SumanSpeaks: The Information Super Highway

WINNING STROKES: THINK DIFFERENT: Crude Oil is expected to Plunge further (below $100) within the next few months, as Electric Cars/Pick up Trucks , takes over conventional ones, by storm in the US: The OPEC-Economies to get a major blow due to this new development, as the Crude Oil extraction could become unviable. The cost of extraction per barrel of Crude Oil is already over $60 per barrel: Below is the photo of the Electric Car (Run on Batteries) Aptera, due out later this year, is expected to sell for around $30,000. Some more important developments in the US: (a) On Thursday, second-quarter gross domestic product (GDP) was revised up to 3.3% annual growth, after being initially reported at 1.9%, according to the Commerce Department. (b) Personal spending in July increased by 0.2%. That was in line with economists' expectations. The uptick in consumer spending was primarily driven by higher prices. (c) Lower energy costs in August could potentially be good news for inflati...

Winning Strokes: Think different: As expected and as mentioned yeterday in this blog, Inflation falls marginally to 12.40% and hence I had recommended Reliance Industrial Infrastructure Ltd(RIIL) yesterday for very good decent gains in the days to come. Reliance Industrial Infrastructure Ltd apart from other stories would give good gains as it is now listed in the F & O segment from 21st August, 2008. If we look at the charts we find that the it is in the highly oversold territory and a bounce could be expected at any time. Reliance Industrial Infrastructure Ltd(RIIL) in the medium term is moving towards Rs.1300--Rs.1400 after breaking Rs.1060 in the very short term: Moreover we could see a rally in the big daddy Reliance Industries Ltd tomorrow. I had already recommended the scrip yesterday: This is the Reliance Group company (RIIL) in which both Mukesh Bhai and Anil Bhai has interest: Since the inflation monster has been tamed in the short term and hence wait for a rally in the...

WINNING STROKES:THINK DIFFERENT: The markets are expected to take cue from the Inflation figures at the end of the day. There are wide scale speculations that the inflation numbers will be flat. If this is the case then this could trigger a rally in the domestic bourses and more precisely in the construction counters. Also, the fact which I mentioned in the Sunday Report regarding Reliance Industries Ltd, may not be implemented immediately by the government and hence there could be buying in the Reliance Group of companies in the next few days. I had written the follwoing lines in the latest Sunday Report, sent to the Paid members: "With the diesel demand showing an 18-per cent growth and oil companies depending on imports to bridge the gap, the Government is considering changes in tax norms to allow refineries in export-oriented units such as Reliance Industries Ltd ( RIL ) to feed the domestic market." But I think this could not be implemented immediately and this could ...

India, US to work together to get 'clean' NSG waiver : Please use this opportunity to exit Winsome Textiles Ltd. Paid Groups have already been informed about this move: Mumbai/New Delhi: Amid concerns that any NSG waiver may come with strings attached, India expects an unconditional exemption for its nuclear commerce while the US said the two countries will stand "shoulder-to-shoulder" in their desire for getting a clean exception. With the 45-member Nuclear Suppliers Group (NSG) last week delaying a decision on the US draft for the Indo-US nuclear deal to move forward, India said it wants civil nuclear cooperation but not at any cost and asserted that it will not accept any "conditions". The NSG will meet for a second plenary in two weeks on September 4, 2008. Energy Commission Chairman Anil Kakodkar said India will not allow itself to be "pushed" over the nuke deal and it will accept the waiver only if it is within the parameters of July 18, 200...

WINNING STROKES: THINK DIFFERENT: Ennore Coke Ltd hit the buyer freeze in the early trade, before cooling down a bit. China had raised export tariff from 20th August, 2008 on coke to 40%, from 25% earlier; the country's official news agency Xinhua said, quoting the State Council's customs tariff commission.China is world's biggest coke exporter, and accounts for 60% of the global coke trade volume: With the Japanese Economy now showing the signs of slowdown, I am damm sure that the crude will soon touch $100 mark triggering a rally in the world wide bourses. If the Crude Oil touches $80 per barrel, then Sensex will again touch 21, 000. Recent rumour is that, China is going to increase the price of Petrol and Diesel within a short time, which will further pull down the demand for oil. How long will false apprehensions from storm and empty rhetorics on war, pull the Crude oil up; the truth will ultimatley come to light. It seems as soon as a storm comes in the US, it will...

WINNING STROKES: THINK DIFFERENT: The Crude Oil as mentioned by me to the Paid Members on last Friday crashed out in the International markets, just ignoring what Mr.George Soros had said a couple of days back. From the last few months he has been shouting about rise in oil prices. It seems Mr.Soros is struck up in Crude Oil Futures and wants to exit fast, hence this cry for help!!! I do not know why some media channels feel eleated to bring these people time again again, when the time has repeatedly proved them wrong, in the last few months. It is lamenting to see that media never shouts when these band of old horses are wrong but sing praises as soon 10 out of 100 predictions come out to be correct. No one can beat CNBC in this regards (both Indian and Overseas Editions). Now they are going paid (Dish TV) and I do not know who will watch their these pedestrian programmes paying an additional Rs.25 per month except compulsory traders like me. Moreover, with Lata and Senthil doin...

Winning Strokes: [Updated] As expected the largest gainers in today’s trade were stocks from Real estate and Power sectors. I turned bullish on the Real Estate sector after a long time after I got confirmation from the sources in Mumbai & Chennai that the price of Real Estates, there are not coming down drastically in the last few weeks ....In fact the Real Estate prices has started to consolidate, which is a good sign for the Real Estate Bulls like me........ I was already bullish on the Power Sector since a long time and has been recommending scrips from this sector since the last few weeks. The lastest addition was W S Industries Ltd. Now I am bullish on the IT Services Sector and have already recommended some scrips in this space both to the Paid and Free Members. India’s second largest IT exporter by sales Infosys rose 0.32% to Rs 1,699, today. The stock recovered from session’s low of Rs 1,680.10. Infosys Technologies chief executive S. Gopalakrishnan today, 20 August 2008, ...

