uptill now.......
If one write Sumedha Fiscal in search tab one can read the whole post......
I would also like to write that Sujana Towers is making newer highs at 155 and so is Spanco Ltd. and the magic here in both the counters is that they are still in 20% circuit trade.
Stocks remain for same price for months or years togather and when it starts moving it makeup all it left behind in just couple of months.......
Now read between the lines what I wants to say......
CCAP - Open Offer :
Announcement: 7th Aug 2009...
Sumedha Fiscal Services Ltd ("Manager to the Offer") on behalf of M/s Ramayana Promoters Pvt Ltd ("Acquirer") has issued this Public Announcement ("PA") to the Equity Shareholders of CCAP Ltd ("Target Company"), pursuant to Regulation 10 & 12 & other applicable provisions as required under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 & Subsequent amendments thereto ("Regulations").
Now on Sumedha Fiscal:
Herein also , there is one more stock to take note of that....any guess?
Well, the stock in talk is Sumedha Fiscal (I hope readers find this name in this post )and it is a listed entity and it is the Manager of the offer and they will get good money from this type of work.So the point to be noted here is one needs to see who is the manager of the offer and if the name keeps coming with some other offers then we need to understand that the Co is having a very good name for the open offer management as generally the manager use to value the co and put a price for open offer.....
So, friends according to me Sumedha Fiscal is looking good and I have given a call at other forum in last bull run around 10 and it went on to touch something like 28.....
Sumedha Fiscal is a Calcutta base brokerage co ....
Now in very desi language I will say, ki ab Sumedha Fiscal ki janam kundali nikalo along with CCAP..........
Got it.......!
Coal India IPO to open on October 18....IPO of the DECADE....go for it....
India's largest coal producing company Coal India (CIL) will open its initial public offering (IPO) for subscription on October 18, 2010. The company is offering 63.16 crore equity shares through the issue, which was an offer for sale by the President of India, acting through the ministry of coal, Government of India.
The offer shall constitute 10% of the post offer paid-up equity share capital of company. The issue will close on October 21
As per draft prospectus, CIL is the largest coal producing company in the world (Source: CRISIL Research), based on raw coal production of 431.26 million tons in fiscal 2010. It si also the largest coal reserve holder in the world (Source: CRISIL Research) based on reserve base as of April 1, 2010.
The company will not receive any proceeds from the offer and all proceeds will go to the selling shareholder (GoI), which stake will be 89.99% post issue.
For the year ended March 31, 2010, CIL has reported net profit of Rs 9,622.45 crore on total income of Rs 52,592.29 crore.
My Comments:
1)CIL has the largest reserve in the world which is 19bn tonnes.
2)CIL is the lowest coal producer of the world.
3)Eq is Rs 6316 Cr
4) Sale at stake is 63.16 cr
5)Mar '10 year NP stands at 9622 cr on sales of 52,592 cr.Means NPM of roughly 18%.
6)MD Says CIL will grow at 25% this year.
7)Mcap is 1,54,751 cr.which is peanuts when we see the reserve as world largest.
Looking at the above parametres.....Coal India is an IPO of the decade......once in a life time chance....
CIL is a Navratna of India and I can't imagine that a Co having the world largest reserve of Coal can come with an IPO at just Rs 240-250.....
This is a stock one can keep it for children and grandchildren as well........
Go FOR IT.........Buy and forget type of stock.....
The offer shall constitute 10% of the post offer paid-up equity share capital of company. The issue will close on October 21
As per draft prospectus, CIL is the largest coal producing company in the world (Source: CRISIL Research), based on raw coal production of 431.26 million tons in fiscal 2010. It si also the largest coal reserve holder in the world (Source: CRISIL Research) based on reserve base as of April 1, 2010.
The company will not receive any proceeds from the offer and all proceeds will go to the selling shareholder (GoI), which stake will be 89.99% post issue.
For the year ended March 31, 2010, CIL has reported net profit of Rs 9,622.45 crore on total income of Rs 52,592.29 crore.
My Comments:
1)CIL has the largest reserve in the world which is 19bn tonnes.
2)CIL is the lowest coal producer of the world.
3)Eq is Rs 6316 Cr
4) Sale at stake is 63.16 cr
5)Mar '10 year NP stands at 9622 cr on sales of 52,592 cr.Means NPM of roughly 18%.
6)MD Says CIL will grow at 25% this year.
7)Mcap is 1,54,751 cr.which is peanuts when we see the reserve as world largest.
Looking at the above parametres.....Coal India is an IPO of the decade......once in a life time chance....
CIL is a Navratna of India and I can't imagine that a Co having the world largest reserve of Coal can come with an IPO at just Rs 240-250.....
This is a stock one can keep it for children and grandchildren as well........
Go FOR IT.........Buy and forget type of stock.....
Thursday, October 14, 2010
Khaitan Electricals.....my old call making new high.....
Freinds,
This was the heading I gave and post I wrote in July 2008........along with that I gave a call on Laxmi Electricals and India Glycols as well.........
Khiatan Electricals made a new high of Rs 207 today giving 400% return.......
I am seeing now Laxmi Electrical is recomended by houses......
Khaitan Electricals.......cmp.....Rs.55.15..code:504269
Friends,
A new call to Buy Khaitan Electric.....going very very cheap.....Buy this stock for multibagger return......
Gave a call to buy on High Energy Battery at Rs 170......seems the upward movement has started after some initial hicupps......
There was some movements today.
I again give a buy call on Laxmi Electricals and India Glycols.Buy both for a multibagger return in 2 yrs time.......
Best of Luck.......
Not to write ...buy at your own comfort level.......and with due diligence.......
This was the heading I gave and post I wrote in July 2008........along with that I gave a call on Laxmi Electricals and India Glycols as well.........
Khiatan Electricals made a new high of Rs 207 today giving 400% return.......
I am seeing now Laxmi Electrical is recomended by houses......
Khaitan Electricals.......cmp.....Rs.55.15..code:504269
Friends,
A new call to Buy Khaitan Electric.....going very very cheap.....Buy this stock for multibagger return......
Gave a call to buy on High Energy Battery at Rs 170......seems the upward movement has started after some initial hicupps......
There was some movements today.
I again give a buy call on Laxmi Electricals and India Glycols.Buy both for a multibagger return in 2 yrs time.......
Best of Luck.......
Not to write ...buy at your own comfort level.......and with due diligence.......
Wednesday, October 13, 2010
Is Bharat Forge ..cmp Rs.376.85 , 2 FV..going cheap?.........
Friends,
I am pasting the last interview of Baba Kalyani , MD of Bharat Forge.
Here its says that they have come out as the lowest bidder for NTPC order which is as big as Rs 7200 cr which is big enough for even L&T will envy at.
Reading at the interview it looks like they are also going in making turbine use for Nuclear Power for Alsthom.
I have been recomending Bharat Forge in many of my list which I perticularly write for A gr stocks.
