Monday, May 21, 2012

Jai Balaji Industries Ltd hit the buyer freeze in the opening trade, after some positive developments in the company. There is a report on the company at: 
Lanco Infratech Ltd
Lanco Infratech Ltd moved to Rs.12.44, before closing at Rs.12.36. The stock is heading towards my target of Rs.16 in the coming days, as the government gives more stress on the infrastructure spending to tame the inflation. I have already said that the scrip has made a bottom of sorts on the charts. The company is coming up with results on 29th May, 2012. This time the scrip would probably break Rs.14, the stiff resistance. 
Today a buy call was initiated in Nifty as buy Mini_Nifty at 4880, T--4930, SL--4850. Yesterday, also it was clearly mentioned in the report to the Paid Service members that, there would be initial bounce in the indices. This is what has happened today. 
Prajay Engineers Syndicate Ltd nearly hit the buyer freeze today, due to near completion of the hotel in Vizag. I do not understand, how this scrip is trading at such a dismal price, when the book value of the shares of the company is whooping Rs.94.99 and market cap of only Rs.42.80 Cr. Is it possible to buy two hotels in two major cities with Rs.43 Cr? I do not think you would think too much to get the answer. Also, the company has huge lands both in Vizag and Hyderabad. The company is doing a lot of projects, the names of some of which had earlier been mentioned in this blog. Please do not always look at the results of a company to determine its valuations, because there could be hidden value of a company.Just ask yourself, if a company is such a junk, as it made out to be by some marketmen, then how is it makiing so many projects and selling them. Is Prajay Engineers Syndicate Ltd selling the projects at a loss? Never? So, where is most of the money going that the company is earning? Or what is company coming up with net losses---it is all spent in the new projects, as the company is in a super expansion mode. However, too much expansion, without giving the shareholders the legitimate share of the wealth is also not good. This gives the promoters the lions share of wealth. I think someone should raise this question in the next AGM, of the company. Shareholders also needs to get a pie of the wealth of the companies like Prajay Engineers Syndicate Ltd. has built over the years. SEBI should bring these companies to task so that shareholders also get a legitimate part of the huge wealth created by the company. But then STOCK EXCHANGES are busy putting shares in meaningless T-groups, with mandatory 5% circuit. So if someone gets struck in the scrip he cannot get out too easily. I do not understand the philosophy of maintaining a T-group... !!  Instead of such things it would be better if the stock exchanges can catch the collars of the promoters and recover the lost money of the shareholders. Earlier (or even today) one of the infamous groups, who indulge in all these kinds of activities is Essar Group---however, this rot has now spread to the whole of India Inc, starting from Alok Industries to Prajay Engineers Syndicate Ltd to Piramal Group. The common game plan of the promoters of these companies is to show losses on the balance sheet, and escape tax net. In this process they accumulate huge wealth, at the cost of shareholders' money.  This is a serious issue, which is affecting the investing philosophies of Indian investors. The regulators are simply like statues---they act in places where they ought to keep more restraint. Poor people....!! SEBI is perhaps an organisation with wrong teeth.
Kohinoor Broadcasting Corporation Ltd hit the buyer freeze at the late trade, due to some positive developments in the company. I am looking at a target of Rs.10, in the coming days. In a significant development, Kumar Mangalam Birla bought a 27.5% stake in the Living Media group which publishes a clutch of magazines such as India Today, Business Today, Cosmopolitan and so on. The group also runs channels like TV Today, Aaj Tak and has a printing press called Thomson Press. The acquisition was done through Kumar Birla’s private investment company. While announcing the stake buy, Kumar Birla said “The media sector is a sunrise sector from an investment point of view. I believe that Living Media India offers one of the best opportunities for growth and value creation.”
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