Sunday, August 10, 2008

Winning Strokes: Think Different:
On last Friday H S India Ltd hit the buyer freeze on the news that BOD has decided to close down the software business of the company and also commercial operation of the Subsidiary Company is expected to start within a short time.
Photograph of the Main Hotel of H S India Ltd, Hotel Lord Park Inn, in Surat is on the right hand side of this page.
The company's second hotel in Ankleshwar has virtually no competition from its peers. The company has already completed the renovation of the first hotel some months back. The hotel is very near to important centres in Surat and hence have good occupancy ratio even in this downturn. Besides the company's new formula is working wonders in the cost cutting sphere. The company also has good land holdings. The stock was recommended to the Paid Members at around Rs.9.5--Rs.10 and then to the Free Members in this blog. The stock has already given more than 30% return in less than 30 days after I recommended the scrip again:
Sunil High Tech Engineers Ltd with huge order book position is looking very attractive at the Current price of Rs.203.17. The scrip is looking excellent in the daily chart. Candle Stick Pattern and MACD are in buy mode, though confirmation of bullish pattern, could be seen in the next few days:
Wonderful quarterly results and the demerger story could take Southern Online Bio Technologies Ltd to above Rs.35 in the next few weeks. The company is making huge return from the hike in the diesel prices by the government. The company also got some International Aid, which are used to buy new machineries and also distributing free seeds of Jatropha/Pongamania among the villagers. World-wide there is a rush to buy Green Energy Companies:
The next happening sector could be Real Estate and Construction, as the interest rates could fall due to nose-diving of the Crude Oil prices. Also the government is bound to carry on the domestic Infrastructure Development in push forward the reform process. Besides the Real Estate Companies have corrected more than what should be their actual worth, due to high land value. Those real estate companies who are holding huge land areas like Vijay Shanti Builders Ltd, Unitech Ltd, DLF Ltd, Bombay Dyeing (embedded real estate story), etc, would be king going forward:
I have made arrangements for few more slots for my Portfolio Management Service (PMS) for the High Net Worth Individuals/Investors Only. Those HNI investors, who are interested in the PMS can mail me for the details at the e-mail addresses mentioned at the left hand side of this web-page:
Oil sinks to 3-month low
Crude ends near $115 a barrel on a slumping global economy and after disrupted supply from a pipeline attack in Turkey is rerouted.

NEW YORK -- Oil prices tumbled a 3-month low near $115 a barrel Friday as the dollar rallied strongly against slumping foreign currencies and concerns about a Turkish supply disruption were eased. Light, sweet crude for September delivery settled down $4.82 to $115.20 on the New York Mercantile Exchange. It was the lowest close since May 1, when oil finished at $112.52.

Crude reversed course after settling higher Thursday, as the dollar hit a 5-month high against the euro.

The 15-nation euro bought $1.5017, down 2% from Thursday's levels. The British pound fell 1.4% to a 17-month low of $1.9164, and the dollar rose 0.8% against the Japanese currency to ¥110.275.

Oil is traded in dollars, and investors had been using it and other commodities to hedge against inflation. But as the dollar began to rebound, investors shifted their money to other investments such as stocks and bonds.

Investor fears about the deterioration in the European economy contributed to the dollar's rebound. Poor economic reports from the 15-nation euro zone on Friday followed a decision by the European Central Bank a day earlier to hold a key interest rate steady in order to keep cash flowing to the financial industry.

"So much of the buying we saw since last August when oil was trading at $68 a barrel was predicated on a weak dollar," said Peter Beutel, an oil analyst with Cameron Hanover Oil. "As the dollar is gaining now, we're seeing an unwinding of those positions in oil."

"There's no reason why we can't see an unwinding of positions back to the $68 to $79 level," said Beutel. "This market can always go further and faster than anyone will believe."

Oil has fallen more than $32, or nearly 22%, from the record high of $147.27 set July 11.

Pipeline fixed: Crude bounced off a three-month low Thursday to settle more than $1 higher after Turkey's Baku-Tbilisi-Ceyhan oil pipeline was attacked by a Kurdish rebel group Tuesday night. Reports emerged Thursday that the pipeline, which pumps nearly 1 million barrels a day, could remain closed for up to two weeks.

But Friday reports emerged that the oil had been rerouted over other pipelines. That news helped send crude even lower, as supply concerns were eased.

Gas prices: The average price of gasoline fell 1.3 cents to $3.836 per gallon in the United States, declining for the 22nd straight day, according to a daily survey from motorist advocacy group AAA. Gas is down nearly 7% from the record high of $4.114 set July 16.

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