Beyond Basics

Bull Call Spread : Options Strategy

2011-12-03T00:24:00.000+05:30

Bull Call Spread is the strategy you can use to profit from moderate rise in profit of underlying security.

What you do here is that you buy 1 Call Option and also sell a higher value Put Option

Example lets say current value of nifty is 5000 and lot size is 50. If the nifty call option is available for Rs 70 for the strike price of 5000 and sell call option position of 5200 for Rs 40.

Net money taken initially would be 70-40 = Rs 30*50.

A person will profit if Nifty stays between 5070 and 5160.

Maximum profit will be Difference in strike price - Amount paid = 200-30 = 170*50

Maximum loss will be amount paid = Rs 30*50.

ON the expiry if nifty is at 5120 then first contract will give profit of 120*50 = 6000 and second contract will become worth less = 40*50 = 2000, so the net profit will be 4000.

Both the contract should have same lot size and should expire in the same series.

This strategy was buying ans selling Call Options if the same thing is done with Put options then it is called Bull Put Spread.

CRR Cut by China..India might follow

2011-12-03T00:04:00.000+05:30

China has cut CRR ( Cash Reserve Ratio) because of the falling Manufacturing Purchasing Manager's Index to 32 month low.

India's RBI is increasing the interest continously but the market doesn't want or another rate hike so RBI following China's foot step might cut the Cash Reserve Ratio.

This bores well for banks because it will release money into the system which otherwise doesn't give any interest.

Live Nifty Options Prices

2011-12-02T19:08:00.003+05:30

Live prices

GMR Infrastructure Q3 net profit at Rs171.10 mn

2011-02-10T09:05:00.001+05:30

Details at

http://www.indiainfoline.com/Markets/News/GMR-Infrastructure-Q3-net-profit-at-Rs171.10-mn/5078567648

Good Article on GMR Infra

2011-02-09T01:56:00.002+05:30

Wanted to share the journey of GMR post libralization

http://www.mydigitalfc.com/companies/first-fly-over-rainbow-035

China Interest Rate Increase

2011-02-09T01:53:00.002+05:30

China's central bank raised interest rates to fight inflation. Benchmark Deposit Rate stands at 3% and lending rate at 6.06%

Equity SIP New Buzzword

2010-08-23T02:59:00.000+05:30

SIP Systematic Investment Plan was already famous and proven in Mutual Fund context but now SIP has also come directly into Equity Stocks which is essentially Individual Stocks.

Equity SIP is a new facility through which you can buy a script for a regular interval over a period of time for specified amount or for a specified quantity.

Amount based Equity SIP

Amount based Equity SIP is a SIP type wherein a fixed amount (or approximately the same) is invested in your desired scrip at each frequency

Quantity based Equity SIP

Quantity based Equity SIP is a SIP type wherein a fixed quantity of shares of your desired scrip is purchased at each frequency.

Currently few online brokers are providing this facility on select stocks. ICICI Direct is one of them.

Benefits of investing in Equity SIP are

It is a disciplined investments approach
Accumulates wealth by investing smalls sums regularly
Spreads and averages your cost of purchase (by buying in both ups and downs)
Removes the risk of timing the market
Reduces the risk of market volatility

NTPC to gain if RIL-NTPC dispute heads for truce

2010-08-22T23:01:00.000+05:30

Solicitor General recommended that NTPC be given gas at a concessional rate under a provision of the production sharing contract.

RIL can sell gas below market rate to government or government nominee so NTPC can get gas at $ 2.34 which was price quoted in 2004 tender.

NTPC is already working on the gujrat plants hoping to get the gas. Gas will be allotted to the plants which are expected to complete this year.

If NTPC gets price at lower rate this will improve profitability and secure gas for the plant in long term.

Might be good new for NTPC which is trading in a narrow range of 190-200 for past few months without any news trigger

Coal Block Development to get Boost

2010-08-21T21:38:00.000+05:30

The Lok Sabha has cleared amendment of Mines and Minerals Development and Regulation Act (India) (MMDR) of 1957.

Currently coal blocks for PSU (public sector unit) and private sector companies are not allocated through bidding process. A screening committee approves the blocks. This will change and now there will be competitive bidding process.

PSUs are kept outside of bidding process like Coal India. Coal blocks will be developed faster as new players will pay premium based on bidding.

26 blocks are fully developed out of 206 allotted till now.

If private players get more blocks, power production will get a leg up and many companies planning to foray into coal based power plants will see interest in obtaining the coal block for captive purpose.

Blackstone invest in Moser Baer Power Project

2010-08-18T18:37:00.000+05:30

Moser Baer India shares jumped 11% intraday closing 6.66% up. Blackstone has invested 300 million dollar.

Moser baer is company involved with making cd/DVD/Blue ray disks. It is also in Solar power and Entertainment business . Now it is entering thermal power with plans to setup around 4000 MW in thermal and 1000 MW in solar.

Deepak Puri and Ratul Puri, who are the promoters of Moser Baer India Ltd has founded Moserbaer Projects.

GMR Infra awake from Slumber

2010-08-18T11:03:00.000+05:30

China Huaneng Group may be buying GMR infra stake in Intergen at about 1.4 Billion dollars. GMR Infra bought Intergen at 1.1billion dollars. Apart from making profit of 300 million dolllars GMR will use other money to reduce interest liability which was dragging the profits down.

Lower Intereset Outgo with higher revenue increase due to delhi airport t3 opening and restarting of barge mounted power plants are big plus.

Fund tie up for other airport and power projects will get a boost. If the deal goes through it will be a very big positive for GMR Infra.

Hopefully the bad days should be near soon and should start its upward climb.

Should be in a much better price by next quarter results.

GMR is up 4.5% in today's trade.

RIL Reliance Industries and Shale Gas

2010-08-10T00:07:00.000+05:30

Shale gas is natural gas produced from shale. Shale gas has become an increasingly important source of natural gas in the United States over the past decade, and interest has spread to potential gas shales in Canada, Europe, Asia, and Australia. One analyst expects shale gas to supply as much as half the natural gas production in North America by 2020 [Source:Wikipedia.]

Illustration of Shale Gas

It's another fossil fuel boom in the making, although its cleaner-burning than coal, gas from shale still poses a severe threat to environmental security. Methods used for drilling that frees the gas requires the use of toxic chemicals that many fear could contaminate underground sources of drinking water that supply millions of people.

Reliance Industries believes that shale gas offers an exciting opportunity and that new drilling techniques are transforming the U.S. natural gas industry. Furthermore, the company estimates shale plays to contain in excess of 650 trillion cubic feet of natural gas.

Shale gas is emerging as a potential investment strategy, chiefly on the anticipated upsurge in demand for natural gas.

Natural gas is a clean energy source and is likely to replace coal.

Reliance has done 3 shale gas deals in 3 months.

20% stake in Carrizo's

40% stake in Atlas Energy's

45% stake in Eagle Ford Shale

Higher price of Shale gas is also attracting lot of interest and investment.

Shale gas investment will add profitability after 4-5 years but its an interesting space to watch out for in the coming years.

GMR Infra results Update.

2010-08-09T23:32:00.001+05:30

GMR Infra Q1 PAT up by 26% at Rs 28 cr

Revenue increased marginally but it was because barged mounted plant was getting shifted and its going to be running in fully capacity by August end.

This plant can contribute around 100 crore quarterly.

In 2 years operational capacity of power plants will go upto 2800 from 800 MW currently.

Male airport to achive financial closure by September.

GM Rao said that debt ratio might increase more or stay same but not go down because many projects are in capital infusion phase.

According to some analyst Medium term target is 70 and stop loss is around 54.

DSP BlackRock Micro Cap Fund & DSP BlackRock Small & Mid Cap Fund

2010-08-05T01:57:00.000+05:30

DSP BlackRock Micro Cap Fund / DSP BlackRock Small & Mid Cap Fund

Sensex for past few months has been moving in a very narrow range. Small/Mid Cap and Micro caps is the area where we are seeing growth.

Its hard to cherry pick individual stock in this area. Also it is sometime subject to manipulation so swings are high.

For Small and Micro cap stocks I think its better to invest through mutual funds where they are focussed on it and manage the chrun properly.

MicroCap Fund was started as Closed Ended Fund but now has been made open ended fund and is open to subscription.

Till it was closed ended I was investing in Small and Mid Cap Fund but now I am also going to invest in MicroCap fund.

The investment objective of the scheme is to seek to generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity-related securities, which are not part of the top 300 companies by market capitalisation.

It is high risk fund for people for higher apetite for returns. There is only growth option in this fund.

In the YOD( 16th July), the BSE mid-cap and small-cap indices have outperformed the Sensex. The BSE mid-cap and small-cap grew 10.12% and 12.99%, respectively while the Sensex delivered returns of just 2.81%.

Investor should have basket of funds some from largecaps, some diversified and some from small and mid/micro cap category to not miss any rally in one category.

DSP Black Rock Micro Cap Fund, a new entrant has also claimed CRISIL Fund Rank 1, in the Small & Midcap category.

Diversified funds have given returns in the range of 5-10% but micro cap funds recently have given returns in the range of 30%

The highest return of 34% has been generated by DSP BlackRock Micro Cap Fund.The fund has invested around 94% in mid- and small-cap stocks and less than 1% into large-caps.

Investors can subscribed some amount in this fund

GMR Infra Updates

2010-07-25T08:21:00.000+05:30

GMR Infra has put the international power portfolio for sale. Intergen which operates power plants in US,Australia was bought by GMR in 2008 where it paid around 960 million dollars for 50% stake.

GMR is building number of power plants in India and also has a barged mounted plant.

Recently DIAL t3 terminal got opened which is build by GMR Infra. They are also planning to invest around $ 400 million for Male airport.

All its projects are long gestation and this stock can give returns in long term though slowly. Once the investment phase is over P/E ratio will improve and stock price will rise. Holding for atleast 2 years will give good returns

SJVN subscribed 1.83 times

2010-05-03T14:31:00.000+05:30

The Initial Public Offering (IPO) of SJVN Limited which opened for subscription on April 29, 2010 will be closed today on Monday - May 3, 2010.

The IPO has received subscription of 1.83 times with total bids for 758380250 equity shares against the offer of 415000000 equity shares.

Parekh Aluminex Target acheived..

