SumanSpeaks: The Information Super Highway

WINNING STROKES:Think Different: U B Engineering Ltd hit the 3rd consecutive buyer freeze. If you remember it is a Vijay Mallya Group Company and has recently turned around. English India Clay Ltd reached Rs.300 today. The stock is still up 3%. It has mining, power and Carbon Credit story . The mining stories are expected to do well because this is a scarce commodity. The English India Clay Ltd is coming up with a Starch Project within a short time. The catch point is that out of 547332 shares available for trade (Excluding the promoters' holding of 79.91%) in case of English India Clay Ltd, 388054 shares (298,998 + 89,0562) is blocked for trade. Hence we have effectively, 159278 shares available for trade in any given day, which gives premium value of the shares of the company. It is is due to this Premium the shares get such valuations. English India Clay Ltd is also coming up with a Rights Issue at a whooping rate of Rs.1000 per share. The current market price of the share is ...

Blasts in Assam: Over 50 killed, more than 100 injured; Curfew imposed in Guwahati : I was talking of Terrorism in the Morning in this blog, look what happened within the next 12 hours time frame. Hence I said if our li ves are not secure what is the use of any government??!! Now just imagine what will happen in future, if a Powerful Country elects a President, who has alleged Terrorist Links..... The moment Samajbadi Party (SP) Joined UPA , the frequency of Bomb blast increased, througout India. I do not understand why Indian intelligence agencies cannot see this simple simile and reconstruct the events..... My heart-felt condolences to the bereaved families..... Mr. Shivraj Patil should now resign taking moral responsibility, instead of clinging on to power; like he has been doing, since a long time..... Guwahati : A series of coordinated blasts rocked Assam on Thursday, killing over 50 20 people and injuring more than 100, police and eyewitnesses said. Four blasts occurred in ...

Would Barrack Hussein Obama make a good President? National polls tighten a bit; Sen John McCain narrows the gap on Barack Obama, after a Video showing Fannie Mac episode was placed in this blog. The ratings for Sen McCaine, virtually improved from 43.7% to 44.1% yesterday. Today also it is up marginally: Terrorism is now a Major Problem in the World and one who will attempt to solve it should be the next US President. I think Sen MaCaine being a war veteran should be best equipped to do the same. If our lives are not guaranteed then there is no use of any reforms. The US markets might soar if the present Republican Regime continues, as we do not know what kind of Economic model Sen Barrack Hussein Obama will apply after being elected. If it is a Socialist Model, the the hell could let loose. May be hedge funds are selling because of this uncertainity of governance in the US. We know how havoc a Socialists Government could do to an Economy, because of their policy of distribution of we...

WINNING STROKES:THINK DIFFENENT : Unitech Ltd jumped to Rs.54 today, giving a gain of more than 80% in just 4 trading sessions. I had questioned Ms.Susan Thomas, when she said in a TV Programme that market should determine the price of share and market is always right in a given time. I proved her wrong, that market does not follow bookish rules and behaves irrationally in some circumstances. This is the problem with the academics---either they jump topic (Mr. Deepankar Gupta of JNU ) or has no control on what they say (Prof . V K Malhotra of BJP ). My recommended English India Clay Ltd jumped to Rs.293 today, before going for profit booking. The company has started its co-generation plant and is coming up with a rights issue at Rs.1000 (Rs.990 premium) per share in the ratio of 1:6 (One new equity shares for every six equity share) to part finance the upcoming starch manufacturing project at Shimoga ( Karnataka ). The Company came out with spectacular results for the September,...

WINNING STROKES:THINK DIFFERENT: Short Selling- Cause for bleeding markets: K R Choksey Shares and Securities Ltd: Academics like Ms.Susan Thomas (she seems to have no practical experience in Share Market and talks like a machine) says market discovers Prices of stocks/Shares. Yes Susan, you are right: Unitech Ltd should be valued at Rs.30, and Lok Housing Ltd(BSE Code:500256) with Value of land exceeding Rs.6000 Cr should be valued at Rs.20, Ennore Coke Ltd(BSE Code:512369) with its Coke, Power, Mining and Carbon Credit Story should be valued at Rs.15, ASM Technologies Ltd (BSE Code:526433) having a number of overseas offices, should be trading at Rs.25, etc. isn't it???!!! Wah!! W ah!! Wah!! ......Do you understand the term, "Bear Hammering"??? I think World Body, should think of giving you a Noble Prize in Economics in 2009!! Are the current actions & activities of SEBI portraying it to be a Very Slow Moving Animal??!! Recent sharp fall in domestic market has...

WINNING STROKES: THINK DIFFERENT: Yesterday's Call on Unitech Ltd was a boomer as the stock raced more than 25% in today's trade. The stock was mentioned as a special pick to the Paid Groups. Indian Investors do not understand some simple terms. A company which has huge land value cannot trade at Rs.40. Similar is the case for Lok Housing Ltd, which is impossible to get once it starts hitting the upper circuits. The construction has started after the monsoon and the cost of construction has come down drastically due to the fall in the Steel and Cement prices. Hence, the Real Estate Companies which has already sold the rights of the properties to the prospective buyers will make a killing in the days to come. Just consider the case of Kamanwala Housing Construction Ltd. The company is already doing some construction near Bandra Kurla Complex, at the earlier rates. Now that the price of raw materials have come down drastically, these companies will make a killing. The rise in i...

WINNING STROKES: THINK DIFFERENT: I have earlier talked of a level of 6500 on the Sensex as the worst case scenario, considering a P/E of around 6 (six) while comparing it to the Great Depression in early 20 th Century. My recent reasoning is also based on the fact that many banks today have a shockingly large exposure to leverage d derivatives such as futures, options and even more exotic instruments. The most dangerous part is that underlying value of assets represented by such financial derivatives at quite a few big banks is greater than the total value of all their deposits. The estimated representative value of all derivatives in the world today is around $90 trillion, over half of which is held by U.S. banks...speculating in leveraged derivatives poses one of the greatest risks to banks that have succumbed to the lure. Leverage almost always causes massive losses eventually because of the psychological stress that owning them induces. THE QUESTION REMAINS WHETHER ALL THESE FA...

Rendezvous with Short Selling: Let's recap what Short Selling is: In a short sale an investor borrows shares, sells them, and must eventually reutrn the same shares (cover). Profit (or loss) is made on the difference between the price when the shares are borrowed compared to when they are returned. An investor makes money only when a shorted security falls in value. Short selling is done on margin, and so is subject to the rul es of margin trading. The shorter must pay the lender any dividends or rights declared during the course of the loan. The two reasons for shorting are to speculate and to hedge. There are restrictions as to what stocks can be shorted and when a short can be carried out. Short interest tells us the number of shares that have already been sold short in a security. Short selling is very risky. You can lose more money than you invest but are limited on the upside. A short squeeze is when a large number of short sellers try to cover their positions at the same ...