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SumanSpeaks Capital Markets & Geopolitical Intelligence · Estd 200 6 Turnaround Watch · EPC SEPC Ltd (₹6.54): From Stressed Asset to Strategic Platform Debt down from a peak of ₹907 crore to ₹351 crore. Two SAIL orders worth ₹1,527.89 crore landed inside eight weeks. A Dubai-headquartered promoter that bailed the company out of an RBI stressed-asset restructuring is now backing an ADNOC-linked entry into the Middle East. This is what a real turnaround looks like when you actually read the balance sheet instead of the ticker. 1 The Arc: From a ₹300 IPO to a Stressed Asset to a Rescue SEPC Ltd listed in February 2008 as Shriram EPC, priced at ₹300 a share, raising ₹150 crore under the Shriram Group — one of India's most recognised financial-services names, then led by T Shivaraman...
My very recently Recommended Phoenix International Ltd (What is the new story in the company?), Kohinoor Broadcasting Corportion Ltd (What is the new twist in the story which is making it look even more attractive), Southern Online Bio Technologies Ltd (SBTL), Vikas Metal Ltd (This week's Quickie Call), K Sera Sera Productions Ltd (Huge Pending Orders), Innocorp Ltd, RSWM Ltd (Buy Call given yesterday to the Paid Groups), Jhunjhunwala Vanaspati Ltd, Kernex Microsystems Ltd and so on hit the buyer freeze bringing Joy, both for the Paid and Free Group members: Another of last Sunday Report Call, Lakshmi Electrical Control Systems Ltd recommended at around Rs.272, hit Rs.310 today giving good retuns to the PAID GROUP MEMBERS IN LESS THAN 15 DAYS: Today's "Quickie Call", Kalpana Industries Ltd also did well: Earlier my recommended Rajoo Engineers Ltd, Minda Industries Ltd, Radhe Developers Ltd, India Foils Ltd, Indsil Electrosmelts Ltd, BPL Ltd etc did very well today: Today I recommended a Jidal Group multi-bagger to the Paid Group Members. I hope that will also hit the buyer freeze tomorrrow. The scrip is trading around Rs.170 but has a whooping EPS of more than Rs.30. A big Broker has purchased the scrip for its PMS Service and is giving a target of Rs.700. What is the name of the scrip?? How will the markets behave tomorrow? Where should one keep focus? Which are the sectors which look attractive? Now those who were critical of my take on the markets only some days back have suddenly sunk in the oblivion?? They now have "mud" on their faces as I and many in my Paid Groups are "smiling our way into banks": This is what happpens of one follows the Tips given by "Road Sides' analysts", most of whom have a hidden agenda: Just compare how many times they were wrong and How many times I was wrong. But still some investors believe those dustbins if they come on TV Channels. It seems showing ones face on a TV Channel is great achievement!! How many times have you seen my friend Ashish Chugh's face on Television Channels. But can anyone deny that he is one of the best, as far as the Mid and Small Cap stocks are considered???!!!!:
The following are the excepts of the Lastest Sunday Report sent to the Paid Group Members:
According to a latest report the Emerging Economies will do better than their US and European counterparts: P Chidambaram said today, “A 7.5%-8% growth is sustainable even with these inflation figures: The high inflation figures indicate to some extent the huge growth trajectory Indian Economy is into. Buy stock to your “Heart’s Content” as the Markets Seems to have bottomed out in the short term. What is more encouraging is that medium term trend seems to be in the positive direction after a long time: Positive trend in Asian and European markets, and above-expected industrial growth in February boosted investor sentiment and helped key share indices end with 1% gains on last Friday. Market rose on Friday, 1% at open on favourable global cues but gave up gains momentarily after inflation rate for the week to Mar 29,2008, was detailed at 7.41%, remaining above RBI's target of up to 5% for the sixth straight week. Asian and European markets takend today, amid hopes the G-7 will take action to boost financial markets. During the last week, FIIs remained net buyers in the cash as well as the derivatives segments, albeit they were occasional sellers too. Mutual Funds also remained net buyers during the course of last week. After the US Fed Reserves it is the Bank of England who cut its interest rates by 25 bps. The IIP numbers declared last week have been good along with the Trade Policy, which was on expected lines. Thus, Indian stock markets gained ground last week after ending with over 6% losses the week earlier. This was the case, even as intra-day volatility remained a feature of trade. A major development during the week was the tripling of benchmark contract prices for coal, a record high for the steel-making material after the floods in Australia reduced global supplies. Contracted coking coal prices will now cost about US $300/tonne in FY2009 from US $98/tonne in FY2008. This is good for metallurgical coke making companies like Gujarat NRE Coke Ltd, Ennore Coke Ltd etc. The higher-than- expected spike, on top of record iron ore prices, will impact the Bottom-line of steel companies, especially those who do not