But reading the future plans, it seems Bharat Forge is going cheap even at Rs 376....
Read on:
Lowest bidder for Rs 7,200cr NTPC order: Bharat Forge
Published on Wed, Oct 13, 2010 at 10:55
Updated at Wed, Oct 13, 2010 at 11:46
Source : CNBC-TV18
Q: If you could confirm for us that you are indeed the L1 for the Rs 7,200 crore NTPC order in your joint venture Bharat Forge Alstom?
A: Yes, I believe so. That’s the information we have got at the opening of the bids.
Q: So, you should go on to clinch that order?
A: I don’t know about that. I think it’s a long process between now and getting order, but we will be a major player in the power equipment business in India. I think this also proves that we will be a competitive player; I think the pricing levels also prove that we would be rather globally competitive in this business.
Q: What procedural issues are involved, once you emerges L1, which seems to be the fact corroborated from various sources?
A: I think there are internal procedures of NTPC. I don’t know what they are, but it’s their internal procedures and not much to do with us. So, I guess it’s just a normal process of going through a tender bid, evaluation and decision making.
Q: How significant a start would be for the joint venture, if you indeed go on to bag this order, the way it is staggered the revenue flows from NTPC?
A: I think it’s extremely significant. One would expect to get a significant portion of this bid. I think somewhere in the region of five turbine/generator (TG) sets that will be more than a billion euro. That’s a good start for any manufacturing entity that’s setting up a greenfield facility with fully integrated manufacturing. One of the key successes for us is we are integrated on the component side with Bharat Forge’s component capability and that what makes us competitive in this business.
Q: If you do go on to bag it, would it be a profitable one or have you been super aggressive to bag this as your maiden entry?
A: I think it will be profitable. It’s just like in our business we are most competitive globally, but we also have the largest earnings before interest, taxes, depreciation, and amortization (EBITDA) margin. I think as this business, the power equipment business, develops we will kind of move in the same direction.
Q: How is the joint venture with Alstom structured?
A: It’s structured on the basis of 50:50. Alstom has very high level of technology; it is the largest player in the steam turbine business in the world today with more than 25% installed capacity. Bharat Forge has demonstrated a high capability in manufacturing metal components on a global basis in a highly competitive environment. I think a combination of Alstom and Bharat Forge for something like this is quite potent.
Q: So 50% of the revenues and the upside from that joint venture will be captured for Bharat Forge shareholders?
A: That’s right.
Q: What kind of an order book are you targets because you had indicated earlier that 40% of your Bharat Forge revenues will come from the non-auto business in FY12?
A: Yes, you are right and I think we are pretty much on target; we might even be little earlier than that. We are making good progress on our non-automotive business in the energy sector, in the railways, in the marine, in the construction equipment.
As far as power equipment is concerned, we are setting up a capacity for roughly about 5,000 MW a year. That will translate in terms of revenues or something like Rs 6,000-7,000 crore a year. Our capacity also will include turbine generators required for the nuclear power plant including up to 1,600 MW. So, there is a lot of high technology manufacturing that will happen in our facilities.
Q: By when do you expect to hear from NTPC with a final nod on the order?
A: I would expect in another six-eight weeks.
Q: There is also been some reports that BF Utilities will sell a 10% stake in the Nandi Corridor Project to JP Morgan private equity. Is that true?
A: I don’t want to comment on that. That’s a business, that’s trying to raise some capital nothing is finalised as of now. But there is a lot of interest from any people for this, so we will see how it goes.
Q: Are you talking actively to private equity investors for a stake sell?
A: Yes, we are.
I am pasting the last interview of Baba Kalyani , MD of Bharat Forge.
Here its says that they have come out as the lowest bidder for NTPC order which is as big as Rs 7200 cr which is big enough for even L&T will envy at.
Reading at the interview it looks like they are also going in making turbine use for Nuclear Power for Alsthom.
I have been recomending Bharat Forge in many of my list which I perticularly write for A gr stocks.
But reading the future plans, it seems Bharat Forge is going cheap even at Rs 376....
Read on:
Lowest bidder for Rs 7,200cr NTPC order: Bharat Forge
Published on Wed, Oct 13, 2010 at 10:55
Updated at Wed, Oct 13, 2010 at 11:46
Source : CNBC-TV18
Q: If you could confirm for us that you are indeed the L1 for the Rs 7,200 crore NTPC order in your joint venture Bharat Forge Alstom?
A: Yes, I believe so. That’s the information we have got at the opening of the bids.
Q: So, you should go on to clinch that order?
A: I don’t know about that. I think it’s a long process between now and getting order, but we will be a major player in the power equipment business in India. I think this also proves that we will be a competitive player; I think the pricing levels also prove that we would be rather globally competitive in this business.
Q: What procedural issues are involved, once you emerges L1, which seems to be the fact corroborated from various sources?
A: I think there are internal procedures of NTPC. I don’t know what they are, but it’s their internal procedures and not much to do with us. So, I guess it’s just a normal process of going through a tender bid, evaluation and decision making.
Q: How significant a start would be for the joint venture, if you indeed go on to bag this order, the way it is staggered the revenue flows from NTPC?
A: I think it’s extremely significant. One would expect to get a significant portion of this bid. I think somewhere in the region of five turbine/generator (TG) sets that will be more than a billion euro. That’s a good start for any manufacturing entity that’s setting up a greenfield facility with fully integrated manufacturing. One of the key successes for us is we are integrated on the component side with Bharat Forge’s component capability and that what makes us competitive in this business.
Q: If you do go on to bag it, would it be a profitable one or have you been super aggressive to bag this as your maiden entry?
A: I think it will be profitable. It’s just like in our business we are most competitive globally, but we also have the largest earnings before interest, taxes, depreciation, and amortization (EBITDA) margin. I think as this business, the power equipment business, develops we will kind of move in the same direction.
Q: How is the joint venture with Alstom structured?
A: It’s structured on the basis of 50:50. Alstom has very high level of technology; it is the largest player in the steam turbine business in the world today with more than 25% installed capacity. Bharat Forge has demonstrated a high capability in manufacturing metal components on a global basis in a highly competitive environment. I think a combination of Alstom and Bharat Forge for something like this is quite potent.
Q: So 50% of the revenues and the upside from that joint venture will be captured for Bharat Forge shareholders?
A: That’s right.
Q: What kind of an order book are you targets because you had indicated earlier that 40% of your Bharat Forge revenues will come from the non-auto business in FY12?
A: Yes, you are right and I think we are pretty much on target; we might even be little earlier than that. We are making good progress on our non-automotive business in the energy sector, in the railways, in the marine, in the construction equipment.
As far as power equipment is concerned, we are setting up a capacity for roughly about 5,000 MW a year. That will translate in terms of revenues or something like Rs 6,000-7,000 crore a year. Our capacity also will include turbine generators required for the nuclear power plant including up to 1,600 MW. So, there is a lot of high technology manufacturing that will happen in our facilities.
