Breaking news on Premier Explosives Ltd:

I have at last found out why Mr.B M Vijay Kumar is resigning...I am happy to announce that he is resigning on purely personal ground, which told in plain english comes as " for better prospects ahead". So this news has nothing to do with the functioning of the company which is doing excellently well. Besides the company's two overseas joint ventures will start from the next month, one is a CIS country and another with Turkey. Besides lot of orders are on the pipelines which could be announced one by one in the days to come. The company after selling the assets of Mushroom Division will be a fully focussed one with lucrative defence contracts and also for making industrial explosives.

The demand for the company's products are huge and hence in the next few months we can expect good results from the company. I have already mentioned an EPS of Rs.7-8 for FY-06-07--this gives a target of around Rs.150--170 if we consider the industry P/E into consideration. But I had earlier mentioned a conservative target of Rs.80 plus by May, 2007.

Also, BSEL Infrastructure Realty Ltd today declared about the Rs.1200 Cr contract from the UAE, but the people who read my mails and my inputs on this blog regularly must have seen that I had been mentioning about this "Order" 2 months before--the news actually came 2 months late[Please search this blog for old news on BSEL Infra if you do not believe what I am saying). The effect of this move is that the stock is at the buyer freeze today.

I have booked some profit in Garnet Consstruction, which I advocated a buy at Rs.45 and Rs.49, when it was continuously hitting "Sellers Freezes". This happens to people who have a long term vision and plays with his own money and not with borrowed funds.

Also Sanguine Media which I advised a buy from Rs.27 onwards only some weeks back is now above Rs.37. Keep investing in fundamentally strong picks and make money when the others are losing.