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 income of the middle and upper middle class will bring goodies for the real estate companies.

Whatever selling we witnessed in the last few days was due to some FIIs exiting the Indian Market by going for distress selling of the shares of the companies. This cannot continue for long and I think soon the market will find a support at the bottom.

The next two happening sectors after the Banking and Construction will be Pharma and the Power sectors. Because even in the downturn, people will be hesitant to cut the medical or power expenses. These days is it feasible to live without a Fan or a Television?? Besides rupee depreciation will have positive effect on the Pharmaceutical Companies, which derive a sizable revenue from the exports market.

What is the latest on Ennore Coke Ltd and Phoenix International Ltd??

The Crude Oil Prices are expected to bounce back to $92 within the next couple of months. All these talks of linking Crude Oil with Global Slowdown are all "Bakwas" (bullshit).

The Crude Oil and the Commodity Prices are crashing due to speculative money not entering these space. How can suddenly the Crude Oil Demand of the World fall by 50%---this is absurd. "Salla US and Humare Analysts log, kuch bhi bolte hai". Problem is that the way the electronic media explains things people understands....

But then, "What did I mention to the Paid Groups that the markets rose up at the end of Trade".

I have recommended Aurobindo Pharma Ltd to the Paid Groups in the Sunday Report. I hope you have finished purchasing English India Clay Ltd (Please find the research Report at http://www.sumanspeaksplus.blogspot.com/)

Another Question which is haunting me is: What is the source of so much fund for Barrack Hussain Obama (for Presidential Campaign) and secondly why does he want to hide his middle name, "Hussain" most of the time....????!!!!

Friends you have seen that present UPA government hereto did very little, to revive the Indian Capital Markets (or Share Markets) and save the small investors, from massive FII selling. This is shame for the UPA Government at the centre and could affect its Vote Bank in the next General Elections.

Prime Minister Dr.Monmohan Singh, Mr.P Chidambaram & Mr.Shivraj Patil, Mr.Sharad Pawar, have failed miserably as compared to Mr.Kamal Nath, Mr.Laloo Prasad Yadav, Mr.Murli Deora (at least he looks to be an honest man) and Dr.Pranab Mukherjee. India cut a very sorry figure even having an Economist and a former RBI governor as the Prime Minister. This is utter shame.....

What the government could have done to revive the markets at present:

1. Reduce the short term capital gains tax to 10%

2. Aboish STT

3. Bring in a Soverign Fund to buy shares from the open market to bring in confidence to the small investors. It seems that the government has no confidence in its own system, and it is thinking thousand times, before bringing in a sovereign fund to net shares from the open market.

Mr.Chidambaram, like a school teacher, urged all the investors not to panic, but why is the government panicking to bring in a fund to lap up undervalued shares from the open market??!! This is a question which the finance ministry should answer.....!!!

4. Reduce CRR by another 100 to 150 basis points.

5. Cut interest rate by at least 200 basis points, like an Asian Country did yesterday.

6. Announce big Infrastructure Spending.......and so on.

September new home sales rise by 2.7 percent

New home sales post unexpected increase as prices fall to lowest level in 4 years

WASHINGTON-- Sales of new homes recorded an unexpected increase in September as median home prices dropped to the lowest level in four years, the Commerce Department reported Monday. Sales of new single-family homes rose by 2.7 percent last month to a seasonally adjusted annual rate of 464,000 homes, Commerce said. Economists had expected sales would drop from the August level. The median price of a new home sold in September declined by 9.1 percent from a year ago to $218,400, the lowest price level since September 2004, a period when home prices were rising rapidly as the country experienced a five-year housing boom. The surprising increase in September sales still left them 33.1 percent below the level of a year ago as the country is battered by the worst slump in housing in decades. The report on a rise in new home sales followed news last week that sales of existing homes rose in September by 5.5 percent, the largest monthly gain in more than five years. Analysts are not convinced that the sales increases are signaling a bottom for the housing market. They note that the September gains came before the latest upheavals in financial markets which have raised new worries about the overall state of the economy. Many analysts believe the country has already entered a recession. They are forecasting significant increases in job losses which will make it even harder to mount a sustained rebound in housing. New home sales fell by 21.4 percent in the Northeast and were down 5.8 percent in the Midwest. However, sales rose by a sharp 22.7 percent in the West, a region of the country which has seen some of the biggest declines in prices, a development which has spurred sales. Sales were up 0.7 percent in the South. The rise in sales left a total of 394,000 unsold new homes on the market at the end of September, down a record 25.4 percent from the number of unsold homes on the market at the end of September 2007. Builders have been sharply cutting back on production, trying to get inventories more in line with sales. Even with the latest drop in total unsold new homes, the inventory represents a 10.4 months supply at the September sales pace, still a historically high level. The inventory of unsold existing homes is also remaining near historic highs as that market is being increased by a record wave of home foreclosures. The 2.7 percent rise in sales for September new home sales followed a big 12.6 percent drop in August, which was revised sharply lower from the government's initial estimate. Sales in July had risen by 3.6 percent.