Premier Explosives Ltd and Jai Parabolic Springs Ltd--Sell one and buy another:

[Updated at 1.50 p.m]

Due to closure of a Plant in the March 2007(Q4), quarter, which the company did not disclose to the media earlier, hence this might partically affect the results of Premier Explosives Ltd and it will not be as was expected, before. I mean now the net sales could be anywhere between Rs.65 --Rs.66 Cr. Also there could be a dip in Net Profit in the March 2007, quarter as compared to the same quarater previous year(Q4, 2006).

Hence, I have advised all my group members including the Premium Members to exit from the counter for the time being and then again enter after the correction is over in this scrip. Also the June, 2007 results is expected to be good as the proceeds from the sale of the mushroom division will enter the balance sheet, which in turn will results in the increase of both the Net Profits and the EPS.

Moreover, in case of Jai Parabolic Springs Ltd, neither the Honourable High Court nor the existing Shareholders have approved the unrealistic swap ratio of 2:1, which is skewed in favour of Jamna Auto Industries Ltd. Hence I do not think it will get the shareholders approval and for that matter from the Honourable High Court.

Second thing is that one year back there was a private placement to a Foerign Entity at Rs.72 per share, and hence within one year, this cannot change dramatically so much. HENCE THE CATCH...

By talking with a top source I am convinced that the share price of Jamna Auto is all set to touch new highs or reach more than Rs.150, as it is one of the largest auto ancillary companies in Asia or in South East Asia.

Also the fundamentals of Jai Parabolic Springs are excellent when one looks at the last quarter results and hence I think a price of Rs.60 plus is not at all impossinble for Jai Parabolic Springs Ltd in the short term. Waiting for more information to come in both the counters.....

Auto stocks in demand:

The market stayed firm in mid-afternoon trade, as buying continued. It on a strong note, tracking firm global equities. This is the fourth straight day of gains for the market. The sentiment has been lifted by data, on Friday 29 June 2007, showing fall in inflation to a 14-month low. Auto stocks gained as buying continued for them, in anticipation of easing interest rates in future. At 12:24 IST, the BSE 30-share Sensex was up 112.97 points to 14,777.23. The barometer index opened higher at 14,720 and surged to strike a record high of 14,816.36 at 10:47 IST as buying momentum intensified. The S&P CNX Nifty was up 37.29 points to 4351.40. It opened higher at 4315.05 and surged to an intra-day high of 4359.30. Nifty is now within striking distance of its all time high of 4362.95, struck on 4 June 2007. The market breadth was strong on BSE with 1,477 shares advancing as compared to 992 shares that declined, while 89 remained unchanged. The BSE Mid-Cap index struck an all time high of 6,655.34, and was now up 0.74% to 6,640.05 The BSE Small-Cap index was up 0.63% to 7,832.68 Among the Sensex pack, 26 advanced while the rest declined. State Bank of India (SBI), the country's largest commercial bank, advanced 3.02% to Rs 1,577, and was the top gainer from the Sensex pack. The scrip hit a high of Rs 1,580, which is a lifetime high for the counter. Nearly 5.24 lakh shares changed hands on the counter on BSE. It was thr top traded counter on BSE with turnover of Rs 82.77 crore. As per reports, SBI would soon enter seven new business streams including pension funds to tap emerging opportunities. The bank will float a subsidiary to manage pension funds under the New Pension Scheme (NPS) for government employees. The bank also proposes to launch financial planning and advisory services given the growing affluent class. This would be upgraded to wealth management at a later stage. In addition to the life insurance business, the bank, with its large branch network, is looking into the general insurance business. Shares from the auto pack continued buying for the second straight day. The BSE Auto index rose 0.52% to 4,816.13. Car major Maruti Udyog advanced 1.33% to Rs 781.50. Maruti said during trading hours on Monday, 2 July 2007, it had sold 59,917 vehicles in June 2007, up 24% from 48,425 vehicles sold in June 2006. Maruti Udyog sold 56,000 units in the domestic market, up 25.5% from 44,626 units in June 2006. Tata Motors rose 1.15% to Rs 691.95 despite reporting 2% fall in vehicle sales to 44,317 units in June 2007. Hero Honda Motors rose 0.16% to Rs 691.90 after it reported 8.4% decline in sales in June 2007. After trading hours on Monday, 2 July 2007, Hero Honda reported 8.4% decline in sales in June 2007 to 2.55 lakh units. Index heavyweight Reliance Industries (RIL) was up 1.11% to Rs 1,703.15, on 2.90 lakh shares. The Committee of Secretaries (CoS), which met on Monday 2 July 2007 to decide on the issue of gas pricing from RIL’s D6 fields in the Krishna-Godavari (K-G) basin, has asked the power and fertiliser ministries to present their views before the committee on 5 July 2007. No decision was taken in the meeting even as the petroleum ministry pitched for a market-determined price of gas produced from NELP blocks. Housing finance major HDFC lost 2.25% to Rs 1985, on 64,614 shares. It was the top loser from Sensex pack. Reliance Energy declined 1.01% to Rs 618 while ONGC slipped 0.10% to Rs 895.50 Akruti Nirman (up 20% to Rs 402.20), Techtran Poly (up 10.45% to Rs 33.30), Nicco Corporation (up 9.90% to Rs 31.10), Valecha Engineering (up 8.25% to Rs 273), VST Tillers (up 7.07% to Rs 165.05), and Sasken Communications (up 9.85% to Rs 532.25) surged from small- and mid-cap shares. Textile firm Himatsingka Seide rose 4.28% to Rs 122.95 on acquiring an 80% stake in US-based Divatex Home Fashions Inc for $53 million. The enterprise value of the transaction is $75 million, it said. Divatex is among the top three distributors of bed linen products in the US. Divatex reported revenue of $151 million in the year ended December 31, 2006 with earnings before interest, tax, depreciation and amortization (EBITDA) of $14 million As per provisional data, FIIs were net buyers of Rs 95-crore equity on Monday, 2 July 2007. Domestic institutions were net sellers of Rs 87-crore equities on that day. The next major trigger for the market is Q1 June 2007 result of IT bellwether Infosys on Wednesday, 11 July 2007. A Q1 results preview by Citigroup states that downward revision in EPS guidance for FY 2008 (year ending 31 March 2008) by Infosys cannot be ruled out given a surge in the rupee against the dollar in Q1 June 2007. Citigroup, however, expects an upward revision in revenue guidance in dollar terms from the IT bellwether. Asian shares forged ahead on Tuesday, 3 July 2007, led higher by energy companies as oil and base metals rose, but the dollar sagged on expectations that US rates will remain steady while borrowing costs rise elsewhere. Nikkei 225 (up 0.23% to 18,187.36), Hang Seng (up 0.94% to 21,977.87), Seoul Composite (up 1.93% to 1,805.5), Taiwan Weighted (up 0.63% to 8,996.20) and Straits Times (up 0.38% to 3,563.98) edged higher. China's Shanghai Composite was up 1.54% to 3,895.33 US stocks rallied on Monday, 2 July 2007, on a fresh bout of takeover activity as Canada's largest telephone company, BCE Inc. agreed to a US$32.6 billion buyout. On Wall Street, blue-chip stocks and the Nasdaq Composite Index both rose about 1%. Crude oil was little changed on Tuesday, 3 July 2007, in New York after rising to a 10-month high yesterday on speculation U.S. refiners may boost processing to restore gasoline supplies. Crude oil for August delivery was at $70.86 a barrel, down 23 cents, in after-hours electronic trading on the New York Mercantile Exchange in Singapore.