WINNING STROKES: THINK DIFFERENT

The market tanked on concerns regarding Direct Tax Code (DTC) bill which aims to overhaul the direct tax regime in the country by rationalizing tax brackets and cutting down on plethora of exemptions. In the final versions of the code, government has proposed further widening of the three-tier slab structure for personal income tax, with the lowest rate of 10% now being implemented for Rs 2-5 lakh income, 20% for Rs 5-10 lakh and 30% for higher income. The current slabs are Rs 1.6-5 lakh, Rs 5-8 lakh and above Rs 8 lakh respectively. The change appears modest only because a major overhaul was done by the finance ministry in the Budget for this fiscal itself in the run up to the DTC. However, the sore point of the bill is a proposed a 30% corporate tax rate (for domestic companies) without any further surcharge or cess. While the move falls short of the proposals in the DTC draft released earlier which advocated bringing down the rate to 25%, there would still be nearly a 4 percentage point benefit for the corporate sector. Another point is due to some apprehension on the proposed increase in minimum alternate tax (MAT) from current 18% to 20%. The proposal is likely to impact most of the software and infrastructure companies as they come under MAT bracket. The PAID MEMBERS were advised of profit booking at higher levels since last few days. The things took an ugly turn yesterday, as soon as the Europe opened weak. SO HOW WILL THE MARKETS BEHAVE ON MONDAY.....?? MOREOVER, I SHALL BE RECOMMENDING A SMALL CAP SCRIP TO THE PAID GROUPS. WITH FOREIGN PROMOTERS AND WHOSE NET PROFIT HAS SOARED 5 (five) TIMES IN THE JUNE, 2010, QUARTER.
My recommended Northgate Technologies Ltd touched Rs.21.30 yesterday on two positive news: (i) resumption of securities trading activities in its fully owned subsidiary, VAR Quant Tech Securities (Pvt) Ltd,  in June, 2010 quarter and (ii) its social networking web-site, www.bharatstudent.com was reported as the top 3 (three) social networking site in India, by  Comscore Inc. with 44 lakh visitors (can you imagine). When I was saying that a couple of months that its social networking site is doing well along with its other portals, very few Investors/traders (people) believed me---now the truth is in front of your eyes. Actually there is a group in the stock market, who never makes money, but is always good in making stories out of nothing; which is unfortunate. I am being told that, many marketmen are now recommending Northgate Technologies Ltd for a target of Rs.32-37, in the next couple of months time frame. I had repeately asked all to average the scrip when it fell to Rs.15, but then some people think they know more than me, especially in my recommended counters--little learning is a dangerous thing.
Lot of accumulation was seen in Sanguine Media Services Ltd, after I asked all to accumulate between 2-5 lakh shares of the company to become sure shot crorepatis (Billionaires) within 2-3 years (maximum). I think the accumulation is in this direction. The company has tied up with BSE Listed Cinevista Communications Ltd for content production. The Q2FY11, results of the company is expected to be much better, on Q-o-Q basis.
Vision Corporation Ltd holds 3 (three) TV Channel licenses which has still huge Value and on the other hand Kohinoor Broadcasting Corporation Ltd has the license for 2 (two)  TV Channels. Another good news which I received is: Akshaye Khanna, the son of Vinod Khanna (the Cine Star) who is holding stake in the company is also one of the directors of Vision Corporation Ltd. The technical team is working on the satellite issue and soon the Vision Music will be available throughout India. It has covered the Mumbai (BOMBAY) circle so far. The CMD of the company Mr.Mishra, has taken now special efforts to revive its bottomline and topline. I think most of you have averaged Kohinoor Broadcasting and Vision Corporation Ltd in the recent fall. Those who have not done will bang their heads against the wall after 6 months time frame--just mark my words. Stop looking at the notorious and highly manipulated MMB and form opinions on scrips; do what I tell you to do to make money in the markets--don't use your brain (in works) where it is not required!! Simply follow me and make money.....simple...!!
I think you remember I was talking of domestic solar energy projects of around Rs.1000 Cr to be announced by the government and XL Energy's benefit in those competitive bidding process. As you know XL Energy Ltd is a major player in solar energy projects, among the listed (BSE/NSE) listed companies in the Indian domain. It get a major part of its revenue from Solar Energy projects and the rest is obtained from government orders from BSNL. The company also has an ethanol plant. The good news is that the government has started announcing projects for competitive bidding. And what a good news for XL Energy, which is expected to get at least 20% of such orders, which means around Rs.100 Cr. Today I read in the media reports that the ministry of new and renewable energy has so far approved grid- linked solar power projects aggregating to 100 MW, and has invited initial bids for another 700 MW. If the company is able to get at least Rs.100 Cr of these project, then the order book would swing to Rs.254 Cr which will be too good for the company. It has already restructured its debt in March, 2010 and hence now we can only expect good results for the company---June, 2010 quarter results were an eye-opener. Since it has small equity of only Rs.20.77 Cr and hence the EPS would be large going forward. So keep accumulating the scrip on all declines.
Note: All pending renewal to the Subscription for the Paid Service, should be complete by 31st, August, 2010, when the special discount scheme closes. After this date the names of those who have not renewed their subscription will be struck off from the list of Paid Groups and their names will be deleted from the Yahoo Messenger. This I have decided after speaking with my team.