SumanSpeaks: The Information Super Highway

Jai Parabolic Springs springs Ltd springs back into action and bobs up to hit the second consecutive circuit on the news of the merger approval by the board, with Jamna Auto ltd: Jai Parabolic Springs was locked at the 5% upper limit of Rs 32.45 after its board approved merging the company with Jamna Auto Industries some days back. The company made the announcement during trading hours on, 27 June 2007. The stock had an average daily volume of 11,212 shares on BSE in the past one quarter but flared up after the news of the merger. At the current price of Rs 32.45 it is traded cheap, based on year ended March 2007 EPS of Rs 2.91. The Jai Parabolic scrip had fallen 5.86% in one month to 26 June 2007 versus the Sensex's 0.72% rise. It dropped 3.44% in the past three months against the Sensex's 12.55% return. The stock had hit a 52-week high of Rs 57.15 on 7 December 2006 and a 52-week low of Rs 25.50 on 12 June 2007. On the other hand, Jamna Auto Industries was locked at 5% upper...

At last mid and small cap action has begun, but there are also some opportunities in the large cap space, but for this you need to have a good analyst near ur bed. Do not start to buy all Tom, Dick and Harry stock in the mid and small cap space; U might end up with a junk scrip. Try protecting ur capital and at the same time make money: My morning call on Jai Parabolic Springs Ltd hit the buyer freeze. The company will get great synergy by amalgamation with Jamna Auto Ltd, which was recommended by sify.com. Fundamentals of Jai Parabolic Springs Ltd is excellent and I am looking at a price of Rs.60 plus in the coming days: Premier Explosives Ltd could see new highs within a short time as the company comes up with excellent results tomorrow and liberal dividends(if any). The company could also announce the starting of trial production in its overseas plants in Georgia and Turkey annual report. Keep holding as the stock is now in the strong hands: My morning call on Kanishk Steel & In...

Sensex Closes with modest gains: Pritish Nandy Communications Ltd(Recommended at Rs.42--Rs.43 range) and Nagpur Power and Industries Ltd hits the buyer freeze: Premier Explosives Ltd which is very cheap in comparison to Solar Explosives Ltd almost reached the circuits today with huge volumes. The company will declare the results on 30-06-07:Premium Group members will get a short term call, tomorrow morning, which is expected to give them at least 20% return in 15 days: The market settled with modest gains as buying continued throughout the day. The market swung sharply for a while in late trading ahead of the expiry of derivatives contracts for June 2007 series. Rollover from Nifty June 2007 series to Nifty July 2007 stood at 48.29% till Wednesday, 27 June 2007. Shares from cement, sugar and banking sector were in demand, while auto and metal stocks attracted selling. Sensex rose 61.72 points to 14,492.72, as per provisional close. It opened higher at 14,498.05, and surged to strike a ...

Market drifts lower on weak global equities: My Recommended Scrip, Nagpur Power and Industries Ltd to the Premium Group Members hits another buyer freeze & another one is hitting daily upper freezes: Premier Explosives Ltd came under some correction after a long rise, Keep holding the counter add on add on all declines: I will be recommending another short term scrip to the Premium Group members soon: Conart Engineers Ltd came out with disappointing set of numbers for the Q4FY--06-07, please exit the counter using this rally: R T S Power Corporation Ltd recommended at around Rs.92,some months back, hit the second target of Rs.180; Book some profits : Tilaknagar Industries Ltd recommended at Rs.42--Rs.45 range some months back, almost reaches it second target of Rs.120, book some profits. This is the magic of my recommendations and hence they are more than 95% accurate all the time. I do not believe in short term playing in the markets and once u have taken position in my picks, u ...

Rasoi Ltd--Updated at 6.45 p.m.: Rasoi Ltd has informed that the Board of Directors of the Company at its meeting held on November 07, 2006 has duly approved the allotment of 1,32,000 Equity Shares of Rs 10/- each at a premium of Rs 390/- each to M/s J L Morison (India) Ltd (1,00,OOO Shares) and to M/s Hindustan Composites Ltd (32,000 Shares). This and low floating stock is a great trigger for the counter. Also the company's product prices are set to increase due to high cost of Oil Seeds and Vegetables. The board of directors of Rasoi recommended a dividend of 10% on the equity shares for the year ended March 2007. Brief History of the company: The Company was incorporated on 3rd February,1905 under the name of "The Doyapore Tea Co.Ltd. The main object of the company is to manufacture Vanaspati Soap and Tin containers, and various refined oil. After incorporation, the Company acquired one tea estate named Doyapore tea estate."(This is now a profitable tea company i...