Q: By when do you expect to hear from NTPC with a final nod on the order?
A: I would expect in another six-eight weeks.
Q: There is also been some reports that BF Utilities will sell a 10% stake in the Nandi Corridor Project to JP Morgan private equity. Is that true?
A: I don’t want to comment on that. That’s a business, that’s trying to raise some capital nothing is finalised as of now. But there is a lot of interest from any people for this, so we will see how it goes.
Q: Are you talking actively to private equity investors for a stake sell?
A: Yes, we are.
Foreign inflows: Subbarao, Pranab not on same page..............
POLICY SHIFT
Foreign inflows: Subbarao, Pranab not on same page
RBI Governor Worried About Excessive Inflows But FM Wants Growth Momentum
Gayatri Nayak & Ruchira Roy MUMBAI
RBI governor Subbarao and finance minister Pranab Mukherjee are beginning to sing from different song sheets on policy for the first time since the collapse of Lehman Brothers in September 2008.
Mr Subbarao is showing signs of joining the global chorus of policy makers about excessive inflows potentially causing short-term instability in the financial markets while Mr Mukherjee is stubborn in building the economic growth momentum, even if it means hitting a few bumps along the way.
The prospective cracks in policy issues surfaced during the public meetings in the US last week where both addressed investors, policy makers and economists. Neither of them committed to an explicit stand on capital flows as they hid behind ifs and buts.
But the market has begun reading between the lines.
It is possible to construe there are differences between the central bank and the finance ministry after the governors speech in Washington, said Abheek Barua, chief economist at HDFC Bank. However, their respective stands are at two different levels and hence cannot be compared.
The Indian rupee ended 25 paise higher to 44.67, the benchmark Sensex fell 0.67% to 20203.34.
Economies that have current account surpluses or only small deficits have intervened, Subbarao said at the weekend in Washington. That does not mean we wont intervene. If inflows are lumpy and volatile, or if they disrupt the macro-economic situation, we will do so, he had said.
This is probably the most unambiguous statement that can come from a central banker. But what does an investor do when the boss, the minister, says something that could be read differently.
I do not think that the situation has arisen in the Indian economy today, Mr Mukherjee told an audience in Washington regarding inflows impacting the currency market. I dont think it is going to be too volatile. It has not distorted market sentiment and, therefore, there is no question of putting any curbs.
Subbarao is not alone in the club of the worried. Many countries such as South Korea and Mexico have taken measures such as taxing inflows to stem the tide, which some believe is hot money. Bank of Japan intervened to depreciate the yen against the US dollar after it touched a 13-year high, threatening its fragile recovery.
The Institute of International Finance has forecast a 30% increase in inflows into emerging markets this year at $825 billion.
Overseas investors have poured in a record $22 billion this year into Indian equities and $10 billion into debt as they chase higher yields, making Indian stocks and the currency best performers in Asia this month. However, the strengthening rupee is hurting exports, but making imports profitable. Also, the risk to financial markets, in case of a reversal, is growing.
The interest rate differential between advanced economies and EMEs (emerging market economies) have naturally triggered capital flows into EMEs, putting upward pressure on their currencies and complicating their macro-economic management, said Subbarao. We are back to facing the usual dilemma of managing the impossible trinity, he said, referring to managing currency, inflation and growth.
My Comments:
I remember very well that I have discussed about this policy of RBI then governor Mr.Y V Reddy is too defensive in curbing FII inflow.
At that time also when Mr YV Reddy was the governor he started taking steps for curbing the Inflow of overseas Institution I was against it.
When India needs more FDI and FII money why RBI is trying to curb it?That was a defensive step at that time.But unfortunately US Subprime crisis came out and that decision proved to be a boon instead a bane.
I argued at that time what if Sub prime Crisis would have not occured?Will that steps would be useful?
But with the debacle in US financial market, world analyst appluaded Y V Reddy's step for checking the FII inflow as after that there was a plight of FII taking out the money back and if more money had been come, there could have been more debacle.
World acknowledged Y V Reddy's steps for taking steps for trimming down the inflow at that time as that saved us from distructing the market more badly.
Now from the above news again the same debate has come to FORE.Present RBI governor Mr . Subbarao wants to check the inflow due to inflation and currency fluctuation etc and our FM Pranab says we need foreign inflows for economic growth.Let me write here that Mr Pranob Mukerji is no new to finance and he remained Fin Minister when late Indira Gandhi was PM.
So it is not so that Pranab Mukerji don't understand anything.After Manmohan Sigh the next best politician fit to be FM is none other then Pranob Mukerji.
These topic I discussed at other place as well at that time and wrote the same view that Y V Reddy's was defensive.We don't need defensive RBI governor.
Agreed that FII has pumped in huge money this year and that is why rupee is appreciating which is not good for exports like IT services, Textile export etc.
Subbarao says that these are hot money and they have a plight to fly at any time.Well if something bad comes even then they will sell in our market.
He says he is trying to check ST volatility while trying to curb inflow but it is very hard to distinguish between hot money and LT money which are here to stay.
While doing that both will be affected and these step can boomrang.
Let us see what future unfolds from this.I am a keen observer of this play.But Pranab stands vindicates my stand that we need money for economic growth even with some bump......
Foreign inflows: Subbarao, Pranab not on same page
RBI Governor Worried About Excessive Inflows But FM Wants Growth Momentum
Gayatri Nayak & Ruchira Roy MUMBAI
RBI governor Subbarao and finance minister Pranab Mukherjee are beginning to sing from different song sheets on policy for the first time since the collapse of Lehman Brothers in September 2008.
Mr Subbarao is showing signs of joining the global chorus of policy makers about excessive inflows potentially causing short-term instability in the financial markets while Mr Mukherjee is stubborn in building the economic growth momentum, even if it means hitting a few bumps along the way.
The prospective cracks in policy issues surfaced during the public meetings in the US last week where both addressed investors, policy makers and economists. Neither of them committed to an explicit stand on capital flows as they hid behind ifs and buts.
But the market has begun reading between the lines.
It is possible to construe there are differences between the central bank and the finance ministry after the governors speech in Washington, said Abheek Barua, chief economist at HDFC Bank. However, their respective stands are at two different levels and hence cannot be compared.
The Indian rupee ended 25 paise higher to 44.67, the benchmark Sensex fell 0.67% to 20203.34.
Economies that have current account surpluses or only small deficits have intervened, Subbarao said at the weekend in Washington. That does not mean we wont intervene. If inflows are lumpy and volatile, or if they disrupt the macro-economic situation, we will do so, he had said.
This is probably the most unambiguous statement that can come from a central banker. But what does an investor do when the boss, the minister, says something that could be read differently.
