After Zenith Fibres, Zenith Computers, Lok Housing and Constructions Ltd, in comes Chandra Prabhu International Ltd,Talbros Automotive Components Ltd and Avon Organics Ltd. Keep watch on the results of Morgan Ventures Ltd: Keep holding all ur positions as "November Effect" kicks in:
Zenith Computers Ltd recommended at around Rs.82 hit the buyer freeze yesterday. Zenith Fibres Ltd recommended at around Rs.24- 25 range also hit the 20% upper freeze
Chandra Prabhu International Ltd. closed a tad below its earlier closing price, ahead of its results, which it is expected to publish at the end of this month. The company should show improvements both in toplines and bottolines when compared sequentially. Last quarter the company came up with disappointing results. This quarter the company should benefit from the fall in the Crude Oil prices globally. The company deals in synthetic rubber and other crude derivatives. There are also rumours that the company has signed an agreement with an Australian Drilling and Exploration Company. I had earlier mentioned that the company is almost on the verge of completing the said deal. The book values of the shares of Chandra Prabhu International is a whopping Rs.14.30 and the expected EPS should be around Rs.4--5 for the FY--06-07. SO BUY AS MUCH AS U CAN FOR A SHORT TO MEDIUM TERM OUTLOOK. This will be another multi-bagger after Sarda Plywood and Zenith Fibres Ltd. I am looking at immediate targets of Rs.16 and Rs.22 and Rs.35.
Zenser Technologies Ltd. which was recommended at Rs.203 and Rs.214 is still holding strong at Rs.238.7. I have placed a one year target of Rs.292.
Oriental Beverages Ltd which rose after I recommended is still ruling firm at Rs.15.50. The company is also into construction space and it has come out with excellent results in the June, 2006 quarter. The company has taken the franchisee of "Bisleri" mineral water as mentioned earlier.
Volume built-up is showing on the counter of Pioneer Distillaries Ltd. I had earlier recommended the stock when it rose to Rs.19.5.
Yesterday I recommended Talbros Automotive Components Ltd at Rs.65 and today it came out with the following news item on the BSE site:
Talbros Automotive Components Ltd has informed BSE that one of the objects of the IPO was setting up of Forging Plant by the Company at Bawal in Haryana.Further the Company has informed that, the Forging Plant at Bawal has already commenced trial runs and commencement of commercial production is expected shortly. In this connection the Company has announced execution of a Technical Assistance agreement with Presswerk Krefeld GmbH & Co. KG (PWK) of Germany for a period of 7 years. The collaboration agreement envisages transfer of technology in the field of Hot Forged items including Tool Design, Manufacture & Maintenance, Heat Treatment and other related areas.Established in the year 1898 PWK has gone through a few name changes by virtue of change of ownership and acquisition. PWK has its main manufacturing facility at Krefeld in Germany and also has a Joint Venture in China. The Company has technology for Hot Forging of Ferrous and Aluminum, Warm Forging, Cold Forging and Plastic Engine Moulding.PWK manufactures Housings for Lower Ball Joints & Suspension Ball Joints, Steel & Aluminium Control Arms, Ball Studs, Plastic Injection moulded Components and other Forgings for Automotive Industry.PWK is supplying majority of its products to OEMs and Tier 1 suppliers. Some of the major OEM/Tier 1 customers are IVECO, MAN, DAIMLER CHRYSLER, SKODA, FIAT, BMW, VOLKS WAGON, TRW etc.PWK is a part of 800 million dollar Maclean Fogg. Group head quartered in USA. Maclean Fogg has basically two lines of business - One in Automotive Components and the other in components for Power Transmission.This agreement apart from making available contemporary technology for forging also opens up a potential avenue to the Company for export of its products as well as a buy back opportunity for its collaborators. This technology Agreement will greatly benefit the forging activity of the Company in terms of manufacturing the product in most efficient way in conformity to the global standards.
So keep buying the counter for some wonderful upmove in the counter.The share price of the company is trading near is book value which is almost absurd in the auto-ancillary space---most of the scrips trades at least 3xbook values. Hence the stock has the potential to cross Rs.100 very soon.........
Keep holding all ur positions as the markets are set to Jump Start after the derivatives settlement as the "November Effect" kicks in. Keep buying good stocks in Mid, Small and Micro-cap space, as this space will give u maximum returns in the short term.
More in the following mails.........
Best wishes,
Suman Mukherjee
India.
suman2005s@rediffmail.com [Only available to the members of SumanSpeaks, Stockgold, Blackbird Money club, Bokaria, Kotaksecurities and NSEMUMBAIBULL groups]
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