comments on 07-12-2007

Friday, December 07, 2007

Market was volatile as majority of the players were pre conceived
with the notion that market is heading for huge correction today as
well as on Monday. I would really pat my S T team which has take
advantage of the situation and made stocks call rotating like T 20
match. There performance is so far impeccable. Every stock which
they identify for S T has some reason and story behind it. I am
really amazed with the pace of braking intelligent insight well
ahead of the market. We always keep in mind while dealing with the
larger interest of our members that…

It is strange to find out movement of the chairman the co and also
the purpose of such movement. Yes, this has created a smart push of
almost 11% in the stock price of Sterlite Optical. The best part is
that even after their profit booking the stock goes up with huge
volumes. This is called win win for both seller as well as non
sellers.

Our call on sugar was also bang on target. However we are still not
convinced with I T recovery as we have reasons to believe that Rupee
will rise to 35 come what it may and at 35 USD no software co can
make good profits. Therefore those who are stuck in tech stocks may
use this opportunity to offload tech stocks to be entered post
Budget. Even funds may churn portfolio e g Sell Infosys and buy
Bombay Dyeing. Infosys has upside but not beyond 10 to 20% whereas B
D has at least 300% on the basis of basic calculations.

In last 2 days best of the industry players made position in B D
till Rs 790 and suddenly on co announcement the stock was hammered
to catch short sellers on the wrong foot. Whether ULCC or not the
land size would not change and the rate can't change. We had valued
B D based on selling price of Rs 18000 psf to Rs 5000 few days back
whereas our I T wing has now found out that B D is starting DADAR
booking at Rs 28000 psf. This will increase the expected price of B
D to Rs 7000 in 3 years.

We had started recommending Century at Rs 150 with target of Rs
2500. It has crossed 50% of the same and now heading for our target.
In fact, it could rise to Rs 5000. Similarly B D will touch Rs 3000
at least which nobody on earth would be able to stop. Please cut and
paste this writing till Dec 2008. In fact, we know a Fund manger who
had met management which has gone on record saying that DADAR
project alone could give Rs 9000 crs bottom line for B D.

With announcement of GANGA EXPRESS and Rs 30000 crs bidding from as
many as 22 companies, I think the next growth driver is U P and
identify all companies which has huge land bank in U P. Apart from J
P Associates, I think Bihar Sponge, Kesar Enterprises and Triveni
Glass has huge land banks which can spark huge rally in these stocks
going forward. If you know any stocks which have got huge land bank
in U P please e mail me so that I can upload the same for the
benefit of other members. Definitely with REL having major interest
in UP all U P stocks will rise for land stories.

I think Manoj Kumar which was humiliated by SRK was great visionary
who had produced UPKAR movie which has now proved after 4 decades.
Yes, it is true that "MERE DESH KI DHARTI SONA UGLE UGLE HIRE MOTI
…..MERE DESH KI DHARTI." Even a small pocket of land is today
fetching you wealth to take care of your next 2 generations.
Therefore off late investors too have started asking a prominent
question to promoters even before knowing their products how much
land do you have…? How much can you develop…? How much value it will
add to your valuations