Stock Talk:

After Garnet Construction Ltd, Sanguine Media Ltd, and Cinemax India Ltd another of my earlier recommended stocks which looks attractive is Premier Explosives Ltd. The company is doing extremely well in all its fronts with lot of orders in the pipleline. The new inputs which I got from the sources is that the company is coming up with a board meeting on 26-03-07, where the proposals regarding the selling of the assets of the Mushroom Division will be discussed. The company has already sought the shareholders' approval for selling the same. If the company gets the shareholders' approval( which is likely), the net proceeds from the sell would be utilised for clearing the old debts and also for furthering the expansion and modernisation programmes.

Premier Explosives Ltd will now focus on the core competence and is expected to purse the defence sector in a more vigorous manner. With the government increasing the allocation for the defence sector in this budget and Indo-US nulear co-operation now a realty, this company is expected to suck most of the cream from the System. There is likely that the company could spell out its future course of action during this meeting and also discuss steps to boost the overseas JVs. In the last September, its special products division has started functioning in full gusto.

The company's results in this quarter will reflect the sales coming from the Mushroom division (which will be good as the mushroom prices have increased by 20-25 % in the last few months), Core divsion which include lucrative defence deals, Overseas joint ventures, proceeds from the sale of its mushroom division(which is likely) and from the recently inaugurated Special Products Division.

I am looking at a price of around Rs.100 plus by May, 2007. So those investors who are still standing on the sidelines and chanting "Ram Sita, Ram Sita, Ram Sita..." looking at the tremendous volatility which the market is throwing everyday, should enter this scrip without using too much time or without using the services of the "Grey cells to the less"; since it is safe and has limited downslide.

Always remember, the guys who has long term vision and who take delivery based calls only makes hefty gains from the markets--be it Rakesh Jhunjhunwala or Warren Buffet. Avoid playing in the futures market....unless u are too confident that the stock will run or fall in the next 24 hours. I have got lot of queries regarding G M Breweries Ltd. The problem is that the company's share price had in the past over reacted after more or less good results, due to some moronish comments by the "Disguised Moderators" of the highly manipulated MMB. Off late while doing further research on the company I have found that, the real problem with it, is that its sales have peaked out due to saturation of its capacity. Hence with the current capacity in place it will not able to show higher sales, or any increase in its topline seems remote. Thus, its Net Profit could either show only marginal increase or remain stagnant and this is only possible if its margins increases. It is also a remote possibility that the company would be able to increase the price of its products with the inflation tiger roaring over its head and the government using all the shenanigans at its disposal to check the inflation. Hence in the following quarters also it might show FLAT topline and bottolines. But after the completion of its expansion programme, which is by 2008, the company's share price will shoot over the roof and will cross Rs.300 with ease. Hence my advice to the investors who are holding it is to keep holding the stock and exit at around Rs.130--Rs.150 range if you are for the short term but for long term one can keep it in a "Deep Freeze" and go for 10 months vacation. I am sure the profits from this "GEM" will cover expenses of to and fro trip to Galaphagous Island. More in the following postings....