2010-05-02T10:17:00.000+05:30

Parekh auminex as expected as almost doubled in last 3 months.

http://beyond-basics.blogspot.com/2010/01/parekh-aluminex.html ( Around Rs130)

Currently it is trading at 255.10 +17.70 +7.46%

Goenka Diamond & Jewels Limited IPO

2010-03-24T10:07:00.001+05:30

Goenka Diamond & Jewels Limited is entering the capital markets with an initial public offering (IPO) of 10,000,000 equity shares of face value of Rs.10 each with a price band of Rs. 135- 145 per share. The Company is looking to raise in excess Rs. 1.35 bn through this issue. The issue shall constitute 30.93% of the fully diluted post issue paid up capital of the Company.

The issue appears attractive with an annualized FY10 P/E of 6.9x compared to an average of 15.7x for its peers (Shrenuj, Asian Star, Renaissance, Rajesh Exports and Gitanjali).

It has enjoyed a superior ROE (FY09) of over 46% compared to a peers’ average of 10%-18%.

I think we should go ahead and subscribe to the issue.

Irrational Exeburance in Primary Markets (IPO)

2010-03-21T23:03:00.000+05:30

Primary market is back in boom after lying low for quite some time. Other than PSU FPO or IPO. Private sector IPOs are getting subscribed more than 50-100 times. QIBs and NIIs are subscribing almost more that 100 times.

Is there a strong appetite or it is a signal that a bubble formation has started and its time to exit. Only coming time will tell whats the truth.

REC FPO though just managed to subscribed has given substantial gain from Rs 203 FPO price and current price of Rs 255. Retail got full allotment on 1 lac because of low response and are sitting on a healthy profit of Rs 25000.

NMDC is also around Rs 350 and retail is going to get at Rs 285 with gaurantee of almost full allotment.

Other IPOs are getting subscribed 40-50 times and getting allotment is almost luck or you might be lucky to get 1 lot which doesn't make much profit.

I think now is the time to think which company offers good long term benefits and go for it even though the IPO/FPO might not be getting subscribed. If your conviction is correct then you can make huge amount of money.

Lets see how the coming IPOs fare. Here are few which must be watched

#NMDC
# IL&FS Transportation Networks Limited
# PRADIP OVERSEAS LIMITED
# PERSISTENT SYSTEMS LIMITED
# SHREE GANESH JEWELLERY HOUSE LIMITED

New Affordable Housing Projects in Bangalore

2010-03-20T23:26:00.000+05:30

Here are few Housing projects which are yet to complete and will be complete in few months or around 1-2 years

HM Capital (Marathahalli)

HM North City (Yahalanka)

SJR Unity (Marathahalli)

NItesh Flushing meadows (whitefield/ITPL)

Provident-WelWorth City (doddaballapur)

Kumar Prince Town (JalaHalli)

Westend Heights New Town (BTM Extension)

Patel Smondoville (Neotown)

Plama Heights (Hennur Road)

Rohan Mihira (Marathahalli)

Rohan Jharokha(old airport road)

Alpine Pyramid (Sahakar Nagar)

Alpine Eco (Marathahalli)

Profit Booking Time : Year End Coming

2010-03-20T23:21:00.000+05:30

Stock Market rose quite a lot this year from last March to this March.
You would have made lot of money but if you were also invested in sectors which didn't perform or were laggards you would be sitting at some loss in those sectors like Telecom or recent IPOs like NHPC which are below initial offering.

To reduce tax liability this is the time to book losses in them to offset the profit made this year.

Others will start doing it or has already started and stock market also has peaked so this is the time to cut off the laggard stock from the portfolio and clean it up along with reducing the tax liability.

Jubilant Food's IPO Listing Rocked

2010-02-09T16:41:00.000+05:30

As suggested on 16th January to subscribe to Jubilant IPO, the listing has rocked and stock gained 65% on listing and is 10% up again today.

Anchor investor has bought additional stake on listing and counter witnessed huge buying interest.

Hope the PSU IPOs and FPOs get a good response after lack luster response to NTPC. bad response can be attributed to weak market conditions and operators trying to beat the stock.

NTPC at this price seems to be a low risk even though it goes below FPO price. 10-15% annual gains are easily expected.

Infinite computers also good positive listing , Adani power which was priced at Rs 100 is also above the IPO price at 110 currently with 10% return.

Moser Baer at current price look attractive and GMR infra around Rs 50 or lower seems to be a good bet. It has lot of annuity and toll projects which will provide cash flow for next 20-30 years.

Lot to look out in the next few weeks. Rail Budget, General Budget, interest rate, food inflation and oil prices etc.
News from european/american markets is not too positive and tilting towards negative so next trigger has to come from internally to take the market to the intermediate high so I think in February market seem to be going no where overall with usual ups and downs with overall flatish so we can consider it as a traders markets and not investors for atleast this month till we get cues towards some direction.

NTPC FPO : 5th Feb Last day tomorrow

2010-02-04T16:02:00.001+05:30

NTPC Limited (NTPC), India’s largest power generation company, has come out with a follow-on public offer (FPO) of 412,273,220 equity shares of Rs. 10 each at a floor price of Rs. 201 per share which is at a discount of ~Rs. 5 to the ruling market price, with the Government of India looking to raise in excess of Rs. 82.87 bn by divesting 5% of its stake in the company.

NTPC is the best defensive play in the Indian power sector considering its position of market leadership, strong balance sheet, high credit rating, efficient operational capabilities and stable cash flows. At the floor price of Rs. 201 for the issue stock appears to be at discount.

I think we should go ahead and subscribe to this issue.

IPO Allotment Status

2010-01-23T20:36:00.001+05:30

Check IPO Allotment Status Here for Karvy

Check IPO Allotment Status Here for BigShare

Check IPO Allotment Status Here for Linkintime

Jubilant Foodworks IPO subscribed 30.68 times

Current IPOs
# Vascon Engineers
# Syncom Healthcare
# Thangamayil IPO
# Aqua Logistics IPO
# NTPC Limited FPO

Markets in coming days

2010-01-22T08:48:00.001+05:30

As expected stock market has corrected and might correct more today seeing bad results from ICICI Bank , L&T. Baking and Engineering/Construction space will be affected.

Dollar hardening also has made carry trade difficult which will also reduce inflow.

This is what I wrote last week

"Soon we should see some correction in the market and should avoid playing the dangerous waters of worthless stocks and should probably book some profits and keep money on the table for the opportunities which will arrive after the correction."

This fall should help people to enter in good stocks who missed the recent rally

Hotel-Restaurant Stocks maybe in action this week

2010-01-17T21:33:00.000+05:30

Jubilant which operates Domino's pizza has come up with an IPO with a PE around 15.

Other restaurant stocks like Indage Leisure, Sayaji Hotels, Kamath Hotels, Bhagwati Banquets & Hotels etc should see some action on the counter.

Indage Leisure has a current market presence in the fine/casual dining, high end bars/clubs, Cafe and Bistros.

Kamath runs various kamat hotels and Orchid Hotel

Sayaji has hotels in Gujrat,Indore, pune and runs very successful Barbeque Nation restaurant.

Bhagwati has hotels and clubs in Gujrat and plans to expand in Tier-II cities.

Good Mutual Funds to buy now.

2010-01-17T21:13:00.000+05:30

Here are few funds I like and I have invested

Large Cap Fund
DSP BR TIGER Fund
Reliance RSF Equity/Reliance Growth

MidCap fund
DSP BR Small & Mid Cap Fund
Sundaram SMILE Fund

Sectoral Fund
Reliance Natural Resources Fund
Reliance Diversified Power Sector Fund

I usually go for dividend fund nowadays because it is one way of profit booking when market has gained a lot. I do make sure that those dividends are reinvested at appropriate times so that I don't fall behind growth.

SIP is also a good option to invest. I usually invest regularly on my own across different funds which I think is good at a particular time instead of putting money in same fund every month. This is required for sectoral funds because sectorals funds can be volatile and the given sector wont be in flavour for all the time so need to switch between sectors one in a year.

What do you think are good sectors to bet on in 2010? For diversification you can buy sectoral fund from that sector so that you have various stocks of that sector in your basket.

Sub Rs 50 stock recommendation from various Analysts

2010-01-16T13:00:00.000+05:30

Ashish Chugh recommends

SSPDL(Srinivasa Shipping and Properties Development Limited) - Real Estate Play
IFGL Refractories - Value Stock
Andhra Cements. - Value Stock

VK Sharma recommends

Indraprastha Medical
Om Metals Infraprojects
Timex
MIC Electronics.

SP Tulsian recommends

Donear Industries - Mid Term Pick
Tourism Finance - Public Sector Stock
Ugar Sugar - Small Cap from Sugar Sector

Ambareesh Baliga recommends

Celestial Labs - (combination of a technology and a pharmaceutical company)
Shasun Chemicals - APIs
Compucom Software - education and e governance
Radha Madhav Corporation - pharma packaging

Satish Betadpur recommends

City Union Bank
Hilton Metal Forging
Himatsingka Seide
Gammon Infra.

Current IPO

2010-01-16T12:27:00.000+05:30

Avoid Infinte Solutions IPO.

Subscribe to forthcoming Jubilant foods

IFCI under F&O curb

2010-01-14T14:51:00.003+05:30

IFCI was today banned for F&O trade.

Futures & Options For Dummies

It is expected that more stocks will come under curb..many stocks are hitting upper circuits and you can see lot of circuit stocks around. Lot of midcap and small cap are way above 52 weeks high.

Volatility has increased in the market and every has started giving recommendations. Punter stocks, penny stocks, stocks less than Rs 10 are back in flavour.

The Guide for Penny Stock Investing

When money has nothing to chase after large cap/mid cap, small cap and other value/growth stocks it chases these dud stocks which otherwise have no takers. This kind of situations tells us that market is in its last leg up medium term upmove.

Soon we should see some correction in the market and should avoid playing the dangerous waters of worthless stocks and should probably book some profits and keep money on the table for the opportunities which will arrive after the correction.

I will list some stocks which are monthly gainers/losers.

