Market Mantra:

California Software Company Ltd is having a board meeting on January 23, 2007, inter alia, to consider the following: 1. The unaudited financial results for the nine months / third quarter October-December 2006 standalone and consolidated. 2. Proposal for amalgamation of Company's wholly owned subsidiary Webspectrum Software Ltd with the Company. 3. Allotment of 555,556 equity Shares on preferential basis based on shareholders EGM approval received on January 09, 2007. So keep watch on the counter as it will shoot if the results are good and if the company raises the preferential issue price. Buy with a short term target of Rs.120--Rs.150.

G M Breweries Ltd looks good at the current price of Rs.119. The company is expected to gain from the fall in the price of molasses due to bumper sugar cane production. All the liquor scrips have appreciated handsomely in the last few months. Even Mount Shivalik and IFB Industries zoomed up recently but GM Breweries (Code:507488) is still trading cheap. It made a very smart turnaround in FY06 by registering an OPM of around 16% compared to 7% in FY05. Even for the first two quarters of FY07 it reported a healthy OPM of around 14%. It is the single largest manufacturer of country liquor in Maharashtra and enjoys virtual monopoly in the districts of Mumbai and Thane. It also has the facility to manufacture IMFL but is not utilizing it. Company is investor-friendly and has an uninterrupted record of dividend payment from the day of listing.

At the current market cap of Rs.100 cr., it’s a screaming buy. Buy in huge quantities as the scrip can shoot up sharply post the Q3 results on 25th Jan. My recommended picks Andhra Petro, Pioneer Distillaries Ltd and Nagpur Power & Industries Ltd is in the buyer freeze.