Thursday, November 15, 2012

Market Mantra
Morning call: Buy Manappuram General Finance Ltd at Rs.32.5--33, T--Rs.37-41, SL--Rs.30.40, is doing excellently well. The results of the company are more or less on the expected lines. The demand for the company's product will continue to give it a strong foundation. It's H1FY13, EPS is Rs.3.16 and the for the whole yeat it is expected to clock an EPS of Rs.7-8. This gives a natural target of Rs.60-65 for the scrip in the medium term, on a conservative estimate. Meanwhile, inflation based on the wholesale price index (WPI) eased to 7.45% in October 2012 from 7.81% in September 2012, data released by the government on Wednesday, 14 November 2012, showed. Build up inflation in the current financial year so far was 4.78% compared to a build up of 5.02% in the corresponding period of the previous year, the Ministry of Commerce. This  increases the probability of a rate cut by the RBI in December, 2012. Also I think the time has come to buy NBFC scrips (I have already recommended Manapuram) as new banking licenses, will be issued, by the RBI according to the the Finance Minister, P Chidambaram. L & T Finance Holdings Ltd is already moving up (CMP: Rs.86.25).

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CINEMAX INDIA LTD is making 52-week highs every day. I feel there is some confusion regarding Cinemax India Ltd and Cinemax Properties Ltd. Let me give a brief idea on the same. According to its latest annual report, (FY12), the movie exhibition business of erstwhile Cinemax India Ltd, was demerged into a new entity called Cinemax Exhibition India Ltd (CEIL). Moreover, with effect from 9th May, 2012, the of name of Cinemax India Ltd became Cinemax Properties Ltd (CPL). HENCE ERSTWHILE CINEMAX INDIA LTD IS NOW CINEMAX PROPERTIES............Huh!! This scrip is therefore, has a great potential in the coming days, as according to the latest media reports, the promoters of the company are likely to invest the proceeds of the sale in their core business— real estate development. The promoters’ demand is almost double the market capitalisation of the company at Rs.368 crore.
The company is in the process of changing name of "Cinemax Exhibition India Ltd" to Cinemax India Ltd, subject to the approval of the ROC. CLICK HERE.

Reliance Communications Ltd reached its 1st target of Rs.62. But I think one should book some profits in the counter as the stock is trading near its 2nd target of Rs.64. 
Buy Nifty_Futures at 5630 (not spot values), T--5680, SL---5600. The world-wide markets are unnnecessarily getting corrected on something called "Fiscal Cliff". The Western Media is known to create unnecessary scare. Is the US--administration so foolish, that it will land the world's number one "Economic Super Power" in a trouble, especially when the Republicans have extended their co-operation? All these are just hot air. The US media is too rash and fickle.The investors are suggested to pick up good as a rate cut could take place in the next policy meet.