WINNING STROKES:

[Updated]

Today Crude Oil fell further to $121.93 per barrel and I think it is only a matter of time when the crude oil will crash land to below $120 per barrel on the Nymex. If you remember I was saying this from the time when the crude oil was about to breach $150 mark in the International Markets.

As mentioned in an earlier mail to the Paid Groups (and to those who are plying on the Nifty Futures), 4300 on the Nifty is breached and this was the last resistance. Now onwards with much more clarity from the government and RBI and with Crude Oil prices receding, we are in for a Strong August (both the meaning of August....lol) Rally. A huge short covering is expected to take place, which will take the markets to above 4350 in the days to come. Today my recommended Reliance Infrastructure Ltd (Reliance Energy Ltd) is going great. I am hoping that it will cross Rs.1000 within a very short time.

Investors (Free Group Members) can buy the following stocks:

1. BGR Energy Systems Ltd (BSE Code-->532930): at the CMP of Rs.329 for a target of Rs.450. Its IPO price was Rs.480 and hence it is trading very cheap considering the March, 2008 quarter results. The Company got a series of orders during the last few weeks. There are also rumours that some Fund Managers have turned bullish on the stock, especially on the light of nuclear deal. After the deal all the power stocks have been looking very strong.

For FY08, the company came out with wonderful set of numbers. The sales revenue growth for FY08 was pegged at 191%, Y-o-Y. The profits after tax stands Rs.84 Cr registering Y-o-Y growth of 223%. The order book as of 31st March, 2008 stands at 3, 212 Cr which is a jump of 46%, Y-o-Y. The present order book is more than Rs.3500 Cr. Hence you are getting a stock of a power company at Rs.329 whose order book is around Rs.3500 Cr.

Can u imagine?? This is the impossible price of the scrip at Rs.329 and should have a minium price of around Rs.800---Rs.900, considering the order book position.

Here are some announcements from the Company's End:

1. BGR Energy Systems Ltd has informed BSE that the Power Projects Division of the Company has secured an EPC contract from Rajasthan Rajya Vidyut Utpadan Nigam Ltd ("RRVUNL"), Rajasthan for the 2 x 600 MW Kalisindh Thermal Power Project. The EPC contract value is Rs 4900.06 Crores and will be executed over 39 months for Unit - I and 42 months for Unit - II. Further the Company has issued a Press Release dated July 16, 2008 titled "BGR Energy receives EPC Contract for 2 x 600 MW Kalisindh Thermal Power Project in Rajasthan"

2. The Oil and Gas Equipment Division of the company has secured a contract for designing, Engineering, Manufacturing and Suppying of 70 (seventy) Oil products Storage Tanks for a company in Iraq. The Contract is valued at $9.29 Million (Rs.40 Cr),which will be completd in the next 12 months time frame.

2. Reliance Industrial Infrastructure Ltd. (BSE Code-->523445)at Rs.942:

This is a well known stock from the Reputed Reliance Group which is moving up after the historic Indo-US Civil and Nuclear Co-operation. As mentioned earlier it has a very small equity base and good order boook postion. I cannot imagine a Reliance Group Company where both the brothers are holding stake has only Rs.15.1 Cr equity capital---this is one of the greatest catch point in the scrip. The company is expected to post robust earnings going forward. It is some what insulated from the interest rate cycle as it is more or less implementing projects of its group companies in large scale. Now with the Nuclear deal in place, I think the stock should move higher from here. The Stock hit the upper circuits in the morning trade.

3. Sathavahana Ispat Ltd (BSE Code-->526093) at Rs.47:

The stock is looking extremely cheap at the current price considering its EPS and order book position. The scrip has literally given a break out and could move up higher. There is good volume built up in the scrip. The catch point is the company's Power Plants have started to working. So we have four stories in this scrip: (a). A Captive Coke Plant which will lower the production cost. (b)The preference issue of Rs.60 per shares to the promoters or persons acting in concert. (c).An attractive dividend of 15% on equity shares with an attractive dividend yield at the CMP of around Rs.45.. (d). Many of us do not know that Sathavahana Ispat Ltd also has Met Coke prodution facility facility. Now look at the this announcement made to the BSE some months backt: Expansion of the Metallurgical Coke facility by 150,000 tpa and Co-generation Power facility by 10 MW at Kudithini Plant with capital outlay of Rs 86 crores. Since this is a Co-generation Power plant and hence we could look forward for Carbon Credits in the near future. The issue proceeds of the preference issue are to fund the expansion project of Metallurgical Coke facility and Co-generation facility and other business needs.TO TOP ALL THIS THE COMPANY'S MARCH, 2008 QUARTER RESULTS WITH THE EPS OF AROUND RS.12.53 is absolutely fantastic. Now considering the EPS of SAIL, TISCO or Jindal Steel and Power Ltd, the stock of Sathavahan Ispat Ltd should command at least a price of Rs.80--Rs.100 (giving 30% discounting).

Note: I am deeply saddened by the cruel and barbaric tragedy which struck some of prominent cities of Indian Union......My sincere condolences to the bereaved families of those who unfortunately had to leave this world due to some cowardly acts of miscreants. The perpetrators of these kinds of heinous acts, do not belong to any Religion, is curse to Societies and is a blot to the Indians---they do not know what harm they have done to the social fabric of India.