SumanSpeaks: The Information Super Highway

VIRTUAL LOOT OF THE SMALL INVESTORS!! Something should be done regarding the Corporate Salaries of top honchos: Let me give here some examples, excluding the Tatas and Ambanis: (i) Navin Jindal, also a member of the Parliament draws Rs.73.4 crore (now makes news for getting cheap coal allocation and selling expensive power), (ii) Kalanithi Maran and his wife (in the news for the telecom scam), Rs.114 crore, (iii) Vijay Mallya another MP earns Rs.41.4 crore for sinking Kingfisher, (iv) Kumar Mangalam Birla pays himself Rs.39.7 crore, (v) Pawan Munjal gets Rs.34.5 crore,  (vi  Sunil Mittal gets Rs.21.3 crore and so on...... This is in addition to the seven star lives, they enjoy which are normally paid by their companies. In addition to these they get capital gains, on the shares of the company plus the dividends along with other shareaholders. THIS IS A VIRTUAL LOOT OF THE SHAREHOLDERS' CAPITAL. Many shareholders of these companies did not make a penny in their holdings ...

FDI IN RETAIL: ADVANTAGE INDIA ........??!! India can benefit from its association with Wal-Mart, if it can replace China (or snatch some space from China) in the supply chain ~~Suman Mukherjee Wal-Mart's power and influence are awesome: by figuring out how to exploit two powerful forces that emerged in the 1990s-- the rapid growth of information technology and the explosion of the global economy -- Wal-Mart has dramatically changed the balance of power in the world of business. Retailers are now more powerful than manufacturers, and they are forcing the decision to move production offshore. Wal-Mart has reversed a hundred-year history that had the retailer dependent on the manufacturer, but now the retailer is the center of the power structure, and the manufacturer becomes the serf, the vassal, the underling who has to do the bidding of the retailer. That's a new thing. Welcoming Giant Retailers like Wal-Mart is necessary to attract the investment needed...

Assocham launches campaign in favour of FDI in retail Industry body Assocham today announced launching of a campaign across the country to spread awareness among public about advantages of permitting foreign players to open multi-brand retail stores. "Our campaign would spread awareness at the grass-root level that FDI is a blessing which would lead to massive job generation, inflow of foreign investments in villages, reduce farm wastage, provide farmers' their due in form of higher prices for their produce and will not have any impact on kirana merchants in any way whatsoever," Assocham President Rajkumar Dhoot said in a statement. Commerce and Industry Minister Anand Sharma launched the Assocham's pan-India campaign, titled 'Retail India: Advantages Farmers & Consumers' here today. Dhoot said the chamber has formed a core group of 10 past-presidents to hold 100 interactive sessions all over the country in cooperation with its 300 regional chambers ...

Walmart to plan India footprint in two months Wal Mart in China It would take American retail major Walmart Stores a month or two to work-out plans for launching multi-brand retail stores in India, President of Walmart-India Raj Jain said while speaking to reporters in Hyderabad. However, he refused to comment on the investment plans or other matters, saying that not much time has passed following the Indian Government’s decision to allow foreign direct investment (FDI) in multi-brand retail and issuance of notification in this respect. The American retail major is now reviewing the implications of the new notification, and it would take it at least a one to two months for developing the retail format, he said. Mr. Jain said while Indian Government’s decision of allowing FDI in multi-brand retail has been received well by big Indian states like Maharashtra and Andhra Pradesh, some other states like Gujarat have also voiced their opposition. However, he said th...

WINNING STROKES: THINK DIFFERENT Bartronics Ltd: Crossed Major Resistances Kouton Retail Ltd hit another buyer freeze in the opening trade, the stock is hitting one circuit after another since the last few trading sessions, after FDI in retail was declared. Meanwhile, Pantaloon Retal Ltd touched Rs.223.50, while V2 Retail Ltd (which has opened a new store in the last quarter) touched Rs.13.50. The June, 2012 quarter results of the company are much decent as compared to June, 2011.  After long time Bartronics Ltd closed above Rs.25, which was acting as a strong resistance. The stocks is expected to do well, as Wall Mart and other Retail giants are known to use barcodes extensively, which is the business domain of Bartronics India Ltd. It is now above both its 50 and 100 DSMAs. Hence, the scrip could see a vertical upward move from here. My old recommendation, ARSS Infrastructure Ltd almost touched the second target of Rs.62, as it closed at Rs.59.95. The stock was recomm...

