Coal india IPO has dented some secondary market investments and indian govt owned financial institutions have sold indian shares in order to prop up Coal india IPO. So there is decline in NIFTY.
Investors get time till Oct 25 to withdraw CIL IPO bids
Stating that there were certain inadvertent errors that crept into its offer document, Coal India (CIL) today offered its investors time till October 25 to reconsider their decision to take part in its IPO.
"...It is clarified that on account of typographical errors in the company's standalone summary statements of profit and loss (restated), the amount shown under accretion in stock and other income for the quarter ended June 30, 2010 on pages...Of the Red Herring Prospectus were inadvertently interchanged with each other.
"...In view of the above, kindly note that the bidders including QIB bidders, if they so desire, may withdraw their bids. The request for withdrawal of such bids shall be received on or before 5:00 PM on October 25, 2010," said in a statement to the stock exchange which coinciding with the final day of public offer.
Market experts said that whenever there are any changes made in the prospectus of IPO bound companies, regulatory norms mandate them to make public announcements and give investor an option to withdraw bids.
"It is not the first time such a thing has happened. In such scenarios, generally investors have not been seen withdrawing their bids," a merchant banker said.
Among many such IPOs, VA Tech Wabag had given investors the option to withdraw their bids in its recent share sale as certain errors came to light in its offer documents.
"Generally speaking, we have not seen investors withdrawing their bids from the company due to this," the banker said.
Meanwhile, Coal India maintained that there has been no change in the total income of the company or the company's standalone summary statement of profit and loss in the offer document due to the error.
Many investors may think whether it is a plan to allow FII/mutual funds/LIC ti withdraw their applications in part before allotment thus misguiding the retail investors about total subscriptions before they subscribe on the closing day.But chance is given to retail investors also to withdraw but quantum of withdrawal by FII/mutual funds/LIC should be made public and retail investors should be allowed one more day for withdrawal as per the tradition in offer documents.
On seeing the downtrend in price of tata steel, I could understand the level of games that are played by FIs especially when the derivatives settlement approaches fast for Oct 10. Anyhow, still I recommend Tata steel in the portfolio of one's investment as it is the only stock that is available cheap. In this respect, the following research editions also enthused me.
My recommendation:
Don't sell Tata steel. Either buy at current price of Rs.617 or Hold. You will get good returns in another 6 months to 1 year. For other stocks, my old posts stand valid including visa steel, Jp associates etc.
Edelweiss: Target Rs.781/-
Raising consolidated EBITDA by ~7% in FY11 and ~10% in FY12
We are revising upwards Tata Steel Europe’s (Corus) EBITDA by 6.7% to USD
841 mn in FY11 and by 5.6% to USD 1.3 bn for FY12, primarily due to betterthan-
expected realisations in Europe. We increase our FY12 EBITDA/t for Corus
from USD 66/t earlier to USD 80/t. For the Indian operations, we raise our
estimated EBITDA to USD 2.3 bn (up 5.7%) and USD 2.4 bn (up 12.4%) for
FY11 and FY12, respectively. This is led by increase in steel prices ahead of
expectations and firm price outlook.
2.9 mtpa brown-field expansion on track; to be completed by Dec-11
The 2.9 mtpa brown-field expansion will fully commission by December 2011,
with blast furnace and pellet plants likely to commission in June 2011. We expect
incremental volumes of 0.2 mtpa in FY12 and 2.4 mtpa in FY13 from this plant.
Dhamra port, with 27 mtpa capacity, has just commenced operations.
Better visibility on raw material projects; significant long-term value
Tata Steel is executing projects in Mozambique for coking coal and Canada for
iron ore. These projects are gathering pace and are expected to be completed by
end CY11. The company could attain raw material integration of 15-25% through
these projects.
Outlook and valuations: Positive stance; maintain ‘BUY’
We continue to believe that margins for non-integrated steel players would bottom
in Q2FY11 and expand thereafter. Steel prices have increased by ~USD 25
recently globally even as contract iron ore and coking coal prices have declined by
~USD 15/t, suggesting this play-out has already started. For Tata Steel
specifically, we see multiple triggers playing out, including Corus achieving
EBITDA/t of USD 80/t in FY12, sale of TCP plant by Q1FY12, ramp-up of Dhamra
port, the 2.9 mtpa expansion and international raw material projects completing
by end CY11. Potential surprises could be through additional sale of non-core
assets. We value international raw material projects at INR 23/share and also
considering increase in our estimates, raise our fair valuation from INR 623/share
to INR 781/share. We maintain ‘BUY/Sector Outperformer’ on the stock.
Another research report says price target: Rs.846/-
Though this is on the higher side, Rs. 700 in short term and Rs.800 on long term(1 or 2 years) appears to be reasonable.The report goes like this:
Firm Indian operations, Corus uncertain
Corus to remain under pressure despite strong Q1FY11
Corus’ (TATA Steel UK) Q1FY11 results reinforced the operational
turnaround. However, we expect the next two quarters to be
challenging for the company due to: 1) pressure on utilisation and
2) higher raw material prices should squeeze margins. Despite this,
we believe Corus should be cash positive and EBITDA/t will stabilize
in the range of US$50-70/t from Q3FY11F up from US$30-35/t
expected in Q2FY11F.
However domestic business to remain highly profitable
The company’s Indian operation’s profitability has surprised the street
both through higher realizations and lower costs. Although we expect
EBITDA/t to come down from Q1FY11 levels with the fall in steel
prices, we believe higher volumes will keep absolute profits strong.
Volumes have picked up in Q2FY11, after higher imports had
impacted sales in Q1FY11. We expect consensus earning upgrades
for the India business due to positive surprises in Q1FY11.
Valuations attractive, already factoring uncertainty
We believe steel prices should start stabilizing after the recent
turbulence, as indicated by high scrap prices. The Indian business
remains strong with EBITDA/t of US$ 350-400/t despite the correction
in steel prices. Since there is consensus about strength of Indian
business, we believe the current stock price is ascribing significant
negative value to Corus. We estimate the value domestic business at
Rs753/share (at 10x FY12E EPS). Therefore, the negative value
ascribed to Corus is closer to Rs100/sh. This is unjustified, in our view,
given our expectation that Corus will be cash positive in Q2FY11,
which is typically the worst quarter for them. We value Corus at 5x
EV/EBITDA at EV of US$ 5bn and contributes Rs34 to our target price.
South East Asia business is also valued at 5x EV/EBITDA and
contribute Rs15/share. Rs44 comes from its stake in Riversdale
mining (RIV AU, not covered).
So don't sell Tata steel. Either BUY or HOld. Don't sell. This is the only share which has got potential in the NIFTY stocks.Tata Steel today said its sales increased by 14 per cent to 1.66 million tonnes in the July-September quarter of the current financial year over the year-ago period, mainly on account of rise in demand for its products.
Tata steel sales rose by 14% in second quarter
"Tata Steel completed the second quarter and the first half of the current financial year with a significant increase in its production and sales volume, as compared to the corresponding period of last year," the company said in a statement here.
"The second quarter of 2010-11 witnessed some best ever production and sales in various units of the steel company," it added.
The company had sold 1.46 million tonnes of steel in the second quarter of the last financial year.
For the half-year-ended September 30, Tata Steel said it sold 6 per cent more steel products at 3.06 million tonnes as against the sales of 2.87 million tonnes in the year-ago period.
"The second quarter of 2010-11 witnessed some best ever production and sales in various units of the steel company," it added.
During the quarter under review, Tata Steel saw its saleable steel production surging by 6 per cent to 1.61 million tonnes against 1.51 million tonnes last year. For the half year period, the company saw production in the segment growing by 5 per cent to 3.2 million tonnes, as compared to the output in the first six months of the last financial year.
Tata Steel's crude steel output for the second quarter of the current financial year surged 5 per cent to 1.72 million tonnes over the year-ago period. The company had produced 1.64 million tonnes of crude steel in July-September last financial year.
For first half of 2010-11, the crude steel production surged by 7 per cent to 3.35 million tonnes as against 3.14 million tonnes in the year-ago period.
The company said its hot metal production rose by 6 per cent in the second quarter to 1.89 mt. Tata Steel had a hot metal output of 1.79 mt of in the same period last year.
For the first half of the current financial year, Tata Steel saw production in the hot metal segment rising by 7 per cent to 3.72 million tonnes, as against 3.48 million tonnes in the corresponding
Saturday, October 23, 2010
Thursday, October 21, 2010
stock tips 21.10.2010
Tata steel has got clearance for chattisgarh plant from environment and forest of state and central govt. It is a good news for tata steel
Wednesday, October 20, 2010
Coal india IPO- whether FII , banks, Mutual funds will burn their fingers?
It is a good news for Govt of India as Coal india IPO is subscribed 12 times by QIP segment but response is poor in retail.
This is one news item in equity master:
Take the Coal India IPO for instance. Millions of investors are scrambling to get a slice of this IPO. It's not only because this IPO is the biggest in India so far. There are other factors too driving this enthusiasm. For starters, the US and Europe are still down in the dumps. Thus, foreign investors are putting money by the dozen in emerging markets in India. The perception then is that stockmarkets in India will continue to rise. As a result of which IPOs would also yield attractive returns. So strong is this mindset, that investors have begun treading on dangerous ground. They are borrowing in this bull market to invest in new issues.
In this regard, an article in Economic Times has quoted a trader - "I decided to take a Rs 9-crore loan for the Coal India IPO so that I can leverage my own fund of Rs 1 crore. This would increase my chances of getting more shares in the allotment 10 times and help me make a killing."
Surely, a 10% gain (assuming that he get entire allocation of Rs 10 crore) can double his net worth almost overnight but a 10% fall can also wipe out his entire net worth. And it is this downside that he is not paying any attention to. Indeed, this kind of speculation is what has led to the downfall of many investors in the past. And is bound to do so in the future. "
Tread carefull in IPOs . Better to go for known secondary market shares where PE multiples are less than 8 or so. This will safeguard your hard earned money. Refer my previous recommendations and go for sound investment as some institutions manned by inefficient people sells good shares and purchases dud shares thus bringing down the institution to dust.
This is one news item in equity master:
Take the Coal India IPO for instance. Millions of investors are scrambling to get a slice of this IPO. It's not only because this IPO is the biggest in India so far. There are other factors too driving this enthusiasm. For starters, the US and Europe are still down in the dumps. Thus, foreign investors are putting money by the dozen in emerging markets in India. The perception then is that stockmarkets in India will continue to rise. As a result of which IPOs would also yield attractive returns. So strong is this mindset, that investors have begun treading on dangerous ground. They are borrowing in this bull market to invest in new issues.
In this regard, an article in Economic Times has quoted a trader - "I decided to take a Rs 9-crore loan for the Coal India IPO so that I can leverage my own fund of Rs 1 crore. This would increase my chances of getting more shares in the allotment 10 times and help me make a killing."
Surely, a 10% gain (assuming that he get entire allocation of Rs 10 crore) can double his net worth almost overnight but a 10% fall can also wipe out his entire net worth. And it is this downside that he is not paying any attention to. Indeed, this kind of speculation is what has led to the downfall of many investors in the past. And is bound to do so in the future. "
Tread carefull in IPOs . Better to go for known secondary market shares where PE multiples are less than 8 or so. This will safeguard your hard earned money. Refer my previous recommendations and go for sound investment as some institutions manned by inefficient people sells good shares and purchases dud shares thus bringing down the institution to dust.
Tuesday, October 19, 2010
free stock tips 20.10.2010
Buy Ashokleyland: Rs.73/- Target Rs.78/-
Expects good halfyearly results today.
Cement, steel,power and all infra structure stocks and also oil stocks have got good future.Cement companies results will be announced one by one within next 2 to 3 days.
Software stocks, bank stocks which are already overheated may not be purchased or better to sell.Telecom sectors are also not good. Airtel can be exception due to its hold in Africa.
Tata steel:Buy :
Good stock Rs.622-. short term Target(2 months) Rs.660/- Long term target: Rs.800/-(one year) It may move slowly up to long term target. PE ratio is only 8 and will reduce further due to increase in EPS.
The corus is also growing well and in addtion this, new port ( Dhamra port )value will be added soon so that the share will hit Rs.800 within ayear.
Steel value Rs.650 + port value Rs.150 = Rs.800. When the news of opening of port flashes, the tata steel price will jump for nearly Rs.100/-.
With good indian market, this stock stands to gain substantially soon.
Dhamra port- 50% equity by Tata steel will be operational in Nov 2010. This will increase the potent value of tata steel as all the port shares commanding premium and the Dhamra port is going to be one of the major ports in the country with 13 berths. Ships having 60 million tons capacity can anchor here. Situated between Haldia and Paradip, the port at Dhamra will be the deepest of India with a draught of 18 meters, which can accommodate super cape-size vessels up to 180,000 dead weight tons.
Buy reliance industries Rs.1045. short Target:Rs.1070
Buy JP Associates Rate: Rs.127 ST(shorttime target) Rs. 140
Cement price increased by Rs.25 per bag through out india by all cement companies.
When we recall the old news i.e. Jaiprakash Associates Limited announced sales results for the month and four months ended Aug. 2010. For the month, the company reported a 51% jump in sales at 1.085 million. The company had dispatched 719,000 tonnes cement in the same month last year. Cumulative sales of the company in April-August period of the current year stood at 620,000 tonnes, up 59% from the same period last year. So expect good results from JP associates and corner the shares now at this rate.
Also the interview with chairman, JP associate recently hints about good things to come in JP associate table. So don't lack behind to own good share which is having limited retail public holdings to the extent of 11% only ;rest is in the hands of institutions and promoters who will not sell it as JPAssociate is multi-business entity and growing company.
"Q: What about the current year? What kind of guidance can you hold out on the topline and if you could break it up between the three segments as well?
A: I can tell you that it is almost the second month of Q1 of FY11 and we all know how Indian economy has shown its resilience. With the grace of God and on our strong foundation—all the three revenue streams of the JP Ltd are on good track, there is good momentum. Our commissioned cement capacity as of March 2010 is 22 million tonne including the 2.2 million tonne capacity, which the group gets from its joint venture with SAIL, which has been commissioned ahead of schedule.
We are optimistic and we are seeing the type of production we are able to get and the type of sales we are able to realize in the market that before March 2011, we would be able to sell and produce almost 20 million tonne, up from 11 million tonne in year ending March 2010. The E&C business, on the strength of healthy order book and projects under advance implementation, is expected to contribute handsomely.
I have all the reason to believe that if all goes well for the economy, and GDP is able to sustain more than 7% rate, we are in for a very good year as far as FY11 is concerned. It’s logical that for cement, we will be able to produce 20 million tonne up from 11 million tonne—the turnover from cement itself will be more than Rs 9,000 crore and total turnover we hope to achieve in excess of Rs 16,000 crore for current financial year.