The Neatest Little Guide to Stock Market Investing

Monthly Gainers	Prev Price	Current Price	% Gain
Panchmahal Steel	68.5	168	145.26
Neha Internation	38.3	88.9	132.11
JMDE Packaging & Rea	2.85	6.53	129.12
Mahan Industries	18.06	40.35	123.42
Twentyfirst Cent	14.01	31.2	122.7
Aviva Industries	14.3	31.25	118.53
Invicta Meditek Ltd.	4.46	9.73	118.16
Hittco Tools Ltd.	7.8	16.75	114.74
Regency Trust Lt	14.33	30.2	110.75
Integra Capital	9.53	19.7	106.72
Pressure Sensiti	2.42	4.93	103.72
Subuthi Finance	18.75	38	102.67
Sungold Capital	6.61	13.39	102.57
Clutch Auto	43.85	81.9	86.77
Triveni Glass L.	7.2	13.19	83.19
Alpha Hi-Tech Fu	2	3.57	78.5
Lakshmi Mill Co.	1,397.65	2,400.00	71.72
M K Exim (India) L	10.44	17.45	67.15
Tayo Rolls Ltd	109.65	179.2	63.43
Linc Pen & Plast	44.7	72.85	62.98
Monthly Losers	Prev Price	Current Price	% Gain
JaiprakashAssociates	222.35	164.5	-26.02
Maruti Suzuki India	1,578.85	1,422.00	-9.93
HDFC	2,617.90	2,525.05	-3.55
Hindustan Unilever L	265.8	257.25	-3.22
Lupin Ltd.	1,435.00	1,393.00	-2.93
Hero Honda Motor	1,666.20	1,628.45	-2.27
Jindal St & Pwr	712.85	697	-2.22
Godrej Industries Lt	173.9	170.05	-2.21
Bajaj Auto Ltd.	1,742.70	1,706.50	-2.08
Jet Airways	550.55	539.5	-2.01
Nestle India	2,607.85	2,560.00	-1.83
GlaxoSmithKline Phar	1,603.65	1,575.00	-1.79
ITC Ltd.	251.85	248.2	-1.45
Cipla	345.7	341.1	-1.33
Piramal Healthcare L	396.5	392	-1.13
HDFC Bank	1,698.60	1,683.00	-0.92
Religare Enterprises	387	383.5	-0.9
L & T	1,680.80	1,667.00	-0.82
Balrampur Chini	135.75	134.8	-0.7
SBI	2,180.75	2,169.00	-0.54
P&G Hygiene&Health	1,737.85	1,730.00	-0.45
MMTC Ltd.	34,941.80	34,800.00	-0.41
Dabur India	163.15	162.5	-0.4

SEL Manufacturing

2010-01-14T14:19:00.000+05:30

SEL manufacturing is a company of RS Saluja Group.

They are the manufacturers, exporters of all types of knitted garments. We have in house spinning, knitting, dyeing, Finishing and Garmenting to meet the demand of price conscious and quality conscious market. SEL do all types of knitted products. Basic Products include T-shirts, Polo shirt, Sweat shirt, Boxer shorts, Girls top etc. and can provide bulk quantities. SEL manufactures 30-35 thousand garments daily.

The company is investing in high end fabric manufacturing and to meet growing demands it is setting up additional capacity.
With decades of expertise and excellence of meeting the discerning needs of niche client’s world wide, SEL Manufacturing Company Ltd. has laid out ambitious plans of product capacity augmentation to continue its proud contributions in the world of premium quality cotton - yarn, fabrics and garments.

It has global presense and it operating in most of the american,european , african and south asian countries.

Check out the global presense

The stock has book value of around 160 and is currently available at Rs 90. P/E ratio is also low of less than 3. Long term target can be expected to reach around the book value.

Karuturi Global

2010-01-14T14:10:00.000+05:30

Karuturi Global is India's largest rose exporter and has now expanded to agriculture export business,food processing and IT .

It plans to grow tomatoes,cereal crops , fresh vegetables, palm oil and sugarcane in various african countries various it has been alloted land.

Company has around 600 acres of land for cultivation of roses.

It has acquired 7,65,000 acres of agriculture land for culivation and also has 239 hectares of land in Kenya and Eithopia for rose cultivation . It is worthy to note that mammoth land makes this company largest land bank owner in the work.

By 2010 it plans to produce 1 billion stems of roses.

It can reach Rs100 in 3 years time considering the growth plans

Overview from company's website.

Incorporated in 1994, Karuturi Global is today the largest producer of cut roses in the world, with are area of over 239 hectares under Greenhouse cultivation and an annual production capacity of around 555 million stems.

An integrated production model encompassing in-house plantation, cultivation and distribution capabilities coupled with a series of green initiatives make us one of the lowest cost producer of cut roses in the world. Almost our entire produce is exported to high-value markets such as Holland, Germany, United Kingdom, Italy, Singapore, Hong Kong, Taiwan, Bahrain, Muscat, Dubai, Australia, Japan, New Zealand, Brunei and North America, with a small portion sold in India.

Having established our strong presence in floriculture, we now aim to broad base our portfolio into a larger agri-produce basket. The acquisition of large tracts of land in Ethiopia has set the stage for us to evolve into an end-to-end agri-focused company.

Equipped with a robust and de-risked business model, Karuturi Global’s other fast-growing business realms are food processing, floriculture retail including a flower auction portal and information technology.

Company Website : http://www.karuturi.com

Indiabulls securities

2010-01-09T22:09:00.000+05:30

Indiabulls securities seems to be good bet in the brokerage space. It has not participated in the recent rally from late November.

With year looking good ahead and increased stock market times, volume increase can improve topline and bottom line.

Most of the midcaps are near or above there 52 weeks high. This stock is not near its 52 weeks high rather its almost half the price. Looking at the price and growth prospects it seems to be a value buy.

Parekh Aluminex

2010-01-09T22:03:00.000+05:30

Parekh Aluminex is India's largest manufacturer and exporter of Aluminum Foil Containers (AFC). They are emerging as the leading name in AFCs in the entire sub-continent, being the first Indian company to receive ISO 9001:2000 certification from BVQI, UK. It is almost monopoly in its segment.

Company is growing at a rate of almost 50% on year on year basis. The same is expected for next few years. Revenues are expected to touch 600 crores.

It is available below book price and its PE is also attractive.

Parekh Aluminex also list under Forbes 'Best Under A Billion' company.

It can be bought at current price with a target of above 200.

Islamic Search Engine : Sharia Complaint

2009-09-08T12:23:00.000+05:30

There are so many areas in day-to-day sphere where Islamic law applies to people of muslim community. So many restaurants,banks, funds, etc caters to this specific need.

Here is a small list

Islamic Restaurants which serves halal meat.

Islamic Banks-system of banking or banking activity that is consistent with the principles of Islamic law (Sharia)

Islamic Mutual Funds- Funds which invest in companies that operate according to Islamic Sharia principle.

Islamic Index. - Index of stocks of companies compliance with Sharia law.

Screening removes companies involved in such products alcohol, pork-related products, conventional financial services (e.g. banks and insurance companies), entertainment (e.g. hotels, casinos, gambling etc.), tobacco, and weapons and defense. A second level of DJIM(Dow Jones Islamic) screening based on financial ratios, is intended to remove companies based on debt and interest income levels in their balance sheets.

Islamic law is now the most widely used religious law, and one of the three most common legal systems of the world alongside common law and civil law

Now comes Islamic Search Engine -ImHalal.com The world's first search engine which will help muslims safely surf the web without embarrasment of viewing explicit or sexual content.
This is really a unique idea and can be used by people of other faith and by childrens.

Moser Baer Updates

2009-09-08T11:30:00.000+05:30

Moser Baer will be soon reaching around Rs100. Its fair value is much higher and this stock has not participated during current rally. So even if market looks streched now and when we are confused which stock to buy now or where to invest. Moser baer is a good fruit in your investment basket.

Couple of things which are needed to be highlighted for reaching it`s hidden value.

1. Entertaiment bussiness is growing very rapidly. Movies,DVD, Super DVD

2. New product range launched in storage devices. Blue Ray, CDs and DVDs

3. Consumer electronics range is set to provide a good topline. Monitor,Music Players, Headphones, LCD TVs etc.

4. Photovoltaic is expected to come in limelight again since crude is expected to go higher. Solar plants coming across india by them.

5. Govt projects and green energy revolution will help alternate energy.

Stock is infact in the eyes of FIIs and DIIs. It is just waiting at the sidelines now.

OIL India IPO : Invest or Avoid

2009-09-04T17:55:00.000+05:30

OIL India is country's second largest oil producer after ONGC. Crisil has graded the IPO 4/5 which is above average. Please note that Adani and NHPC were 3/5.

Issue Opens --September 07, 2009
Issue Closes --September 10, 2009
Issue Type --100% Book Building
Issue Size --26,449,982 equity shares
Price Band --Rs. 950- Rs 1050
Face Value --Rs. 10.00
Lot Size --6 shares

On the BID Closing Date i.e. September 10, 2009 the BIDs would be accepted till 03:00 p.m. Only.

OIL India IPO is not aggresively priced and is available at PE of around 10-11.

So we can expect some initial gains from the IPO but over the long term OIL India doesn't look promising.

Some of the key risks to its business are :-

1. Since it is PSU it is sharing the burden of subsidies. If the OIL prices increases a lot then share of burden will also increase and profits will always depends on the vagaries of the crude prices and govt policies.

2. 95% of the oil and gas comes from North East states which is sensitive zones based on environment and conflicts in the region.

3. Most of the wells are old so the output in the future will steadily decrease from these basins.

4. It doesn't have any significant acreage to increase its production capacity beyond North-East and hence profits.

5. It is fighting lot of court cases on environmental issues.

6. Apart from ONGC now it faces still competition from lot of other private players who have entered Exploration and extraction business like RIL,Cairn, British Petroleum, Niko resource etc.

So I think that though from IPO perspective this stock might be good, for long term probably it can given steady return in terms of dividend(being PSU) and small increase in stock price. This can't be termed as multibaggar or high growth stock.

Moser Baer : Good Long term Bet

2009-09-04T13:26:00.000+05:30

Moser Baer is going to develop 1 Mega Watt solar farm project in Maharashtra.

Got awarded EPC contract to develop one of India's largest indigenous solar power projects.

The solar farm in Chandrapur will be one of the largest in the world using thin film solar modules.

Moser Baer is also going to set up India's largest grid connected Solar farm in Rajasthan

It is heartening that solar energy is being seen as an affordable source of energy in India and Moser Baer has been instrumental in bringing about this change.

Other similar post

NHPC listing Date on Stock Exchange

2009-08-28T09:44:00.000+05:30

UPA govt first public sector offering NHPC will list on 1st September on the Indian Stock Exchanges.

NHPC IPO Allotment Status & NHPC Grey Market premium

2009-08-26T17:16:00.000+05:30

NHPC IPO Allotment Status now available at

Check Status Now

Current Grey Market premium is around Rs 4-5 .
713 shares have been allocated if you have applied for complete lot at upper band.

