Some Stocks Which are looking good are:

1. Hanil Era Textiles Ltd at Rs.18.5. Triggers: (a) There are Strong Rumours of Selling of Ethanol Plant at an astronomical price of Rs.90--Rs.100 Cr. This will be direct input to the balance sheet of the company which will swell by huge amount if this development materialises practically. But remember this is just a rumour and news is obtained from a boarder in Yahoo Group--SumanSpeaks. [The original News in SumanSpeaks is as follows: Dear Mr.Suman,Good evening,i wish bring to your notice certain details which was given to me by a long term value investor yesterday.He had gone for a company visit to the plant of Hanil Era Textiles (one of your chosen stock). He said that they are selling their Ethenol plant for in the region of 90 to 100 crores. Further he seemed very bullish on the prospects of the company and its petformance. He also pointed out that it is a dividend paying company so last so many years. Regards, Kamlesh madeka--> kamleshmadeka@gmail.com]. Hence u can contact this valuable boarder for some more updates on the company through the E-mail mentioned here. (b) Fall in raw material prices---Cotton prices and Crude prices. This year there has been bumper production of cotton. The synthetic fibres are made of crude derivative and hence fall of crude prices will significantly drive up Net Profit. (c) The expansion of the company is almost complete and it is expected to benefit significantly in this fiscal. The company now has huge capacitities with most ultra modern facility in the textile division. (d) This is the Best season for alcohol companies as the winter demand picks up. Besides the fall in the molasses prices will also help them. There is another company in this field called Tilaknagar Industries Ltd. the company also is a significant producer of Industrial Alcohol. Since Mark Faber is looking at Chemical Companies and hence we can see signifcant addition of valution in the downstream companies like Hanil Era Textiles Ltd. which is GIANT BOTH IN TERMS OF ETHANOL PRODUCTION AND ACCRYLIC YARN EXPORTS. (e) It has significant book value and EPS & there are very few companies in the Textile sector which can match its performance and scale. Also the company delisted its shares from the NSE because there is no use of trading of shares in both the exchanges as the average daily trading volume is less. It will safe the company of Listing fees and other hassles. This stock along with Patspin was recommended by Economic Times on its Sunday Edition in 2004, just before MFA was getting terminated. (e) After the Scrapping of MFA and support by the government in term of TUF and rationalisation of Cenveat duty structure, the textile companies which are major players both in domestic and international market will be benefited. (f) The company exports even to China and Bangladesh which are globally competitive and significant players in the terms of exports. This proves the quality the company is maintaining of its products. The company has major presence in Euro, Africa and Latin American Markets. The stock can become 5 to 6 times from the current price of Rs.18.5. It is trading at a dirt cheap price. Both the EPS and book value of the shares are already mentioned in the earlier posts in this blog. 2.Agro Dutch Industries Ltd: Triggers: (a)Like Hanil Era it is also a major players in the Export market. It is a global mushroom major which the 80% of the domestic production comes from this company. IT IS THE WORLD'S SECOND LARGEST PRODUCER OF INTEGRATED MUSHROOMS. b) It has 100% EOU and hence produces high quality products. The company exports products to Developed as well as developing countries--noted among them are USA and Canada. (c) It is to benefit from the goverments stress on the food processing and agriculture sectors. As long as the Communists are in control of affairs at the centre agriculture sector will be a major thrust area of the government. (d) Some months the company came up with a preference issue whereby the promoters stake in the company increase by a good amount. This is to pick up the shares of the company from the market ahead of materilisation of all the expansion plans. The company is expected to complete the Can making section by March, 2007--only two months away. (e) The company is also a Can maker like Shetron Ltd whose shares price took a major jump from Rs.20-Rs.25 levels only some months back. The company will now make Cans for the commercial purpose and the new venture is expected to take shape by March, 2007, when it is expected to start trial production in its factories. The company will thus turn out to be a hybrid variety of Premier Explosives Ltd(Mushroom player) and Shetron Ltd( a Can Manufacturer). (f) There has been a significant ramp up of the management and its plans. The company came up with rights issue some months back to fund its expansion plans( almost a year back--Agro Dutch Industries Ltd had earlier in a statement fixed December 19, 2005, as a Record Date for the purpose of Right Issue of Equity Shares). It has been reported earlier that M/s. Vishwa Calibre Builders Pvt. Ltd. an associate company of the promoters, have bought 85,451 shares of the company between November 08, 2006 to November 11, 2006. The present holding stands at 6,92,824 shares. Also, M/s. Vishwa Calibre Builders Pvt. Ltd. an associate company of the promoters had bought 88,362 shares of the company between October 03, 2006 to October 07, 2006. So why should anyone buy shares of such high proportion, if the company is not improving it top and bottomlines?? Does it indicate that the promoters and persons acting in concert are taking advantage of the weak price of the shares in the markets and accumulating by huge proporotion? This company(/s. Vishwa Calibre Builders Pvt. Ltd) has been stealthily increasing its holding since a long time after it sold 2.03 % of its holdings in 20-07-05. This is a significant development in the company and is beneficial for the shareholders. (h) The shares of Agro Dutch Industries Limited at a price of Rs.25.10 per share is trading at the Rights issue price which was issued to the shareholders on 1:1 basis. Hence this cannot be the ultimate price of the shares of the company and it should rise above--this is guaranteed 100%. (i) Moreover in the last year Agro Dutch Industries Limited has informed the Exchange that DEG - Germany has agreeded vide their letter dated July 25, 2005 to participate in financing the proposed expansion project of the company by providing a long term loan of EURO 50,00,000. (k) Agro Dutch Industries Ltd had earlier signed a loan agreement with Industrial Development Bank of India Ltd (IDBI) on September 22, 2006 for a term loan of Rs 43.00 crores to part finance the Easy Open End Plant of the company. The unit is being set up with a project cost of Rs 55.79 crores at Chingleput District, Chennai. The balance coast of project of Rs 12.79 crores is proposed to be financed by way of internal accruals. This will further add to the bottomline of the company. (l) In a significant development earlier US Food Service, which had placed orders worth Rs.42. Cr million for 500 container loads, was so impressed with the quality of Agro Dutch's products, that it referred them as "Platinum Quality". It had also got orders from Top Overseas Companies, like Unilever USA (orders worth Rs.20. Cr), Roma Foods, USA (it changed its sourcing for Canned Mushrooms from Europe to Agro Dutch), Heinz, USA ( it ordered Canned Mushrooms from Agro Dutch Industries for use it's sauces and had placed an initial order for 15 containers valued at Rs.1.4. Cr and now it has become a permant client of Agro Dutch) etc. (m) The company has significant EPS and Book value which is unparalled in the sector in which it performs. The company could come up with dividend as the exports are picking keeping in pace with the winter demand. It is to be noted that Agro Dutch Industries Ltd produces mushroom throughout the year unlike Chinese companies which produces mushrooms only in winter. With further addition of capaicty within some months, the shares of the company is expected to cross Rs.100. It is a highly undervalued stock at the current price of Rs.25.10(it is near the rights issue price of Rs.25 and it cannot be the price of the stock by any standard. Hence according to me it is a safe bet at the current price. More on the following posts..... Best wishes for New Year (2007) and IDD, Suman Mukherjee India. www.sumanspeaks.blogspot.com http://finance.groups.yahoo.com/group/SumanSpeaks/