Q: If that is your guidance for FY11, Rs 16,000 crore on turnover, what kind of margin profile will you enjoy given your view on cement prices and E&C margins this year?
A: The EBITDA was almost 40% for year ended March ‘10 and we have been able to maintain healthy margin of 28-29%. I am reasonably sure that we will be able to maintain this level of margin because of the type of business we are in and the type of efficiency we are able to achieve consistently."
Buy IFCI Rs.70.70Target Rs.75
Very soon consultant report will come. IFCI may be one of the eligible candidate for bank status.
Coal India IPO appears to be priced high as per some experts.Price may be around Rs.150 to Rs.200 taking into account all constraints in mines industry. The price band decided now is 225-245 with 5% discount to retail investors. It may go to the way NTPC has gone.The government interferance, high manpower strength, high salary outgo, inferior coal quality, Difficult recovery from EB boards and other Govt sectors for coal bills outstanding, Mafia in Bihar belt all will add woes to Coal india and its investors.Also new mining policy may say to share 26% with local people for mining companies. So it is better to avoid this issue. AFter the issue is over, there will be scramble to sell the shares as most of the retailers took loan from banks,brokerage houses for initial subscription in order to earn some profit. The share price will go down from IPO price. So exercise caution as you may be enter into loss. Think twice before subscription.
The ongoing initial public offering (IPO) of Coal India (CIL), the country’s biggest ever, is unlikely to evince much interest from its 400,000-strong workforce, despite about 10 per cent of the 631.6 million shares on offer being reserved for the employees.Disinvestment Secretary Sumit Bose refrained from expressing disappointment at the possible lackluster response from the CIL workforce. “The employee response can be determined only after the issue closes, but in certain cases, there can be problems.".This is first day reaction. Only FII has shown interest in the issue who are not aware of the real situation in coal india affairs.
Sterlite indus: Hold
Supreme court has given permission to continue operation till Mid-Dec 2010 by this time, it will receive replies from state and other authorities for some questions raised. So temporary relief to sterlite.
Mahindra Satyam: Sell as suggested earlier.
DVR(Different voting right) share issue which is being preferred by some companies is an issue that is going against the minority shareholders. The promoters easily are getting the approval from AGM as they are in majority for the said issue.The DVR/QIP portion is issued at around 30% discount to PE companies. Here the purchasers will get limited voting right i.e.they may be having one voting right for ten shares held (vs) one voting right for one share. This helps the promoters to safeguard their hold in the management. Here the sufferers are small investors who will face the erosion of the intrinsic value of the share and DVR holders will get benefit. In order to safeguard the small investors, SEBI should intervene in these cases and issue directive that only in extreme cases , they should go to DVR/QIP after failing in all other avenues where small investors/minority shareholders are not affected. Investor protection forum also should take up this matter to SEBI. Though the funding will be interest free for the company and in the long run, the company will get benefit, in the initial stages,minority share holders gets the jolt. Right issue will be the alternative which will benefit the company when response is expected positively and will reduce loans of the companies. SEBI should allow DVR module only to weak companies which may not able to raise funds from banks or from rights.They can sell shares at discount and get funds. Ispat industries can be an example for this.
Cairn india:Hold/Sell: 340/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
Expects good halfyearly results today.
Cement, steel,power and all infra structure stocks and also oil stocks have got good future.Cement companies results will be announced one by one within next 2 to 3 days.
Software stocks, bank stocks which are already overheated may not be purchased or better to sell.Telecom sectors are also not good. Airtel can be exception due to its hold in Africa.
Tata steel:Buy :
Good stock Rs.622-. short term Target(2 months) Rs.660/- Long term target: Rs.800/-(one year) It may move slowly up to long term target. PE ratio is only 8 and will reduce further due to increase in EPS.
The corus is also growing well and in addtion this, new port ( Dhamra port )value will be added soon so that the share will hit Rs.800 within ayear.
Steel value Rs.650 + port value Rs.150 = Rs.800. When the news of opening of port flashes, the tata steel price will jump for nearly Rs.100/-.
With good indian market, this stock stands to gain substantially soon.
Dhamra port- 50% equity by Tata steel will be operational in Nov 2010. This will increase the potent value of tata steel as all the port shares commanding premium and the Dhamra port is going to be one of the major ports in the country with 13 berths. Ships having 60 million tons capacity can anchor here. Situated between Haldia and Paradip, the port at Dhamra will be the deepest of India with a draught of 18 meters, which can accommodate super cape-size vessels up to 180,000 dead weight tons.
Buy reliance industries Rs.1045. short Target:Rs.1070
Buy JP Associates Rate: Rs.127 ST(shorttime target) Rs. 140
Cement price increased by Rs.25 per bag through out india by all cement companies.
When we recall the old news i.e. Jaiprakash Associates Limited announced sales results for the month and four months ended Aug. 2010. For the month, the company reported a 51% jump in sales at 1.085 million. The company had dispatched 719,000 tonnes cement in the same month last year. Cumulative sales of the company in April-August period of the current year stood at 620,000 tonnes, up 59% from the same period last year. So expect good results from JP associates and corner the shares now at this rate.
Also the interview with chairman, JP associate recently hints about good things to come in JP associate table. So don't lack behind to own good share which is having limited retail public holdings to the extent of 11% only ;rest is in the hands of institutions and promoters who will not sell it as JPAssociate is multi-business entity and growing company.
"Q: What about the current year? What kind of guidance can you hold out on the topline and if you could break it up between the three segments as well?
A: I can tell you that it is almost the second month of Q1 of FY11 and we all know how Indian economy has shown its resilience. With the grace of God and on our strong foundation—all the three revenue streams of the JP Ltd are on good track, there is good momentum. Our commissioned cement capacity as of March 2010 is 22 million tonne including the 2.2 million tonne capacity, which the group gets from its joint venture with SAIL, which has been commissioned ahead of schedule.
We are optimistic and we are seeing the type of production we are able to get and the type of sales we are able to realize in the market that before March 2011, we would be able to sell and produce almost 20 million tonne, up from 11 million tonne in year ending March 2010. The E&C business, on the strength of healthy order book and projects under advance implementation, is expected to contribute handsomely.
I have all the reason to believe that if all goes well for the economy, and GDP is able to sustain more than 7% rate, we are in for a very good year as far as FY11 is concerned. It’s logical that for cement, we will be able to produce 20 million tonne up from 11 million tonne—the turnover from cement itself will be more than Rs 9,000 crore and total turnover we hope to achieve in excess of Rs 16,000 crore for current financial year.
Q: If that is your guidance for FY11, Rs 16,000 crore on turnover, what kind of margin profile will you enjoy given your view on cement prices and E&C margins this year?
A: The EBITDA was almost 40% for year ended March ‘10 and we have been able to maintain healthy margin of 28-29%. I am reasonably sure that we will be able to maintain this level of margin because of the type of business we are in and the type of efficiency we are able to achieve consistently."
Buy IFCI Rs.70.70Target Rs.75
Very soon consultant report will come. IFCI may be one of the eligible candidate for bank status.
Coal India IPO appears to be priced high as per some experts.Price may be around Rs.150 to Rs.200 taking into account all constraints in mines industry. The price band decided now is 225-245 with 5% discount to retail investors. It may go to the way NTPC has gone.The government interferance, high manpower strength, high salary outgo, inferior coal quality, Difficult recovery from EB boards and other Govt sectors for coal bills outstanding, Mafia in Bihar belt all will add woes to Coal india and its investors.Also new mining policy may say to share 26% with local people for mining companies. So it is better to avoid this issue. AFter the issue is over, there will be scramble to sell the shares as most of the retailers took loan from banks,brokerage houses for initial subscription in order to earn some profit. The share price will go down from IPO price. So exercise caution as you may be enter into loss. Think twice before subscription.
The ongoing initial public offering (IPO) of Coal India (CIL), the country’s biggest ever, is unlikely to evince much interest from its 400,000-strong workforce, despite about 10 per cent of the 631.6 million shares on offer being reserved for the employees.Disinvestment Secretary Sumit Bose refrained from expressing disappointment at the possible lackluster response from the CIL workforce. “The employee response can be determined only after the issue closes, but in certain cases, there can be problems.".This is first day reaction. Only FII has shown interest in the issue who are not aware of the real situation in coal india affairs.
Sterlite indus: Hold
Supreme court has given permission to continue operation till Mid-Dec 2010 by this time, it will receive replies from state and other authorities for some questions raised. So temporary relief to sterlite.
Mahindra Satyam: Sell as suggested earlier.
DVR(Different voting right) share issue which is being preferred by some companies is an issue that is going against the minority shareholders. The promoters easily are getting the approval from AGM as they are in majority for the said issue.The DVR/QIP portion is issued at around 30% discount to PE companies. Here the purchasers will get limited voting right i.e.they may be having one voting right for ten shares held (vs) one voting right for one share. This helps the promoters to safeguard their hold in the management. Here the sufferers are small investors who will face the erosion of the intrinsic value of the share and DVR holders will get benefit. In order to safeguard the small investors, SEBI should intervene in these cases and issue directive that only in extreme cases , they should go to DVR/QIP after failing in all other avenues where small investors/minority shareholders are not affected. Investor protection forum also should take up this matter to SEBI. Though the funding will be interest free for the company and in the long run, the company will get benefit, in the initial stages,minority share holders gets the jolt. Right issue will be the alternative which will benefit the company when response is expected positively and will reduce loans of the companies. SEBI should allow DVR module only to weak companies which may not able to raise funds from banks or from rights.They can sell shares at discount and get funds. Ispat industries can be an example for this.
Cairn india:Hold/Sell: 340/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
Monday, October 18, 2010
free stock tips 19.10.2010
Buy Ashokleyland: Rs.73/- Target Rs.78/-
Expects good halfyearly results tomorrow.
Coal India IPO appears to be priced high as per some experts.Price may be around Rs.175 to Rs.200 taking into account all constraints in mines industry. The price band decided now is 225-245 with 5% discount to retail investors. It may go to the way NTPC has gone.The government interferance, high manpower strength, high salary outgo, inferior coal quality, Difficult recovery from EB boards and other Govt sectors for coal bills outstanding, Mafia in Bihar belt all will add woes to Coal india and its investors.Also new mining policy may say to share 26% with local people for mining companies. So it is better to avoid this issue. AFter the issue is over, there will be scramble to sell the shares as most of the retailers took loan from banks,brokerage houses for initial subscription in order to earn some profit. The share price will go down from IPO price. So exercise caution as you may be enter into loss. Think twice before subscription.
The ongoing initial public offering (IPO) of Coal India (CIL), the country’s biggest ever, is unlikely to evince much interest from its 400,000-strong workforce, despite about 10 per cent of the 631.6 million shares on offer being reserved for the employees.Disinvestment Secretary Sumit Bose refrained from expressing disappointment at the possible lackluster response from the CIL workforce. “The employee response can be determined only after the issue closes, but in certain cases, there can be problems.".This is first day reaction. Only FII has shown interest in the issue who are not aware of the real situation in coal india affairs. Pity them as in long run,they may lose some money in this issue.If they can wait for some time after issue, they can grab at cheaper rates.This is my personal opinion as I got some previous exposure in coal india internal affairs noticing nepotism, corruption etc.in large scale and sincere efficient officers are sidelined and kept in non-key positions. Some of the officers quit the job also due to this.
Sterlite indus: Hold
Supreme court has given permission to continue operation till Mid-Dec 2010 by this time, it will receive replies from state and other authorities for some questions raised. So temporary relief to sterlite.
Cement, steel,power all infra structure stocks have got good future. Software stocks, bank stocks which are already overheated may not be purchased or better to sell.Telecom sectors are also not good. Airtel can be exception due to its hold in Africa.
Buy JP Associates Rate: Rs.128 ST(shorttime target) Rs. 140
Cement price will be increased by Rs.25 per bag through out india by all cement companies.
When we recall the old news i.e. Jaiprakash Associates Limited announced sales results for the month and four months ended Aug. 2010. For the month, the company reported a 51% jump in sales at 1.085 million. The company had dispatched 719,000 tonnes cement in the same month last year. Cumulative sales of the company in April-August period of the current year stood at 620,000 tonnes, up 59% from the same period last year. So expect good results from JP associates and corner the shares now at this rate.
Also the interview with chairman, JP associate recently hints about good things to come in JP associate table. So don't lack behind to own good share which is having limited retail public holdings to the extent of 11% only ;rest is in the hands of institutions and promoters who will not sell it as JPAssociate is multi-business entity and growing company.
"Q: What about the current year? What kind of guidance can you hold out on the topline and if you could break it up between the three segments as well?
A: I can tell you that it is almost the second month of Q1 of FY11 and we all know how Indian economy has shown its resilience. With the grace of God and on our strong foundation—all the three revenue streams of the JP Ltd are on good track, there is good momentum. Our commissioned cement capacity as of March 2010 is 22 million tonne including the 2.2 million tonne capacity, which the group gets from its joint venture with SAIL, which has been commissioned ahead of schedule.
We are optimistic and we are seeing the type of production we are able to get and the type of sales we are able to realize in the market that before March 2011, we would be able to sell and produce almost 20 million tonne, up from 11 million tonne in year ending March 2010. The E&C business, on the strength of healthy order book and projects under advance implementation, is expected to contribute handsomely.
I have all the reason to believe that if all goes well for the economy, and GDP is able to sustain more than 7% rate, we are in for a very good year as far as FY11 is concerned. It’s logical that for cement, we will be able to produce 20 million tonne up from 11 million tonne—the turnover from cement itself will be more than Rs 9,000 crore and total turnover we hope to achieve in excess of Rs 16,000 crore for current financial year.
Q: If that is your guidance for FY11, Rs 16,000 crore on turnover, what kind of margin profile will you enjoy given your view on cement prices and E&C margins this year?
A: The EBITDA was almost 40% for year ended March ‘10 and we have been able to maintain healthy margin of 28-29%. I am reasonably sure that we will be able to maintain this level of margin because of the type of business we are in and the type of efficiency we are able to achieve consistently."
Buy IFCI Rs.72.60 Target Rs.75
Very soon consultant report will come. IFCI may be one of the eligible candidate for bank status.
Mahindra Satyam: Sell as suggested earlier.
Latest news is:
After sending a notice to Mahindra Satyam, market regulator US Securities and Exchange Commission (SEC) is going to penalise the IT company for the fund forgery. SEC is likely to throw penalty of up to USD 100 million on Mahindra Satyam, reports CNBC-TV18 quoting sources.
Tata steel:
Good stock Rs.647/-. short Target Rs.660/- Long term target: Rs.800/- It may move slowly up to long term target.
