Tuesday, September 16, 2008

Winning Strokes:Think Different:
Crude Oil Price in Numex is near my third Target of $85 per barrel. When I predicted this, about a couple of months back at crude around $147 per barrel, 80% of the investors laughed at me and now I am laughing at them........hahahahaaa. What happened to Ashis Kapoor who said "General consensus is that the price of Crude Oil would rise....": Ennore Coke Ltd & ASM Technologies Ltd shot up today....Reliance Industrial Infrastructure, BGR Energy Ltd and KEC International Ltd shot up in late trade overcoming their earlier (intra-day) heavy losses. But why??? Buy IT, Real Estate, Bank and Oil Marketing Companies for the next 15 days time frame. Today Paid Members were asked to buy BPCL Ltd:
Buy, Ram Informatics Ltd, Premier Explosives Ltd (Getting magnified revenues from its two overseas subsidiaries in Turkey and Georgia, due to Rupee Depreciation), KPIT Cummins Ltd etc.:
I sometimes laugh when NDTV Profit repeatedly belches out the same boring messages of one of the analysts of a Foreign Brokerage Firm about Satyam Computers' clients' lists in the US. It seems Satyam has only one client and that too the one whose financials are in question.....!!! Ditto was done in case of ICICI Bank when it had very little exposure in the US financial markets. A day when the market sentiments at at their lowest points, is NDTV Profit started to tread the "Self Destructive Path" of CNBC TV18???!!! Financial Media in India is trying to emulate what another "Shylock", Bloomberg is doing in the US---just to Paint the Republicans (in the US) Red. What can the US Government do, if an Investment Bank gives loans at high interest rate to such persons who do not have the ability to pay, or invests in Emerging markets in an over-leveraged way!!!??? In the last couple of months Lehman Brothers had sold equities worth more than Rs.300 Cr. But still they are bankrupt--who is to be blamed for this carefully thought of plan...That is why I say do NOT play in the F & O or else be prepared for selling ur house one day:
US Fed is doing all that is necessary to stem the crisis and we should appreciate that and not crack a joke, like the Shankar Sharma did today on CNBC TV18:
I think it is the best time to invest in the IT companies when the INR is depreciating and the US Economy is set to improve in the days to come. Good part is that all these Indian Information Technology (IT) Companies till date did not announce any loss of major clients nor do they sound any death knell.
I do not know when will these media channels stop broadcasting messages from Foreign Brokerage Houses and create confusion among the investing community. If Lehman Brothers is a client of an Indian IT company and so is Bank of America?? So why only highlight Lehman and not Bank of America ??? May be we have to read between the lines of these apparently Naive News items, which gets rolled out in front of us everyday---were they being Paid by the Indian-bears so that "they could short the markets and make millions"??
Or they have a common aim to Paint Indian Growth Story, Black---just ponder over this point!!! If there is a cut in the Interest Rate in the US, then the Indian Markets would stage in a smart rally tomorrow: Today I advised my Paid Clients to go for selective buying of some scrips:
Fed pumps $70B into nation's financial system:
If pumping of money in the US system is called by Mark Faber as "Bernanke Bubble", I rename his ranting and chantings as "Faber-Delirium":
WASHINGTON – Urgently trying to keep cash flowing amid a Wall Street meltdown, the Federal Reserve on Tuesday pumped another $70 billion into the nation's financial system to help ease credit stresses.
The Federal Reserve Bank of New York's action came in two operations in which $50 billion and then another regularly scheduled $20 billion were injected in temporary reserves.
The maneuver takes place as Federal Reserve Chairman Ben Bernanke and his central bank colleagues prepare to meet to decide their next move on interest rates and conduct a fresh assessment of the country's financial and economic troubles.
Some believe the financial system turmoil raises the odds the Fed will cut rates. Others still predict the Fed will hold its key rate steady at 2 percent.
In the last few days, the American financial system has been badly shaken as bad bets on dodgy mortgage-backed securities claimed more Wall Street giants.
Lehman Brothers, the country's fourth-largest investment bank, filed for bankruptcy protection. A weakened Merrill Lynch, deciding it couldn't go it alone anymore, found help in the arms of Bank of America. Now, the insurance giant American International Group is dangerously wobbling. Against this backdrop, Wall Street on Monday plunged 500 points, the most since the September 2001 terror attacks.
The cash infusion Tuesday was designed to help ease a spike in the overnight lending rate between banks. A sharp rise in such borrowing costs makes banks reluctant to lend to each other and to hoard cash, worsening already tight credit conditions. Harder-to-get credit has crimped spending by consumers and business, a factor in the slowing economy. To help grease the financial plumbing Monday, the Fed pumped a total of $70 billion into the system through open market operations.

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