have captive coal mines. Globally, steel players are expected to hike the prices once again to pass the burden to the end users/customers. Indian steel makers have already hiked the prices by Rs.5, 000/tonne by way of a raw material surcharge. But, with the government fighting hard to control inflation, this is likely to be a blow to its efforts. Going ahead, the government is likely to take further measures to rein in the steel prices and hence, inflation. Key domestic news which could have a bearing in the future of the Indian Markets: India's inflation rate rose to 7.41% on year in the week ended March 29, 2008 from 7.00% a week earlier. The Wholesale Price Index rose 0.5% to 226.0from 224.8 the preceding week. India's industrial growth improved to 8.6% in February from 11.0% clocked a year ago and 5.8% a month ago on the back of strong performance by electricity and capital goods sectors. The govt announced withdrawing export incentives for rice, cement and primary steel items in order to check the inflation rate. The govt approved a new policy for Greenfield Airports, doing away with the need for mandatory prior approval from the Centre to set up new airports. Aiming to corner 5% of world trade by 2020, India set an export target of $200 bln for FY 2009 started April, up 29% from over $155 bln last year. Inflation numbers yet again came in at higher-than-expected levels of 7.41%, a 40-month high. This has raised the probability of the RBI raising the Cash Reserve Ratio (CRR) to ensure that liquidity in the system is under control. It should be noted that the high levels of inflation are primarily on account of supply side factors and thus, such measures may have limited impact on taming the inflation monster. The government has also banned cement exports, withdrawing export incentives on the commodity in addition to rice and primary steel items. Nonetheless, this ban is unlikely to impact the industry significantly, as it exports under 2% of the total production. In other news, industrial production grew by a decent 8.6% in February 2008, compared to 11% a year ago. This gives the RBI headroom to tighten money supply to combat inflation. Going ahead, this week will see the 'technology bellwether' Infosys, announcing its numbers tomorrow (Tuesday). Market participants will watch FY2009 guidance, management commentary on demand, and key trends like pricing, utilisation and hiring numbers. This could set the tone for the short-term market direction, especially the technology stocks, which are already reeling under tremendous pressure due to US financial Crisis and Rupee appreciation. In the US Retail sales posted only a marginal increase after a big drop in February, 2008. The Commerce Department reported on Monday that retail sales edged up 0.2 percent in March, 2008 after a 0.4 percent decline in last February. The March gain primarily reflected higher costs for gasoline, which climbed to record highs. Excluding a big 1.1 percent rise in sales at gasoline service stations, retail sales would have been flat last month. In other economic news, the Commerce Department said that inventories held by businesses on shelves and backlots increased by 0.6 percent in February after an even bigger 0.9 percent gain in January. The 0.2 percent increase in retail sales was slightly better than the 0.1 percent increase that analysts had expected and the February decline was revised from an even-bigger 0.6 percent plunge that had been initially reported. However, the March gain reflected the big jump in sales at gasoline service stations. In addition to the 1.1 percent increase in sales at gasoline service stations, sales were up 0.3 percent at grocery stores, a gain that probably reflected continued big rises in food costs. Many US economists believe the country has fallen into a recession which they believe will be short and relatively mild, ending this summer when 13 Cr households start spending their rebate checks from an economic stimulus package that Congress passed in February. These are a great news for an economy with is beset with Recession fears. The next week being a truncated week, with only three trading days, participation is likely to remain subdued. The overall trend is likely to remain range bound with a positive bias. On the upside, the Sensex faces resistance at the 16,370 and 16,660 levels. It has support at the 15,700 and 15,332 levels. On the upside, the Nifty faces resistance at the 4820 and 5050 and 5150 levels. The 4620 and 4448 are important support levels for the Nifty. As long as the Nifty is above 4620, the medium term trend is up. But 4800 will act as major resistance for any positional trade. Today, FM send out positive statement that Growth in Indian Economy will continue to remain in the range of 7.5%--8% in the next 12 months time frame, with some short term hick-up like the inflation number standing on the other side of the fence. But over the markets are looking good from my side of the fence, with a rally about to begin within a short time. Short selling should be avoided, as the market seems to have bottomed out for the short-term and should move up in the days to come.

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