Buy reliance industries Rs.1045. short Target:Rs.1070
DVR(Different voting right) is an issue that is going against the minority shareholders. The promoters easily are getting the approval from AGM as they are in majority for the said issue.The DVR/QIP portion is issued at around 30% discount to PE companies. Here the purchasers will get limited voting right. Say they may be having one voting right for ten shares held vs one voting right for one share. This helps the promoters to safeguard their hold in the management. Here the sufferers are small investors who will face the erosion of the intrinsic value of the share. In order to safeguard the small investors, SEBI should intervene in this cases and issue directive that only in extreme cases , they should go to QIP after failing in all other avenues where small investors/minority shareholders are not affected. Investor protection forum also should take up this matter to SEBI.Though the funding will be interest free for the company and in the long run, the company will get benefit, in the initial stages,minority share holders gets the jolt. Right issue will be the alternative which will benefit the company. SEBI should allow this module only to weak companies which may not able to raise funds from banks or from rights.
Cairn india:Hold/Sell: 340/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
Expects good halfyearly results tomorrow.
Coal India IPO appears to be priced high as per some experts.Price may be around Rs.175 to Rs.200 taking into account all constraints in mines industry. The price band decided now is 225-245 with 5% discount to retail investors. It may go to the way NTPC has gone.The government interferance, high manpower strength, high salary outgo, inferior coal quality, Difficult recovery from EB boards and other Govt sectors for coal bills outstanding, Mafia in Bihar belt all will add woes to Coal india and its investors.Also new mining policy may say to share 26% with local people for mining companies. So it is better to avoid this issue. AFter the issue is over, there will be scramble to sell the shares as most of the retailers took loan from banks,brokerage houses for initial subscription in order to earn some profit. The share price will go down from IPO price. So exercise caution as you may be enter into loss. Think twice before subscription.
The ongoing initial public offering (IPO) of Coal India (CIL), the country’s biggest ever, is unlikely to evince much interest from its 400,000-strong workforce, despite about 10 per cent of the 631.6 million shares on offer being reserved for the employees.Disinvestment Secretary Sumit Bose refrained from expressing disappointment at the possible lackluster response from the CIL workforce. “The employee response can be determined only after the issue closes, but in certain cases, there can be problems.".This is first day reaction. Only FII has shown interest in the issue who are not aware of the real situation in coal india affairs. Pity them as in long run,they may lose some money in this issue.If they can wait for some time after issue, they can grab at cheaper rates.This is my personal opinion as I got some previous exposure in coal india internal affairs noticing nepotism, corruption etc.in large scale and sincere efficient officers are sidelined and kept in non-key positions. Some of the officers quit the job also due to this.
Sterlite indus: Hold
Supreme court has given permission to continue operation till Mid-Dec 2010 by this time, it will receive replies from state and other authorities for some questions raised. So temporary relief to sterlite.
Cement, steel,power all infra structure stocks have got good future. Software stocks, bank stocks which are already overheated may not be purchased or better to sell.Telecom sectors are also not good. Airtel can be exception due to its hold in Africa.
Buy JP Associates Rate: Rs.128 ST(shorttime target) Rs. 140
Cement price will be increased by Rs.25 per bag through out india by all cement companies.
When we recall the old news i.e. Jaiprakash Associates Limited announced sales results for the month and four months ended Aug. 2010. For the month, the company reported a 51% jump in sales at 1.085 million. The company had dispatched 719,000 tonnes cement in the same month last year. Cumulative sales of the company in April-August period of the current year stood at 620,000 tonnes, up 59% from the same period last year. So expect good results from JP associates and corner the shares now at this rate.
Also the interview with chairman, JP associate recently hints about good things to come in JP associate table. So don't lack behind to own good share which is having limited retail public holdings to the extent of 11% only ;rest is in the hands of institutions and promoters who will not sell it as JPAssociate is multi-business entity and growing company.
"Q: What about the current year? What kind of guidance can you hold out on the topline and if you could break it up between the three segments as well?
A: I can tell you that it is almost the second month of Q1 of FY11 and we all know how Indian economy has shown its resilience. With the grace of God and on our strong foundation—all the three revenue streams of the JP Ltd are on good track, there is good momentum. Our commissioned cement capacity as of March 2010 is 22 million tonne including the 2.2 million tonne capacity, which the group gets from its joint venture with SAIL, which has been commissioned ahead of schedule.
We are optimistic and we are seeing the type of production we are able to get and the type of sales we are able to realize in the market that before March 2011, we would be able to sell and produce almost 20 million tonne, up from 11 million tonne in year ending March 2010. The E&C business, on the strength of healthy order book and projects under advance implementation, is expected to contribute handsomely.
I have all the reason to believe that if all goes well for the economy, and GDP is able to sustain more than 7% rate, we are in for a very good year as far as FY11 is concerned. It’s logical that for cement, we will be able to produce 20 million tonne up from 11 million tonne—the turnover from cement itself will be more than Rs 9,000 crore and total turnover we hope to achieve in excess of Rs 16,000 crore for current financial year.
Q: If that is your guidance for FY11, Rs 16,000 crore on turnover, what kind of margin profile will you enjoy given your view on cement prices and E&C margins this year?
A: The EBITDA was almost 40% for year ended March ‘10 and we have been able to maintain healthy margin of 28-29%. I am reasonably sure that we will be able to maintain this level of margin because of the type of business we are in and the type of efficiency we are able to achieve consistently."
Buy IFCI Rs.72.60 Target Rs.75
Very soon consultant report will come. IFCI may be one of the eligible candidate for bank status.
Mahindra Satyam: Sell as suggested earlier.
Latest news is:
After sending a notice to Mahindra Satyam, market regulator US Securities and Exchange Commission (SEC) is going to penalise the IT company for the fund forgery. SEC is likely to throw penalty of up to USD 100 million on Mahindra Satyam, reports CNBC-TV18 quoting sources.
Tata steel:
Good stock Rs.647/-. short Target Rs.660/- Long term target: Rs.800/- It may move slowly up to long term target.
Buy reliance industries Rs.1045. short Target:Rs.1070
DVR(Different voting right) is an issue that is going against the minority shareholders. The promoters easily are getting the approval from AGM as they are in majority for the said issue.The DVR/QIP portion is issued at around 30% discount to PE companies. Here the purchasers will get limited voting right. Say they may be having one voting right for ten shares held vs one voting right for one share. This helps the promoters to safeguard their hold in the management. Here the sufferers are small investors who will face the erosion of the intrinsic value of the share. In order to safeguard the small investors, SEBI should intervene in this cases and issue directive that only in extreme cases , they should go to QIP after failing in all other avenues where small investors/minority shareholders are not affected. Investor protection forum also should take up this matter to SEBI.Though the funding will be interest free for the company and in the long run, the company will get benefit, in the initial stages,minority share holders gets the jolt. Right issue will be the alternative which will benefit the company. SEBI should allow this module only to weak companies which may not able to raise funds from banks or from rights.
Cairn india:Hold/Sell: 340/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
Free stock tips 18.10.2010
Coal India IPO appears to be priced slightly high as per some experts.Price may be around Rs.175 to Rs.200 taking into account all constraints in mines industry. The price band decided now is 225-245 with 5% discount to retail investors. It may go to the way NTPC has gone.The government interferance, high manpower strength, high salary outgo, inferior coal quality, Difficult recovery from EB boards and other Govt sectors for coal bills outstanding, Mafia in Bihar belt all will add woes to Coal india and its investors.Also new mining policy may say to share 26% with local people for mining companies. So it is better to avoid this issue. AFter the issue is over, there will be scramble to sell the shares as most of the retailers took loan from banks,brokerage houses. The share price will go down from IPO price. So exercise caution.
Cement, steel,power all infra structure stocks have got good future. Software stocks, bank stocks which are already overheated may not be purchased or better to sell.Telecom sectors are also not good. Airtel can be exception due to its hold in Africa.
Buy JP Associates Rate: Rs.128 ST(shorttime target) Rs. 140
Cement price will be increased by Rs.25 per bag through out india by all cement companies
Buy IFCI Rs.71 Target Rs.75
Very soon consultant report will come. IFCI may be one of the eligible candidate for bank status.
Mahindra Satyam: Sell as suggested earlier.
Latest news is:
After sending a notice to Mahindra Satyam, market regulator US Securities and Exchange Commission (SEC) is going to penalise the IT company for the fund forgery. SEC is likely to throw penalty of up to USD 100 million on Mahindra Satyam, reports CNBC-TV18 quoting sources.
Tata steel:
Good stock Rs.630/-. short Target Rs.660/- Long term target: Rs.800/- It may move slowly up to long term target.
Buy reliance industries Rs.1045. short Target:Rs.1070
QIP is an issue that is going against the minority shareholders. The promoters easily are getting the approval from AGM as they are in majority.The QIP portion is issued at discount to PE companies. In order to safeguard the small investors, SEBI should intervene in this cases and issue directive that only in extreme cases , they should go to QIP after failing in all other avenues where small investors/minority shareholders are not affected. Investor protection forum also should take up this matter to SEBI.
Cairn india:Hold/Sell: 340/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
Cement, steel,power all infra structure stocks have got good future. Software stocks, bank stocks which are already overheated may not be purchased or better to sell.Telecom sectors are also not good. Airtel can be exception due to its hold in Africa.
Buy JP Associates Rate: Rs.128 ST(shorttime target) Rs. 140
Cement price will be increased by Rs.25 per bag through out india by all cement companies
Buy IFCI Rs.71 Target Rs.75
Very soon consultant report will come. IFCI may be one of the eligible candidate for bank status.
Mahindra Satyam: Sell as suggested earlier.
Latest news is:
After sending a notice to Mahindra Satyam, market regulator US Securities and Exchange Commission (SEC) is going to penalise the IT company for the fund forgery. SEC is likely to throw penalty of up to USD 100 million on Mahindra Satyam, reports CNBC-TV18 quoting sources.
Tata steel:
Good stock Rs.630/-. short Target Rs.660/- Long term target: Rs.800/- It may move slowly up to long term target.
Buy reliance industries Rs.1045. short Target:Rs.1070
QIP is an issue that is going against the minority shareholders. The promoters easily are getting the approval from AGM as they are in majority.The QIP portion is issued at discount to PE companies. In order to safeguard the small investors, SEBI should intervene in this cases and issue directive that only in extreme cases , they should go to QIP after failing in all other avenues where small investors/minority shareholders are not affected. Investor protection forum also should take up this matter to SEBI.
Cairn india:Hold/Sell: 340/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
Sunday, October 17, 2010
NSE/BSE pre-market trading w.e.f. 18.10.2010
Introduction of call option in the pre-market open session:
Price discover is the difficult point in the existing trading system so far at the start of the day in stock market and buyers and sellers are not aware of what will be the fate of their buy and sell requests. So someone gets fat profit and someone get huge loss. In order to streamline this and to help the buyers and sellers about the likely price of the interested shares by matching the buy and sell shares in totality. This will give indicate price of the stock.
Market analysts feel that it is a mechanism that would help deal with volatility in early trades. The investor has an opportunity to put transactions in the terminal in the Trading window of 8 minutes where the investor can see his orders getting matched. The pre-market call auctions have been a mechanism of price discovery in many international markets like NY Stock exchange, NASDAQ, London Stock Exchange, Hong Kong.
For this, first 15 minutes are taken out from the normal trading. This procedure is coming into effect from 19.10.2010 and on 18.10.2010 it will be mock trade and will not have any effect. Now we will see how this will be worked out by exchanges:
SMCA (Secondary market Advisory committee) is the brain child behind this by following examples in the world market.
The following information will be given in the pre-open session.( from 9 am to 9.15am)
1.Indicative equilibrium price of the share.
2.The total buy and sell qty of shares
3.Indicative index
This is for both Nifty, BSE index shares only.For other stocks, normal trading will be from 9 am as usual.
This will be reviewed after 3 months.
Pre-open session starts from 9 am and ends at 9.15 am.
Out of 15 minutes, first 8 minutes are allotted for order placement, order cancellation and order modification. In the 7th or 8th minute, the order placement, modification and cancellation will be randomly closed and this is system driven. Price band of 20% will be applicable on the scripts.
Note:
The exchanges will discover an ‘Equilibrium price’ for the stocks and the ‘indicative index levels’ during these 7 minutes. While these indicative levels will continue to change through the course of the seven minutes, they will be reflective of the general direction of the market and investors can then accordingly place their bids or cancel their bids.
Limit orders and market orders are allowed in the 8 minutes pre-open session which will help to find the indicative price of the scripts. Full quantities of securities are to be given and disclosed qty in parts will not be allowed. After 8th minute, the trades will be executed at the single discovered price for every stock. The opening price for a stock will be the price at which the maximum amount of shares can be traded.
Next 4 minutes are for order matching and trade confirmation for the orders placed.
Last 3 minutes is for time for exchanges to shift from pre-market operation to regular market operation thus giving indicative price for shares in the regular market and thus enabling persons who want to place order after 9.15 am to know the price they are likely to get from their orders.
The equilibrium price shall be the price at which the maximum volume is executable. In case of more than one price meets the said criteria, the equilibrium price shall be the price at which there is minimum order imbalance quantity (unmatched qty). Further in case of more than one price has same minimum order imbalance qty, the equilibrium price will be the price closest to the previous day ending price.
price pur-qty pur-cum-qty sale-qty sale-cum-qty unmatched-qty volume traded
100 0 0 3000 8000 -8000 0
95 2000 2000 3000 5000 -3000 2000
90 3000 5000 1000 2000 3000 2000
85 1500 6500 1000 1000 5500 1000
80 2000 8500 0 0 8500 0
75 1000 9500 0 0 9500 0
The above is an example of first 8 minutes pre-market order position compiled finally. This will be done from first second onwards from 9 am when the stock market opens in order to find out price discovery.
You can notice that purchase qty is added cumulative from top to bottom whereas the sale qty is added cumulatively from top to bottom based on stock price quote by parties for the specified stock in the 8 minutes play.
Unmatched qty is arrived at being the difference between cum Pur qty and sale qty.
The volume traded is arrived at being the difference between buy qty and sell qty for the specified price.
As per the rules formed, the equilibrium price will be fixed based on large volume turnover price. In the above case, large turnover is 2000 but in two different prices. i.e. Rs.95 and Rs.90. Suppose volume tradable was 3000 under Rs.95, then that will be the equilibrium price.
In another case, if 4000 volume tradable under Rs.85 as compared to 3000 volume under 95, then equilibrium price will be Rs.85 only and not Rs.95.
In the above example, top turnover of 2000 comes under two price categories. Hence we have to look into previous closing price rate. The equilibrium price will be the closest price of previous day rate.
