WINNING STROKES: THINK DIFFERENT:

Today's rally drove the bear out of the ring, as the maurading bulls conquered every bear territory. Today was the field day for the Telecom and some IT counters, as Reliance Communications Ltd moved up by a massive 5.35% to close at Rs.263.75 and Infotech Enterprise Ltd moved up by more than 5%; on the news that it has set up WOS in Japan by name Infotech Enterprises Japan KK.

XL Telecom & Energy Ltd hit the buyer freeze with good volume. The stock is moving up steadily as it has a great story to tell. I have already a report on the company at: www.sumanspeaksplus.blogspot.com.

Wireless-TT Info-Services, the tower arm of Tata Teleservices and Quippo Telecom have decided to merge their tower businesses. Post-merger, Quippo would have 49% stake in the entity while Tata Teleservices would retain 51% stake. Quipo would make cash payment of Rs.2400 Cr and also transfer its 5,000 towers to Wireless-TT Info-Services, which currently operates 13,000 towers across India.

Megasoft Ltd which is related to telecom space also moved up by a massive 13% at the beginning of trade before cooling down a bit. The company has presence in 9 countries and various continents, but its share is trading at Rs.22.45. Can you imagine???!! I have already placed a report on the company.

Meanwhile all sorts of news emanated in the market as regards Satyam Computers Ltd, as MINDTREE denied report that the company was in merger talks with beleaguered Satyam Computer.

NUCLEUS SOFTWARE won new client in UAE; National Bank of Umm Al Qaiwain, has Chosen FinnOne for its retail finance division, to power auto, personal & home loans.

Bharti Airtel Ltd, India’s largest telecom company, will launch services in Sri Lanka on January 12, becoming the fifth cellular player in the island nation. It will simultaneously roll out 2G and 3G services in Sri Lanka.

Tata Consultancy Services Ltd launched development centre in Bhubaneswar.....

The Yash Birla Group company Birla Power Solutions Ltd hit another buyer freeze, within volumes indicating that people are not ready to sell the stock at the present price. This is a very bullish indicator. Birla Power Solutions Ltd earlier informed BSE that the Company along with Lead Manager has finalized the issue price at Rs 36/- per Equity Share of face value Rs 10/- (including a premium of Rs 26/- per share) to Qualified Institutions Placement of the Company. The stock is trading at a heavy discounts to its book value unlike other power stocks.

Chowgule Steamships Ltd recommended at Rs.25 and Rs.23 moved to Rs.27.75 before cooling down a bit. The stocks of transportation companies are expected to do well due to low price of fuel. Besides, this company came out with wonderful set of numbers for the September, 2008 quarters. Chowgule Steamships Ltd along with its subsidiary has placed orders for acquisition of new buildings 7 (seven) handy size vessels for an aggregate outlay of about US Dollars 262 Million. The company came out with flat set of numbers for the Q2FY09, even in this downturn which implies the strength of the company.

Reliance Industrial Infrastrucutre Ltd came out with good set of numbers for the September, 2008 quarter. Inspite of the downturn, both the toplines and the bottomlines were flat. The Company is mainly engaged in infrastructure activity and which would get boosted by the Packages announced by the central government. Moreover, during the quarter ended September 30, 2008, Reliance Corporate Centre Pvt Ltd and Reliance Convention and Exhibition Centre Pvt Ltd have become subsidiaries of the Company--a great result for the great parent.

Now that all the Gujarat based companies are expected to get good benefits from recently announced sops by the Narendra Modi Government, this stock which gets a substantial part of its revenues from the Reliance Industries Ltd is expected to do well. My today's intra-day call on Reliance Industries Ltd gave a sudden spike in the shares of the company in the late trade. It is to be noted that Reliance Industries Ltd is a Gujarat based company, which would do well in the days to come as the crude prices are expected to move up to $72 per barrel by March, 2009.

Morover, its petrochem division, will get benefits in the future because of cheap crude prices.

Srinivasa Shipping and Property Development Ltd moved to Rs.28 before cooling down a bit. This is a wonderful company which was recommended by me in a number of occassions. Srinivasa Shipping and Property Development Ltd (SSPDL) is a three city Real Estate play on Bangalore, Hyderabad and Chennai markets, where a property boom is going on.

SSPDL is a property development company primarily developing commercial (IT parks, Shopping Malls, Hotel projects, service apartments etc) and residential properties (gated communities, villas, apartments and serviced plots) in Chennai, Bangalore, Hyderabad and Kerala.

The business model is as follows:

(a) The Company purchases land and develops it based on market needs

(b) The Company takes land on development from the landowners and shares the developed property with the landowner in a particular ratio and

(c) The Company takes on third party construction contracts in the building sector.

The projects on hand are:

-Bangalore Retreat - December 2009

-OMR Mixed Development Project, Chennai - September 2010

-OMR Residential Project, Chennai - December 2009

-Hyderabad Retreat, Hyderabad - December 2012

-The Retreat, Kallar Valley, Kerala - Dec 2010

The value of projects under execution exceeds Rs.2250 crore with over 7 Million Sq. ft of Built Up Space aggregating to a Sale Value of Rs.1800 Crores Plus in various stages of execution.

SSPDL has also announced plans to take up the following projects:

-Gundla Pochampally/Kompally, Hyderabad - a 40+ acre residential gated community

-Bangalore-Mysore Highway Project - a 60+ acre residential community

- Montieth Road Property Chennai - Office space.

The Retreat, Hyderabad has an SEZ as an integral part of the project. SSPDL has appointed Surbana, the Singapore based architects for this project and currently planning is underway. The earliest revenues will be recognized from 3rd quarter of 2008 (or in Q3FY09).