I do not think that the situation has arisen in the Indian economy today, Mr Mukherjee told an audience in Washington regarding inflows impacting the currency market. I dont think it is going to be too volatile. It has not distorted market sentiment and, therefore, there is no question of putting any curbs.
Subbarao is not alone in the club of the worried. Many countries such as South Korea and Mexico have taken measures such as taxing inflows to stem the tide, which some believe is hot money. Bank of Japan intervened to depreciate the yen against the US dollar after it touched a 13-year high, threatening its fragile recovery.
The Institute of International Finance has forecast a 30% increase in inflows into emerging markets this year at $825 billion.
Overseas investors have poured in a record $22 billion this year into Indian equities and $10 billion into debt as they chase higher yields, making Indian stocks and the currency best performers in Asia this month. However, the strengthening rupee is hurting exports, but making imports profitable. Also, the risk to financial markets, in case of a reversal, is growing.
The interest rate differential between advanced economies and EMEs (emerging market economies) have naturally triggered capital flows into EMEs, putting upward pressure on their currencies and complicating their macro-economic management, said Subbarao. We are back to facing the usual dilemma of managing the impossible trinity, he said, referring to managing currency, inflation and growth.
My Comments:
I remember very well that I have discussed about this policy of RBI then governor Mr.Y V Reddy is too defensive in curbing FII inflow.
At that time also when Mr YV Reddy was the governor he started taking steps for curbing the Inflow of overseas Institution I was against it.
When India needs more FDI and FII money why RBI is trying to curb it?That was a defensive step at that time.But unfortunately US Subprime crisis came out and that decision proved to be a boon instead a bane.
I argued at that time what if Sub prime Crisis would have not occured?Will that steps would be useful?
But with the debacle in US financial market, world analyst appluaded Y V Reddy's step for checking the FII inflow as after that there was a plight of FII taking out the money back and if more money had been come, there could have been more debacle.
World acknowledged Y V Reddy's steps for taking steps for trimming down the inflow at that time as that saved us from distructing the market more badly.
Now from the above news again the same debate has come to FORE.Present RBI governor Mr . Subbarao wants to check the inflow due to inflation and currency fluctuation etc and our FM Pranab says we need foreign inflows for economic growth.Let me write here that Mr Pranob Mukerji is no new to finance and he remained Fin Minister when late Indira Gandhi was PM.
So it is not so that Pranab Mukerji don't understand anything.After Manmohan Sigh the next best politician fit to be FM is none other then Pranob Mukerji.
These topic I discussed at other place as well at that time and wrote the same view that Y V Reddy's was defensive.We don't need defensive RBI governor.
Agreed that FII has pumped in huge money this year and that is why rupee is appreciating which is not good for exports like IT services, Textile export etc.
Subbarao says that these are hot money and they have a plight to fly at any time.Well if something bad comes even then they will sell in our market.
He says he is trying to check ST volatility while trying to curb inflow but it is very hard to distinguish between hot money and LT money which are here to stay.
While doing that both will be affected and these step can boomrang.
Let us see what future unfolds from this.I am a keen observer of this play.But Pranab stands vindicates my stand that we need money for economic growth even with some bump......
Tuesday, October 12, 2010
How is market?
Friends,
Market is not ready to give any respite to BEARS.A small correction of 300-400 comes and goes away.The bulls has taken excellent grip on market and not letting market to correct as per Bears wish.
This is clearly seen from the market movement.
I still feel the same reason which I wrote here recently , that some 70 more stocks are going to be added in Index which will bring down the P/E ratio of India much much lower then what it is now.
We have a P/E ratio of 21 now and with those stocks added to Index stocks the P/E ratio is deifnately going to come down and even by that time if market is at 22k or 23k then also it will look cheap and Bulls knows this and hence not letting market to correct.
It is a big game.Pulling the market or not letting to go down even after a big upmove from 18200 to 20600 almost 2400 points rally is a great achievement by bulls.
I wrote previously that market can come back to 5500 or 5600 (Nifty) but it seems that it should not go below 6000-5800.As much as the market will consolidate between 20k and 20600 the chances of 19500 or 19k will get lesser and lesser.
All the calculation of charts has gone haywire and nothing is happening according to them but whenever I happen to read chartist views , I always read that they said that market will come here and they have been proved 100% correct .Market has moved exactly as per what they wrote.I will not write more on charts and technicals.
Investors has to understand what is good for them and what is not.
Certain stocks will keep outperforming the market and that will keep on going on.
I have seen that readers keeps on asking me about whether a certain stock is still a buy or not?These are questions which are very hard to answer.That decision needs to be taken by readers.
I think I will keep one day, Sunday , for answering queries so that I will have not to read them daily.
I donno why investors do not buy stocks when they are cheap?
Now take a case of Surya Roshni.I gave a call in 30's and now it is making new highs of rs 117.65 yesterday .I very clearly wrote all reasons why I like Surya Roshni at that time and that is coming out true.
I gave a call on Supreme Petrochem at 25 range and wrote why I like it.Supreme Petro is also making new highs at rs 79.20 yesterday....
Latest was Rathi Steel at 21 and I gave all reasons for that .It also made a new high of 33 and has corrected.
I would like to know how many readers has bought all these shares?
Stocks don't start running as soon as I write it here.It takes time to mature.It takes time for market to discover its true worth.
I know I am not academically qualified to write things which others use to write.I have very limited parametres to look at and they are very simple to understand by lay investors.
What I explain is never hard to understand.It is very simple but still people are nor convinced then I can't do anything here.
Someone asked me about my latest pick, Arihant Super Strcuture that it's p/e is 117 then why I recomended it?What is the reason I recomended it?He says he wants to learn.....now I can't teach here.This is not a tution class.P/E is not the only criteria to look at.
I have not to explain everything and keep doing that for ever.
The reason recomending Arihant was, there was growth.I have pasted those annoucement where it says that they had acquired lands in Maharashtra and Rajasthan etc.
They have just reverse merged Arihant Structure with Shaktiman Mercantile and the name got changed.
The growth is still to come with merger of another 2 Cos with Arihant which also I pasted.
Now when I am doing everything to let readers know and even after that readers do not understand then what can I do?
I can't keep on explaining each and every points to each and everyone.
Many are just asking me about stocks whether that is a buy or not?They just wants my NOD.But that is also not possible for me to give. That will also be yours decision......
If I am not answering any queries then it means I don't wants to answer as I feel the query is not worth answering or I do not know anything about it.I will not reply "I do not track" next time.....it is that simple....
Market is not ready to give any respite to BEARS.A small correction of 300-400 comes and goes away.The bulls has taken excellent grip on market and not letting market to correct as per Bears wish.
This is clearly seen from the market movement.
I still feel the same reason which I wrote here recently , that some 70 more stocks are going to be added in Index which will bring down the P/E ratio of India much much lower then what it is now.