Cotton yarn exports projected to rise by 11% this year India’s cotton yarn exports are projected to rise 11 per cent to 920 million kg. in the current financial year. The Cotton Yarn Advisory Board (CYAB) has reportedly forecast a 12 per cent rise in cotton yarn production to 3,500 million kg. On the other hand, consumption by powerloom and hosiery units is expected to come down, resulting in a decline in overall domestic demand. Further, the liquidity crunch in the textile sector is said to be worsening the situation. In fact, more than half of the total demand for cotton yarn is accounted for by powerloom and hosiery units. Reports add that demand for garments has been lower than expected due to the global economic slowdown. This is said to be affecting domestic consumption. Data are quoted to show that the country’s apparel shipments inched up by just 1.5 per cent to $1.28 billion in February, the third worst monthly performance in 2011-12, as the crisis in Europe...

FDI in retail to spur IT procurement The foreign companies coming to India will have to depend on IT companies for hardware deployments, surveillance tools, display technologies and location-based services ~~Muntazir Abbas NEW DELHI, INDIA: Despite resistance from various federal states, the Cabinet has paved the path for 51 per cent foreign direct investment (FDI) in the multi-brand retail sector. This has come as a jolt for regional political leaders, but IT industry has a reason to smile. Manmohan SinghWith Prime Minister Manmohan Singh coming out with full throttle on big ticket reforms, the retail chain giants are expected to seize the opportunity and swell the existing $450 billion Indian retail market. From farm to fork, the IT/ITes (not excluding telecom) are poised to play strategic role. The industry pundits feel that supply chain management and warehousing would witness IT hardware deployments, besides customized software, surveillance tools, display technologies and...

Bartronics India Ltd and Wall Mart We have already heard lot about FDI in retail, where the giant retailers would be opening shops in India, driving down the price of products and thereby reducing inflation. In the US, the Wall Mart has defined a new system of business and  has been successful in keeping the inflation under check. In India too we would soon be moving away from Push Production System,  which we have now, where manufacturers of products decide what to produce, how much to produce and the price of the products, to what is called Pull Production System, where retailers determine what the manufacturer will produce, how much to produce and the price of the products. To make this system successful, Barcoding of products is an essential tool. The barcoding is done by Wall Mart to keep a track on the product and its competitors. And who else can benefit more than one of the established names in this space, like Bartronics India Ltd. So, more and ...

Rakesh Jhunjhunwala Slams Opposition to Retail FDI; Bullish on Retail Stocks NEW DELHI: Happy with the government's initiative to start introducing some economic reforms, Rakesh Jhunjhunwala slammed political parties for opposing FDI in multi-brand retail. Jhunjhunwala said that all the 'noise' being created about retail FDI is 'humbug'. The economy needs to be made competitive and Indian retailers are already importing goods, he added. With tremendous political opposition, Jhunjhunwala is not very hopeful of major reforms. "The retail sector will be one of the fastest growing sectors in the economy, Jhunjhunwala told ET Now. He is bullish on retail stocks owing to their strong growth potential. He also likes agriculture related sectors. The investment guru also sees opportunities in some of the 'badly beaten down' infrastructure and real estate stocks. Jhunjhunwala feels that FDI in aviation by foreign carriers will not make a big difference to t...

 Foreign airlines on 'wait-and-watch' mode on aviation FDI Major foreign airlines seem to have adopted a wait-and-watch approach over the government's decision to allow them to pick up 49% stake in Indian carriers, even though the government says the mood in the industry was upbeat. Air India has been kept out of the ambit of this major policy announcement, but there have been reports about a couple of Indian carriers holding preliminary discussions with foreign airlines to attract investment. A day after notifying the FDI rules, Civil Aviation Minister Ajit Singh said the aviation sector was passing through a difficult phase due to the economic slowdown, but "the mood is upbeat after the government has allowed 49% FDI in domestic airlines". However, barring Abu Dhabi-based Etihad Airways, many of the major foreign airlines have said they currently do not have plans to invest in Indian carriers. Aviation think-tank Centre for Asia Pacific Aviation (CAPA) also ...