WINNINGS STROKES: [Updated at 04.10 p.m] IT (Information Technology) Services Companies are expected to do well in the days to come. One of the my favourite scrips in this space, Tech Mahindra Ltd (BSE Code-->532755) has already been recommended yesterday to the Paid Groups at Rs.752--Rs.753. Today, I recommended a high growth Software Company (IT Services Company) to the Paid Members, where Kajol Devgan holds substantial stake (223,400 shares or 1.99% stake in the Company since last few quarters). Moreover Karvy Stock Broking Ltd also holds good stake in the company. The name of the company is Ram Informatics Ltd (BSE Code-->530951, Scrip ID-->RAMINFO) .....T he CMP is mouth watering, considering that the 52-week high for the Scrip is Rs.30.75, which was made only some months back on, 4th January, 2008. The good point is that even in this downturn, its came out with good set of numbers for the June, 2008 quarters. The company has good order book position and is moving at...

Straight from the Gut: How is Ms.Arundhuti Roy, still moving in the open after such "outrageous statements on Kashmir Issue". Someone should put a Tape around her lips before this "cartoon" belches more such "Foolish Statements and Confuses the Indian masses". What to do with a person who have never ever tried to read Indian History and have always tried to get personal mileage out of everything, starting from Narmada Bachao Andolan... Supreme Court had once put this lady behind the Bars on the charges of Contempt of Court. She should be tried for treason and government should take strict action against her immediately, failing which the things could get out of control in the troubled state. Press and the electronic media should ignore this women............ Why should the people of Kashmir and domiciles of some North Eastern States of Indian Union be given Special Status?? Are the citizens in these places from Moon??!! I was amazed to see the collective v...

Winning Strokes: Think different: Why should one buy W S Industries Ltd? i) W S Industries Ltd is a play on significant investments planned in the power sector by government of India in the next 5 years time frame. Hence at the CMP, any investor is immune from making losses if he/she keeps it for at least 2 years. (ii) WSIL had around 14 acres of surplus land, which it transferred to its subsidiary, WS Electric, which in turn is developing that property into a 16 lakh sq. ft. IT park through a joint venture. Phase-I of 3 lakh sq. ft. is expected to be completed in this fiscal (FY09) from which WSIL may start earning a lease/rental income of around Rs.3 Cr per year. This is a great story by any means. But before the work completes the stock will rise in anticipation of better revenues. (ii)You have also seen that WSIL has an installed capacity to manufacture 16000 tonnes of insulators with 8000 tonnes for substation insulators and the balance 8000 tonnes for transmission insulators. I...

Winning Strokes: Think Different: Oil fell below $114 on demand worries and could soon crash below the last support at $107 per barrel: The euro hit a six-month low against the dollar on Friday following further proof that the US economic slowdown is spreading: So the Crude Oil is expected to crash land to $70-$80 per barrel; a world wide Panic among the Crude Oil bulls and Hedge Funds, who were betting on Crude Oil futures are seen: Amitabh Chakraborty, president (equity), Religare Securities, said oil prices will come down to around $100 level..........."If you see the charts, we believe that it is the fundamentals that are changing because the US is slowing down..The second quarter numbers are out, and it is very clear about the slow down." Commenting on metals, he said: "If you talk about non- ferrous, then, of course, we have seen copper coming to the lowest both in Shanghai and LME. If China or US slows down, then, of course, you will see demand for copper and alum...

WINNING STROKES: THINK DIFFERENT: Salary Hike??!! Consumer Demand Will Increase??!! Technical Bounce in Crude does not sustain Dow & Nasdaq Rallies How will Indian Markets Behave on Monday?? My Recommended Sunil High Tech Engineers Ltd was recommended by Kotak Securities Ltd on last Thursday (14th August, 2008) at Rs.193 for a target of Rs.335: SUNIL HI TECH ENGINEERS LTD (SHEL) BSE Code: 532711 CMP: Rs.193.40 RECOMMENDATION: BUY TARGET PRICE: Rs.335 FY09E P/E: 8.9X Analysts from Kotak Securities Ltd recently attended a conference call of SHEL and are very positive about its growth prospects: This stock as mentioned earlier was recommended by me, a couple of weeks back considering its huge order book position in the first quarter itself, Quality of management, increase in Government's Infrastructure Spending, recent flair for Infrastrucutre related stocks, etc. Now let's see what are the views of Kotak Securities Ltd on the stock........ Revise FY09 earning estimates Kota...

W S Industries Ltd BSE Code: 504220 CMP:Rs.54.95 [This newsletter has been sent to the Paid Groups in the Morning] Please be informed that some good news is offing from W S Industries Ltd (BSE Code-->504220), within a very short time and hence try to buy this stock which is currently ruling near its 52-week low price of Rs.46, made in July, 2008. The stock is currently above its strong support of Rs.54.90 and Bollinger bands after a long time is in buy mode and so is MACD. W S Industries Ltd is a play on significant investments planned in the power sector by government of India in the next 5 years time frame. Incorporated in 1961, WS Industries Ltd. (WSIL) is a leading manufacturer of high voltage electro-porcelain transmission insulators and sub-station insulators. Insulators being non-conductors are basically protective tools, which subdue the current and are used in transmission and distribution (T&D) of electric power. Ranging from 220 KV to 1200 KV, the company produces on...