Other News :-
GMR Infra saw some good rally after long time.
Aban Offshore saw huge rally with stock increasing about 26% in a day.

Other Grey market premium
Oil India 950 to 1050
155 to 160
Jindal Cotex 70 to 75
3 to 4
Globus Spirits Ltd. 90 to 100
5 to 6

SREI INFRA Rally

2009-08-26T13:00:00.000+05:30

Srei Infra was at 63 before the last post on 23rd August. Today it has touched high of 72 (an increase of 14-15% in 2 trading days)

Current book value of Srei is probably around Rs 97 and is available cheaper than its book value.

Short term looks good.

SREI Infra News

2009-08-23T00:00:00.000+05:30

Srei Infra is planning to build Auto Component SEZ in Bengal. So far 33 hectares have been acquired out of 100 hectare. This project is of great significance for bengal after tata nano project has been pulled out of the state
Srei Infra Telecom Arm Quippo which handles tower business and also owns 49% in Tata Towers is bidding for Aircel Towers. Malaysia Maxis holds 74% in Aircel Telecom.
Srei Infra is also planning to enter into Jail Constuction business in PPP model. Srei will build Jails outside the city and manage it for a fee. I will also get the prime land from the previous jail site for development.
Srei Infra also wants to upgrade the rural infrastructure by rebuild village market place or Haats.
Srei Finance wants to start financing medical and IT equipment projects soon.

Other new

Srei Infra to participate in Light Rail Project in Kolkata

Srei Infra Post

Primary Market and Secondary Market

2009-08-22T22:52:00.002+05:30

In Primary Market securities are offered to public for raising capital also called IPO(Initial Public offering). The proceeds from the issue goes to the issuer of the paper.

In Secondary Market securities already offered are traded in the market. Most of the trades happen in secondary market.

2 years back Primary Market was a good place for small investor to make handsome profits. Just the luck of getting allotment confirmed the profits you are going to make.
Some people use to take loans to apply for an IPO also probably through multiple accounts.
20-100% return in short period of time and relatively risk free was a good proposition.

Things have turned now. After nearly dead primary market for 1-1.5 years, they are back and people had high hopes with them. Adani Power, NHPC , Oil India,Mahindra Holidays raised hopes that IPO option will be available again to make money. Adani Power dashed off all the hopes with listing almost around the upper band and no margin left for the investor to make money. Those you have bought money to apply (basically HNIs) would have burnt fingers because even getting back interest money would have been difficult.

Looking at the market condition Grey market premium for NHPC is also down to 4-5 Rs from Rs 10-12. If market is in bad shape on the day of list, you wont see any premium on that day. BRLM suggested Rs24-30 as price band but govt became greedy looking at the rise in the market and fixed Rs30-36 not leaving anything for the investor.

I guess applying to an IPO locking the money for it(even if it is ASBA) doesn't make sense if it gives return of 2-4%( if you are investing 1 lac) there will be many more opportunity in the secondary market to make more than that.

If you really want to invest in the company for long term you can buy the share on the listing day. Only drawback would be that you have to pay the brokerage which you don't have to pay if you apply through IPO, but who knows you might get cheaper than the price band :-)

New Direct Tax Code : Government Putting money in citizens Pocket

2009-08-12T21:36:00.002+05:30

Pay only 10% tax on 10 lac salary :O. This is kind of good news. More money will trigger more spending and stimulate the economy.

Savings limit is also going to be increased from 1 lac to 3 lacs.

For traders and Investors STT will be abolished.

Govertment Securities Interest tax free and business loss can be carry forwarded indefinitely.

Some good news in otherwise dull market in absence of monsoon.

Check IPO allotment Status

2009-08-12T21:30:00.003+05:30

Check your IPO allotment status

&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;lt;br&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;gt;&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;lt;br&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;gt;

Adani IPO allotment subscription

2009-08-12T21:25:00.002+05:30

Adani IPO allotment has come out after NHPC IPO closes for subscription.

Check your IPO allotment status in the next post.

NHPC Oversubscribed 23.73 Times : IPO Closes

2009-08-12T21:24:00.001+05:30

Here is the final status of the NHPC IPO

Total Issue Size	1677374015
Total Bids Received	39811363550
Total Bids Received at Cut-off Price	1792735000
No. of times issue is subscribed	23.73

Mutual Funds : Acronym Funds

2009-08-11T23:49:00.001+05:30

Mutual Funds are now a days coming up with catchy names. These can be expanded to see elaborate names of these funds.

Here are few.

ICICI Prudential R.I.G.H.T. Fund ( Closed Ended ELSS scheme)
RIGHT -->Rewards of Investing and Generation of Healthy Tax Savings

DSP BlackRock India T.I.G.E.R Fund ( Open Ended diversified scheme)
TIGER --> The infrastructure Growth and Economic Reforms

Canara Robeco F.O.R.C.E Fund (Open Ended sectoral scheme)
FORCE -->Financial. Opportunities, Retail Consumption & Entertainment Fund

Sundaram BNP Paribas S.M.I.L.E Fund ( Open Ended Midcap small cap fund)
SMILE --> Small & Medium Indian Leading Equities

SBI Magnum COMMA fund
COMMA --> Commodities of Oil& Gas, Metals, Materials & Agriculture .

We have to see how catchy their returns are as their names :-)

NHPC IPO SUBSCRIPTION : CLOSES TOMORROW

2009-08-11T22:56:00.002+05:30

NHPC IPO is going to close tomorrow. It is already subscribed 6.16 times.

Retail Investors have over subscribed 1.2 times till now.

Affordable housing in Bangalore

2009-08-01T14:15:00.007+05:30

Recently bangalore newspaper is seeing huge ad war between realty developers and builders. There is sudden spurt in these full page advertisements. Each developer is praising the location and benefits of their property.

There are many homes available sub 30 lacs and sub 20 lacs.

Government is also promoting affordable housing and now have recently announced subsidy of 1% for sub 20 lac homes for a loan of 10 lacs for the first year.

These properties are also good for PSU and other government employees.

Here are few projects which are in affordable range and can give investors substantial return in longer run and also good for people who want to move into their Dream Home.

Ozone Group
Evergreens is located off Sarjapur road near to kormangala and marathalli ring road. Price range is 20lacs to 30lacs for 2 to 3 BHK with size between 900 - 1200 sq.ft
Build on 10 acres of Land.

Orange Group
Orange Township- as you drive just few minutes away from Devnahalli International Airport will leave you fascinated.

Purvankara Group
This group has launched provident housing Welworth city in Yehalanka doddebellapur main road on 40 acres land. Prices are between 14.9 to 20.0 lacs for 845(2BHK) to 1180(3BHK).

Confident Group
Confident Atik is on Sarjapur Road offers 2 and 3 BHK houses. Has flats from 774 ft to 909 ft with prices between 13.5 to 16 lacs.
Location has international schools other housing projects and infosys has also bought 400 acres of land.

Sowparnika Projects
Situated at the most coveted location on Sarjapur Road, 9 km from Wipro corporate office and other MNC’s. Sowparnika Ananda follows Sowparnika’s well trodden path of providing quality that’s now accessible to all. There are 140 2 bed room and 12 3 bedrooom apartments

Golden Gate Properties
The Commune project has 2500 world class living space with prices starting from 19 lacs and is built over 30 acres. It is 3.5 kms from Mysore road near banshankari metro station.

Please share if you have some more properties to add so that readers could benefit.

Adani IPO Subscription 21.59 times

2009-07-31T18:30:00.001+05:30

As of 31st July 2009 6pm

Total Issue Size 248794681

Total Bids Received 5372236220

Total Bids Received at Cut-off Price 232503635

No. of times issue is subscribed 21.59

Primary Market : Adani Power IPO and NHPC IPO

2009-07-31T18:08:00.003+05:30

Primary Market is buzzing again with large IPOs back after a long slumber.

Adani Power IPO closed today with 18.23 times subscribed till yesterday 5:00 pm

IPO price band of 90-100 is hoping to give premium of 10-12 rupees.

QIBs have shown strong interest with 12 times subscription. Retail participation was only .55 times but latest day will be coming after sometime.

NHPC has price band of 30-36 and grey market premium is ging around 10-12 so good money can be made here. Lot size is 175 shares.

Both the IPOs are Grade 3 ratings

Satyam ADR UP!!

2009-04-06T21:17:00.003+05:30

Satyam computers is up around 60% today in the US markets. Tomorrow indian market will be closed on account of Mahavir Jayanti so traders in india wont be able to see this upswing in local market. If the rally continues tomorrow then probably on wednesday Satyam computer could see a big upswing.

Wilbur Ross and Larsen & Toubro (L&T) might be planning to jointly bid for Satyam. Satyam is going to decide stake sale on 13th April.

As the date of stake sale is nearing the stock is showing fresh interest after sagging for last fews days.

Interesting Quote :-)

2009-04-06T00:23:00.000+05:30

Recession is worse than divorce - You loose half your assets but you still have your spouse.

Stock Option Trading Myths Debunked

2009-04-06T00:05:00.002+05:30

I have explained what are derivatives (futures and options) in my previous posts.

My previous posts on derivatives :-

Futures or Options

Derivatives Basics

Y Derivatives?

I was going to start writing an article discussing various option strategies soon.I found this cool video which clears all the myths around option trading.
It would be good to watch and understand before going deep into various strategies like straddle, collar, cover put, married put etc.

Various myths covered are Complexities around optioms, assumption that it is hard to learn and master, it is time consuming, losses are huge , its high risk and investor always loses money and so on and on ...

Before you take a dive into options have a look at this video.

India Votes 2009 General Elections.

2009-04-05T23:24:00.001+05:30

World's largest democracy with more than 1 billion people will go into election in few weeks. I am happy to see lot of voter activism this year and hope that people of this country will vote for good people and for a stable goverment.

From jaago re campaign [jaagore.com] helping people to get their voter id registration done to other thousands of NGOs are extensively involved in the awareness campaign.

National Election watch is providing information about right to vote and electoral reforms. It has the facts and figures about all the MPs in the current lok sabha.

LOK SABHA 2004 - FACTS AND FIGURES

Amir Khan is also involved with the association for democratic reforms and has produced videos aired on television urging voters to vote.

To do my own part, I would request all the blog readers to exercise their franchise and spare some time on the election day to vote.