Erstwhile Vishal Retail Ltd in new avatar, V2 Retail Ltd

WINNING STROKES: THINK DIFFERENT SEL Manufacturing Company Ltd as expected hit the upper circuits, before closing at Rs.5.71. There are three prominent stories in the company: (i) Aviation Story (ii) Hotel Story and (iii) The Retail Story, apart from the normal story, where the company sells its products in the textile sector.  The company operates in  five segments, viz. Spinning, Knitting, Dyeing. Garments, and Terry Towels. The Company is vertically integrated multi-product textile company, manufacturing and exporting various kinds of Knitted Garments, Terry Towels, Knitted & Processed Fabric and various kinds of Yarn with production facilities located at Ludhiana and Nawansheher in Punjab and Baddi in Himachal Pradesh and upcoming unit in the state of Madhya Pradesh.The company is expanding its existing capacities in yarn manufacturing and terry towels. Further, it has also set up captive Power Plant with a capacity of 22MW. The terry towel manufacturing capacit...

Market Mantra Morning Buy Call on SEL Manufacturing Company Ltd based on the Aviation and Hotel Story is doing excellently well. The scrip was recommended at around Rs.5.4-5.5 today to both the Paid and Free groups. The scrip could hit the buyer freeze today, as the news is too good. Sometime back, SEL Manufacturing Company Ltd announced that it has acquired 99.88% stake in Omega Hotels Ltd and 51.09% stake in SEL Aviation Pvt. Ltd., thereby making both of the aforesaid Companies the Subsidiaries of M/s. SEL Manufacturing Company Ltd. Omega Hotels Ltd. is implementing a Hotel Project at Agra in the State of Uttar Pradesh and SEL Aviation Pvt. Ltd. is in the business of Aviation Services and holds a Non Scheduled Operator's Permit under the Director General of Civil Aviation, Rules and Regulations. So, when the INR is appreciating against the USD, it is natural that the hotel stocks or hospitality sector should do well. Now there are lot of talks of FDI in aviation, this is expe...

WINNING STROKES: THINK DIFFERENT Suzlon Energy Ltd touched Rs.18.88 before cooling down a bit and closing at Rs.18.45 on the BSE. If you remember it was recommended at Rs.16.95, a couple of days back. The power sector reforms could take the stock much higher, if the immediate resistances are cleared, with good volumes. However, today, I learnt it was also recommended by one of the Chartist on a Business Channel. Also, yesterday, I saw a report in a pink daily that: EU companies are looking forward to have tie-ups with Indian companies in the clean energy segment at the two-day conference on renewable energy in Mumbai on September 25-26 . CLICK HERE .There are slew of good news on the company, which gives it a strong platform to surge ahead in the next few trading sessions.  Koutons Retail Ltd hit the buyer freeze in the opening trade. However, Pantaloon Retail Ltd and V2 Retail Ltd also did not do too badly--both closing with gains.  Anant Raj Industries Ltd today to...

Suzlon Energy Ltd CMP: Rs.17.25 Book Value: Rs.30.93 Market Cap: Rs.3065.96 Cr Suzlon Energy Limited (SEL) is an India-based wind power company. The Company is engaged in the business of design, development, manufacturing and supply of wind turbine generators (WTGs) of a range of capacities and its components. Its operations relate sale of WTGs and allied activities, including sale/sub-lease of land, infrastructure development income; sale of gear boxes, and sale of foundry and forging components. Others primarily include power generation operations. Suzlon Energy Ltd is the  world's fifth-largest wind turbine maker. Suzlon Energy Ltd is not only looking bullish on the charts but also fundamentally, and it seems the stock has already formed a temporary bottom. There are a slew of positive news which could catapult the scrip of Suzon Energy Ltd to move above Rs.30-31 in the coming days; if the government continues with its reform process. Let us observe some of the fundam...