We have a P/E ratio of 21 now and with those stocks added to Index stocks the P/E ratio is deifnately going to come down and even by that time if market is at 22k or 23k then also it will look cheap and Bulls knows this and hence not letting market to correct.
It is a big game.Pulling the market or not letting to go down even after a big upmove from 18200 to 20600 almost 2400 points rally is a great achievement by bulls.
I wrote previously that market can come back to 5500 or 5600 (Nifty) but it seems that it should not go below 6000-5800.As much as the market will consolidate between 20k and 20600 the chances of 19500 or 19k will get lesser and lesser.
All the calculation of charts has gone haywire and nothing is happening according to them but whenever I happen to read chartist views , I always read that they said that market will come here and they have been proved 100% correct .Market has moved exactly as per what they wrote.I will not write more on charts and technicals.
Investors has to understand what is good for them and what is not.
Certain stocks will keep outperforming the market and that will keep on going on.
I have seen that readers keeps on asking me about whether a certain stock is still a buy or not?These are questions which are very hard to answer.That decision needs to be taken by readers.
I think I will keep one day, Sunday , for answering queries so that I will have not to read them daily.
I donno why investors do not buy stocks when they are cheap?
Now take a case of Surya Roshni.I gave a call in 30's and now it is making new highs of rs 117.65 yesterday .I very clearly wrote all reasons why I like Surya Roshni at that time and that is coming out true.
I gave a call on Supreme Petrochem at 25 range and wrote why I like it.Supreme Petro is also making new highs at rs 79.20 yesterday....
Latest was Rathi Steel at 21 and I gave all reasons for that .It also made a new high of 33 and has corrected.
I would like to know how many readers has bought all these shares?
Stocks don't start running as soon as I write it here.It takes time to mature.It takes time for market to discover its true worth.
I know I am not academically qualified to write things which others use to write.I have very limited parametres to look at and they are very simple to understand by lay investors.
What I explain is never hard to understand.It is very simple but still people are nor convinced then I can't do anything here.
Someone asked me about my latest pick, Arihant Super Strcuture that it's p/e is 117 then why I recomended it?What is the reason I recomended it?He says he wants to learn.....now I can't teach here.This is not a tution class.P/E is not the only criteria to look at.
I have not to explain everything and keep doing that for ever.
The reason recomending Arihant was, there was growth.I have pasted those annoucement where it says that they had acquired lands in Maharashtra and Rajasthan etc.
They have just reverse merged Arihant Structure with Shaktiman Mercantile and the name got changed.
The growth is still to come with merger of another 2 Cos with Arihant which also I pasted.
Now when I am doing everything to let readers know and even after that readers do not understand then what can I do?
I can't keep on explaining each and every points to each and everyone.
Many are just asking me about stocks whether that is a buy or not?They just wants my NOD.But that is also not possible for me to give. That will also be yours decision......
If I am not answering any queries then it means I don't wants to answer as I feel the query is not worth answering or I do not know anything about it.I will not reply "I do not track" next time.....it is that simple....
Sunday, October 10, 2010
Arihant Superstructure Ltd....cmp..Rs 76.50
Friends,
Arihant Superstructure Ltd.I am tracking this one when I saw an open offer for Shaktiman Mercantile Ltd.
The trigger was in Shaktiman Mercantile was it has a very very tiny eq of 25 lacs.
So if one will go to annoucement at bse one can find out how Shaktiman Mercantile turned into Arihant Superstructure Ltd.
As the Eq was just 25 lacs means only 2.50 lacs shares they gave right at the ratio of 59:1.Means 59 shares for every 1 shares held.
But as the floating stock was very small, it went up and up from a low of rs 4.63 to rs 122.75 and after that the stock has corrected to this level.
The new management has merged their Co in Arihant Superstructure Ltd and thereby listed their Realty Co.
1)Acquisition of Subsidiary Companies:
Your Board is pleased to inform you, that the Company has acquired an investment in two companies, Arihant Abode Limited (AAL) and Arihant Vatika Realty Private Limited (AVRPL). Your company has a 60% stake in both these Companies, making them subsidiaries of your Company.
AAL and AVRPL are in the business of realty and constructions. Acquiring these subsidiaries has opened up
new avenues for your Company in different areas within the Real Estate Sector. There has been no material
change in the nature of the business of the subsidiaries.
2)Annoucement at bse:
Arihant Superstructures Ltd has informed BSE that the Board of Directors of the Company at its meeting held on August 25, 2010, has transacted the following business:
1. Noted and approved the items passed by the executive committee of the Board.
2. Discussed a approved the purchase of approx 11.50 acres Land at Jodhpur, in the State of Rajasthan which is conveyed and registered in company's name. The project is planned for Group Residential Housing project of about 800 flats consisting 8.50 Lac sqft of salable area in Phase I.
3. Approved the recommendation of audit committee to make the Adeshwar Realty Pvt. Ltd. as wholly owned subsidiary of Arihant Superstructures Ltd. on the valuation as approved by the audit committee and Board members.
4. Noted the updates received from subsidiary - Arihant Abode Ltd that the Land of 18 acres is acquired & conveyed. Architectural planning is done & sent for Location approval to MMRDA, Maharashtra Govt. which consists of 28 storeyed 25 Buildings having 3080 flats, saleable area of approx 34 lac sqft.
5. Approved to take up more projects at Jodhpur in the State of Rajasthan n the form of Pubic Private Partnership and / or outright basis.
More information about the completed project,projects on hand and ongoing projects can be found from their website which is as under:
http://www.asl.net.in/index.php
http://www.asl.net.in/completed.htm
One can always explore more of what they wants to from reading the annoucement at bse and also reading the website or reading the AR which some good corporate governance Co put on bse site.Arihant Super has put their latest AR on bse website.
Now please don't ask me where it is......find out of your own.....I found it on my own.....no spoonfeeding please........
72% stake is held by promoters and 7% by private Corp bodies.....rest is with public.....
Have a look at it, do DD and if find good then buy it.........
Arihant Superstructure Ltd.I am tracking this one when I saw an open offer for Shaktiman Mercantile Ltd.
The trigger was in Shaktiman Mercantile was it has a very very tiny eq of 25 lacs.
So if one will go to annoucement at bse one can find out how Shaktiman Mercantile turned into Arihant Superstructure Ltd.
As the Eq was just 25 lacs means only 2.50 lacs shares they gave right at the ratio of 59:1.Means 59 shares for every 1 shares held.
But as the floating stock was very small, it went up and up from a low of rs 4.63 to rs 122.75 and after that the stock has corrected to this level.
The new management has merged their Co in Arihant Superstructure Ltd and thereby listed their Realty Co.
1)Acquisition of Subsidiary Companies:
Your Board is pleased to inform you, that the Company has acquired an investment in two companies, Arihant Abode Limited (AAL) and Arihant Vatika Realty Private Limited (AVRPL). Your company has a 60% stake in both these Companies, making them subsidiaries of your Company.