At Kallar Valley in Kerala SSPDL has acquired about 325 Acres of pristine Plantation Land with natural forest and waterfalls, springs etc. The site is located in the Hills and is a 2 hour drive from Kochi Airport.

SSPDL intends to put up a 20 acre world class resort with a Hospitality Partner. Besides this it will promote Vacation Homes of super luxury quality by invitation. In addition, the Company has been awarded construction contracts aggregating to Rs.78.20 Crores for the following works from third parties.

(i) Construction contract with NBCC, Hyderabad for construction of 1.5 lakh sq feet office building.

(ii) Construction contract of warehouse for SAIL Ltd at Vizag.

(iii) Construction contract for TCG IT Park, Chennai.

(iv) Construction contract for 50 villas for Ferns-Regalia Realty Ltd, Chennai.

2. SSPDL Infrastructure Developers Pvt Ltd, a SPV held jointly by the Company together with Innovative Realty Opportunity Fund Ltd have entered into a sate agreement with Accor Group of Hotels for hotel space in "The Promenade" Project, at Egattur, OMR, Chennai.

3. SSPDL Ltd and Indiareit Fund Advisors Pvt Ltd through their SPVs have acquired 42 acres in Gundtapochampalty village, Hyderabad to develop a gated residential villa community "SSPDL Northwoods". Total estimated project value is Rs 250 crores.

Sunflag Iron and Steels Ltd crossed Rs.12, today before cooling down. The stock was recommended a couple of weeks back at Rs.10.

Book some profits in Yes Bank Ltd, English Indian Clays Ltd (profit booking was advised long back to the Paid Groups), ICICI bank Ltd, Prajay Engineers Ltd, Mundra Port Ltd, (It rose today due to obvious reasons), Tata Power Ltd (recommended in this blog at Rs.720), Dena Bank Ltd (recommended to the Paid Groups at Rs.27), etc.

ICICI Bank Ltd (You should stay away from the counter, as an inefficient lady who was one of the trios, including K V Kamath & Kalpana Morparia who virtually destroyed the bank, is at the helm of affairs. I do not understand how a lady who does not have any personality be the CEO of a massive bank---is it to please the feminist organisations??!! If Mr. M K Gandhi were alive, he would have said "Hey Ram". An analyst whom I met a couple of days back told me, on hearing the recent advertisement in which a classical song was used to quell certain section of critics, "Yes the song in the advertisement and some reseaRch reports on it are good, but the real point is Bank is bad".

EXCERPTS OF THE SPECIAL REPORT (SUNDAY REPORT) SENT TO THE PAID GROUPS ON 28TH DECEMBER, 2008

Special Report: “STOCK HUNT IN THE NEW YEAR”

This Sunday Report took a bullish stand on the markets in November and to express the same, came outwith a short note “CAPITULATION mentioning some points on why the markets looked bullish at that time.

The result of that timely analysis, we all know as the Nifty again crossed 3000, before going for a brief correction. Most of our investments in stocks like DCB Ltd, Prajay Engineers Ltd, Kamanwala Housing Construction Ltd, Kernex Microsystems Ltd, etc, gave good returns over the period.

Now it can be safely said that Capitulation “Might be Over” on 21st November 2008. Moreover, since the sounds of war drums have become soft from both the sides of the fences, gives further teeth to this theory.

It will not be an exaggeration if we say that the MACRO CYCLE of Indian economy has taken a swift or U-turn silently amidst the global gloomy economic scenario. Sooner or later, the market participants willrealize the onset of dawn after a scary and dark long night full of nightmares.

The macro tools which were used to write ‘the India growth story’ few years back were suddenly seen running short of ammunition this year to carry on with, and were shattered drastically by ‘once in a century’ global slowdown and decade high inflation, on its soil.

We can’t however rule out the continuation of the global slowdown cycle to extend for some more time, but the truth is that the negatives about the Indian economy have been aggressively discounted in the equity prices as well.

Therefore, it’s the time for investors to fasten their seat belts and set out for their investment foray. In the past few months, RBI, the apex authority of the domestic banking system set out the steepest set of interest rate cuts since 2000 in anticipation of falling of inflation figures.

The country's benchmark 10-year bonds are indicating that the central bank may add to the three interest-rate cuts in the past two months.The advance tax figures for the quarter ended December 2008 were better than expected by the market participants. Barring some companies in manufacturing sector like steel, auto and oil; companiesfrom banking, fertilizers & chemicals, power, FMCG and housing finance sectors reported healthy growthin advance tax payments.

The recent RBI’s monetary measures and government’s fiscal steps will sooner or later show theirfavorable impact in coming days in the form of rising demand for homes, cars and consumer durables.

The most important thing that most of us are missing is the impact of low raw material cost on the bottom-line of the corporate. I have been shouting myself hoarse in this regards, during the last few months in my blog and through the Yahoo Groups, but the lamenting part is that, those high decibel words could hardly impact the minds of market participants.'

The companies are through with raw material inventory build up at ‘high cost’ during the current quarter,including the earlier quarters, which will get reflected in December 2008 quarterly performance; but from the next quarter onwards, on the back of this, their margins will improve smartly.

This will ultimately be seen the stock market with the rise in the price of stocks.Though the long term market fundamentals mentioned above and current stock valuations are tempting,there are some prevailing political issues which have intensified post 26/11 terror attack on India’s financial capital Mumbai. This time, India’s fierce response to the attack has created a war like situation with Pakistan.

This may impact the economy (and market) in short to medium term. However, long-termoutlook is bullish. My research desk’s efforts have always been aimed at safe & sound investment ideas which can delive rmultiplied returns on each penny invested over a period of time.

One can start accumulating Selan Exploration Technology Ltd and Dena Bank in your portfolio; the “starters” of this New Year series; and are following some more scrips which could deliver good returns in the days ahead.