Reliance Natural Gas flows naturally

2009-04-05T22:55:00.000+05:30

Reliance has started pumping gas from its KG basin. It took just 7 years to begin production from the date of discovery from the deap-sea krishna godavari basin block. RIL is expected to have revenue of $42 billion over its life of 11 years.

RIL has started signing gas sale agreement with many fertilizer companies. This will reduce the dependency on the expensive naphtha and gas imports. It will also bring down the subsidy in the fertilizer sector. The gas is already cheaper than panna/mukta and tapti fields.By 2010 field will be running at its full capacity.

India's energy import bill is going to reduce by 10% or around $9 billion annually because of the indigenously produced gas.

Reduced imports will make rupee probably stonger due to less demand for dollar to buy crude/LNG. Mounting trade deficit should also see some relief.
Current account deficit is expect to improve by 0.6% of the GDP. Reduced deficit should support fresh economic growth.

Energy landscape of india is going to change because idle power plant starved of fuel will be able to access this gas and will also help produce cheaper urea for agriculture.

Reliance share rose 5.3 % on account of this news.

IBM - Sun Microsystems Multi Billion Dollar Deal

2009-03-18T21:54:00.000+05:30

WSJ(Wall Street Journal) has reported taht IBM might be eyeing Sun Microsystem buyout. Deal will give significant market share on hardware and software. Hardware as in servers, data storage and other systems and software is Linux and Java Software .

The deal could be in range of $6.5 billion which will translate into 100% premium on the current market price of Sun Micro.

IBM is world's largest server manufacturer while sun is at fourth place.

Sun recently announced $2 billion quarterly loss and planned to cut the workforce.

IBM is trying to position itself as a one-stop shop for all the IT requirements. Cisco's foray into server market could see more consolidation in this space through mergers and acquisitions.

It is being said that though the quoted price is at 100% premium the valuations are still cheap because of the recent meltdown in the stock market.

IBM share lost value in the stock market while Sun Micro soared 63%

Chinese Stimulus Package

2009-03-04T23:53:00.002+05:30

Today's Stimulus Package announced by Chinese Govt has lifted sentiments across the world in stock markets. Stock market were up 2-3% in Europe and around 1% in US. India remained flat. Continuous sell off for past 4-5 days was another reason for the bounce back. Biggest gainer was the chinese market which rose 6%. $585 billion is going to be used in infrastructure spending and also to boost the manufacturing sector.

Other News:-

According to a report US has lost around 700 thousand jobs in Feb in the Private Sector.Data for January was also along the similar lines. HSBC has also announced lay offs in US after bad earnings data.
Oil surged to $45 on inventory concerns.
The Reserve Bank of India has reduced the benchmark REPO rate to 5 percent from earlier 5.5 percent and the reverse REPO rate to 3.5 percent from 4 percent. Economic growth is slowed down to 5 years low

Other Stock News

Reliance Infra and Sail were the big gainers in today's market
Rolta India, Srei Infra continued it slide for yet another day. Good Buy now for risk takers
RCOM(Reliance Communications), Vishal Retail hits new lows.
Punj Lloyd was another gainer today.
Moser Baer is also at 52 week low. It is going to expand in Europe,US for its Photo Voltaic Operations. It is buying back FCCBs and has repurchased bonds worth 1 million dollar.
Suzlon another beaten back stock won order of 100MW which is for about 80 turnbines from China
Satyam Computer plans to invite bids in next few days
ICICI Bank hit new lows on worry about its exposure to Russian assets. Fresh shorts are created on this stock

RIL RPL merger . same old story again

2009-02-27T19:31:00.001+05:30

Will it materialize??

Reliance Industries Ltd (RIL) is proposing to once again merge its refinery subsidiary RPL(Reliance Petroleum) with itself that would make it one of the world's largest refiners.

Chevron with 5% stake will not be happy because its primary interest was refinery and it also planned to raise it to 29%. It is not interested in other business or RIL.

Old Post :
http://beyond-basics.blogspot.com/2007/12/ril-rpl-merger.html

March 23rd : Tata Nano rolls out in Mumbai

2009-02-26T13:32:00.004+05:30

Image Courtsey : Tatamotors.com

Much awaited Tata Nano is going to be launched on 23rd March in Mumbai. Bookings will start in April at various dealers location. Tata is trying to put the best network for bookings so that customers can easily book the 1 lac car.

Though the no of cars delivered will be less initially, Bookings are expected to be in full swing and customers would have to wait to get their cars. This is because mother plant is still not complete and commensed operations.

There is going to be lucky draw for the initial holders of Nano because of shortage. If you get lucky to get hold of one you can a good premium on the same and nice profit can be made.

Credit Crisis explained in short simple story

2009-02-24T23:45:00.003+05:30

I found a nice video which explains Credit Crisis in a very easy way.

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Hope you enjoy this video and understand the crisis through a video rather than reading a verbose theory.

Futures or Options

2009-02-22T12:46:00.003+05:30

Futures:
ReCap from previous posts.
In the First Episode :
A Futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price.
An Option is a contract, which gives the buyer the right, but not the obligation to buy or sell shares of the underlying security at a specific price on or before a specific date.
The primary Difference between options and futures is that options give the holder the right to buy or sell the underlying asset at expiration, while the holder of a futures contract is obligated to fulfill the terms of his/her contract.

Underlying: A stock (Say RPL) or Index (Say Nifty)
Certain Date: Settlement Date of the Month for which Position is taken. Generally we trade in Current Month and Settlement Date is last Thursday of the Month.
Interpretation ...
Say Today I buy RPL future For Rs 230 when current market Price for RPL in cash market is 225.
This means on Settlement date:(31 jan for this month) if RPL is @ Rs 230(future price) its no Profit no Loss for me, and if its 250(settlement price) I gain Rs 20 but I loose Rs 20 if its 210.

So same way, seller of the future contract gains the amount I loose or looses the Amount I gain.

Benefit: Unlimited Profits Posssible, Leverage I get....
Drawback: Unlimted Loss Possible

Now Lets Talk about Options:
An Option is a contract, which gives the buyer the right, but not the obligation to buy or sell shares of the underlying security at a specific price on or before a specific date.

Options can be call option or put option where you get the right to buy or sell specified quantity of the underlying security.

Buyer has to pay a premium to get the rights to buy or sell. Seller of options is also called writer who is obliged to perform according to option terms.

There are many factors which affects the price of an option.
1. Underlying value of the security.
2. Time remaining till the expiry. Options generally decay near the expiry because price of the underlying becomes more predictable and less probabilistic and volatile.
3. All the other information which affects the underlying security like interest rates, divident payouts, liquidity, historical prices, support zones etc.

Underlying : Lets say Nifty Index
You bought a Nifty call option for the strike price of 2800. On expiration the Nifty is at 2850. You will recieve 50*50 which is the lot size for Nifty = Rs 2500. If you have already paid a premium of Rs 20 then you profit remains 30*50 which is Rs 1500. Also you have to factor in the brokerage both for buy and sell. There is mini nifty available with lot size of 20. If the Nifty at expiry is below 2800 you dont get any thing and you loose premium + brokerage.

Other articles on derivatives.
Derivatives Basics

Y Derivatives?

Madoff Scandal for Beginners/Conspiracy Theory

2009-02-22T12:19:00.001+05:30

Scandal

Bernard Madoff chairman of Bernard L. Madoff Investment Securities LLC is charged with largest investor fraud committed by a single person.

Asset Management business run by his firm was a big lie. Liabilities run approximately 50 billion dollars. Company used to make fictional stock trades and then even showed them in the monthly statement. This was a clear case of Ponzi Scheme where authorities are looking for cash in and cash out.

In Ponzi Scheme returns to the investors are paid through the investments made by the subsequent investors or from the own pockets rather than from profits.
This requires continuous flow on money for the scheme to continue otherwise it collapses. It is named for Charles Ponzi who started this scheme after emigratinf from Italy to US.

Coming back to Madoff scandal, Banks expects potential loss of billions because of this scandal. The Madoff's firm is now under liquidation. Real Estate Industry is also feeling the heat because of the brokers and developers had hevily invested with the firm.

In an another twist in the tale Madoff scandal is brewing anti semites feeling.

Madoff was a Jewish and many investors were also Jewish. There is a conspiracy theory which claims that Jews are in control of all the money in the world. This is also spread by anti-Semitics.

Since such a big scandal has been executed by Jewish it gives boost to anti-semites.

In Madoff Scandal, Jews Feel an Acute Betrayal

Here are some nice interesting videos..dont know how true they are

The Capitalist Conspiracy

Jew's Control The Money

Source : Web, Wiki.

Srei Infra to participate in Light Rail Project in Kolkata

2009-02-20T11:14:00.002+05:30

Srei Infra is going to participate in Light Rail Metro Project in Kolkata in consortium with Amex International.

This is a 6000cr project.

On the business of Loans...Srei sees flat growth in 2009.

View Srei Infra Post @ Srei Infra

Think 3 Latest Victim : Layoff Tracker

2009-02-19T22:49:00.002+05:30

It is heard that Think 3 Designs in Bangalore has layed off 50 employees today. The company is based on 100 ft Road indira nagar.

Heard on the Street : lay off tracker

2009-02-19T16:25:00.002+05:30

Network Appliance (NetApp) is going to lay off 600 employees worldwide.!!
It has reported a $75 million loss in the third quarter, or 23 cents a share and is going to lay off around 6% workforce. Some lay offs are already confirmed.

FMP(Fixed Maturity Plan) Vs FD(Fixed Deposits)

2009-02-17T00:39:00.003+05:30

FMPs are great investment options in times of volatility. FMPs primarily invest in fixed return investments like government bonds and money market instruments which are very short-term fixed return investments.

FMPs are not open ended funds that allows you to exit so invest money you are sure you don't need.

The volatility is reduced because these products invest in instruments upto maturity so that returns are predictable.

FMPs are better than FDs when it comes to tax savings. Interest earned in FDs are taxed at personal interest rates. In FMP there is no personal Taxes there is only dividend declaration Tax to be given by fund house which is at 14.5 % so effective post - tax return is higher in FMP considering similar returns to start with. FMPs also have the benefit of Indexing when kept for more than year to gain long term capital gains.

FMPs might not give higher returns than FDs often but they do tell you the indicative returns at the time of NFO(New fund offer)

It is also different that income fund which doesnot have fixed tenure. Given fixed tenure helps fund manager to invest in instruments having similar maturity period.

Maturity periods can vary from 30,90,141,180 or even an year.