AAL and AVRPL are in the business of realty and constructions. Acquiring these subsidiaries has opened up
new avenues for your Company in different areas within the Real Estate Sector. There has been no material
change in the nature of the business of the subsidiaries.
2)Annoucement at bse:
Arihant Superstructures Ltd has informed BSE that the Board of Directors of the Company at its meeting held on August 25, 2010, has transacted the following business:
1. Noted and approved the items passed by the executive committee of the Board.
2. Discussed a approved the purchase of approx 11.50 acres Land at Jodhpur, in the State of Rajasthan which is conveyed and registered in company's name. The project is planned for Group Residential Housing project of about 800 flats consisting 8.50 Lac sqft of salable area in Phase I.
3. Approved the recommendation of audit committee to make the Adeshwar Realty Pvt. Ltd. as wholly owned subsidiary of Arihant Superstructures Ltd. on the valuation as approved by the audit committee and Board members.
4. Noted the updates received from subsidiary - Arihant Abode Ltd that the Land of 18 acres is acquired & conveyed. Architectural planning is done & sent for Location approval to MMRDA, Maharashtra Govt. which consists of 28 storeyed 25 Buildings having 3080 flats, saleable area of approx 34 lac sqft.
5. Approved to take up more projects at Jodhpur in the State of Rajasthan n the form of Pubic Private Partnership and / or outright basis.
More information about the completed project,projects on hand and ongoing projects can be found from their website which is as under:
http://www.asl.net.in/index.php
http://www.asl.net.in/completed.htm
One can always explore more of what they wants to from reading the annoucement at bse and also reading the website or reading the AR which some good corporate governance Co put on bse site.Arihant Super has put their latest AR on bse website.
Now please don't ask me where it is......find out of your own.....I found it on my own.....no spoonfeeding please........
72% stake is held by promoters and 7% by private Corp bodies.....rest is with public.....
Have a look at it, do DD and if find good then buy it.........
Thursday, October 7, 2010
Nuvia to form JV with Punj Lloyd group co in n-power .......
MUMBAI: Nuvia India Pvt Ltd, a part of Nuvia, a French major providing engineering and technical support for the nuclear power sector is set to form 50:50 joint venture with a Punj Lloyd group company, PL Engineering, a top company official said. “Nuvia India and PL Engineering signed a Memorandum of Understanding (MoU) last week to form a 50:50 joint venture partnership to offer nuclear engineering and support services,” Nuvia India’s Managing Director, Mr Kenneth G Jackson, said here today.
The JV will focus initially on providing services to the growing Indian nuclear sector and will later look at the global market, Jackson said, adding that its target audience will be nuclear power companies.
Given the emphasis on accelerating the civil nuclear power program in India and the political encouragement on international collaboration, Nuvia has committed itself to establish a significant base in India in collaboration with the Punj Lloyd Group to offer its engineering and technical support services and range of specialist products to the global nuclear market. - PTI
My Comments:
This is what I read today in Hindubusiness Line on internet.
Well this says that Punj Llyod is coming in Nuclear Energy.Great news!Yup, great news for Punj Lloyd Group.But what about Punj Lloyd itslef?That joint venture is taking place between Punj Loyd gr and Nuvia Co of France,what stake holders of Punj Lloyd will get?
Nothing?It looks like shareholder of Punj Lloyd will get nothing .
I have seen in past that IVRCL , Simple Concrete and now Punj Lloyd and many others demerged the realty arm or Infra Structure arm of the Co and went for IPO.
That is rediculous.Is this Co taking care of shareholders value?Why can't they gives shares to stake holders and list them?If they will do like that then automatically the value and price will go up of that Co and Mcap will come up.
I don't know why promoters do not think in that way.They need to give shares FREE to Co shareholders and list it on brouses.
I think one should write to SEBI that if a new Co is demerged from the original Co then they have to give all the shares of that demerged Co FREE to the shareholders.How a Co can demerge an arm from the Original Co and come out with IPO?
I have seen that when promoters sees that the Subsidiary is doing good they demerge it much early and then comes out with IPO! That is not a good corporate gorvernance.Promoters value the Sub much much less then the real value and after that orders and collobaration and joint ventures starts pouring in and that Co becomes a 1000 cr Mcap Co.
I think someone needs to do something about this.......
and BTW, I wrote here very clearly that Sesa Goa and Sterlite Ind will gain from the Cairns Energy takeover and we are seeing Sesa Goa going up.I donno what the analyst calculate the takeovers and how they come on to the conclusion like that giving negative rating for the takeover of another Co.They gave negative rating for Tisco on Corus takeover, they gave negative rating for Tata Motors on LandRover and Jaguar takeover and recently they gave negative rating for Sesa Goa and Strelite Ind and both stock price are moving up.
Well, in past it has happened that takeover misfired and Co went in for a very bad drubbing on brouses due to high cost of price for taking over like Subex Ltd when took over Azure , the move misfired and Subex went in of a pile of debts and to com out from that they went on alloting the Eq and the end result is Subex eq is as big as 58 cr.
But the outcome for takeovers are not always negative.I donno what they calculate and what statistcs they go through and give such negative reports......
I have written many times here that I do not like Co which have big eq.That is a hinderance for the Co when it has to expand the capacity and have to do QIP or Pref allotment.Even for giving Bonus if the eq is big the bonus ratio will be small .With smaller eq the Bonus ratio can be 1:1 or even biggger.
The JV will focus initially on providing services to the growing Indian nuclear sector and will later look at the global market, Jackson said, adding that its target audience will be nuclear power companies.
Given the emphasis on accelerating the civil nuclear power program in India and the political encouragement on international collaboration, Nuvia has committed itself to establish a significant base in India in collaboration with the Punj Lloyd Group to offer its engineering and technical support services and range of specialist products to the global nuclear market. - PTI
My Comments:
This is what I read today in Hindubusiness Line on internet.
Well this says that Punj Llyod is coming in Nuclear Energy.Great news!Yup, great news for Punj Lloyd Group.But what about Punj Lloyd itslef?That joint venture is taking place between Punj Loyd gr and Nuvia Co of France,what stake holders of Punj Lloyd will get?
Nothing?It looks like shareholder of Punj Lloyd will get nothing .
I have seen in past that IVRCL , Simple Concrete and now Punj Lloyd and many others demerged the realty arm or Infra Structure arm of the Co and went for IPO.
That is rediculous.Is this Co taking care of shareholders value?Why can't they gives shares to stake holders and list them?If they will do like that then automatically the value and price will go up of that Co and Mcap will come up.
I don't know why promoters do not think in that way.They need to give shares FREE to Co shareholders and list it on brouses.
I think one should write to SEBI that if a new Co is demerged from the original Co then they have to give all the shares of that demerged Co FREE to the shareholders.How a Co can demerge an arm from the Original Co and come out with IPO?
