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Showing posts from December 2, 2007

RIL, ONGC woo Chevron for joint Nelp VII bids

MUMBAI: India's biggest firm Reliance Industries (RIL) and state-owned major Oil and Natural Gas Corporation (ONGC) are wooing US major Chevron Corporation to jointly bid for oil and gas exploration blocks.

The bidding for the seventh round under the Nelp (National Exploration and Licensing Policy) is expected later this month. Chevron, however, is cool about the offers. It is more interested in bidding for discovered fields where the risk is less and the payback period is shorter.

Both RIL and ONGC have invited Chevron in order to avail of Chevron's expertise and advanced technology in the deep water exploration. It is learnt that one of the company has also agreed to the extent of offering operatorship of the block to Chevron, if the bid is successful.

RIL did not respond to an email questionnaire on the issue but RIL's president, petroleum business, PMS Prasad had earlier told this paper about jointly bidding with Chevron for Nelp VII. ONGC sources confirmed…

Tips to choose the right stocks

start with; Look at the management of the company. A strong and able management is one of the very important decision factors. This is a basic study but 50 per cent of the confidence is derived through a good leadership of the company that you are investing in. • Perform some valuation analysis. Company X is priced at Rs40 and Company Y is priced at Rs60 in the same sector. Which stock you would buy? Is it X because it is priced lower than Y or Y because has higher price in Market? The price does not really tell anything. P/E (Price to Earning) ratio is one of the most popular numbers the market looks at while finding the value. This is the ratio of market price of the stock to the EPS (Earning per share. Net Income / outstanding shares). This tells how much the market is willing to pay for the earnings it is generating. But there is no right P/E. Higher P/E appears more expensive but also can be an indication that market is keeping a lot promise on this company and willing to pay h…

IPO roulette

The booming IPO market which has given stellar returns this year could prove even more lucrative for the retail investor. Sebi has allowed companies to issues shares to retail investors with a discount of up to 10 per cent on the issue price. For investors who have been sitting on smart gains on the back of a rising market, this move will only increase their appetite for primary paper. Of the 85 issues listed till date in 2007, 64 ended in positive territory on day one while 54 have managed that even on current market price. While this might not seem such a major achievement with the Sensex closing in on the 20K mark, a volatile period marked by the credit crisis meltdown is not the easiest to pilot an IPO. Unlike its performance last year when it returned 47 per cent, the Sensex has managed 38 per cent so far in 2007. The difference is largely because the benchmark index was down 9 per cent in February and 3…

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 st…

patel air temp india--accumulate on dips

Summary of Contents STOCK IDEAPatels Airtemp India
Cluster: Emerging Star
Recommendation: Buy
Price target: Rs135
Current market price: Rs88Catch it youngKey pointsBooming user industries: Patels Airtemp India, which manufactures heat exchangers, pressure vessels, industrial fans and blowers and other heat-transfer-technology products, would benefit from the ongoing boom in its user industries such as oil and gas, refineries, power, cement, and fertilisers. The heating, ventilation and air conditioning (HVAC) business, where the company undertakes turnkey projects and manufactures HVAC equipment is also expected to benefit from the ongoing retail boom. Expect strong growth in new order booking: The company has a healthy order book of Rs45 crore, out of which Rs40 crore is executable over the next six months. We expect the orders to continue to grow at a strong rate of 45-50% annually for the next two years. We expect new order booking of ~Rs70 crore in FY2008, which should increase to ~Rs1…

Modern India spurts on stock split proposal

Modern India jumped 5% to Rs 952.95 after it scheduled a meeting of the board of directors on 17 December 2007 to consider sub-division of equity shares. The company made the announcement during market hours today, 7 December 2007. On BSE, 7055 shares of the scrip were traded, with pending buy orders of 16827 shares at maximum limit. The stock had an average daily volume of 3229 shares on BSE in past one quarter. The scrip had touched a high of Rs 952.95, which is also so far its day's low. The stock had hit a 52-week high of Rs 968.85 on 5 December 2007 and a 52-week low of Rs 106.35 on 13 December 2006. The scrip had outperformed the market over the past one month till 5 December 2007, surging 103.22% as compared to the Sensex's return of 1.74%. It also outperformed the market in the past one quarter by a hefty margin, advancing 407.73% as compared to the Sensex's rise of 26.39%. The small-cap textile company has an equity capital of Rs 7.51 crore. Face v…
Thermax Buy Rs 896.15
ICSA India Buy Rs 397.15
Yes Bank Buy Rs 246.05
grasim ind sell --citi
kpit commins infosystems --book profit