Budget - A Damp Squib

2009-02-17T00:21:00.002+05:30

No Tax Cuts. No major policy announcements. No major triggers for the market. After this interim budget the govt will be on the election mode and there is a virtual freeze on the policy matters in this fast deteriorating crisis.

Highlights :-
1. Fiscal Deficit - Expected 2.5% actual ~6% might reach 10% by 2010 of GDP.
2. GDP Growth - Expected 9% actual ~6-7% might reach 4-5% by 2010.
3. India investment rating to go down based on current fiscal deficit parameters.
4. Some good news in terms of higher allocation to NGRM( National Rural
Employment Guarantee Scheme) and JNNURM (Jawaharlal Nehru National Urban Renewal Mission).
5. Industry has given thumbs down to no event budget. This was a last chance to give a support but its an oppurtunity lost.
6. No tax changes in interim budget
7. All the temporary Cess not removed and seems to be permanent taking tax levels to 34%
8. Excise Duty and GST not reduced according to plan to abolish it completely by 2010. Now it might take longer for tax rationalization.
9. Relaxed fiscal responsibility and budget management target to dangerous levels and may need additional measures in next budget to revert to fiscal consolidation.
10. Revenue deficit of 4.4% of GDP v/s estimate of 1%

Recently rally expecting some good news has already been fizzled out.

Valentine's Day - Boost to Economy?

2009-02-15T19:20:00.003+05:30

In the raging debate whether to celebrate Valentine's day or not, one thing we can be sure of is that it helps the economy if not the archaic traditions/culture.

Festivals and Marriages are big money spinner in India and give a big boost to consumption. In the same manner Valentine's day promotes lot of industries. Not everyone has a valentine. Not everyone wants a valentine.

But the commercial aspect of this day seems to over saturate the marketplace. This pressures consumers into believing this holiday of love/romance purely revolves around making money.

Lets look at each one of them.

1. Hotels/Pubs/Discos - Youth throng these places on this day and occupancy levels are high.
2. Theaters/Multiplexes - Couples want to cozy up and have fun watching movies.
3. Telecom - Lot of phone calls and SMSes.
4. Garments/Accessories - Filling up the wardrobe to look pretty/handsome.
5. Beauty/Slimming Industry - People preparing for the D-day.
6. Transportation - Instead of relaxing at home people travel a lot on this day.
7. Gifts/Presents - This one should be on the top. Various gifts (flowers, singing stuffed animals, Valentine chocolates and Hallmark/Archies cards)you name it are bought.
8. Advertising - HIgher spend on advertising by the organization of above given businesses.

Spends on all this increases the money flow in the economy and gives its little dose to the economy.

So on these counts Valentine's day surely rocks!!

Mobile Number Area Information

2009-02-15T13:57:00.001+05:30

You can get the information about any Mobile Number location through this link

http://www4.yourbillbuddy.com/mobile_number_area_information_in_india.do

Bartronics - Multibaggar stock

2009-02-15T13:24:00.002+05:30

Current PE - 6.3
Current Price 76.
52 wk High - 252

Incorporated in 1990, Bartronics is a Hyderabad based company that started with providing solutions in Bar Coding, one of the oldest AIDC technologies, RFID, POS, Smart Cards working as AIDC division, RFID division, Smart Card Division and Retail-IT division in separate.

Booming AIDC/RFID/RETAIL/Smart Card Industry

The AIDC industry is moving rapidly towards the use of RFID in a number of high-value and high-volume market segments. The RFID market is expected to jump from $1.4 billion annually this year to as much as $3.8 billion in 2008, according to a study by Allied Business Intelligence Inc. It is still in a nascent stage but there are several factors, in addition to dropping chip prices, which are driving the growth of RFID as an enabling technology.

RFID is the emerging technology for tracking goods and assets around the world. It is indispensable for a wide range of automated data collection and identification applications across the supply chain. Whether you are a consumer, industrial goods manufacturer, a logistics company, a retailer, home sales / services provider or health care provider, Bartronics provide the complete end to end RFID solutions automating the entire business process.

Bartronics is getting benefits from Govt technological initiatives. Railways is also looking at RFID implementation across trains in the country.

Bartronics has strong presence both in local and international markets. Bartronics has recently bagged order from singapore government for supply of 48,000 tags to Singapore housing development board.

It has also bagged order from DMC ( Delhi Muncipal Corporation) and expects huge revenue of 5000 crore in around 9 years.

Bartronics is expected to provide high CAGR in coming years. Good stock with healthy valuations.

Source : Company website

NTPC News (National Thermal Power Corporation)

2009-02-15T13:10:00.002+05:30

The Nuclear Power Corporation of India (NPCIL) and NTPC (NTPC) has signed an agreement to setup nuclear power plants in India.

The present nuclear power generation is only to the tune of 1,800 Mw, against an installed capacity of 4,120 Mw. Shortage of nuclear fuel has plagued the nuclear power sector.

NPCIL has signed an agreement with Russia for supply of 2,000 tonne of uranium for its nuclear power plants. Nuclear power generation is set to touch 6000MW by next year.

NTPC is also planning to bid for imported fuel-based 4,000 MW Ultra Mega Power Projects after acquiring coal properties abroad.

NTPC has floated a joint venture firm International Coal Ventures Ltd (ICVL) with Steel Authority of India Ltd (SAIL), Rashtriya Ispat Nigam Ltd, Coal India and National Mineral Development Corp (NMDC) to secure fuel properties abroad.

NTPC is also going to give contract worth 1000 crores to BHEL for 500MW power plant.

NTPC along with GAIL also plans to lease out part of their new liquefied natural gas import terminal.

NTPC also recorded highest ever monthly generation of 19.2 billion units in the month of January this year.

Stock Market Simulators

2009-02-15T10:39:00.000+05:30

New investors who want to dabble in the stock market can take help of these simulators to pratice their stock market strategies and investing acumen.
This helps a lot because you can try to out different things without actually putting money in the market.

Here are few simulators or stock market games.

www.moneybhai.moneycontrol.com/
Moneybhai Investor is a simulated real-time Stock Market Game aimed at giving viewers and investors an easy and interactive platform

www.khelostocks.com/
Khelostocks is a social community for Indian investors which provides tutorials, virtual stock game and investment information and tools.

moneygame.rediff.com
Rediff Moneywiz Share Bazaar Game

US stimulus package passed H1B to get hit!!

2009-02-14T16:12:00.003+05:30

US stimulus package is passed and it wont allow replacement of US employees who are laid off by H1B workers. This is applicable to firms using the bailout money.

It is now debated that it can be counterproductive because organizations will not be able to hire the best available resources.

Though this program has been beneficial to both US firms and foreign workers who have come on H1B. This has been misused multiple times. A big Visa racket has been unearthed and investigations are going on. 11 people have been arreseted in relation to this fraud.

Recession rot started seeping india IT

2009-02-14T15:29:00.003+05:30

After being the dream job for lot of Indians, IT has began to sour. Other jobs too doesn't seem promising in the current scenarios. With hiring freeze, pay cuts, no variable pay now the axe is on the employees so that organization can sail through the crisis.

Satyam saga has left so many employees scrambling for job security. Sapient is the latest victim. After laying of 160 employees few months back it has laid 500 more employees from Bangalore, Gurgaon and Noida offices. It employees 6000 people.

This was done amid tight security and employees were not allowed to enter the premises.

Also Yahoo ( has asked 45 full time employees to put in their papers, reports Business Standard, quoting a source who says that over 100 employees may be asked to quit.

With US and Europe bracing recession, H1B and HSMP are also not a very attractive options.

Indian IT companies with large number of employees and project bidding at lower rate has kept revenue per employee at $50000 compared to $100000 of the global IT peers.

With salary rising , the edge of cheaper outsourcing is loosing soon.

Employees at these times need to be more innovative in there solution for higher value work. Smart work rather than hard work will be valued. It is imperative to learn new skills to keep oneself updated with latest technologies and job profiles. Basically in these times to remain on the top every increment needs to be supplemented with increase in productivity.

With IT in the forefront of Indian consumption boom, this is all set to slowdown and we can see lot of NPAs in banks.
Stock market should go down after initial euphoria of rail and general budget which is supposed to be friendly in the election year.

Cash will be king and it needs to be deployed at the right time at the right place for best returns.

You might be tempted with the current cheap valuations but I guess we can get the same stocks at quite cheap prices.

People say that it is bear market but stock market is way high from its lows now and many stocks have doubled from their 52 weeks low.

Some layoff trackers :-

http://www.jobeehive.com/company/layoffs

http://www.forbes.com/2008/11/17/layoff-tracker-unemployement-lead-cx_kk_1118tracker.html?partner=contextstory

Alternate Energy

2009-02-08T17:37:00.000+05:30

Suzlon Energy and Moser Baer are now top players in Wind and Solar Energy Business. Both have fallen greatly from their heighs and may still fall some more but the downside seems to be limited.

Oil price crashing had a big impact on this sector because when oil comes cheap investment in alternative energies decline. But this sector is going to perform in the long term because there is no alternative to alternative renewable energy.

US Obama has has hinted on promoting renewable energy and huge investments in this area. Economic slowdown will have impact on the order book of these companies and this seems to be a good time to buy these stocks for long term at relatively cheap prices.

Moser baer photovoltaic has bagged order from gujarat govt to setup roof top photovolatic installations and complete system will be installed by April 2009

Moser baer is also going to setup India's largest grid connected solar farm in Rajasthan.

Apart from Entering entertainment business through its home videos It is a big player in media devices. It is also trying to enter in DVD,Monitors and other conputer peripheral hardwares.

Suzlon has controlling stake in REPower which is a big wind energy player. It has got regulatory approval to raise 18 billion rupees for it ADR issue.

Currently in capital investment mode earnings will start trikling in coming years..

SREI Infrastructure Finance Ltd.

2009-02-07T23:47:00.001+05:30

SREI Infra is involved in financing infrastructure projects in Power,Road,Aviation,Shipping & Railways which requires huge capital expenditure.
SREI Infra is currently quoting at its new 52 week low with a PE of 3.49

Srei Infrastructure Finance Ltd. is one of India's leading Non Banking Financial Institutions and the only private sector infrastructure financing NBFI.

In addition to infrastructure, Srei also offers a bouquet of allied financial services like capital market services, insurance broking and venture capital. These have not only helped to serve existing customers better, they have also grown into healthy stand-alone services.

Srei has entered into a strategic alliance with BNP Paribas Lease Group, a subsidiary of BNP Paribas of France, for equipment financing business through a joint - venture.

