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.