RECOMMENDATIONS

Thermax Face Value - Rs 2 Buy Rs 896.15
Ticker: 500411 Equity: Rs 23.83 crore H/L: Rs 968.30/341.10
􀁺 Thermax is a global solution provider in energy and environment
engineering. It offers products and services in heating,
cooling, waste heat recovery, captive power, water treatment
and recycling, waste management and performance chemicals.
􀁺 The primary reason to recommend this company is its strong
financial performance in the first half of FY08. For H1FY08,
the company posted a topline of Rs 1436.63 crore and bottomline
of Rs 125.22 crore as compared to Rs 804.93 crore
and Rs 62.62 crore respectively in H1FY07.
􀁺 On the valuation front, the company discounts its trailing 12-
month performance by 21x, which is low compared to that of
its industry peers. Thermax had a strong order book of Rs
2769 crore as on March 31, 2007. With strong order book for
all …

Talk of alliances with sector biggies fires up small steel stocks

Dec, 2007, 0048 hrs IST,Rajesh Unnikrishnan & Nevin John, TNN MUMBAI: Spurred by rumours of proposed alliances and tie-ups with domestic steel giants, mid- and small-sized steel stocks have been witnessing a sharp run-up on the bourses.

Share prices of steel and speciality steel makers such as Surana Industries, Bellary Steel, Bihar Tubes, Carnation Industries, Southern Ispat and KIC Metaliks have shot up by an average 30% over the past two months. The reason — their proposed alliances with domestic majors (Tata Steel, JSW Steel, Essar Steel, etc) for supply of raw materials and logistics support. Also, increasing consumption and demand for steel and better price realisation have added to the positive sentiment in these counters.

The stock price of Carnation appreciated by over 90% to Rs 63.10 on Wednesday from Rs 33.10 around two months ago on rumours that JSW Steel is negotiating for an equity alliance. Similarly, Bihar Tube shares surged 35% over the past two mon…

Stock split proposal electrifies GVK Power & Infrastructure

GVK Power & Infrastructure jumped 8.71% to Rs 861.05 at 12:57 IST on BSE, after the company's board today, 6 December 2007, approved a 10-for-1 stock split. . The company made this announcement during trading hours today, 6 December 2007. Meanwhile, BSE Sensex was up 153.76 points or 0.78% to 19,891.83. On BSE 3.10 lakh shares were traded in the counter. The scrip had an average daily volume of 78,455 shares in the past one quarter. The stock hit a high of Rs 935 so far during the day, which is a record high. The stock has a low of Rs 790.20 so far during the day. The stock has a 52-week low of Rs 266.25 on 13 December 2006. The mid-cap scrip had outperformed the market over the past one month till 4 December 2007, gaining 18.14% compared to the Sensex's decline of 0.31%. It had also outperformed the market in the past one quarter, rising 42.90% compared to Sensex's rise of 26.44%. The company's current equity is Rs 140.58 crore. Face value per share …

open offers appears to be uncertain

MUMBAI: The fate of some of the forthcoming open offers appears to be uncertain after the stock price of the respective companies shot up close to or even beyond the stipulated offer price. The trend shows that once a company announces an open offer, investors flock to the counter in anticipation of a good rally ahead of the offer. Often in the past, the pre-offer euphoria has been so high that the share prices soared beyond the respective offer prices within a few weeks of the announcement.

Merchant bankers maintain that very often the price becomes unattractive by the time the offer is open, making it difficult for promoters/acquirers to successfully complete the offer. In such cases, investor's response generally is not positive, forcing the acquirers either to revise or cancel the offer, they say.

More than half a dozen companies, including Ambuja Cements (ACL), Foseco India, Garware Offshore Services, Tata Investment Corporation (TIC), DCM Shriram Inds, SRF Polymers and Gokalda…

comments on 05-12-2007,Flow of river....

Wednesday, December 05, 2007


Yet again it was a spectacular day for the market. IDFC and NTPC have shown huge accumulation pattern like GAIL we had initiated buy call in GAIL. Our inst desk is still bullish in GAIL and advising clients to hold positions till Rs 550 plus. In fact, GAIL is now heading for Rs 1000 in next 6 months. Similarly they are very aggressive on NTPC, IDFC, RPL, R Com and RNRL. As reported on last Saturday we had indicated that 12 items were among call volumes out of 27 items and aforesaid 5 items were from the said list. Something is definitely cooking in IDFC, NTPC and RPL and hence just keep tab on the news. These 3 stocks might explode the way GAIL exploded.

OBC has direct nexus with SBI rights issue. With SBI heading for Rs 2700 before rights all banking stocks might just burst and in that rally OBC will cross Rs 400 very easily. The only resistance is Rs 280 which could happen tomorrow early morning then only zoom. We have reduced IDBI from SC and…