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.
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