1. If the previous closing rate was Rs. 100, then Rs.95 will be taken as equilibrium price.
2.If the previous closing rate was Rs. 89, then Rs.90 will be taken as equilibrium price.
3.If the previous closing rate was midpoint of Rs.95 plus Rs.90, i.e. 92.50, then previous day closing rate will be taken as equilibrium price i.e. Rs.92.50.
After discovery of equilibrium price, after 8 minutes, order execution will take place in the following sequence:
1. Limit orders will be given priority over market orders. Eligible limit buy orders will be matched with eligible sell orders.
2.Residual limit orders will be matched with market orders.
3.Finally market orders are matched with market orders.
If the equilibrium price is not discovered, then entire orders will be shifted to normal order period after initial 15 minutes.
It is important to note that normal trade as per previous practice will be done after 9.15 am for equity derivatives.
It is during this time that the trades will be executed at the single discovered price for every stock. The opening price for a stock will be the price at which the maximum amount of shares can be traded.
Taken from ramadvice dot wordpress dot com for the benefit of google readers. See the said site for good finance articles.
Price discover is the difficult point in the existing trading system so far at the start of the day in stock market and buyers and sellers are not aware of what will be the fate of their buy and sell requests. So someone gets fat profit and someone get huge loss. In order to streamline this and to help the buyers and sellers about the likely price of the interested shares by matching the buy and sell shares in totality. This will give indicate price of the stock.
Market analysts feel that it is a mechanism that would help deal with volatility in early trades. The investor has an opportunity to put transactions in the terminal in the Trading window of 8 minutes where the investor can see his orders getting matched. The pre-market call auctions have been a mechanism of price discovery in many international markets like NY Stock exchange, NASDAQ, London Stock Exchange, Hong Kong.
For this, first 15 minutes are taken out from the normal trading. This procedure is coming into effect from 19.10.2010 and on 18.10.2010 it will be mock trade and will not have any effect. Now we will see how this will be worked out by exchanges:
SMCA (Secondary market Advisory committee) is the brain child behind this by following examples in the world market.
The following information will be given in the pre-open session.( from 9 am to 9.15am)
1.Indicative equilibrium price of the share.
2.The total buy and sell qty of shares
3.Indicative index
This is for both Nifty, BSE index shares only.For other stocks, normal trading will be from 9 am as usual.
This will be reviewed after 3 months.
Pre-open session starts from 9 am and ends at 9.15 am.
Out of 15 minutes, first 8 minutes are allotted for order placement, order cancellation and order modification. In the 7th or 8th minute, the order placement, modification and cancellation will be randomly closed and this is system driven. Price band of 20% will be applicable on the scripts.
Note:
The exchanges will discover an ‘Equilibrium price’ for the stocks and the ‘indicative index levels’ during these 7 minutes. While these indicative levels will continue to change through the course of the seven minutes, they will be reflective of the general direction of the market and investors can then accordingly place their bids or cancel their bids.
Limit orders and market orders are allowed in the 8 minutes pre-open session which will help to find the indicative price of the scripts. Full quantities of securities are to be given and disclosed qty in parts will not be allowed. After 8th minute, the trades will be executed at the single discovered price for every stock. The opening price for a stock will be the price at which the maximum amount of shares can be traded.
Next 4 minutes are for order matching and trade confirmation for the orders placed.
Last 3 minutes is for time for exchanges to shift from pre-market operation to regular market operation thus giving indicative price for shares in the regular market and thus enabling persons who want to place order after 9.15 am to know the price they are likely to get from their orders.
The equilibrium price shall be the price at which the maximum volume is executable. In case of more than one price meets the said criteria, the equilibrium price shall be the price at which there is minimum order imbalance quantity (unmatched qty). Further in case of more than one price has same minimum order imbalance qty, the equilibrium price will be the price closest to the previous day ending price.
price pur-qty pur-cum-qty sale-qty sale-cum-qty unmatched-qty volume traded
100 0 0 3000 8000 -8000 0
95 2000 2000 3000 5000 -3000 2000
90 3000 5000 1000 2000 3000 2000
85 1500 6500 1000 1000 5500 1000
80 2000 8500 0 0 8500 0
75 1000 9500 0 0 9500 0
The above is an example of first 8 minutes pre-market order position compiled finally. This will be done from first second onwards from 9 am when the stock market opens in order to find out price discovery.
You can notice that purchase qty is added cumulative from top to bottom whereas the sale qty is added cumulatively from top to bottom based on stock price quote by parties for the specified stock in the 8 minutes play.
Unmatched qty is arrived at being the difference between cum Pur qty and sale qty.
The volume traded is arrived at being the difference between buy qty and sell qty for the specified price.
As per the rules formed, the equilibrium price will be fixed based on large volume turnover price. In the above case, large turnover is 2000 but in two different prices. i.e. Rs.95 and Rs.90. Suppose volume tradable was 3000 under Rs.95, then that will be the equilibrium price.
In another case, if 4000 volume tradable under Rs.85 as compared to 3000 volume under 95, then equilibrium price will be Rs.85 only and not Rs.95.
In the above example, top turnover of 2000 comes under two price categories. Hence we have to look into previous closing price rate. The equilibrium price will be the closest price of previous day rate.
1. If the previous closing rate was Rs. 100, then Rs.95 will be taken as equilibrium price.
2.If the previous closing rate was Rs. 89, then Rs.90 will be taken as equilibrium price.
3.If the previous closing rate was midpoint of Rs.95 plus Rs.90, i.e. 92.50, then previous day closing rate will be taken as equilibrium price i.e. Rs.92.50.
After discovery of equilibrium price, after 8 minutes, order execution will take place in the following sequence:
1. Limit orders will be given priority over market orders. Eligible limit buy orders will be matched with eligible sell orders.
2.Residual limit orders will be matched with market orders.
3.Finally market orders are matched with market orders.
If the equilibrium price is not discovered, then entire orders will be shifted to normal order period after initial 15 minutes.
It is important to note that normal trade as per previous practice will be done after 9.15 am for equity derivatives.
It is during this time that the trades will be executed at the single discovered price for every stock. The opening price for a stock will be the price at which the maximum amount of shares can be traded.
Taken from ramadvice dot wordpress dot com for the benefit of google readers. See the said site for good finance articles.
Thursday, October 14, 2010
Free stock tips 15.10.2010
Coal India IPO appears to be priced slightly high as per some experts.The price band decided is 225-245 with 5% discount to retail investors. It should not go to the way NTPC has gone.
The government interferance, high manpower strength, high salary outgo, inferior coal quality, Difficult recovery from EB boards and other Govt sectors for coal bills outstanding, Mafia in Bihar belt all will add woes to Coal india and its investors. So it is better to avoid this issue.
Cement, steel,power all infra structure stocks have got good future. Software stocks, bank stocks which are already overheated may not be purchased or better to sell.
Buy JP Associates Rate: Rs.133 ST(shorttime target) Rs. 140
Cement price will be increased by Rs.25 per bag through out india by all cement companies
Mahindra Satyam: Sell as suggested earlier.
Latest news is:
After sending a notice to Mahindra Satyam, market regulator US Securities and Exchange Commission (SEC) is going to penalise the IT company for the fund forgery. SEC is likely to throw penalty of up to USD 100 million on Mahindra Satyam, reports CNBC-TV18 quoting sources.
Tata steel:
Go slow after reaching Rs.655/-. short Target Rs.660/- Long term target: Rs.800/- It may move slowly up. Exercise caution.
Buy reliance industries Rs.1060. short Target:Rs.1070 Oil price increasing.
Avoid/sell Banks, real estate, software sectors for the time being as NIFTY
and stocks under these categories are heated up high already.
QIP is an issue that is going against the minority shareholders. The promoters easily are getting the approval from AGM as they are in majority.The QIP portion is issued at discount to PE companies. In order to safeguard the small investors, SEBI should intervene in this cases and issue directive that only in extreme cases , they should go to QIP after failing in all other avenues where small investors/minority shareholders are not affected. Investor protection forum also should take up this matter to SEBI.
Cairn india:Hold/Sell: 340/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
The government interferance, high manpower strength, high salary outgo, inferior coal quality, Difficult recovery from EB boards and other Govt sectors for coal bills outstanding, Mafia in Bihar belt all will add woes to Coal india and its investors. So it is better to avoid this issue.
Cement, steel,power all infra structure stocks have got good future. Software stocks, bank stocks which are already overheated may not be purchased or better to sell.
Buy JP Associates Rate: Rs.133 ST(shorttime target) Rs. 140
Cement price will be increased by Rs.25 per bag through out india by all cement companies
Mahindra Satyam: Sell as suggested earlier.
Latest news is:
After sending a notice to Mahindra Satyam, market regulator US Securities and Exchange Commission (SEC) is going to penalise the IT company for the fund forgery. SEC is likely to throw penalty of up to USD 100 million on Mahindra Satyam, reports CNBC-TV18 quoting sources.
Tata steel:
Go slow after reaching Rs.655/-. short Target Rs.660/- Long term target: Rs.800/- It may move slowly up. Exercise caution.
Buy reliance industries Rs.1060. short Target:Rs.1070 Oil price increasing.
Avoid/sell Banks, real estate, software sectors for the time being as NIFTY
and stocks under these categories are heated up high already.
QIP is an issue that is going against the minority shareholders. The promoters easily are getting the approval from AGM as they are in majority.The QIP portion is issued at discount to PE companies. In order to safeguard the small investors, SEBI should intervene in this cases and issue directive that only in extreme cases , they should go to QIP after failing in all other avenues where small investors/minority shareholders are not affected. Investor protection forum also should take up this matter to SEBI.
Cairn india:Hold/Sell: 340/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
Wednesday, October 13, 2010
Free stock tips 14.10.2010
Tata steel:
Go slow after reaching Rs.655/-. There may be short term reaction on the opposite side due to yesterday boost. Exercise caution.
Go slow on reliance industries alsoafter reachng Rs.1080. Reason is same as above. Wait for correction now.
Buy EIH: (Rs.137/-) Target Rs.150 short term
Since take over guidelines will be issued around Oct 25th by SEBI this year, we can expect lot of activity by reliance and ITC in this stock.
Again I recommend visa steel at the present price of Rs.41. Target Rs.50 in short term. Long term : Rs.70
One of my reader who is a docter got some confusion about targets mentioned by me. I am quoting short term and long term targes which can be understood by time period mentioned now onwards. If no time period mentioned, then it is short term target , may be maximum of one month.
Metal and oil sectors appear to be good.Tata steel and reliance are yet to achieve their maximum stock quote of 52 weeks high as compared to other stocks and hence have still steam left and they are supported by good management and planned growth in future. Reliance price is depended on oil price increase/decrease on day to day basis now.
Avoid/sell Banks, real estate, software sectors for the time being as NIFTY
and stocks under these categories are heated up high already.
Go slow after reaching Rs.660/-. There may be short term reaction. Exercise caution.
Buy Tata steel:Rs.640/-Short term Target Rs.660/- Long term target: Rs.800/-(6 months to one year)
PE ratio is around 8 only. This will reduce further due to increase in steel price and reduction in raw material price. So good buy.
Another cost cutting measure taken by Tata steel for profit maximization:
Tata steel management started the exercise of checking viability of all overseas projects one by one in order to achieve optimum profitability. In this direction, Tata Steel Europe has decided to shut down Tata Steel Living Solutions, located at Shotton, North Wales which contributed only loss so far. The unit was established in 2003 and was making modular buildings for the construction industry. The move has put 180 jobs on the block.The operations at Living Solutions are said to be very small compared to Tata Steel Europe and shutting the business will not have any material effect on the company’s financial well being, on the other hand, it can look for buyers of the unit on sale and also reduction in regular pay out as salary.
Dhamra port- 50% equity by Tata steel:
BHUBANESWAR: Dhamra port will be operational soon according to Orissa transport minister Sanjib Sahoo .
Replying to a query by Congress member Bhujabal Majhi, the minister on Friday told the members that the developers had so far invested Rs 2700 crore of the estimated project cost of Rs 3239 crore and nearly 96% of the construction work was over by the end of the last month.(Aug 2010 position)
The port is being developed by Dhamra Port Company Limited, a joint venture of Tata Steel and Larsen & Toubro.
Tata Steel and Larsen & Toubro hold equal stakes in the Dhamra port project, which is being developed on a build, own, operate share and transfer (BOOST) basis.
Mr Sahoo informed that of the 384 displaced people 371 had received compensation and efforts were being made to settle dues of the others at the shortest possible time.
As regards employment generation, the minister said 2881 people were engaged in construction of the port project and the figure would increase once the port becomes operational.
“Dhamra port will be immensely beneficial to the investors in Orissa and its neigbours. It is going to be one of the major ports in the country with 13 berths. Ships having 60 million tons capacity can anchor here,” the minister said.
The construction work for the 62-km rail link from Dhamra to Bhadrak on the main Howrah-Chennai line is almost complete.
Situated between Haldia and Paradip, the port at Dhamra will be the deepest of India with a draught of 18 meters, which can accommodate super cape-size vessels up to 180,000 dead weight tons (DWT).
It is likely to be commissioned in Nov 2010. Looking into the valuation of ports like Mundra, we can guess about value addition to tata steel due to this. So it is a good buy now.
QIP is an issue that is going against the minority shareholders. The promoters easily are getting the approval from AGM as they are in majority.The QIP portion is issued at discount to PE companies. In order to safeguard the small investors, SEBI should intervene in this cases and issue directive that only in extreme cases , they should go to QIP after failing in all other avenues where small investors/minority shareholders are not affected. Investor protection forum also should take up this matter to SEBI.
Coal India IPO appears to be priced slightly high as per some experts.The price band decided is 225-245 with 5% discount to retail investors. It should not go to the way NTPC has gone.
Cairn india:Hold/Sell: 345/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
Go slow after reaching Rs.655/-. There may be short term reaction on the opposite side due to yesterday boost. Exercise caution.
Go slow on reliance industries alsoafter reachng Rs.1080. Reason is same as above. Wait for correction now.
Buy EIH: (Rs.137/-) Target Rs.150 short term
Since take over guidelines will be issued around Oct 25th by SEBI this year, we can expect lot of activity by reliance and ITC in this stock.
Again I recommend visa steel at the present price of Rs.41. Target Rs.50 in short term. Long term : Rs.70
One of my reader who is a docter got some confusion about targets mentioned by me. I am quoting short term and long term targes which can be understood by time period mentioned now onwards. If no time period mentioned, then it is short term target , may be maximum of one month.
Metal and oil sectors appear to be good.Tata steel and reliance are yet to achieve their maximum stock quote of 52 weeks high as compared to other stocks and hence have still steam left and they are supported by good management and planned growth in future. Reliance price is depended on oil price increase/decrease on day to day basis now.