I have seen that when promoters sees that the Subsidiary is doing good they demerge it much early and then comes out with IPO! That is not a good corporate gorvernance.Promoters value the Sub much much less then the real value and after that orders and collobaration and joint ventures starts pouring in and that Co becomes a 1000 cr Mcap Co.
I think someone needs to do something about this.......
and BTW, I wrote here very clearly that Sesa Goa and Sterlite Ind will gain from the Cairns Energy takeover and we are seeing Sesa Goa going up.I donno what the analyst calculate the takeovers and how they come on to the conclusion like that giving negative rating for the takeover of another Co.They gave negative rating for Tisco on Corus takeover, they gave negative rating for Tata Motors on LandRover and Jaguar takeover and recently they gave negative rating for Sesa Goa and Strelite Ind and both stock price are moving up.
Well, in past it has happened that takeover misfired and Co went in for a very bad drubbing on brouses due to high cost of price for taking over like Subex Ltd when took over Azure , the move misfired and Subex went in of a pile of debts and to com out from that they went on alloting the Eq and the end result is Subex eq is as big as 58 cr.
But the outcome for takeovers are not always negative.I donno what they calculate and what statistcs they go through and give such negative reports......
I have written many times here that I do not like Co which have big eq.That is a hinderance for the Co when it has to expand the capacity and have to do QIP or Pref allotment.Even for giving Bonus if the eq is big the bonus ratio will be small .With smaller eq the Bonus ratio can be 1:1 or even biggger.
Wednesday, October 6, 2010
Sujana Towers and Ennore Coke......my old call.....
Friends,
What is happening in these 2 counters!
See, that is how it happens.I think in just 15 days to 1 months Sujana has moved from 50 to 129!That is market.Ennore Coke has closed at 144.
So, from my call for Ennore Coke 1 has come ahead of 42 means 142.I wrote recently many times, Ennore Coke looks good.
Sujana Towers after lots of consolidation for many months moved very very fast.That is how it happens in market.Stock stakes time to consolidate and then fires all cylinders.Sujana has taken all by surprise.The movement was very fast.It kept on moving up and up.It went up like a rocket givng no chance to buy.Those who sold to bookprofit in Sujana Towers lost the delivery .Those who thought let me BP at 90 as it has almost doubled, it went even much much higher then that letting the delivery sold out what ever left with small investors......now if someone wants to buy will he be able to buy at 129?Never....who will buy at 129!So the delivery is gone.....your holding in Sujana Towers has trimmed down.
Ennore Coke after moving to 95-100 range and retracing back to 80-85 consolidating for 2-3 months has started firing.When Haldia Coke and Chemical, the sub Co of Shri Ram EPC gr took over from Shriram EPC all its stake of 60% they did it at market rate and that was between 90-100.That was giving me the clue that Ennore Coke should not come down more and will move ahead anytime soon and that ultimately come true.I still like Ennore Coke beacause they are doubling the capacity of Wellman Coke and also Ennore Coke.
The thing which I like about Ennore Coke is the Eq is just 15 cr while Guj NRE Coke is 534 cr and the Mcap is more then double of sales in Guj NRE Coke while we can see in Ennore Coke the Mcap is still less then the sales.So Ennore Coke needs higher discounting then Guj NRE Coke.
Sujana Towers is one of my favourite stocks which I kept on recomending here time and again.
I have observed that my calls sometimes remains dorment for months or yrs togather but when they takeoff there is no looking back.
So patience is neccesary in market.Those who have no patience will be a loser here.
I am seeing YashRaj Containuer coming up as well.Today it was in UC at Rs 36.05.
Rathi Steel has also moved from my call at 21 to now at 29 andd long way to go........cheapest steal stock going abegging......
What is happening in these 2 counters!
See, that is how it happens.I think in just 15 days to 1 months Sujana has moved from 50 to 129!That is market.Ennore Coke has closed at 144.
So, from my call for Ennore Coke 1 has come ahead of 42 means 142.I wrote recently many times, Ennore Coke looks good.
Sujana Towers after lots of consolidation for many months moved very very fast.That is how it happens in market.Stock stakes time to consolidate and then fires all cylinders.Sujana has taken all by surprise.The movement was very fast.It kept on moving up and up.It went up like a rocket givng no chance to buy.Those who sold to bookprofit in Sujana Towers lost the delivery .Those who thought let me BP at 90 as it has almost doubled, it went even much much higher then that letting the delivery sold out what ever left with small investors......now if someone wants to buy will he be able to buy at 129?Never....who will buy at 129!So the delivery is gone.....your holding in Sujana Towers has trimmed down.
Ennore Coke after moving to 95-100 range and retracing back to 80-85 consolidating for 2-3 months has started firing.When Haldia Coke and Chemical, the sub Co of Shri Ram EPC gr took over from Shriram EPC all its stake of 60% they did it at market rate and that was between 90-100.That was giving me the clue that Ennore Coke should not come down more and will move ahead anytime soon and that ultimately come true.I still like Ennore Coke beacause they are doubling the capacity of Wellman Coke and also Ennore Coke.
The thing which I like about Ennore Coke is the Eq is just 15 cr while Guj NRE Coke is 534 cr and the Mcap is more then double of sales in Guj NRE Coke while we can see in Ennore Coke the Mcap is still less then the sales.So Ennore Coke needs higher discounting then Guj NRE Coke.
Sujana Towers is one of my favourite stocks which I kept on recomending here time and again.
I have observed that my calls sometimes remains dorment for months or yrs togather but when they takeoff there is no looking back.
So patience is neccesary in market.Those who have no patience will be a loser here.
I am seeing YashRaj Containuer coming up as well.Today it was in UC at Rs 36.05.
Rathi Steel has also moved from my call at 21 to now at 29 andd long way to go........cheapest steal stock going abegging......
Sunday, October 3, 2010
Again going off topic.......
Friends,
I am again going offtopic.I donno but something keep on coming in mind and that strikes when a discussion takes place about something that happened in past or when I try to analyse how things works for successful people who made name in history.After the discussion with friend gets over I try to think that what really happened and try to analyse it.
Well, we were talking about Hitler of Germany the creator of World War II.Well, one of my friend was talking that there are people still in USA who migarted from Germany still adores Hitler and they still believe that what Hilter was upto was right.They loves him.They respect him even after decades of his death.
The thought that came to my mind and was in discussion was who taught Hitler how to speak?Had anyone heard or seen him speaking?Go to Youtube and one can find that.
Hitler was not a charismatic figure and he came out from nowhere but still the whole Germany was believing him what he was speaking.Now who taught Hitler his oratery?
And hence the question comes , can oratery be taught?Can one develop it?Mesmerising people on speech , can anyone teach ?
There are many books written on how to give speeches and what words actually be used to make an impression on the crowd .There are many classes going on in everywhere.But the world has not craeted that much orater or CEO's.The top position is always empty.There is always space at TOP position anywhere in any institutuion. Can anyone make me aware that was there any classes that Hitler took to make him trained and impress the people?In 1930's can there be any such type of classes ?