Rasoi Ltd: High on Oil: Speculative positions can be taken in Rasoi Ltd at the current price of Rs.232, with a Stop loss of Rs.220 and Rs.213, in view of the company coming up with Preference Issue at Rs.390 per share. The company is into making of Vanspati and Edible Oil and is a well known brand in the Indian markets. The company will gain from the high edible oil prices which are ruling this time of the year due to high price of the oil seeds and vegetables. There was also a great block deal in the counter some days backs. I hoping to see its price rise to Rs.290---Rs.350 in the next 6--8 months time frame. But this is a speculative counter so do not take too much position in the counter. One of my recommended pick to the premium group members is in the buyer freeze. Congrats!! to all those who have bought that scrip.

Economy: Battling the rising inflows... Since the start of the year, the RBI has had to contend with rising inflation and increased liquidity in the financial system causing it to raise the CRR ratio and the repo rate to reign in the excess money. And by not actively intervening in the forex market (an act, which would have further fuelled the release of rupees into the system), the rupee appreciated sharply to 40.58 levels. However, what the RBI has not been able to control is the surge of inflows into the country and in this article, we shall take a look at the kind of inflows that have been aggravating the abundance of liquidity. Capital inflows: Capital flows during 2006-07 were substantially higher than a year ago, led by foreign direct investment (FDI) flows, on the back of strong growth prospects and buoyant investment demand. FDI inflows at US$ 16.4 bn during April 2006 to January 2007 were substantially higher than the inflows in the corresponding period of the previous year...

Cinemax: House ‘not’ full Cinemax, one of India’s leading multiplex operators, has declared a subdued operating performance for the year ended March 2007. For FY07, while the topline grew by 63% YoY, the bottomline fell by 13% YoY mainly due to large increase in entertainment tax, film distributors share, staff cost which also contributed to contraction in operating margins by 370 basis points (3.7%). Company background: Cinemax has at its focus exhibition and gaming business with a limited interest in mall development. The group premiered into the film exhibition business in 1997, by acquiring a single screen theater at Goregaon, Mumbai from where it has grown into a business that operates 12 properties with 38 screens and has a seating capacity of just around 10,900 seats. Combining its background in real estate development and seizing the opportunities offered by the Multiplex policy of the Maharashtra state government, the company has successfully developed 6 multiplexes in the ...

Retail: Huge scope ahead… Retailing has played a major role the world over in increasing productivity across a wide range of consumer goods and services. In the developed countries, the retail industry has developed into a full-fledged industry where the organised sector accounts for almost 80% of the total retail trade. In contrast to this, in India organised retail trade accounts for merely 3% of the total retail trade. The retail sector is very fragmented in India, with over 12 m outlets operating in the country and only 4% of them being larger than 500 square feet in size. This is in comparison to 0.9 m outlets in the US, catering to more than 13 times India’s total retail market size and thus further highlights the high degree of fragmentation of the retail sector within India. However, post liberalisation, favourable economic reforms and the recent changes in the country's economic fundamentals have driven the growth of the retail sector. In India, organised retail is now ...

Assam: 4 killed, 20 hurt in ULFA blast: June 23, 2007: Four persons were killed and 20 others injured when the United Liberation Front of Asom exploded a bomb in front of a mosque in the busy Machkhowa commercial of Guwahati on Saturday morning. The powerful bomb exploded in front of a mosque, adjacent to the daily vegetable market in Guwahati, killing four pedestrians on the spot and injuring at least 20 people, City Additional Superintendent of Police Rajen Singh told PTI. The bomb exploded at around at 7.30 am. The injured were admitted to the nearby Marwari hospital, he said. Note: My recommended pick, ABC India Ltd has risen quite significantly yesterday. Those who are still holding please continue to hold with a SL of Rs.39.