Avoid/sell Banks, real estate, software sectors for the time being as NIFTY
and stocks under these categories are heated up high already.
Go slow after reaching Rs.660/-. There may be short term reaction. Exercise caution.
Buy Tata steel:Rs.640/-Short term Target Rs.660/- Long term target: Rs.800/-(6 months to one year)
PE ratio is around 8 only. This will reduce further due to increase in steel price and reduction in raw material price. So good buy.
Another cost cutting measure taken by Tata steel for profit maximization:
Tata steel management started the exercise of checking viability of all overseas projects one by one in order to achieve optimum profitability. In this direction, Tata Steel Europe has decided to shut down Tata Steel Living Solutions, located at Shotton, North Wales which contributed only loss so far. The unit was established in 2003 and was making modular buildings for the construction industry. The move has put 180 jobs on the block.The operations at Living Solutions are said to be very small compared to Tata Steel Europe and shutting the business will not have any material effect on the company’s financial well being, on the other hand, it can look for buyers of the unit on sale and also reduction in regular pay out as salary.
Dhamra port- 50% equity by Tata steel:
BHUBANESWAR: Dhamra port will be operational soon according to Orissa transport minister Sanjib Sahoo .
Replying to a query by Congress member Bhujabal Majhi, the minister on Friday told the members that the developers had so far invested Rs 2700 crore of the estimated project cost of Rs 3239 crore and nearly 96% of the construction work was over by the end of the last month.(Aug 2010 position)
The port is being developed by Dhamra Port Company Limited, a joint venture of Tata Steel and Larsen & Toubro.
Tata Steel and Larsen & Toubro hold equal stakes in the Dhamra port project, which is being developed on a build, own, operate share and transfer (BOOST) basis.
Mr Sahoo informed that of the 384 displaced people 371 had received compensation and efforts were being made to settle dues of the others at the shortest possible time.
As regards employment generation, the minister said 2881 people were engaged in construction of the port project and the figure would increase once the port becomes operational.
“Dhamra port will be immensely beneficial to the investors in Orissa and its neigbours. It is going to be one of the major ports in the country with 13 berths. Ships having 60 million tons capacity can anchor here,” the minister said.
The construction work for the 62-km rail link from Dhamra to Bhadrak on the main Howrah-Chennai line is almost complete.
Situated between Haldia and Paradip, the port at Dhamra will be the deepest of India with a draught of 18 meters, which can accommodate super cape-size vessels up to 180,000 dead weight tons (DWT).
It is likely to be commissioned in Nov 2010. Looking into the valuation of ports like Mundra, we can guess about value addition to tata steel due to this. So it is a good buy now.
QIP is an issue that is going against the minority shareholders. The promoters easily are getting the approval from AGM as they are in majority.The QIP portion is issued at discount to PE companies. In order to safeguard the small investors, SEBI should intervene in this cases and issue directive that only in extreme cases , they should go to QIP after failing in all other avenues where small investors/minority shareholders are not affected. Investor protection forum also should take up this matter to SEBI.
Coal India IPO appears to be priced slightly high as per some experts.The price band decided is 225-245 with 5% discount to retail investors. It should not go to the way NTPC has gone.
Cairn india:Hold/Sell: 345/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
free stock tips 13.10.2010
Metal and oil sectors appear to be good. Banks, real estate, software sectors can be avoided for time being.
Buy Tata steel:Rs.640/- Target Rs.660/-
PE ratio is around 8 only. This will reduce further due to increase in steel price and reduction in raw material price. So good buy.
Another cost cutting measure taken by Tata steel for profit maximization:
Tata steel management started the exercise of checking viability of all overseas projects one by one in order to achieve optimum profitability. In this direction, Tata Steel Europe has decided to shut down Tata Steel Living Solutions, located at Shotton, North Wales which contributed only loss so far. The unit was established in 2003 and was making modular buildings for the construction industry. The move has put 180 jobs on the block.The operations at Living Solutions are said to be very small compared to Tata Steel Europe and shutting the business will not have any material effect on the company’s financial well being, on the other hand, it can look for buyers of the unit on sale and also reduction in regular pay out as salary.
Dhamra port- 50% equity by Tata steel:
BHUBANESWAR: Dhamra port will be operational soon according to Orissa transport minister Sanjib Sahoo .
Replying to a query by Congress member Bhujabal Majhi, the minister on Friday told the members that the developers had so far invested Rs 2700 crore of the estimated project cost of Rs 3239 crore and nearly 96% of the construction work was over by the end of the last month.(Aug 2010 position)
The port is being developed by Dhamra Port Company Limited, a joint venture of Tata Steel and Larsen & Toubro.
Tata Steel and Larsen & Toubro hold equal stakes in the Dhamra port project, which is being developed on a build, own, operate share and transfer (BOOST) basis.
Mr Sahoo informed that of the 384 displaced people 371 had received compensation and efforts were being made to settle dues of the others at the shortest possible time.
As regards employment generation, the minister said 2881 people were engaged in construction of the port project and the figure would increase once the port becomes operational.
“Dhamra port will be immensely beneficial to the investors in Orissa and its neigbours. It is going to be one of the major ports in the country with 13 berths. Ships having 60 million tons capacity can anchor here,” the minister said.
The construction work for the 62-km rail link from Dhamra to Bhadrak on the main Howrah-Chennai line is almost complete.
Situated between Haldia and Paradip, the port at Dhamra will be the deepest of India with a draught of 18 meters, which can accommodate super cape-size vessels up to 180,000 dead weight tons (DWT).
It is likely to be commissioned in Nov 2010. Looking into the valuation of ports like Mundra, we can guess about value addition to tata steel due to this. So it is a good buy now.
QIP is an issue that is going against the minority shareholders. The promoters easily are getting the approval from AGM as they are in majority.The QIP portion is issued at discount to PE companies. In order to safeguard the small investors, SEBI should intervene in this cases and issue directive that only in extreme cases , they should go to QIP after failing in all other avenues where small investors/minority shareholders are not affected. Investor protection forum also should take up this matter to SEBI.
Coal India IPO appears to be priced slightly high as per some experts.The price band decided is 225-245 with 5% discount to retail investors. It should not go to the way NTPC has gone.
Start buying cheap software stocks like TCS, Mahindra satyam
RBI is likely to intervene in currency and make it depreciate so as to benefit exporters like software firms, textiles
Cairn india:Hold/Sell: 345/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
Suzlon: Sell
Wind energy major Suzlon plans to raise up to Rs 5,000 crore from the secondary market and increase its borrowing limit to Rs 10,000 crore from the current Rs 7,000 crore.
A Suzlon notification to the stock exchanges today said its board had approved proposals for shareholders’ nod to increase its authorised share capital from Rs 445 crore to Rs 700 crore and to issue securities (like ADRs, GDRs, FCCBs, non-convertible debentures, convertible bonds, QIP, etc) of up to Rs 5,000 crore. The board also approved the increase of borrowing limits, other than temporary loans and working capital facilities, from Rs 7,000 crore to Rs 10,000 crore.
Suzlon may go for QIP route by offering share at discount. So better to distance from it now.
Suzlon had suspended its large-scale capital expansion plans due to sluggish conditions in the wind energy market and the global economic slowdown. Faced with liquidity problems, Suzlon also had to refinance its loans of close to Rs 10,000 crore with its creditors.
It also sold a 35 per cent stake in subsidiary Hansen Transmission for around $370 million in November last year to reduce its debts.
Buy Tata steel:Rs.640/- Target Rs.660/-
PE ratio is around 8 only. This will reduce further due to increase in steel price and reduction in raw material price. So good buy.
Another cost cutting measure taken by Tata steel for profit maximization:
Tata steel management started the exercise of checking viability of all overseas projects one by one in order to achieve optimum profitability. In this direction, Tata Steel Europe has decided to shut down Tata Steel Living Solutions, located at Shotton, North Wales which contributed only loss so far. The unit was established in 2003 and was making modular buildings for the construction industry. The move has put 180 jobs on the block.The operations at Living Solutions are said to be very small compared to Tata Steel Europe and shutting the business will not have any material effect on the company’s financial well being, on the other hand, it can look for buyers of the unit on sale and also reduction in regular pay out as salary.
Dhamra port- 50% equity by Tata steel:
BHUBANESWAR: Dhamra port will be operational soon according to Orissa transport minister Sanjib Sahoo .
Replying to a query by Congress member Bhujabal Majhi, the minister on Friday told the members that the developers had so far invested Rs 2700 crore of the estimated project cost of Rs 3239 crore and nearly 96% of the construction work was over by the end of the last month.(Aug 2010 position)
The port is being developed by Dhamra Port Company Limited, a joint venture of Tata Steel and Larsen & Toubro.
Tata Steel and Larsen & Toubro hold equal stakes in the Dhamra port project, which is being developed on a build, own, operate share and transfer (BOOST) basis.
Mr Sahoo informed that of the 384 displaced people 371 had received compensation and efforts were being made to settle dues of the others at the shortest possible time.
As regards employment generation, the minister said 2881 people were engaged in construction of the port project and the figure would increase once the port becomes operational.
“Dhamra port will be immensely beneficial to the investors in Orissa and its neigbours. It is going to be one of the major ports in the country with 13 berths. Ships having 60 million tons capacity can anchor here,” the minister said.
The construction work for the 62-km rail link from Dhamra to Bhadrak on the main Howrah-Chennai line is almost complete.
Situated between Haldia and Paradip, the port at Dhamra will be the deepest of India with a draught of 18 meters, which can accommodate super cape-size vessels up to 180,000 dead weight tons (DWT).
It is likely to be commissioned in Nov 2010. Looking into the valuation of ports like Mundra, we can guess about value addition to tata steel due to this. So it is a good buy now.
QIP is an issue that is going against the minority shareholders. The promoters easily are getting the approval from AGM as they are in majority.The QIP portion is issued at discount to PE companies. In order to safeguard the small investors, SEBI should intervene in this cases and issue directive that only in extreme cases , they should go to QIP after failing in all other avenues where small investors/minority shareholders are not affected. Investor protection forum also should take up this matter to SEBI.
Coal India IPO appears to be priced slightly high as per some experts.The price band decided is 225-245 with 5% discount to retail investors. It should not go to the way NTPC has gone.
Start buying cheap software stocks like TCS, Mahindra satyam
RBI is likely to intervene in currency and make it depreciate so as to benefit exporters like software firms, textiles
Cairn india:Hold/Sell: 345/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
Suzlon: Sell
Wind energy major Suzlon plans to raise up to Rs 5,000 crore from the secondary market and increase its borrowing limit to Rs 10,000 crore from the current Rs 7,000 crore.
A Suzlon notification to the stock exchanges today said its board had approved proposals for shareholders’ nod to increase its authorised share capital from Rs 445 crore to Rs 700 crore and to issue securities (like ADRs, GDRs, FCCBs, non-convertible debentures, convertible bonds, QIP, etc) of up to Rs 5,000 crore. The board also approved the increase of borrowing limits, other than temporary loans and working capital facilities, from Rs 7,000 crore to Rs 10,000 crore.
Suzlon may go for QIP route by offering share at discount. So better to distance from it now.
Suzlon had suspended its large-scale capital expansion plans due to sluggish conditions in the wind energy market and the global economic slowdown. Faced with liquidity problems, Suzlon also had to refinance its loans of close to Rs 10,000 crore with its creditors.
It also sold a 35 per cent stake in subsidiary Hansen Transmission for around $370 million in November last year to reduce its debts.
Tuesday, October 12, 2010
free stock tips 12.10.2010
QIP is an issue that is going against the minority shareholders. The promoters easily are getting the approval from AGM as they are in majority.The QIP portion is issued at discount to PE companies. In order to safeguard the small investors, SEBI should intervene in this cases and issue directive that only in extreme cases , they should go to QIP after failing in all other avenues where small investors/minority shareholders are not affected. Investor protection forum also should take up this matter to SEBI.
Buy JP associates in the present price band of Rs.132/-
Price increase and increased despatches will give good quarterly results.One more unit in Gujrat will boost its productivity and coverage of sales area due to increased infrastructure spending in india.Also It is going to invest Rs.600 crores in Maharashtra to increase cement output. So planned expansion will help this stock to gain just like ACC. So we can go in for this stock.
Start buying cheap software stocks like TCS, Mahindra satyam
RBI is likely to intervene in currency and make it depreciate so as to benefit exporters like software firms, textiles
Buy Tata steel:Rs.640/- Target Rs.660/-
Company declined about any proposal for QIP proposal and hence the gossip prevailed earlier which brought down the share proved to be false.QIP will be preferred when there is difficulty in raising the external loans but for Tata steel, there is no problem in this regard. This case may apply to Suzlon which is under financial stree.
PE ratio is around 8 only. This will reduce further due to increase in steel price and reduction in raw material price. So good buy.
Cairn india:Hold/Sell: 345/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
Suzlon: Sell
Wind energy major Suzlon plans to raise up to Rs 5,000 crore from the secondary market and increase its borrowing limit to Rs 10,000 crore from the current Rs 7,000 crore.
A Suzlon notification to the stock exchanges today said its board had approved proposals for shareholders’ nod to increase its authorised share capital from Rs 445 crore to Rs 700 crore and to issue securities (like ADRs, GDRs, FCCBs, non-convertible debentures, convertible bonds, QIP, etc) of up to Rs 5,000 crore. The board also approved the increase of borrowing limits, other than temporary loans and working capital facilities, from Rs 7,000 crore to Rs 10,000 crore.
Suzlon may go for QIP route by offering share at discount. So better to distance from it now.
Suzlon had suspended its large-scale capital expansion plans due to sluggish conditions in the wind energy market and the global economic slowdown. Faced with liquidity problems, Suzlon also had to refinance its loans of close to Rs 10,000 crore with its creditors.
It also sold a 35 per cent stake in subsidiary Hansen Transmission for around $370 million in November last year to reduce its debts.
Buy JP associates in the present price band of Rs.132/-
Price increase and increased despatches will give good quarterly results.One more unit in Gujrat will boost its productivity and coverage of sales area due to increased infrastructure spending in india.Also It is going to invest Rs.600 crores in Maharashtra to increase cement output. So planned expansion will help this stock to gain just like ACC. So we can go in for this stock.
Start buying cheap software stocks like TCS, Mahindra satyam
RBI is likely to intervene in currency and make it depreciate so as to benefit exporters like software firms, textiles
Buy Tata steel:Rs.640/- Target Rs.660/-
Company declined about any proposal for QIP proposal and hence the gossip prevailed earlier which brought down the share proved to be false.QIP will be preferred when there is difficulty in raising the external loans but for Tata steel, there is no problem in this regard. This case may apply to Suzlon which is under financial stree.