SREI subsidiary Quippo is involved in Telecom tower Infrastructure services.

Liquidity crunch and high interest rates took tool on this stock which is now very cheap. Though overall downside cannot be gauged, fresh exposure can be taken in small lots to accumulate at lower levels.

Source: company website

JM Telecom Sector Fund

2009-02-07T23:39:00.000+05:30

JM Telecom Sector Fund

This fund has the right mix of stocks which can perform in this economic environment. Recent recession has bought most of the stocks at attractive level. P/Es are low and they are resonably priced. Only few sectors are showing growth others are in contraction mode. Telecom sector will still continue to grow and add subscribers. though their is cut throat competition , growth in broadband , 3g and other services will drive revenue and growth.

This fund has right mix of stocks with huge weightage on Bharti(Airtel),Reliance Communcation(Rcom), Tanla,Geodesic, Tulip IT (Tulip Telecom) which are now resonable priced and poised for some more growth.

NAV of this fund is below 6 currently and can be bought in few lots for 2-3 years time frame. It has a small Asset size of about 4 crores so it can be nible footed as compared to the bigger funds in terms of churn.

Retirement Postponed!!

2008-10-17T22:50:00.000+05:30

We were hearing people planning to retire by 50....no no 40.....or still less, but do they still hope to achieve it??

The melt down in the stock market which has made the blue chip stocks look like penny stocks has reduced savings for lot of investors.

We all know that in the longer term equity outperforms all investment class so it would be wise to continue your investment plans.....Reduced level of stock market gives a an opportunity to buy good stocks at throw away prices.

Instead of being greedy and buying lot of stocks at one go we and see get its value reduced by 10% we can buy regularly in small quantities...

Regular and disciplined investment will still give u the chance to achieve your financial freedom.....

Below 10K people are talking about going a lot down to find the bottom when price will stop falling and probably stop rising too and just hanging in there for sometime. I think now the Indian stock market warrants long term investments...

Downgrade in earnings are already covered in the fall in PEs and most of the bad news is factored... After the panic subsides and rationality comes back we will again see happy days...

Why do we need stock market......

2008-10-17T22:47:00.000+05:30

WHO, WHAT, WHY?

The BBC Magazine answers...follow the link....

http://news.bbc.co.uk/2/hi/uk_news/magazine/7672274.stm

FII Lending Data

2008-10-17T22:45:00.000+05:30

FII Lending Data by Sebi released today...

HDFC Bank: 2.5 lakh shares
HDIL: 12.66 lakh shares
Hero Honda: 3.98 lakh shares
HUL: 7.85 lakh shares
ICICI Bank: 2.68 lakh shares
ITC: 22.91 lakh shares
L&T: 8.21 lakh shares
NTPC: 5.49 lakh shares
Punj Lloyd: 3.44 lakh shares
Rel Comm: 1.31 lakh shares
RIL: 1.21 lakh shares
RPL: 3.26 lakh shares
SAIL: 3.99 lakh shares
Tata Steel: 3.25 lakh shares
Axis Bank: 1.39 lakh shares
BHEL: 1.05 lakh shares
HDFC: 400 shares
Infosys: 38,611 shares

Good Riddance

2008-10-16T00:57:00.000+05:30

Good Riddance - Time of your life

"Time grabs you by the wrist, directs you where to go
So make the best of this test, and don't ask why
It's not a question, but a lesson learned in time"

Recent turmoil in the equity market has given us lot of valuable lessons though at a heavy price ;-)

Unpredictability , irrationality , greed are all part of this market.....Time and Price correction were both required..

Its very important to find the right value for everything then only we can identify whether it is cheap of expensive...

Earlier we were buying not because it is cheap ( stock might be horribly expensive) but is still going to rise more.....targets were set and nobody wants to miss out the joy ride.....

now all this seems to be a dizzying rollercoaster.......

Be patient and don't sell it at a loss, for long term investor some more downside should not be a dampner. Recession or slowdown from now on slowly and steadily we can start putting small amount of money in the markets.

Remember 50% downside will bring 100% profits
90% downside will bring 1000% if the stocks are retraced to their original levels...

Many stocks are already beaten down 80-90% and they don't have much to loose......

Finally...

It's something unpredictable, but in the end it's right.
I hope you had the time of your life.

Timing Matters in Stock Market

2008-10-16T00:48:00.000+05:30

A very good article by Arun the stock guru

Timing is everything for investors

Go and enjoy reading it....

Rolta India - Stock Coverage

2008-10-05T22:56:00.000+05:30

In current turmoil in stock market and not so good outlook for Indian IT industry which sources its revenue mainly from US and somewhat from Europe, the IT stocks are out of flavor. nearly 40% of the revenue comes from BFSI segment which has collapsed.

One stock which stands apart is Rolta India. It is a market leader in providing specialized IT-based solutions toe the geospatial and engineering sectors.Rolta has broadened its engagement and geographic footprint with strategic joint ventures with Stone & Webster and Thales.
It has a near monopoly in the verticals it is playing.
* 70% share of Indian GIS market
* 90% share of Indian EDA market
* 95% share of Indian Defence GeoSpatial market

Rolta provides a full complement of specialized services in the following areas:

Information security, software packaging and testing, ERP consulting and integrated CAD/CAM /GIS services

Animation,modelling, programming, interactive media. and game design solutions

Fully integrated C4ISTAR for armed forces

Global leader in IT-based Geospatial, Engineering Design and information security and defence solution

End-to end geospatial and photogrammetry solutions for diverse applications and industries

Engineering design and automation solution for the energy, ship building and industrial segments

I don't want to give a target price for this stock nor I have a right price for you to enter because I cannot judge the bottom of stocks in current scenario. Logic doesn't follow in fearful market. But if someone wants to be in the IT world in a niche segment which is growing they can take an exposure to this stock.

Rolta India can also benefit from the nuclear deal signed by India. It is aiming to provide engineering design and automation solutions to EPC players. L&T and BHEL are already its clients who are eyeing a huge pie in the nuclear business oppurtunities.

source : rolta india website, hindu business line

Interbank Rate

2008-10-05T15:42:00.000+05:30

What is Interbank Rate?
It is the interest charged by one bank to other bank for short term loans. This interest rate is regularly fluctuating based on money availability, demand, current rates, time horizon and other terms.

There are some standard bank rates used as a reference by different banks and other interested parties in the economy.
Eg: LIBOR (London Interbank Offered Rate) , MIBOR (Mumbai interbank offer rate). Indian Banking Association(IBA) has pushed for it to the RBI.
Benchmark rate they say helps eliminate the fuzziness in loan and deposit pricing and usher in more transparency in the entire system.[source : Rupee time]

Why do bank need to borrow when they are themselves lenders?
Banks need to borrow to manage liquidity and meeting various statutory requirements placed by the RBI or other federal agencies.
Banks are required to keep some amount of liquid capital or asset to fulfill the withdrawal requirements of the customers. This is a fixed percentage of the total assets. If their is a temporary shortfall banks need to borrow to meet the liquidity requirements.
The lender bank earns interest on the excess assets lent.

Time to turn the tables?

2008-10-05T14:59:00.000+05:30

Indian stock markets are in turmoil, thanks to current situation in the west with US,European Union and Japan facing recession.

Indian markets are classified as emerging markets and hence considered risky!! But are they riskier than the markets(considered developed) where capital is fleeing? Is US treasury bonds more attractive than our desi G-Secs?

We have for long depended on US and Europe for our growth. They grow, they consume so we grow. They provide capital for growth.

Do we need their capital or they need ours truely :) Household savings have increased and domestic market can be kept stable by local consumer demand and huge capital spends on infrastructure. Indian companies are buying abroad creating job oppurtunities or atleast saving the existing jobs abroad. They are providing cash to sick units and turning them around.

Now its time that we provide the support and stabilizing effect to the world finance. Foreign investors, instead of exiting can think this as oppurtunity here. We need to strengthen our markets from fickle incoming/outgoing capital.

In this globalized economy we can find succor locally in our less leveraged economy.

Future Growth Areas - Indian Stocks

2008-08-15T12:31:00.000+05:30

Short term Outlook for India is bad as for as annual returns are concerned. Inflation is sky high , growth is slowing down , interest has started inching upwards giving pinch to consumers in every price band.

Currently inflation is 6-7% higher than last year and 2-3 times higher than cushion level of R.B.I.

Though the cyclic up-downs will continue to happen, promising themes will keep emerging which will provide huge growth and fuel Indian Economy.

Following themes can emerge as winners.

1. Aviation/Defence -
Indian Military yesterdat got its first Hawk (AJT) built by HAL . Technology transfers and localization promises a lot for Indian Manufacture. This will help us developing Defence Aviation industry. Component Manufactures will gain immensely. New bidding process require that the supplier honour a 50% offset clause, or source 50% of the components required to complete the order, by value, from domestic manufacturers.

Indian companies have to build capacity to absorb such huge offset work which would be coming to them.
Larsen and Toubro Ltd (L&T) which is India's largest Capital Goods and Infrastructure firm plans to bid for the order to the company winning the MMRCA(medium multi-role combat aircraft) contract of about 10 billion dollars.

The MMRCA deal involves buying 18 aircraft from the seller and manufacturing 108 under licence by 2012.

2. Energy and Power

India has a huge power deficit and demand for power is going to grow substantially. Many power projects are going to come up to scale up the supply. UMPP has been introduced through Electricity Act 2003.

Gas and Oil Finds in East Coast would provide much relief to energy hungry country benefiting fertilizer,power and other industries. It will also help reduce forex outflow.

3. Infrastructure

This theme is being played for last 2-3 years and will continue for some more years. If India has to grow it has to build huge infrastructure in every field - roads, ports, airports, power, oil/gas, housing, malls etc.

4. Nuclear Power
Power generation, equipment and capital goods manufacturers are very optimistic of Indo nuclear civilian deal.
They are hoping that components for the new nuclear deal will be manufacture locally and initially by serving foreign nuclear manufacturer, they will become supplier and become part of the supply chain eventually.

Oil Marketing Companies

2008-05-31T22:43:00.000+05:30

Price Hike!! Price Hike!! Price Hike!!

No decision yet taken by the government readying itself for upcoming elections. These companies have already taken huge losses.

We have seen strength in these companies last 1-2 weeks in hope of price hike.

I wonder how much these companies can gain given the fact that hike will only reduce their losses but not make them profitable. Gods knowns what will happen to already incurred loss.

