Friday, June 05, 2009

WINNING STROKES: THINK DIFFERENT:
Indowind Energy Ltd hit the buyer freeze yesterday. The stock was recommended during the market hours to the Paid Groups through an SMS. Indowind Energy Ltd which has face value of Rs.10, is trading very cheap as compared to Suzlon Energy Ltd, though there is a slight difference in the business model of both the companies. In the March, 2009 quarter, the company came out with excellent set of numbers. The total income of the company for Q4Fy09 came out to be Rs.31.91 Cr as against Rs.3.44 Cr in the same period previous year; which included an other income of Rs.2.9 Cr. The Profit Before Depreciation and Tax jumped to Rs.2.14 Cr in Q4FY09, as against Rs.99.9 lakhs in the same period previous year. The net profit of the company almost doubled in Q4FY09 as compared to the same period previous year inspite of higher, interest and depreciation. Indowind Energy Ltd earlier informed BSE that the Company have commissioned its II phase of 9 MW Wind Energy Project on March 28, 2009 at Chitradurga. With this the total capacity of Indowind Power Division is 35.65 MW (including .75 MW commissioned in TN in Mar 09) & Capacity of Asset Management Service Division is 31.26 MW. And the overall capacity under Indowind Energy Ltd as on date is 66.91 MW. THIS IS MASSIVE CONSIDERING THE PRESENT PRICE OF THE SHARES OF THE COMPANY.
Indowind Energy Ltd has decided to establish a subsidiary / joint venture Company at "UAE or at any other place outside India".
Indowind Energy Limited develops wind farms for sale, manages the wind assets, and generates green power for sale to utilities and corporates. It also does turnkey implementation of Wind Power Projects, from concept to commissioning. It undertakes Wind Asset Management Solution for installed assets, including operations, billing, collection of revenue to project customers. It is also a candidate for the much coveted CERs (Carbon Credit) Sales and Trading.
If Suzlon Ltd (Rs.2, Face Value) is trading around Rs.136.8 (Rs.684, considering Rs.10, Face Value), then why should Indowind Energy Ltd with such massive capacity and lot of other projects in pipeline be trading at Rs.45.15!!?? Hence I am expecting Indowind Energy Ltd to be trading around Rs.175--Rs.200 in the coming days.
Ram Informatics Ltd in which Kajol Devagan holds substantial position hit the buyer freeze. Since most of the business of the company comes from domestic market and hence its share price is directly related to the growth of the Indian economy---herein lies the catch.
VLS Finance Ltd hit the 2nd consecutive buyer freeze. The stock is nowhere near the first target and hence some more upper circuits are expected in this counter.
VLS Finance Ltd: Company also has following wholly owned subsidiaries:
VLS Securities Ltd
VLS Asset Management Ltd
VLS Investment Ltd
Now company is exploring the possibilities in real-estate sector-not as a developer but through a SPV that develops commercial real estate in Delhi. When rental incomes stabilizes, company will exit SPV and make hefty profit. Company is planning investment of approx Rs.50 Cr for this purpose. This is one of the greatest triggers when most of the Real Estate Stocks are on fire.
MAIN TRIGGER: Company had invested, in 1995, Rs.7 Cr in Sunair Hotels to acquire 25% equity stake. Sunair is owns/operates a 5 Star Hotel named "METROPOLITAN" in one the most sought after areas of Delhi. Singapore based company was supposed to bring funds in Sunair but withdrew from the project . Thereafter, things took ugly turn with charges of mismanagement and misappropriation of funds. Now, VLS is engaged in court case against Guptas (other promoters of this hotel). If VLS wins the court case, VLS stake in Sunair will go upto 87%.
Market value of this hotel at present is approx Rs.700-800 Cr. It appears that promoters are faily confident of winning the case as they had, few months ago, bought big chunk of VLS shares from open market . Now, promoters have sent a notice to BSE that they plan to buy Rs.5 lakh shares of VLS from open market. Once VLS gets 87% stake in Sunair (post court judgement in favour of VLS), Share price of VLS can zoom to XXXX levels (This portion to the Paid Groups). If company loses the court case, it will still continue to hold 25% stake in Sunair and still share price can go upto Rs.XXXX levels. A low-risk High-reward opportunity.
There is no stopping of my recommended Sanguine Media Services Ltd as the stock hit the upper with 25 lakh pending sales order. The stock is going to hit some more continuous buyer freeze. A company which has a viable business model and book value above Rs.20, should not be trading at such a dismal price.
Ranklin Solutions Ltd hit the 2nd consecutive buyer freeze. The stock was recommended both to the Paid and Free Groups around Rs.24.
Glory Polyfilms Ltd hit the buyer freeze on the news of completion of the 1st Phase of expansion.
Premium and Quickie Members who have received tomorrow multi-bagger recommendation from me through SMS, are requested to buy the stock at the opening trade or at sharp 9.55 am or else the stock could hit the buyer freeze. The recommended stock has a great story to tell and the company is managed by a technocrat.
Those who have applied for the Paid Services or have deposited the subscription amount but has not received my letter, please give me a day or two to clear the backlog. I am not getting time these days.....

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