PE ratio is around 8 only. This will reduce further due to increase in steel price and reduction in raw material price. So good buy.
Cairn india:Hold/Sell: 345/-No fresh buy.
Only confusion is prevailing and there is inordinate delay on the part of ONGC/SEBI/Govt. Vedanta says that it will not increase open offer price.
Suzlon: Sell
Wind energy major Suzlon plans to raise up to Rs 5,000 crore from the secondary market and increase its borrowing limit to Rs 10,000 crore from the current Rs 7,000 crore.
A Suzlon notification to the stock exchanges today said its board had approved proposals for shareholders’ nod to increase its authorised share capital from Rs 445 crore to Rs 700 crore and to issue securities (like ADRs, GDRs, FCCBs, non-convertible debentures, convertible bonds, QIP, etc) of up to Rs 5,000 crore. The board also approved the increase of borrowing limits, other than temporary loans and working capital facilities, from Rs 7,000 crore to Rs 10,000 crore.
Suzlon may go for QIP route by offering share at discount. So better to distance from it now.
Suzlon had suspended its large-scale capital expansion plans due to sluggish conditions in the wind energy market and the global economic slowdown. Faced with liquidity problems, Suzlon also had to refinance its loans of close to Rs 10,000 crore with its creditors.
It also sold a 35 per cent stake in subsidiary Hansen Transmission for around $370 million in November last year to reduce its debts.
Monday, October 11, 2010
Stock tips 11.10.2010
Buy JP associates in the present price band of Rs.132/-
Price increase and qty increase will give good quarterly results.One more unit in Gujrat will boost its productivity and coverage of sales area due to increased infrastructure spending in india.
Start buying cheap software stocks like TCS, Mahindra satyam
RBI is likely to intervene in currency and make it depreciate so as to benefit exporters like software firms, textiles etc.
Buy Tata steel:Rs.627/- Target Rs.650/-
Company declined about any proposal for QIP proposal and hence the gossip prevailed earlier which brought down the share proved to be false.
PE ratio is around 8 only. This will reduce further due to increase in steel price and reduction in raw material price. So good buy.
Cairn india:Hodl: 345/-
OPen offer may be increased as already pointed out by me earlier. ONGC wants to have it equal to amount payable to sesa goa so that it wants to exit with release from royalty payment in future. But vedanta is not agreeable for royalty payment. Thus still confusion prevails whether SEBI will agree for this deal where ONGC has not given green signal.
Price increase and qty increase will give good quarterly results.One more unit in Gujrat will boost its productivity and coverage of sales area due to increased infrastructure spending in india.
Start buying cheap software stocks like TCS, Mahindra satyam
RBI is likely to intervene in currency and make it depreciate so as to benefit exporters like software firms, textiles etc.
Buy Tata steel:Rs.627/- Target Rs.650/-
Company declined about any proposal for QIP proposal and hence the gossip prevailed earlier which brought down the share proved to be false.
PE ratio is around 8 only. This will reduce further due to increase in steel price and reduction in raw material price. So good buy.
Cairn india:Hodl: 345/-
OPen offer may be increased as already pointed out by me earlier. ONGC wants to have it equal to amount payable to sesa goa so that it wants to exit with release from royalty payment in future. But vedanta is not agreeable for royalty payment. Thus still confusion prevails whether SEBI will agree for this deal where ONGC has not given green signal.
Thursday, October 7, 2010
free stock tips 08/10/2010
Stocks meant for long term say more than a year
Tata Steel: Buys.630/- target Rs.700/-
Tata steel ( indian Division)- PE is only 8. Good stock to keep.It is the cheapest stock in NIFTY group.
S&P raises ratings on Tata Steel and UK arm news
07 October 2010
Standard & Poor's today said that it had revised its outlooks on India-based Tata Steel Ltd and the former Corus plc, now its UK subsidiary Tata Steel UK Ltd to stable from negative.
We revised the outlook as we believe the potential pressure on Tata Steel UK's liquidity has eased following the refinancing of a £3.67 billion bank loan. The refinancing also reduces the potential pressure on parent Tata Steel's liquidity," said Standard & Poor's credit analyst Mehul Sukkawala
Tata Steel's consolidated operating performance has improved over the past year, especially with a turnaround at Tata Steel UK. Tata Steel's consolidated EBITDA margin was about 17 per cent for the six months ended 30 June 2010, compared with negligible margins for the same period last year.
"Tata Steel's and Tata Steel UK's financial metrics have improved. We expect metrics to further improve in the fiscal year ending 31 March 2011. We, however, believe that Tata Steel's financial risk profile remains aggressive, and Tata Steel UK's highly leveraged," S&P said in a statement.
Tata Steel and Tata Steel UKhave adequate liquidity, it added. "The companies' liquidity positions have improved with the refinancing of debt at Tata Steel UK by a new bank loan and a revolver credit facility totaling £3.53 billion. The new bank loan lengthens the repayment schedule and will enable Tata Steel UK to significantly reduce its repayment obligations for the next four to five years. In addition, it carries lighter financial covenants, which Tata Steel UKcan easily meet, and shields the company from any potential downturn in the operating environment."
Business standard says:
Steel firms get back pricing power
Healthy demand, better realisations and benign input prices indicate good prospects.
The outlook for domestic steel manufacturers is improving on the back of strong demand in the country and companies hiking steel prices. Companies including JSW Steel, SAIL and Essar Steel have hiked steel prices in the range of Rs 1,000-1,500 per tonne (or 3-4 per cent) in the last one week, which analysts believe could rise further. In totality, domestic HRC (hot rolled coil) prices are up 13 per cent since July this year, at about Rs 38,700-39,200 ($880-890) per tonne. In the light of the healthy demand, better realisations and benign input prices, the prospects of steel manufacturers look good.
Tata steel: PE ratio is only 8.5(EPS 72 and price 640) for current year and for next year it is
8.
For SAIL , it is 12 and for next year 11.
For JSW steel, it is 13 and next year 11.
So steel stocks are good picks now as other index stocks PEs are more than 15 to 20.
Reliance: Buy 1040 Target Rs.1100
OIL on Boil.
oil continues to rise. Now $83.May head towards $100 soon due to global recovery of all sectors.
RIL's K-G gas play may get bigger with D4 block
At 100 tcf, partner Niko says reserves may be twice D6 block’s
The Krishna-Godavari (K-G) basin may prove to be a much bigger play for Reliance Industries Ltd (RIL). This follows the announcement that its D4 block could hold twice the reserves of the in-production D6 block to the north.
So reliance industries have got good future and with such low share price it is a pick for any long term investor.
Tata Steel: Buys.630/- target Rs.700/-
Tata steel ( indian Division)- PE is only 8. Good stock to keep.It is the cheapest stock in NIFTY group.
S&P raises ratings on Tata Steel and UK arm news
07 October 2010
Standard & Poor's today said that it had revised its outlooks on India-based Tata Steel Ltd and the former Corus plc, now its UK subsidiary Tata Steel UK Ltd to stable from negative.
We revised the outlook as we believe the potential pressure on Tata Steel UK's liquidity has eased following the refinancing of a £3.67 billion bank loan. The refinancing also reduces the potential pressure on parent Tata Steel's liquidity," said Standard & Poor's credit analyst Mehul Sukkawala
Tata Steel's consolidated operating performance has improved over the past year, especially with a turnaround at Tata Steel UK. Tata Steel's consolidated EBITDA margin was about 17 per cent for the six months ended 30 June 2010, compared with negligible margins for the same period last year.
"Tata Steel's and Tata Steel UK's financial metrics have improved. We expect metrics to further improve in the fiscal year ending 31 March 2011. We, however, believe that Tata Steel's financial risk profile remains aggressive, and Tata Steel UK's highly leveraged," S&P said in a statement.
Tata Steel and Tata Steel UKhave adequate liquidity, it added. "The companies' liquidity positions have improved with the refinancing of debt at Tata Steel UK by a new bank loan and a revolver credit facility totaling £3.53 billion. The new bank loan lengthens the repayment schedule and will enable Tata Steel UK to significantly reduce its repayment obligations for the next four to five years. In addition, it carries lighter financial covenants, which Tata Steel UKcan easily meet, and shields the company from any potential downturn in the operating environment."
Business standard says:
Steel firms get back pricing power
Healthy demand, better realisations and benign input prices indicate good prospects.
The outlook for domestic steel manufacturers is improving on the back of strong demand in the country and companies hiking steel prices. Companies including JSW Steel, SAIL and Essar Steel have hiked steel prices in the range of Rs 1,000-1,500 per tonne (or 3-4 per cent) in the last one week, which analysts believe could rise further. In totality, domestic HRC (hot rolled coil) prices are up 13 per cent since July this year, at about Rs 38,700-39,200 ($880-890) per tonne. In the light of the healthy demand, better realisations and benign input prices, the prospects of steel manufacturers look good.
Tata steel: PE ratio is only 8.5(EPS 72 and price 640) for current year and for next year it is
8.
For SAIL , it is 12 and for next year 11.
For JSW steel, it is 13 and next year 11.
So steel stocks are good picks now as other index stocks PEs are more than 15 to 20.
Reliance: Buy 1040 Target Rs.1100
OIL on Boil.
oil continues to rise. Now $83.May head towards $100 soon due to global recovery of all sectors.
RIL's K-G gas play may get bigger with D4 block
At 100 tcf, partner Niko says reserves may be twice D6 block’s
The Krishna-Godavari (K-G) basin may prove to be a much bigger play for Reliance Industries Ltd (RIL). This follows the announcement that its D4 block could hold twice the reserves of the in-production D6 block to the north.
So reliance industries have got good future and with such low share price it is a pick for any long term investor.
Free stock tips 7.10.2010
Reliance: Buy 1050 Target Rs.1100
OIL on Boil.
oil continues to rise. Now $83.May head towards $100 soon due to global recovery of all sectors.
RIL's K-G gas play may get bigger with D4 block
At 100 tcf, partner Niko says reserves may be twice D6 block’s
The Krishna-Godavari (K-G) basin may prove to be a much bigger play for Reliance Industries Ltd (RIL). This follows the announcement that its D4 block could hold twice the reserves of the in-production D6 block to the north.
So reliance industries have got good future and with such low share price it is a pick for any long term investor.
Tata Steel: Buys.672/- target Rs.700/-
There will be uptrend only due to steel demand through out the world and china's inability to increase steel output will help Tata steel to capture the market. It will reach soon its previous height like other stocks and will not go down now.It will reach its peak level of Rs.800 soon
Both the above stocks are below their high levels and if anyone missed the rally can catch up with these two stocks still.
Visa steel is a silent stock which has got good energy . Price :Rs.40
Target Rs.60/- within 3 to 6 months. Low value stock. If international accounting standard report has to be done soon, then this stock will be having not less than Rs.75/- in value. So get into this stock now.Don't feel sorry later.
OIL on Boil.
oil continues to rise. Now $83.May head towards $100 soon due to global recovery of all sectors.
RIL's K-G gas play may get bigger with D4 block
At 100 tcf, partner Niko says reserves may be twice D6 block’s
The Krishna-Godavari (K-G) basin may prove to be a much bigger play for Reliance Industries Ltd (RIL). This follows the announcement that its D4 block could hold twice the reserves of the in-production D6 block to the north.
So reliance industries have got good future and with such low share price it is a pick for any long term investor.
Tata Steel: Buys.672/- target Rs.700/-
There will be uptrend only due to steel demand through out the world and china's inability to increase steel output will help Tata steel to capture the market. It will reach soon its previous height like other stocks and will not go down now.It will reach its peak level of Rs.800 soon
Both the above stocks are below their high levels and if anyone missed the rally can catch up with these two stocks still.
Visa steel is a silent stock which has got good energy . Price :Rs.40
Target Rs.60/- within 3 to 6 months. Low value stock. If international accounting standard report has to be done soon, then this stock will be having not less than Rs.75/- in value. So get into this stock now.Don't feel sorry later.
Tuesday, October 5, 2010
Free stock tips 6.10.2010
Reliance industries: Buy at current price Rs.1023 Target Rs.1050
There is likelihood of gas price increase sooner.This is one of the stock now available cheap as compared to other stocks. Gas, oil and metal sectors now gain as compared to software, banking sectors which are overheated.
Reliance Industries (RIL) plans to raise at least $1 billion through bonds denominated in US dollars, bankers said today. The proceeds will be used to refinance $765 million of loans the company has taken for its acquisition of shale gas ventures in the US.
Tech Mahindra: Buy (Rs.765)
BP who is the holder of 30% of Tech mahindra will soon like to get out of Tech Mahindra. It is in need of funds and is looking for a buyer. First offer will be to tech mahindra. But Tech mahindra will not be much interested . This sell out may take place before Mahindra Satyam merger and hence there is chance of open offer and the likely bulk sale price may be around Rs.900/-.Global PE firms are interested for the stake buy.
IFCI: Hold . No fresh buy.
Govt has appointed advisor for IFCI who will submit report before dec2010. Banking licence will take some time and it will not be issued in the current year as lot of comments and counter comments and then firm guidelines are expected which will take not less than 6 months from now. Licenses will be issued probably in the FY 2011-12.
Mahindra satyam:Sell till Rs.80/-
At Rs 90.10, Mahindra Satyam’s stock is trading at 13 times its 2011-12 estimated earnings, which is not cheap.
Avoid this share till clear picture emanates. We got good shares like patni computers etc which are good now.
Unitech: sell(Rs.94/-)
Overheated and risky. Profitability of the stock is still a question and it is a gamble . So exercise caution investors.Present PE(TTM) 33 against sector PE of 22.This is as per reuters rating. PE around 10 to 15 appears to be reasonable. Unitech is not in Nifty also now. So avoid gambling in this stock.
Sell software stocks:Since market is going up, it is better to sell software shares and wait for good time. The dollar earnings are reduced due to strength of rupee. When markets goes down and $ strengthens against rupee, then we can go for software stocks. Till such time, either hold or sell.
Sterlite industries: Sell
Supreme court has allowed time upto 18th Oct 2010 from the stay. But it appears that it has to close down the unit due to environmental problems.Supreme court may vet the decision of High court.
So be cautious.
Bank, reality stocks- My opinion is to sell. Bank stocks are overvalued. If anyone wants to buy, go for specific shares having PE multiples of 18 or less and also growth oriented. Recent wage hike will push up expenses of banks. It will fall like arranged cards. Rupee appreciation, expected reduction in growth targets will pull down software stock price. So better to exit now and re-enter at lower levels. Nifty may hover between 6300 to 6400 due to global stock market positive trend and faith in India's growth by FII .But domestic institutions and retail investors should step in and replace FII soon.Otherwise , a crash like situation may emerge at any time as FII move fast where they get good returns. Bringing back ELSS to all people in savings plan giving income tax benefit will help market to enthusiaze public to finance share market and replace FII thus removing the fear of RBI for exit of FIIs. Finance ministry may look into it.
