WINNING STROKES: THINK DIFFERENT:
European Banks pass stress tests and boost optimism over the health of global economy. Now we can see a rally in the global boures in the days to come. Telecom and Steel stocks are likely to steal the limelight. The next target for Nifty should be 7000 and hence avoid deep shorting of the markets or you might get trapped.
Prajay Engineers Syndicate Ltd is coming up with results on 30th July, 2010. The stock is buzzing on this news and could touch Rs.37-38 before the results, according to some veteran marketmen. This stock was ealier reocmmended by ICICI Direct.com. I have also recommended the scrip a number of time and asked all to accumulate on dips. The stock fell to around Rs.27-28 some days back, when many have accumulated.
Galada Telecom and Power Ltd hit another buyer freeze in the opening trade. Please book some profits in the counter as the stock is looking stressed on the daily charts. Profits should always be booked in these kinds of speculative counters, because once you get stuck up, then you might not be able to enter in the next 6 months.
XL Telecom and Energy Ltd is coming up with results on 1st or 2nd week of August, 2010. The company has been alotted a land of 50 acres in Hyderabad for its mega-project. Now if we go for conservative estimate of Rs.2 Cr per acre then the valuation of land alone comes to around Rs.100 Cr. It has an order book around Rs.120 Cr plus the business coming from bidding for EPC contracts next months. The total value of contracts will be around Rs.500 Cr. So if 20% goes into its kitty then it becomes around Rs.100 Cr. Hence the total order book at the end of this year could be Rs.250--300 Cr against a market cap of around Rs.68.66 Cr.
Therefore, in any case the stock cannot trade at such a dismal price of Rs.32-33. Now there is another feather in the cap. There was news that the management of the company wants to refer the company under the provisions of Sick Industrial (Special Provisions) Act, 1985--this is positive because in such cases the company would get tax waivers and other benefits (which are given if a company declares itself to be sick).
The recent example of Galada Power and Telecom Ltd which is hitting continuous circuits is the best example of this....As you must be knowing that I recommended the company when it declared itself to be sick to get interest waivers from banks and to get to other facilities. Those who invested at that time, must be happy now.
But fools who do not have any idea how the market operaters will take it as a negative step, which is wrong....
XL Telecom and energy Ltd has restructured its debt in last March, 2010 and its order book is good........Huh!!
Galada Telecom and Power Ltd hit another buyer freeze in the opening trade. Please book some profits in the counter as the stock is looking stressed on the daily charts. Profits should always be booked in these kinds of speculative counters, because once you get stuck up, then you might not be able to enter in the next 6 months.
XL Telecom and Energy Ltd is coming up with results on 1st or 2nd week of August, 2010. The company has been alotted a land of 50 acres in Hyderabad for its mega-project. Now if we go for conservative estimate of Rs.2 Cr per acre then the valuation of land alone comes to around Rs.100 Cr. It has an order book around Rs.120 Cr plus the business coming from bidding for EPC contracts next months. The total value of contracts will be around Rs.500 Cr. So if 20% goes into its kitty then it becomes around Rs.100 Cr. Hence the total order book at the end of this year could be Rs.250--300 Cr against a market cap of around Rs.68.66 Cr.
Therefore, in any case the stock cannot trade at such a dismal price of Rs.32-33. Now there is another feather in the cap. There was news that the management of the company wants to refer the company under the provisions of Sick Industrial (Special Provisions) Act, 1985--this is positive because in such cases the company would get tax waivers and other benefits (which are given if a company declares itself to be sick).
The recent example of Galada Power and Telecom Ltd which is hitting continuous circuits is the best example of this....As you must be knowing that I recommended the company when it declared itself to be sick to get interest waivers from banks and to get to other facilities. Those who invested at that time, must be happy now.
But fools who do not have any idea how the market operaters will take it as a negative step, which is wrong....
XL Telecom and energy Ltd has restructured its debt in last March, 2010 and its order book is good........Huh!!
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