Oils bonds are helping them partially but thats a sad story for common man because these bonds are just postponing the disaster.

Banking Space

2008-05-31T22:40:00.001+05:30

Banking stocks are coming under hammer for quite a few days.

Sbi and ICICI are touching new lows everyday. With inflation soaring high and oil price on the anvil its a difficult phase for them.

With liquidity crunch, high interest rate , low credit offtake coupled with slowing economy banks are facing moderation in their earnings.

We have to wait and watch , and enter the stock at right time.

Larsen & Toubro

2008-05-31T22:36:00.000+05:30

L&T gave the robust fourth quarter results with net up 38%. It has also announced a bonus of 1:1 . This is the second one in 2 years.

It has moved up sharply for last 2 days. Hope it helps in reviving the sentiments in the capital goods space.

Apart from the diverse operations, it is now eyeing JV with Indian Railways.

Last month it hived off RMC business stating it as non - core and made a cool profit.

Mark to Market loss is partially recovered and hope to square off soon.

After long time

2008-03-01T23:19:00.001+05:30

Sorry for not posting anything for a very long time. Truly I was really busy with my office work.
Hope to get sometime to devote here :-)

Budget is out and congrats everyone who has benefited from the tax exemptions. People in IT industry gearing up for lower salary hikes can get a little cushion from this exemption.

Short Term Capital gains tax has increased from 10 to 15%. Hope this helps in people investing for a longer time to avoid this tax.
But I doubt this will happen because of human tendency of earning faster without patience.

In current scenario that might happen because people are just holding on to recover their losses and not sell stocks at loss.

Most of you would have done your tax savings for this year.

Markets are volatile for past 1 month and half. Instead of avoiding the stock market completely people should continue investing in smaller amount and build a good portfolio for 2-3 years time frame.

Lot of stocks are available at attractive valuations.

Do you homework and be on track of your financial planning.

Happy Investing :-)

Cement and Steel Sector

2008-02-10T20:06:00.000+05:30

Cement and Steel Sector

Both these sectors can outperform index in 2008.

Companies having backward integration with raw materials in Steel industry are set to benefit .

Steel prices are rising and will rise more in 2008. Raw material prices are also on the rise.

Biggest consumer China has also seen production cost go up significantly.

Indian Steel demand is robust and focus on infrastructure will keep it that way.

Gujrat NRE coke,sesa goa, Tata steel looks good in this sector.

Cement sector is going in for huge expansion to cope up with the demand, but the new capacities will start coming in from first quarter of FY09. Demand and price realization will remain firm in these scenarios. Some government has tried to curb the price rise in cement saying they will import cheap cement from outside. But cement prices are high across asia and so poses no immediate threat to local cement makers.

Till the monsoon kicks in around june-july. These 2 quarters can see huge construction activity.

India Cements, Grasim Industries , Shree Cements looks good if one want to enter this sector.

Value Buying in GE Shipping

2008-02-06T16:48:00.000+05:30

Through mail from Abhay.

CMP 437
P/E 5.17
Market cap 6654.37
MarketCap/Sales 2.20

Financials for last 12 months( Jan 07 to Dec 07)

Net Sales 3012.13(2186.31) Up by 37.74%
Net profit 1298.31(825.91) Up by 57.19%
EPS 84.86(54.24) Up by 56.45%

Other players in this segment with their net sales for FY07 (i didn't calculate last 12 months sales for all) & their P/E

Company NetSales NetProfit MarketCap current P/E

ABG Shipyard 704.36 116.29 3717.29 25.06
Essar shipping 1024.30 134.04 10,227.98 60.45
GE Shipping 1990.6 883.31 6646 5.12
Shipping corp 3703.44 1014.58 6405.44 7.54
Among these companies only ABG shipyard is growing at faster rate but on smaller base & has P/E of 25.06 almost 5 times that of GE. Shipping corp also looks cheap but growth has been slow compared to its peers.
MarketCap/Sales ratio of 2.2 & P/E of 5.12 with potential growth of 50% plus makes it very cheap.
Also after the fall in stock price in January it has shown momentum back from 330 levels.

Stock News

2008-02-05T01:34:00.000+05:30

Jindal Saw bags Cairn Energy order worth $200m for pipes

Jindal Saw gets Rs 200 crore power project contract

After saw pipes Jindal saw betting on infrastructure for growth.

Punj Lloyd tripped for past few days after heavy unwinding of position by a big broker.Stock to rise soon.

GMR Infra

GMR Group’s Vemagiri power plant will become operational this month.

Hyderabad Airport to be operational by March 08: GMR

Stock will retest it previous highs in 2-3 months.

Chattisgarh to become powe hub of the country. With 40 power plants planned with investment commitment worth Rs 1,58,000 crore. This will help add 39,500 mw in next 8 years.

Lessons learned

2008-02-02T00:36:00.000+05:30

Current market turmoil as given lot of lesson to the investors new to the market.
People who were used to get returns just by investing blindly in the market past year have burnt their fingers recently.
Now people should stick to stocks which are fundamentally strong and should stay away from momentum stocks.
Fundamentally strong company can loose a little value in this kind of blood bath but they still retain their inherent value and will have premium in good markets.
We now have huge interest rate differential with US which is around 4.75%. We have to see its impact on capital inflow, dollar depreciation , industries affected, inflation because of inflows and RBI moves because of all these events.

Status quo by RBI recently has not been favorably received by most of the industry.

Indian stock market is at attractive levels now and should do well in coming years based on the growth estimates. Investors have to settle for lesser returns from past years but still it will be better than the traditional saving instruments.

The most important lesson which I have learnt is we always need to keep certain amount of cash aside. When market falls money not invested retains it value and gives you huge leverage when you can buy stocks when they are available at throw away prices.

If you are always 100% invested with all the money you have then when market falls you don't have dough/capital to use the opportunity knocking your door.

It can make huge difference if you buy in the depressed market condition.Though everyone is panicking , if you can hold your sentiments and invest wisely you can gain immensely.

1. Keep at least 15% of liquid cash to cash in on the market opportunities.
2. Buy and increase your holding in value stocks.
3. Always book profit in momentum stocks when market peaks and show sign of weakness.
4. Don't play on margins when market is in turmoil.
5. Don't over leverage.
6. Play only on cash. Don't risk more than you can afford.
7. Buy tax saving instruments when markets are on high and you don't have any alternative. Don't wait for January or February.
8. Buy equity when markets are at there lows.
9. Don't gamble play informed.
10. Don't panic and never loose. Don't convert winning stock into a loosing one.

Bottom fishing in MFs

2008-01-29T00:32:00.000+05:30

In the recent market turmoil MFs have not been spared. In absence of FIIs buying, MFs and local institution has tried their bit.

Funds who were top performer for past few years have taken quite a beating. Most of them are some where close to 15-20%.

Here is the list of few funds for your shopping list. If you missed the train earlier here is the chance to catch it from long term perspective.

MF NAVs	52-wk	Current	% Change

Rel NRI Eq	40.1	33.8	-15.7107

Kotak Opp	56.3	48.09	-14.5826

DSP ML Tiger	62.4	52.38	-16.0577

Rel Growth	491	401.79	-18.169

ING Dom Opp	44.9	38.24	-14.833

UTI Infra	50.7	42.8	-15.5819

Sundaram Mid	155.4	125.38	-19.3179

Magnum Contra	64	53.63	-16.2031

Magnum Global	70.4	57.52	-18.2955

JM Basic	40.8	34.08	-16.4706

JM Emerging	20.7	16.93	-18.2126

Rel Diver	87.7	74.84	-14.6636

Heard on the Street

2008-01-24T15:41:00.000+05:30

Fed Rate Cut Happend on Tuesday Night: Good For Market

RBI Rate Cut Expected on Next 10 Days: Good For Market

Next Fed Rate Cut Expected on Next 10 Days: Good For Market

I am BULLISH!
I am BULLISH!
I am BULLISH!!!
I am BULLISH!!!!!!
I am BULLISH!!!!!!!!!!!!

But Still a word of Caution Came from Some Informed Circles still Believe that the Market can test the 15k level in next 15 days....

A good option to Hedge your Portfolio to any Risk of a Market Crashis to BUY a Put Option of some Highly volatile stock such as ISPAT, JP Hydro, Nagarjuna Fertilizer, RNRL or ADLABS.

BHEL and L&T news snippet

2008-01-24T00:09:00.000+05:30

Just In - BHEL bags order of Rs 2500 cr for Tamil Nadu power plant.
Equipment major Bharat Heavy Electricals Ltd (BHEL) on Tuesday said it has bagged a Rs 866-crore order from Reliance Industries for setting up a 345-MW captive power plant in Maharashtra.
This is the first commercial order on BHEL for an ‘advanced-class Frame 9FA’ gas turbine and will open up a new line of business for the company.

BHEL is currently quoting at 2148

L&T has bagged order worth Rs 1,057 crore in Middle East.
L&T may form a JV with US arms major Lockheed Martin to develop Mark 41 Vertical Launching Systems in India.
L&T gets Bhel-like privileges, may power super-critical drive.Private sector engineering major L&T is being officially promoted as the Bhel-II

L&T is currently quoting at 3751

Keep Calm

2008-01-23T00:16:00.000+05:30

TRANQUILITY

This picture is exact opposite of what is happening in financial markets recently.

Are you still feeling jitters?? I think we should stay calm and do not panic. If you are in market for a long term then what happened currently is mostly notional loss from notional profits. Panic can make you take decisions which you might not otherwise. If you are staring at your losses then don't worry everyone else has lost too....

You are not alone and misery likes company.....

If you were trading on margins or were in derivatives trade. I must say beware and hold your hands for sometime till the market rationalize because as we have the famous saying....

"Markets can remain irrational longer than you can remain solvent"

Yes I didn't post anything for past 2 days and that was purposeful. I don't think anyone was interested in hearing any gyan :-) and even I was confused what to write :D

The stocks which everyone was recommending when indexes were at 21000( and I am talking about pure fundamental stocks and not the momentum plays...) still remains a good buy.

Yes there will be some moderation in gains but there will be gains. Fundamentally nothing has changed.
India is growing and it will be reflected in the companies which are working to make that happen.
Various central banks are coming out to help the markets. Fed has already cut rate by 75bps.

I am no one to advice but I think sticking with frontline large caps will be best bet.

And as a closing statement I would like to quote Mr Warren Buffet who says

"Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years"

If you think for few minutes you would certain find few gems in the market which falls into that category.