Mid-day Analysis:

The markets as expected are holding up some of its initial gains. I have mentioned in the morning that the markets will remain buoyant during the day. Most of my stocks are doing well. Keep holding all ur positions and add some of the on declines or at the present prices. The next is the rise of the Mid, Small and Micro- Cap counters whose dormant attitude in this unprecendented bull phase has raised several questions from all quarters. I think this is a pure Media game who systematically put fear phychosis on the minds of investors that the stocks in these groups have huge risk quotient. But that is not true in full sense of the term. Let us first understand our risk profiles: In the normal business which I and most of the people do, get an average net return of 25%--40% flat. So then why do all of us spent time on the markets???!! Any guess...Yes u have guessed it right: it is for getting phenomenal returns the markets are capable of giving. But some of us has a habit of not taking risk at all and think that investing in the large caps is the ultimate solution to this burnig problem. I must say that they are wrong by miles. If a person is not able to take risk then why come to markets at all.....Better invest in FDs or Mutual Funds which have less risks. What I do not understand is that:why should anyone fear to take risk. It is that one should know where to take risk, how to take the risk and how to get out if he gets struck up in between. In short he should know how to balance his portfolio. That's all....If anyone who has mastered this art, making money from the markets is like drinking water. To quote Sachin Tendulkar in his once famous add: "Go get it.." SO DO NOT FEAR TOO MUCH IN THE MARKET. PLAY WITH APPROPRIATE STOP LOSSES AND ALWAYS HAVE MEDIUM TO LONG TERM VIEW. TRY TO AVOID GAMBLING IN THE MARKETS [ I mean daily trading]. If u still lose money then there must be something serious wrong in ur approach. In such cases it would be better to withdraw from the markets completely and go for serious introspection.....BUT IN THE PRESENT SCENARIO WHEN THE TREND IS SO STRONG I DO NOT THINK ANYBODY HAS MADE LOSSES FROM MY RECOMMENDATIONS. The Platoon commanders [the scrips in Nifty and Sensex] of the bull army, have been showing more or less Positive trends and is moving with a huge momentum northwards; this will continue till the early next year. So how can soldier be aloof from this super charged atomosphere. There is a common saying in English: "Fish follows water and water follows sea". This is bound to happen in the days to come and the mid, small and micro-cap shopping will begin soon..... From the next week [if I come from holidays] I will also be presenting the trend of Mid and Mmall cap Indices, along with the trend in the broader indices. Today I am going to recommend a fundamentally strong company:

Pratibha Industries Ltd

CMP--->Rs.214

Target-->Rs.450

Time-->8 to 18 months

Pratibha Industries Ltd. is an infrastructure company that derives a chunk of revenues from projects relating to water supply and distribution system. It is also into road construction, housing, environment engineering and design and manufacture of pre-cast concrete structures. If Pratibha Industries is able to foray successfully into the business of engineering procurement and construction (EPC) contracts for oil and gas transmission projects, the margins from this segment could turn out to be better than from other activities. Though an infrastructure company, Pratibha Industries has a business profile slightly different from the slew of firms that entered the capital market recently riding the infrastructure wave, mainly in the road and irrigation sector. The company is not active in road projects and is not a contractor for any National Highways Authority projects. The water projects that it has so far received are from State governments or their bodies. The small-to-medium orders have, however, yielded good returns. Order flows for such projects can be expected to sustain, given the budget allocations made by States for such schemes. With sound technical qualifications, the company is likely to get its share of business in the space in which it operates. The company's plan to backward integrate through a Rs 14-crore investment in spiral-welded pipes is also not a popular strategy among players in the sphere. Production of these pipes is likely to commence only in FY07-08. Demand for the product can be expected to be robust, given the pipeline plans in the oil and gas sector. Direct benefits from the pipe investment would accrue if Pratibha Industries is able to form joint ventures as an EPC contractor for oil and gas transmission. Pratibha Industries' has huge order book position of more than Rs.800 Cr , amount to about 7--8 times its FY-05 turnover. These orders are likely to convert into revenues over the next 18 months--24 months. At the current price of Rs.214, the stock looks attractive from medium to long term prospectives considering a strong order-book, attractive operating margins and a steady growth in revenues over the years. I might be going for holidays to Assam so in the next week u might not get updates in this site, unless I get some favourable circumstance to punch in some details here. Wish u all a happy "Deewali" and "Id Ul-Fitre"..... Suman Mukherjee India. www.sumanspeaks.blogspot.com www.eindiabrokers.com www.myiris.com www.bcozindia.com