Market snaps three-day winning streak:The BSE Mid-Cap declined marginally by 0.06 points to 6,373.70 after striking an all-time high of 6421.63, in intra-day trade today: The BSE Small-Cap index rose 16.64 points, or 0.22%, at 7,513.12: Premier Explosives Ltd continued its upper journey, accompanied by good volume: Noida Toll Bridge Company Ltd closes flat. The company is going to gain significantly from the Mayur Vihar Link Road and restructuring of debts. The company came out with wonderful set of results for FY-06-07: Kernex Micro System hit another buyer freeze: Hindustan Dorr Olive Ltd recommended at Rs.106---Rs.107, range to the Premium Group members, hit the buyer freeze in a choppy trade: I might give a short term call either on Monday or Tuesday, please keep some cash ready. But it will be a high risk high gain scrip:Now, keep your focus more on the small cap or micro-cap space: The market took a breather today after a three-day rally on profit booking. However, value buying...

Today's Recommendation: Buy Noida Toll Bridge Company Ltd at Rs.27.2 for some good appreciation ahead. It is because: 1.The company has will very soon amalgamate the Company with its 100% subsidiary, DND Flyway Ltd. The Scheme of Amalgamation will have a positive impact on the Income Statement, since expenses which would have otherwise been amortised through the income statement, will be adjusted against Reserves and Surplus. The Scheme will have a healthy impact on the Company's profits and dividend paying capacity, going forward. 2. The Mayur Vihar Link Road (a road linking the Noida Toll Bridge to Mayur Vihar in East Delhi) which has been opened to traffic will work wonders for the company in the days ahead. Buy with a price target of Rs.42 and Rs.60. If the revenues generated from the second brigdge is substantial, the target could be elevated further.

Sensex gains 88 points in choppy trade: Premier Explosives Ltd Kissed Rs.49, with huge volumes before fallinig down a bit. On the daily charts it has given a clear breakout. Keep holding or add on all declines. The company is going to pay a liberal dividend in addition to the wonderful results on 30-06-07: Southern Online Bio-Technologies Ltd has now been recommended by the noted analyst from Mumbai(Bombay) Mr.S P Tulsiyan, C.A. Do not sell a single share as the company could declare the starting of the commercial production at any time. I have mentioned earlier that the the scrip is highly undervalued: Kernex Micro System Ltd hits the buyer freeze in the early trade as the news got flushed that the company is expected to get a huge order from the Indian Railways. Keep holding: I am going to recommend a stock tomorrow and hence keep ur cash ready: Huge interest is seen today in the small and mid cap counters: The market settled with modest gains as buying continued in index pivotals. ...

Follies of E.P.S. based Investing Principle: How to Value a Company Fundamentally: [Updated at 7.45 a.m.] Offlate, I have discovered that many Portfolio Management Services have resorted to E.P.S. based investing tips, which is very dangerous and erronous. Even almost all the T.V. channels (business channels, specially) discuss the E.P.S. of the companies and ask the companies about the expected E.P.S. for the whole year. It seems that this ratio is the end and means to all equity investing worries. The business channels should stop giving too much importance to this parameter winking at the other factors which are also necessary to move a scrip. E.P.S. or earning per share, does not and have never ever reflected the true value of a company of any type or any group. Besides, various sectors have various E.P.S.'s and P/E s. So if u say that South Indian Paper Mills Ltd should rise up because it has an EPS of Rs.13 for the whole year, comparing it with Infosys Technology's E.P....

Market undergoes good volatility but Sensex closes up with more than 100 points:The BSE Mid-Cap index rose 1.31% to 6,325.91, while the BSE Small-Cap index gained 0.77% to 7,414.26: Gateway Disripark Ltd (GDL) rocked today, with good volumes. The scrip was recommended at around Rs.169--Rs.173 range some months back. I have placed a target of Rs.250, of this scrip in the short to medium term : Premier Explosives Ltd closed up with good volumes on the optimism about the better prospects of the company ahead. It has after a long time broken out of Rs.41--Rs.44 barrier with good volume, which is positive for the scrip. Keep watch. Once it starts hitting the buyer freeze, it is difficult to buy this scrip: Southern Online Bio Technologies Ltd refused to close below Rs.11, since the company could at any day declare the start of commericial production. Besides this the company came out with wonderful set of numbers for the March, 2007 quarter, keep watch: Kernex Micro Systems Ltd hit the buy...