Thursday, August 07, 2008

WINNING STROKES: THINK DIFFERENT:
The Crude Oil as expected is crashing to down to my earlier mentioned target of $110 per barrel. I am happy that this time US came out with correct inventory figures for Oil. My sincere thanks to President G Bush for Presenting the Correct Data on Crude Oil. Mr.McCain, I received ur appreciation mail and will reply soon:
The Intra-day Call ICICI Bank reached the targets as the stock moved up: That South Indian Real Estate Company hit circuits even today. Why?? The Paid Members will be told about the present order book position of the company and I am sure they will be astonished!! Those who got the chance to enter today but did not, might have missed the bus, as the stock has the target of Rs.72---Rs.77:
When the Crude Oil is falling, Auto and Real Estate/Construction Stocks will shine. But why??
Yesterday, I recommended a Super Grade High Tech Construction stock/scrip to the Paid Groups. The company has an order book of more than Rs.1300 Cr and have booked more than 60% of the order in the first quarter of FY09, itself---what a superb performance. We have seen that if a company has an order book of Rs.1000 Cr then the stock shoots to Rs.500 in no time even during bad phase. Hence what will be correct value of the stock with FY09E, Earnings Per Share as Rs.30. It is a high tech company in the construction space and hence the margins are high here:
As mentioned in this blog yesterday, Ennore Coke Ltd came out with good set of numbers for the June, 2008 quarter, after Southern Online Bio Technologies Ltd came out with fantastic results:
Investors should book profits and exit my ealier recommended Cochin Mineral and Rutiles Ltdd, as FY08, EPS is only Rs.2.12. Though the result of Q1FY08, was good but the net profit is only 59 Lakhs on an Equity of Rs.7.83 Cr, giving an EPS of only 75 paisa or Re.0.75. This does not warrant such a high share price:
Petron Engineering and Construction Ltd hit the buyer freeze after it came out with impressive results. But Q1FY09, EPS is only Rs.4.4 and that the stock is already at Rs.241. Hence one should exit the counter and invest in Southern Online Bio Tech or CESC Ltd: Exit Radhe Developers Ltd as the stock could tank down:
My earlier recommended, Crest Animation Studios Ltd, Nagpur Power and Industries Ltd, BF Utilities Ltd,Atlanta Ltd etc hit the buyer freeze yesterday:So how will the markets behave today??
Stocks rise as drop in Crude Oil offsets unease over Freddie Mac; Cisco helps lift tech names
NEW YORK -- Wall Street logged another winning day Wednesday as a drop in oil prices and a better-than-expected profit report from technology bellwether Cisco Systems Inc. helped corral the market's worries about the financial sector.
Oil extended its slide into a third day. Light, sweet crude settled down 59 cents at $118.58 a barrel on the New York Mercantile Exchange after the government reported a jump in domestic inventories; oil is now down about $30 from its record high of $147.27 reached on July 11.
Cisco rose more 5 percent after the networking equipment company posted earnings that narrowly topped Wall Street's forecast. The report helped buoy sentiment and lifted the technology-heavy Nasdaq composite index.
The buying came a day after a huge rally -- an advance that initially looked like it might not hold. Investors began the day fearing more industrywide write-downs of bad home loans after mortgage financier Freddie Mac reported a larger-than-expected second-quarter loss. But a reversal in oil prices, continuing a decline that propelled stocks sharply higher Tuesday, helped calm investors about the forces tugging at the economy.
The well-being of Freddie Mac and sister company Fannie Mae is a big concern on Wall Street as the government-chartered companies hold or back nearly half of all U.S. mortgage debt. The companies have lost billions of dollars due to failed loans over the past year; the federal government has pledged to help both companies with larger lines of credit or stock purchases if necessary.
According to preliminary calculations, the Dow Jones industrial average rose 40.30, or 0.35 percent, to 11,656.07, after having been down nearly 100 points early in the session. The gain brought the Dow's two-day advance to about 370 points. The blue chips soared Tuesday on a reassuring economic statement from the Federal Reserve and another drop in oil prices.
Broader stock indicators also advanced again Wednesday. The Standard & Poor's 500 index rose 4.31, or 0.34 percent, to 1,289.19, and the Nasdaq rose 28.54, or 1.21 percent, to 2,378.37.

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