Then again the question arises that then how Hitler or Gandhiji or Abraham Linclon were able to do that?
The conclusion that I have come to with is , it is not possible to learn it.It comes within yourself.It is there with you when you took birth.No one can teach certain things.You have got it with your birth.
The path one has become successful can never be a path of someone else.He has to charter his own territory.He has to make his own way.His own way to be successful.
One can't learn from reading someone's autobiography or his life.It is impossible to imbibe anyone and become successful.It is futile to tell someone about your sucess and tell him to follow you and become successful.That is senseless thinking.What is good for one can't be always good for other.That is a very simple equation.
Most of the readers must have read many thing about great man.Maybe that must have come while studying in school or college .Many remember it even now what they learnt about the big people but how many can recall and put it in practise and become successful.See, if we look at that, then we all know that it is not possible to do that.Everyone has different situation to deal with.Everyone has different temprament to deal with.
And that is the reason , why Warren Buffet success is not repeatable.The stock price of Berkshire Hathway is $1,23,914.00 ....that is the highest price any stock in any market is getting.
That is unachievable.No one can beat it.
There are lots of books written by Warren Buffet himself.Lots of things written on Buffet but we are still to see the NEXT Buffet.How come that?
Buffet has explained everything what he does while picking up a stock.His ideas are public.Everyone knows how he pick stocks.Then why we are not having second Buffet?He is writing since decades how he deals in stock market and since decades we haven't got yet another Buffet.
Because everyone has not got the same temprament of Buffet.Everyone has not got the same vision that Buffets possess.Everyone has not got the same conviction that Buffet has got.Everyone has not got the same risk apitite that Buffet has got.
Every year IIM and IIT of India gives 100's of gradutaes.Every year Harvard Uni and other reputed Uni gives 100's of gradudates and these are TOP class schools.They are taught everything there.Then why there is a debacle like Lehman Br?Why there is a bankrupcy in GM or FORD?Why there should be Sub Prime housing debacle?Weren't these guys intelligent?
The simple thing one must understand here is that nothing repeats in market.Everytime maket has different situation to deal with.The saying that "history repeats" is not correct.If it is so then market should never go up and make a new high.If something is repeated then there should always be a way to deal with but we see that it doesn't happen.
Coming back to , can anyone learn going to classes about public speaking?Can anyone be successful by doing that.Yes,one can see a difference but that can be 10-15% .One can improve by that much and never more then that.Any improvement if one is observing more then 10-15% then it is something else.
If that was so, then why not all students gets same marks in exam as the teacher was same?Yes someone can argue that those who didn't get same marks like other did was because they were not attentive.Agreed but that is also not the case 100%, because some were attentive but they have less memory power.We have seen many people have excellent memory power and that we can see with even not a big person.
So it all depends on what and how and when something is coming out from WITHIN.
I am again going offtopic.I donno but something keep on coming in mind and that strikes when a discussion takes place about something that happened in past or when I try to analyse how things works for successful people who made name in history.After the discussion with friend gets over I try to think that what really happened and try to analyse it.
Well, we were talking about Hitler of Germany the creator of World War II.Well, one of my friend was talking that there are people still in USA who migarted from Germany still adores Hitler and they still believe that what Hilter was upto was right.They loves him.They respect him even after decades of his death.
The thought that came to my mind and was in discussion was who taught Hitler how to speak?Had anyone heard or seen him speaking?Go to Youtube and one can find that.
Hitler was not a charismatic figure and he came out from nowhere but still the whole Germany was believing him what he was speaking.Now who taught Hitler his oratery?
And hence the question comes , can oratery be taught?Can one develop it?Mesmerising people on speech , can anyone teach ?
There are many books written on how to give speeches and what words actually be used to make an impression on the crowd .There are many classes going on in everywhere.But the world has not craeted that much orater or CEO's.The top position is always empty.There is always space at TOP position anywhere in any institutuion. Can anyone make me aware that was there any classes that Hitler took to make him trained and impress the people?In 1930's can there be any such type of classes ?
Then again the question arises that then how Hitler or Gandhiji or Abraham Linclon were able to do that?
The conclusion that I have come to with is , it is not possible to learn it.It comes within yourself.It is there with you when you took birth.No one can teach certain things.You have got it with your birth.
The path one has become successful can never be a path of someone else.He has to charter his own territory.He has to make his own way.His own way to be successful.
One can't learn from reading someone's autobiography or his life.It is impossible to imbibe anyone and become successful.It is futile to tell someone about your sucess and tell him to follow you and become successful.That is senseless thinking.What is good for one can't be always good for other.That is a very simple equation.
Most of the readers must have read many thing about great man.Maybe that must have come while studying in school or college .Many remember it even now what they learnt about the big people but how many can recall and put it in practise and become successful.See, if we look at that, then we all know that it is not possible to do that.Everyone has different situation to deal with.Everyone has different temprament to deal with.
And that is the reason , why Warren Buffet success is not repeatable.The stock price of Berkshire Hathway is $1,23,914.00 ....that is the highest price any stock in any market is getting.
That is unachievable.No one can beat it.
There are lots of books written by Warren Buffet himself.Lots of things written on Buffet but we are still to see the NEXT Buffet.How come that?
Buffet has explained everything what he does while picking up a stock.His ideas are public.Everyone knows how he pick stocks.Then why we are not having second Buffet?He is writing since decades how he deals in stock market and since decades we haven't got yet another Buffet.
Because everyone has not got the same temprament of Buffet.Everyone has not got the same vision that Buffets possess.Everyone has not got the same conviction that Buffet has got.Everyone has not got the same risk apitite that Buffet has got.
Every year IIM and IIT of India gives 100's of gradutaes.Every year Harvard Uni and other reputed Uni gives 100's of gradudates and these are TOP class schools.They are taught everything there.Then why there is a debacle like Lehman Br?Why there is a bankrupcy in GM or FORD?Why there should be Sub Prime housing debacle?Weren't these guys intelligent?
The simple thing one must understand here is that nothing repeats in market.Everytime maket has different situation to deal with.The saying that "history repeats" is not correct.If it is so then market should never go up and make a new high.If something is repeated then there should always be a way to deal with but we see that it doesn't happen.
Coming back to , can anyone learn going to classes about public speaking?Can anyone be successful by doing that.Yes,one can see a difference but that can be 10-15% .One can improve by that much and never more then that.Any improvement if one is observing more then 10-15% then it is something else.
If that was so, then why not all students gets same marks in exam as the teacher was same?Yes someone can argue that those who didn't get same marks like other did was because they were not attentive.Agreed but that is also not the case 100%, because some were attentive but they have less memory power.We have seen many people have excellent memory power and that we can see with even not a big person.
So it all depends on what and how and when something is coming out from WITHIN.
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