Banks now have NPAs in dangerous levels in education loans, agri loans and to some extent in housing loans. Also there will be less housing loan business expected for reality and banking sector after revised Direct tax code comes in as no income tax benefit is given for repayment of principal of housing loans. Financial consultants,banks, reality companies and experts should recommend to Govt about bringing back the benefit under Sec.80C. Banks will feel the heat once many more private players enter into the areana of banking field like reliance capital, L&T and IFCI etc.
There is likelihood of gas price increase sooner.This is one of the stock now available cheap as compared to other stocks. Gas, oil and metal sectors now gain as compared to software, banking sectors which are overheated.
Reliance Industries (RIL) plans to raise at least $1 billion through bonds denominated in US dollars, bankers said today. The proceeds will be used to refinance $765 million of loans the company has taken for its acquisition of shale gas ventures in the US.
Tech Mahindra: Buy (Rs.765)
BP who is the holder of 30% of Tech mahindra will soon like to get out of Tech Mahindra. It is in need of funds and is looking for a buyer. First offer will be to tech mahindra. But Tech mahindra will not be much interested . This sell out may take place before Mahindra Satyam merger and hence there is chance of open offer and the likely bulk sale price may be around Rs.900/-.Global PE firms are interested for the stake buy.
IFCI: Hold . No fresh buy.
Govt has appointed advisor for IFCI who will submit report before dec2010. Banking licence will take some time and it will not be issued in the current year as lot of comments and counter comments and then firm guidelines are expected which will take not less than 6 months from now. Licenses will be issued probably in the FY 2011-12.
Mahindra satyam:Sell till Rs.80/-
At Rs 90.10, Mahindra Satyam’s stock is trading at 13 times its 2011-12 estimated earnings, which is not cheap.
Avoid this share till clear picture emanates. We got good shares like patni computers etc which are good now.
Unitech: sell(Rs.94/-)
Overheated and risky. Profitability of the stock is still a question and it is a gamble . So exercise caution investors.Present PE(TTM) 33 against sector PE of 22.This is as per reuters rating. PE around 10 to 15 appears to be reasonable. Unitech is not in Nifty also now. So avoid gambling in this stock.
Sell software stocks:Since market is going up, it is better to sell software shares and wait for good time. The dollar earnings are reduced due to strength of rupee. When markets goes down and $ strengthens against rupee, then we can go for software stocks. Till such time, either hold or sell.
Sterlite industries: Sell
Supreme court has allowed time upto 18th Oct 2010 from the stay. But it appears that it has to close down the unit due to environmental problems.Supreme court may vet the decision of High court.
So be cautious.
Bank, reality stocks- My opinion is to sell. Bank stocks are overvalued. If anyone wants to buy, go for specific shares having PE multiples of 18 or less and also growth oriented. Recent wage hike will push up expenses of banks. It will fall like arranged cards. Rupee appreciation, expected reduction in growth targets will pull down software stock price. So better to exit now and re-enter at lower levels. Nifty may hover between 6300 to 6400 due to global stock market positive trend and faith in India's growth by FII .But domestic institutions and retail investors should step in and replace FII soon.Otherwise , a crash like situation may emerge at any time as FII move fast where they get good returns. Bringing back ELSS to all people in savings plan giving income tax benefit will help market to enthusiaze public to finance share market and replace FII thus removing the fear of RBI for exit of FIIs. Finance ministry may look into it.
Banks now have NPAs in dangerous levels in education loans, agri loans and to some extent in housing loans. Also there will be less housing loan business expected for reality and banking sector after revised Direct tax code comes in as no income tax benefit is given for repayment of principal of housing loans. Financial consultants,banks, reality companies and experts should recommend to Govt about bringing back the benefit under Sec.80C. Banks will feel the heat once many more private players enter into the areana of banking field like reliance capital, L&T and IFCI etc.
Monday, October 4, 2010
Free stock tips 05.10.2010
Reliance industries: Buy at current price Rs.1023 Target Rs.1050
There is likelihood of gas price increase sooner.
Reliance Industries (RIL) plans to raise at least $1 billion through bonds denominated in US dollars, bankers said today. The proceeds will be used to refinance $765 million of loans the company has taken for its acquisition of shale gas ventures in the US.
Tech Mahindra: Buy (Rs.765)
BP who is the holder of 30% of Tech mahindra will soon like to get out of Tech Mahindra. It is in need of funds and is looking for a buyer. First offer will be to tech mahindra. But Tech mahindra will not be much interested . This sell out may take place before Mahindra Satyam merger and hence there is chance of open offer and the likely bulk sale price may be around Rs.900/-.Global PE firms are interested for the stake buy.
Buy Tata steel :Rs.670/-Target Rs. 700/-
Tata steel on Sunday increased prices of its products by up to Rs 1,500 per tonne, mainly on account of rising demand.Industry experts said that around three per cent increase announcement by the leading steel major may jack up the rates of its various products by Rs 1,500 a tonne.
Tata Steel is exploring the possibility of setting up a mega project in collaboration with the world’s fourth largest producer, Nippon Steel Corporation of Japan.The JV aims to capture the growing demand for high-grade automotive, cold rolled, flat products in India by setting up a continuous annealing and processing line with a capacity of 600,000 tonnes. Nippon Steel would transfer its technology for producing high-grade cold-rolled steel sheet for automotive application, including skin panels and high tensile steels. The target for start of operations is March 2013.
IFCI: Hold . No fresh buy.
Govt has appointed advisor for IFCI who will submit report before dec2010. Banking licence will take some time and it will not be issued in the current year as lot of comments and counter comments and then firm guidelines are expected which will take not less than 6 months from now. Licenses will be issued probably in the FY 2011-12.
Mahindra satyam:Sell till Rs.80/-
At Rs 90.10, Mahindra Satyam’s stock is trading at 13 times its 2011-12 estimated earnings, which is not cheap.
Avoid this share till clear picture emanates. We got good shares like patni computers etc which are good now.
Unitech: sell(Rs.94/-)
Overheated and risky. Profitability of the stock is still a question and it is a gamble . So exercise caution investors.Present PE(TTM) 33 against sector PE of 22.This is as per reuters rating. PE around 10 to 15 appears to be reasonable. Unitech is not in Nifty also now. So avoid gambling in this stock.
Sell software stocks:Since market is going up, it is better to sell software shares and wait for good time. The dollar earnings are reduced due to strength of rupee. When markets goes down, then we can go for software stocks. Till such time, either hold or sell.
Sterlite industries: Sell
Supreme court has allowed time upto 18th Oct 2010 from the stay. But it appears that it has to close down the unit due to environmental problems.Supreme court may vet the decision of High court.
So be cautious.
Bank, reality stocks- My opinion is to sell. Bank stocks are overvalued.Recent wage hike will push up expenses of banks. It will fall like arranged cards. Rupee appreciation, expected reduction in growth targets will pull down software stock price. So better to exit now and re-enter at lower levels. Nifty may hover between 6300 to 6400 due to global stock market positive trend and faith in India's growth by FII .But domestic institutions and retail investors should step in and replace FII soon.Otherwise , a crash like situation may emerge at any time as FII move fast where they get good returns. Bringing back ELSS to all people in savings plan giving income tax benefit will help market to enthusiaze public to finance share market and replace FII thus removing the fear of RBI for exit of FIIs. Finance ministry may look into it.
Banks now have NPAs in dangerous levels in education loans, agri loans and to some extent in housing loans. Also there will be less housing loan business expected for reality and banking sector after revised Direct tax code comes in as no income tax benefit is given for repayment of principal of housing loans. Financial consultants,banks, reality companies and experts should recommend to Govt about bringing back the benefit under Sec.80C. Banks will feel the heat once many more private players enter into the areana of banking field like reliance capital, L&T and IFCI etc.
There is likelihood of gas price increase sooner.
Reliance Industries (RIL) plans to raise at least $1 billion through bonds denominated in US dollars, bankers said today. The proceeds will be used to refinance $765 million of loans the company has taken for its acquisition of shale gas ventures in the US.
Tech Mahindra: Buy (Rs.765)
BP who is the holder of 30% of Tech mahindra will soon like to get out of Tech Mahindra. It is in need of funds and is looking for a buyer. First offer will be to tech mahindra. But Tech mahindra will not be much interested . This sell out may take place before Mahindra Satyam merger and hence there is chance of open offer and the likely bulk sale price may be around Rs.900/-.Global PE firms are interested for the stake buy.
Buy Tata steel :Rs.670/-Target Rs. 700/-
Tata steel on Sunday increased prices of its products by up to Rs 1,500 per tonne, mainly on account of rising demand.Industry experts said that around three per cent increase announcement by the leading steel major may jack up the rates of its various products by Rs 1,500 a tonne.
Tata Steel is exploring the possibility of setting up a mega project in collaboration with the world’s fourth largest producer, Nippon Steel Corporation of Japan.The JV aims to capture the growing demand for high-grade automotive, cold rolled, flat products in India by setting up a continuous annealing and processing line with a capacity of 600,000 tonnes. Nippon Steel would transfer its technology for producing high-grade cold-rolled steel sheet for automotive application, including skin panels and high tensile steels. The target for start of operations is March 2013.
IFCI: Hold . No fresh buy.
Govt has appointed advisor for IFCI who will submit report before dec2010. Banking licence will take some time and it will not be issued in the current year as lot of comments and counter comments and then firm guidelines are expected which will take not less than 6 months from now. Licenses will be issued probably in the FY 2011-12.
Mahindra satyam:Sell till Rs.80/-
At Rs 90.10, Mahindra Satyam’s stock is trading at 13 times its 2011-12 estimated earnings, which is not cheap.
Avoid this share till clear picture emanates. We got good shares like patni computers etc which are good now.
Unitech: sell(Rs.94/-)
Overheated and risky. Profitability of the stock is still a question and it is a gamble . So exercise caution investors.Present PE(TTM) 33 against sector PE of 22.This is as per reuters rating. PE around 10 to 15 appears to be reasonable. Unitech is not in Nifty also now. So avoid gambling in this stock.
Sell software stocks:Since market is going up, it is better to sell software shares and wait for good time. The dollar earnings are reduced due to strength of rupee. When markets goes down, then we can go for software stocks. Till such time, either hold or sell.
Sterlite industries: Sell
Supreme court has allowed time upto 18th Oct 2010 from the stay. But it appears that it has to close down the unit due to environmental problems.Supreme court may vet the decision of High court.
So be cautious.
Bank, reality stocks- My opinion is to sell. Bank stocks are overvalued.Recent wage hike will push up expenses of banks. It will fall like arranged cards. Rupee appreciation, expected reduction in growth targets will pull down software stock price. So better to exit now and re-enter at lower levels. Nifty may hover between 6300 to 6400 due to global stock market positive trend and faith in India's growth by FII .But domestic institutions and retail investors should step in and replace FII soon.Otherwise , a crash like situation may emerge at any time as FII move fast where they get good returns. Bringing back ELSS to all people in savings plan giving income tax benefit will help market to enthusiaze public to finance share market and replace FII thus removing the fear of RBI for exit of FIIs. Finance ministry may look into it.
Banks now have NPAs in dangerous levels in education loans, agri loans and to some extent in housing loans. Also there will be less housing loan business expected for reality and banking sector after revised Direct tax code comes in as no income tax benefit is given for repayment of principal of housing loans. Financial consultants,banks, reality companies and experts should recommend to Govt about bringing back the benefit under Sec.80C. Banks will feel the heat once many more private players enter into the areana of banking field like reliance capital, L&T and IFCI etc.
Friday, October 1, 2010
Free stock tips 04.10.2010
Buy Tata steel :Rs.670/-Target Rs. 700/-
Tata steel on Sunday increased prices of its products by up to Rs 1,500 per tonne, mainly on account of rising demand.
Industry experts said that around three per cent increase announcement by the leading steel major may jack up the rates of its various products by Rs 1,500 a tonne.
Reliance industries: Hold. Buy is not recommended now. Production is reduced to 24000 barrels against 33000 barrelsdue to gas pressure decrease in KG basin.
IFCI: Hold Rs.66 . No fresh buy.
Govt has appointed advisor for IFCI who will submit report before dec2010. Banking licence will take some time and it will not be issued in the current year as lot of comments and counter comments and then firm guidelines are expected which will take not less than 6 months from now. Licenses will be issued probably in the FY 2011-12.
Mahindra satyam:Sell till Rs.80/-
At Rs 90.10, Mahindra Satyam’s stock is trading at 13 times its 2011-12 estimated earnings, which is not cheap.
Avoid this share till clear picture emanates. We got good shares like patni computers etc which are good now.
Unitech: sell(Rs.94/-)
Overheated and risky. Profitability of the stock is still a question and it is a gamble . So exercise caution investors.Present PE(TTM) 33 against sector PE of 22.This is as per reuters rating. PE around 10 to 15 appears to be reasonable. Unitech is not in Nifty also now. So avoid gambling in this stock.
Sell software stocks:Since market is going up, it is better to sell software shares and wait for good time. The dollar earnings are reduced due to strength of rupee. When markets goes down, then we can go for software stocks. Till such time, either hold or sell.
Sterlite industries: Sell
Supreme court has allowed time upto 18th Oct 2010 from the stay. But it appears that it has to close down the unit due to environmental problems.Supreme court may vet the decision of High court.
So be cautious.
Bank, reality stocks- My opinion is to sell. Bank stocks are overvalued.Recent wage hike will push up expenses of banks. It will fall like arranged cards. Rupee appreciation, expected reduction in growth targets will pull down software stock price. So better to exit now and re-enter at lower levels. Nifty may hover between 6300 to 6400 due to global stock market positive trend and faith in India's growth by FII .But domestic institutions and retail investors should step in and replace FII soon.Otherwise , a crash like situation may emerge at any time as FII move fast where they get good returns. Bringing back ELSS to all people in savings plan giving income tax benefit will help market to enthusiaze public to finance share market and replace FII thus removing the fear of RBI for exit of FIIs. Finance ministry may look into it.
Banks now have NPAs in dangerous levels in education loans, agri loans and to some extent in housing loans. Also there will be less housing loan business expected for reality and banking sector after revised Direct tax code comes in as no income tax benefit is given for repayment of principal of housing loans. Financial consultants,banks, reality companies and experts should recommend to Govt about bringing back the benefit under Sec.80C. Banks will feel the heat once many more private players enter into the areana of banking field like reliance capital, L&T and IFCI etc.
