Queries:

Q. On your blog , I read this but could not understand much of it:

"In continuation of the ongoing restructuring exercise, the Board of Directors of PSTL held a Board Meeting on 28th of October 2009 and has decided the ratio of free shares to PSTL shareholders in Production Company Viz., PSPIL (Pyramid Saimira Production International Ltd). As per the decision, subject to all applicable formalities and regulations, the shareholders of PSTL will get one share of the Production Company – PSPIL, additionally, free of cost, for every three shares held by them in PSTL. This will be a reward to the shareholders of PSTL. In this scheme, PSTL shareholders will get 99,20,488 shares free of cost representing 18% of post issue capital of PSPIL. The Board also reserved 29,94,462 shares to FCCB Holders and 8,35,050 shares to Secured Creditors of PSTL. Approximately 40,000 shareholders of PSTL will be benefited by this proposal." Are all the PSTL shareholders including retail investors going to get PSPIL shares. Also, is this (PSPIL) a listed company --Shiv Singh (e-mail: shivpratapsingh@gmail.com).

Ans: Ya, you are right. As per the decision, subject to all applicable formalities and regulations, the shareholders of PSTL will get one share of the Production Company – PSPIL, additionally, free of cost, for every three shares held by them in PSTL.

Q. I have seen ur Vision Corporation Ltd (BSE Code:531668) call on yur blog and I have bought Vision Corporation Ltd @ Rs.7.50. What is the target?? And it is having EPS of Rs.2 in September, 2009, quarter...Do you think it is a fundamentally sound company and it can give very very good returns in long term i.e...2-3 years....and wht is your target on this? And what is your Paid Service Charges for Cash Section?....Waiting for reply--Risikesh Sodhani (Email: risikesh_smile@yahoo.co.in).

Ans: Its web-site (http://www.visioncorpltd.com/) says: Vision Corporation Ltd (VCL) was born out of the growing need for meaningful and imaginative entertainment. The company has successfully handled various productions for the Film & TV world and owns the rights of a large number of Films and TV serials. Besides Television and Films, today Vision Corporation has diversified into Marketing, Information and Internet.

To begin with, in the year 1999, Vision Corporation had marked its presence as an eminent campaigner of talent by producing a musical album "Nayee Disha". The voices of internationally famed singers like Jagjit Singh, Alka Yagnik, and Shankar Mahadevan featured in this prestigious album and none other than Ex-Prime Minister of India Shri Atal Behari Vajpayee penned the lyrics and received the Videocon Screen BEST LYRICS award for the album and Mr A.K.Mishra CEO Vision for Music-Video Direction. Vision Corporation Limited is world’s emerging Media & Entertainment Company. VCL is an independent, publicly owned company situated primarily in the western suburbs of Mumbai, with interests in development,production and marketing of entertainment, publishing, interactive media and Television. VCL owns and operates a valuable portfolio of news and entertainment network, a premier production house and significant television production operations. The company’s association with the developed nations of the world has given it a cutting edge advantage over the other media companies around the world. Currently the company is in the process of forging new ties with the third world countries and developed nations by setting up an International News Exchange Bureau and a Cultural Hub. The company also has offices in USA, Mauritius, and United Kingdom. Moreover, its web-site claims: Vision Corporation Ltd had tied up for 6 (six) films/movies with German Film Agency on 50%- 50% investment approximately; with a total budget of Rs.3 Cr each. The web-site also says, VCL, had tied up for 60 films (12 films per year) with ITN Telemedia Pvt Ltd with a budget of Rs.3 crore each for 5 years.

Its filings in Bombay Stock Exchange, website says: Vision through its diversified business in media and all set to be a fully integrated entertainment company is planning hard to grow the profits through its major 5 verticalsi.e.

- Film Production - No of movies produced and sold.

- Film Distribution - Already have 200 movies rights which are being distributed.

- Music Company- Owns above 1000 albums related to Bollywood, religious, ghazals etc.

- Publication House - FILMS TODAY & GLOSS N GLAMOUR already in market. Eye opener & sports Vision will, be launched shortly.

- Satellite channels - Received, license FOR VISION TV CHANNELS I.E. MUSIC, EDUCATION & ENTERTAINMENT.

Needless to say, after yesterday's recommendation the scrip hit the buyer freeze,  before cooling down a bit. Yes, you are right the September, 2009 quarter EPS is Rs.2, while the BV of the stock is whopping Rs.11.21. The OPM is 51.32%  while the NPM is 49.95%. The P/E of the scrip is only 2.25 while the Industry P/E is 35.11. The overall EPS of the Vision Corporation Ltd is Rs.3.51. The market cap of the company is only Rs.15.76 Cr.

All these gives a natural price of around Rs.22-25, after giving some discounts, considering the speculation involved and taking the current fundamentals as the base. Now, there is a catch: Generally the boadcasting companies command high P/Es. Hence if we go by a little speculation about the LAUCH OF CHANNELS, then I would not be surprised if the scrip touches Rs.90--91 in the next 2-3 year time frame.
Q. Hello Suman da, wishing you a very Happy & prosperous new year. I would like to thank you for the recommendation on Ennore coke few months back, it has now almost doubled from those levels. Do you recommend stay put in this stock or book profit? Also do you have any updates on your earlier recommendation: ASM technologies?--Nitin Barhanpurkar, UK.
Ans. A very Happy and Prosperous New Year to you as well and thanks for the complements. Yes, Ennore Coke Ltd gave all of us stupendous returns over a period. This is a fundamentally strong company working on various verticals. According to available charts from October, 2008 to January, 2010, we find that it has outperformed the Sensex. Also there was considerable improvement in its Net Profit. However, the stock is trading quite above the 200 DMA and is struck in a range. Morever, what I feel is that  most of its present fundamentals are built on the current price. Hence I feel that it is better to book at least some profits (or at least 80%) and hold the rest with a price target of Rs.70-71 (full exit). You can invest the profits from the same in Energy Development Company Ltd at around Rs.70 (earlier recommended at Rs.55--Rs.56) for some good appreciation in the days to come.  Energy Development Ltd is doing lot of projects in India and is highly undervalued as compared to many of its peer group companies. Its OPM and NPM for September, 2009 has improved considerably as compared to the values in FY09. I am expecting Energy Development Company Ltd, to post better than expected results in Q3FY10.
Yesterday Energy Development Company Ltd informed BSE that the Company has received sub-contract for Turnkey implementation of Rajiv Gandhi Gram Vidyut Yojna scheme in Manipur towards supply and erection of 33/11 KV and LT systems, distribution, sub-station etc. for Rs. 56.70 crores to be completed in 18 months.
Regarding ASM Technologies Ltd, I would ask you to hold for a target of Rs.39--40 (exit), with a SL of Rs.32.5.