Tata steel on Sunday increased prices of its products by up to Rs 1,500 per tonne, mainly on account of rising demand.
Industry experts said that around three per cent increase announcement by the leading steel major may jack up the rates of its various products by Rs 1,500 a tonne.
Reliance industries: Hold. Buy is not recommended now. Production is reduced to 24000 barrels against 33000 barrelsdue to gas pressure decrease in KG basin.
IFCI: Hold Rs.66 . No fresh buy.
Govt has appointed advisor for IFCI who will submit report before dec2010. Banking licence will take some time and it will not be issued in the current year as lot of comments and counter comments and then firm guidelines are expected which will take not less than 6 months from now. Licenses will be issued probably in the FY 2011-12.
Mahindra satyam:Sell till Rs.80/-
At Rs 90.10, Mahindra Satyam’s stock is trading at 13 times its 2011-12 estimated earnings, which is not cheap.
Avoid this share till clear picture emanates. We got good shares like patni computers etc which are good now.
Unitech: sell(Rs.94/-)
Overheated and risky. Profitability of the stock is still a question and it is a gamble . So exercise caution investors.Present PE(TTM) 33 against sector PE of 22.This is as per reuters rating. PE around 10 to 15 appears to be reasonable. Unitech is not in Nifty also now. So avoid gambling in this stock.
Sell software stocks:Since market is going up, it is better to sell software shares and wait for good time. The dollar earnings are reduced due to strength of rupee. When markets goes down, then we can go for software stocks. Till such time, either hold or sell.
Sterlite industries: Sell
Supreme court has allowed time upto 18th Oct 2010 from the stay. But it appears that it has to close down the unit due to environmental problems.Supreme court may vet the decision of High court.
So be cautious.
Bank, reality stocks- My opinion is to sell. Bank stocks are overvalued.Recent wage hike will push up expenses of banks. It will fall like arranged cards. Rupee appreciation, expected reduction in growth targets will pull down software stock price. So better to exit now and re-enter at lower levels. Nifty may hover between 6300 to 6400 due to global stock market positive trend and faith in India's growth by FII .But domestic institutions and retail investors should step in and replace FII soon.Otherwise , a crash like situation may emerge at any time as FII move fast where they get good returns. Bringing back ELSS to all people in savings plan giving income tax benefit will help market to enthusiaze public to finance share market and replace FII thus removing the fear of RBI for exit of FIIs. Finance ministry may look into it.
Banks now have NPAs in dangerous levels in education loans, agri loans and to some extent in housing loans. Also there will be less housing loan business expected for reality and banking sector after revised Direct tax code comes in as no income tax benefit is given for repayment of principal of housing loans. Financial consultants,banks, reality companies and experts should recommend to Govt about bringing back the benefit under Sec.80C. Banks will feel the heat once many more private players enter into the areana of banking field like reliance capital, L&T and IFCI etc.
Free stock tips 01.10.2010
Reliance indus: Buy upto Rs.1020/- now today. Without any hesitation, we can buy upto Rs.1000/-.
It is the cheapest one among various shares. Oil price is on the increase.
So grab it.
Better to stop buying Tata steel above rs.670/- unless price rise is there.
Tata Steel bags process technology patent, may out-license to rival cos
Tata Steel has bagged a commercial patent on a widely used for developing iron at steel plants. The steel major may consider licensing the technology to .
Tata Steel recently signed an agreement with Jyoti Cero Rubber to commercialise a patented technology for hybrid rollers used in sinter plants, with potential revenues of over Rs1 crore annually by licensing it out over the next three years.
“This is the first patent licensed to a third party for commercial production in Tata Steel,” Tata Steel senior manager (intellectual property) BK Bhuyan told ET. “While the Tisco Direct Reduction was probably one of the first, it was licensed out in-house to group company Tata Sponge,” he added.
Price increase may be announced anytime from now by steel companies.
IFCI: Buy Rs.62.20 Target short term Rs.70/-
Govt has appointed advisor for IFCI who will submit report before dec2010. IFCI will get bank licence. All companies including L&T, Reliance capital etc. are in the process of applying for bank licences and are awaiting for guidelines.
Mahindra satyam:Sell till Rs.85/-
Avoid this share till clear picture emanates. We got good shares like patni computers etc which are good now.
Unitech: sell
This share will be taken out of NIfty from today and heavy selling is expected. So those having unitech may sell it today.
Also it appears that this company is involved in CAG's indictment of 2G spectrum case. There is possibility of its indictment and also its plan to come out of telecom business through subsidiary is now highlighted by CAG by indictment. Since Supreme court is also looking in this matter and hence this company may lose sizable amount.
Sesa Goa, Bajaj auto,Dr.Reddy lab : Buy now
They will be included in Nifty from today.Expect buying increases in these stocks.
Tata steel: Rs.652 Buy till Rs.670/-
* Tata Steel UK signed a senior facility agreement with a syndicate of 13 banks for £3.53 billion term loan. The new financing structure is in two parts — a five-year loan of around £1.86 billion equivalent and a seven-year loan of $1.58 billion equivalent. The revolving credit facilities for working capital purposes have been increased to $1.08 billion and will have a tenor of five years.
Tata steel succeeded as per their plan to refinance around $4.5-5.5 billion (Pound sterling 3.53 B) while the gross debt is around $9.5 billion.
Buy software stocks:Buy Patni which is cheap around Rs.418/- Target Rs.450/-Very soon, rupee will depreciate and go to the level of Rs.46/-
In USA, Senate Republicans successfully blocked the passage of an anti-offshoring Bill that would have denied tax breaks to US companies which move jobs overseas.This is a positive signs and relief to software companies.“The Bill would have increased the costs of US enterprises and made them uncompetitive in global markets…It (the defeat of the Bill in US Senate) is a good development for the Indian IT industry too because regulatory pressures will not, in any way, impair the ability of global customers to freely use the global delivery model,” Mr Krishnakumar Natarajan, CEO and Managing Director of MindTree, said.
Reliance industries.(Rs.988) Target Rs.1050/-
Increase in crude oil price will make this stock to jump today.
There will be another round of talks between Reliance industries and BP for RIL’s exploration and production (E&P) deal. The plan initially was for RIL to club certain blocks and sell 30% to British Petroleum. In April 2010, the valuation of RIL blocks were seen at USD 30 billion. Now reliance wants to create funds for shale gas deals and hence may plan for selling some blocks for sizable amount.BP is expected to discuss RIL's interest in its exploration assets in North Africa, downstream assets in West and South Africa and its petrochemical operations in Vietnam (which BP is looking to exit). BP and RIL may even revive their talks of a possible “farming in” opportunity in RIL's flagship KG-D6 oilfield, according to sources familiar with the matter as per business standard press note.
The rights issue in East india hotels will help reliance to reduce its purchase value in EIH to almost market price of EIH. Entering in hotel business and expanding it globally is the vision of reliance thus expanding its growth laterally in many sectors to offset any weakness in any one sector. This is a good management practice and investors will be benefited by it.Expected good refining margins. Expected good half yearly earnings.The government is also planning to raise the price of state-administered, or APM, gas sold to sectors other than power and fertiliser by over 10 per cent to $5.25 per million British thermal unit (mBtu).The proposal to hike the price for non-power and fertiliser consumers to $5.75 from $4.75 per mBtu is awaiting approval at the highest level and the nod may come any day now.
Sterlite industries: Sell
Court directed sterlite industries to close their Tuticorin copper smelting unit and arrange for alternative employment or compensation to the workers and officers.This is the thrid setback for company in the recent happenings.
Bank, reality stocks- sell.
Rupee appreciation, expected reduction in growth targets will pull down software stock price. So better to exit now and re-enter at lower levels. Nifty may hover between 5900 to 6000 as domestic institutions and retail investors will step in and replace FII soon. Bringing back ELSS to all people in savings plan giving income tax benefit will help market to enthusiaze public to finance share market and replace FII thus removing the fear of RBI for exit of FIIs. Finance ministry may look into it.
Banks now have NPAs in dangerous levels in education loans, agri loans and to some extent in housing loans. Also there will be less housing loan business expected for reality and banking sector after revised Direct tax code comes in as no income tax benefit is given for repayment of principal of housing loans. Financial consultants,banks, reality companies and experts should recommend to Govt about bringing back the benefit under Sec.80C. Banks will feel the heat once many more private players enter into the areana of banking field like reliance capital, L&T and IFCI etc.
Bank of baroda, Union bank of india and dena bank will be infused with more capital by govt of india. Small quantities of Dena bank and UBI may be purchased at current price.
Suzlon: rs.53/- Buy small qty
Suzlon Energy, which holds 91 percent of REpower, is the world's third-largest wind turbine maker behind Denmark's Vestas and Spain's Gamesa. Now it plans to purchase the balance 9% also. Then there will be plan to sell 25% of it stake to bulk buyer in order to reduce its loans. Buy in small quantities .
It is the cheapest one among various shares. Oil price is on the increase.
So grab it.
Better to stop buying Tata steel above rs.670/- unless price rise is there.
Tata Steel bags process technology patent, may out-license to rival cos
Tata Steel has bagged a commercial patent on a widely used for developing iron at steel plants. The steel major may consider licensing the technology to .
Tata Steel recently signed an agreement with Jyoti Cero Rubber to commercialise a patented technology for hybrid rollers used in sinter plants, with potential revenues of over Rs1 crore annually by licensing it out over the next three years.
“This is the first patent licensed to a third party for commercial production in Tata Steel,” Tata Steel senior manager (intellectual property) BK Bhuyan told ET. “While the Tisco Direct Reduction was probably one of the first, it was licensed out in-house to group company Tata Sponge,” he added.
Price increase may be announced anytime from now by steel companies.
IFCI: Buy Rs.62.20 Target short term Rs.70/-
Govt has appointed advisor for IFCI who will submit report before dec2010. IFCI will get bank licence. All companies including L&T, Reliance capital etc. are in the process of applying for bank licences and are awaiting for guidelines.
Mahindra satyam:Sell till Rs.85/-
Avoid this share till clear picture emanates. We got good shares like patni computers etc which are good now.
Unitech: sell
This share will be taken out of NIfty from today and heavy selling is expected. So those having unitech may sell it today.
Also it appears that this company is involved in CAG's indictment of 2G spectrum case. There is possibility of its indictment and also its plan to come out of telecom business through subsidiary is now highlighted by CAG by indictment. Since Supreme court is also looking in this matter and hence this company may lose sizable amount.
Sesa Goa, Bajaj auto,Dr.Reddy lab : Buy now
They will be included in Nifty from today.Expect buying increases in these stocks.
Tata steel: Rs.652 Buy till Rs.670/-
* Tata Steel UK signed a senior facility agreement with a syndicate of 13 banks for £3.53 billion term loan. The new financing structure is in two parts — a five-year loan of around £1.86 billion equivalent and a seven-year loan of $1.58 billion equivalent. The revolving credit facilities for working capital purposes have been increased to $1.08 billion and will have a tenor of five years.
Tata steel succeeded as per their plan to refinance around $4.5-5.5 billion (Pound sterling 3.53 B) while the gross debt is around $9.5 billion.
Buy software stocks:Buy Patni which is cheap around Rs.418/- Target Rs.450/-Very soon, rupee will depreciate and go to the level of Rs.46/-
In USA, Senate Republicans successfully blocked the passage of an anti-offshoring Bill that would have denied tax breaks to US companies which move jobs overseas.This is a positive signs and relief to software companies.“The Bill would have increased the costs of US enterprises and made them uncompetitive in global markets…It (the defeat of the Bill in US Senate) is a good development for the Indian IT industry too because regulatory pressures will not, in any way, impair the ability of global customers to freely use the global delivery model,” Mr Krishnakumar Natarajan, CEO and Managing Director of MindTree, said.
Reliance industries.(Rs.988) Target Rs.1050/-
Increase in crude oil price will make this stock to jump today.
There will be another round of talks between Reliance industries and BP for RIL’s exploration and production (E&P) deal. The plan initially was for RIL to club certain blocks and sell 30% to British Petroleum. In April 2010, the valuation of RIL blocks were seen at USD 30 billion. Now reliance wants to create funds for shale gas deals and hence may plan for selling some blocks for sizable amount.BP is expected to discuss RIL's interest in its exploration assets in North Africa, downstream assets in West and South Africa and its petrochemical operations in Vietnam (which BP is looking to exit). BP and RIL may even revive their talks of a possible “farming in” opportunity in RIL's flagship KG-D6 oilfield, according to sources familiar with the matter as per business standard press note.
The rights issue in East india hotels will help reliance to reduce its purchase value in EIH to almost market price of EIH. Entering in hotel business and expanding it globally is the vision of reliance thus expanding its growth laterally in many sectors to offset any weakness in any one sector. This is a good management practice and investors will be benefited by it.Expected good refining margins. Expected good half yearly earnings.The government is also planning to raise the price of state-administered, or APM, gas sold to sectors other than power and fertiliser by over 10 per cent to $5.25 per million British thermal unit (mBtu).The proposal to hike the price for non-power and fertiliser consumers to $5.75 from $4.75 per mBtu is awaiting approval at the highest level and the nod may come any day now.
Sterlite industries: Sell
Court directed sterlite industries to close their Tuticorin copper smelting unit and arrange for alternative employment or compensation to the workers and officers.This is the thrid setback for company in the recent happenings.
Bank, reality stocks- sell.
Rupee appreciation, expected reduction in growth targets will pull down software stock price. So better to exit now and re-enter at lower levels. Nifty may hover between 5900 to 6000 as domestic institutions and retail investors will step in and replace FII soon. Bringing back ELSS to all people in savings plan giving income tax benefit will help market to enthusiaze public to finance share market and replace FII thus removing the fear of RBI for exit of FIIs. Finance ministry may look into it.
Banks now have NPAs in dangerous levels in education loans, agri loans and to some extent in housing loans. Also there will be less housing loan business expected for reality and banking sector after revised Direct tax code comes in as no income tax benefit is given for repayment of principal of housing loans. Financial consultants,banks, reality companies and experts should recommend to Govt about bringing back the benefit under Sec.80C. Banks will feel the heat once many more private players enter into the areana of banking field like reliance capital, L&T and IFCI etc.
Bank of baroda, Union bank of india and dena bank will be infused with more capital by govt of india. Small quantities of Dena bank and UBI may be purchased at current price.
Suzlon: rs.53/- Buy small qty
Suzlon Energy, which holds 91 percent of REpower, is the world's third-largest wind turbine maker behind Denmark's Vestas and Spain's Gamesa. Now it plans to purchase the balance 9% also. Then there will be plan to sell 25% of it stake to bulk buyer in order to reduce its loans. Buy in small quantities .
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