Power sector shares sizzle on hopes of reforms   Suzlon Energy Ltd was recommended today at Rs.16.90, for a target of Rs.22. But the stock has the potential to become more than double from the current price. Shares of 17 firms operating in the power sector rose by 0.87% to 6% at 12:09 IST on BSE on reports the cabinet may meet next week to take more reform steps such as improving the finances of power utilities. Reliance Infrastructure (up 6%), Lanco Infratech (up 5.45%), JSW Energy (up 5.03%), GMR Infrastructure (up 4.66%), Bhel (up 4.29%), Reliance Power (up 3.96%), Adani Power (up 3.7%), Tata Power (up 3.29%), Crompton Greaves (up 3.26%), Torrent Power (up 2.55%), NHPC (up 2.47%), Suzlon Energy (up 2.36%), ABB (up 2.14%), Power Grid Corporation of India (up 2.14%), Siemens (up 1.85%), NTPC (up 1.74%) and Thermax (up 0.87%), edged higher. The BSE Power index was up 2.79% at 1,960.28. It outperformed the Sensex, which was up 1.80% at 18,680.32. The BSE Power index ha...

Appreciation Mail I get lot of appreciation mails/messages, most of the days of a week, but I try to put only some select few in this blog. This one is from a gentleman, who was suggested to buy UCO Bank Ltd at Rs.63-64 last month; as a part of my Free Service. Today UCO Bank touched Rs.77.85 and naturally this gentleman got elated. Let us now see what he write in two sentences. Dear Sir, Really you are great. Now pls give me good offer for subsciption. Regards, Rajendra Khoja E-mail: raj_khoja27@XXXX.in (a part of the mail address is hidden for privacy).  My reply :   Thank you Rajendra Khoja, for your great words of appreciation towards me and also, for visiting my blog. I hope  you could make some money from UCO Bank scrip. Congratulations to you in this occassion. One point which I would like to highlight here is that this gentleman came back, after he got some results from my suggestions, unlike most who take help but never show their faces...

Market Mantra The Morning Call on Suzlon Ltd at Rs.16.95 saw it rise to Rs.17.10, in the intra-day trade. Suzlon Ltd could touch Rs.18--19.5 today, as the news is too good on all the fronts. I mean both fundamentally and Chartically as INR is appreciating against the USD (reducing the value of FCCBs), Restructuring of the SEBs (DISCOMs), Getting New Orders, seeking 4 months window for FCCB clearance, cut in withholding tax and so on...I shall not be surprised if this time Suzlon Ltd touches Rs.29-30, within the next 30 days...........Buy as much as you can and hold.  V2 Retail Ltd hit the buyer freeze in the opening trade. I am expecting the share to move to Rs.30-31, in the short term, as the company could now be looking for overseas partners for strategic tie ups. Pantaloon Retail Ltd is also going great, while Koutons Retail Ltd hit another buyer freeze in the opening trade.   Nifty Futures Ltd reached my target of 5630, in the opening trade. Those who have enter...

Govt formally opens supermarket sector to foreign chains Guwahati (Capital of Assam) might be having the 1st Wall Mart/ Carrefour Store in the entire North East or may be in entire Eastern India, as both West Bengal and Bihar/Jharkand opposed. I am calling upon my friends in Assam (North East) to give this superb news.....!! NEW DELHI: Showing resolve for reforms, the government on Thursday notified its decision to allow global retail giants like Wal-Mart to open stores in India, on a day several political parties called Bharat bandh to protest against the policy. With this notification, multinational retailers can invest up to 51 per cent to open stores in 10 states and UTs which, till date, have agreed to implement the decision. "51 per cent FDI in multi-brand retailing, in all products, will be permitted ... " a notification by the department of industrial policy and promotion (DIPP) said. It said the decision will take immediate effect. The DIPP also operationalis...

Definition of Anti--people policies, according to Trinomool Congress BJP, Left, Samajbadi Party, etc: (i) Side with the traders' lobby so that they can be immune to any increase in the price of essential communities. Do, not address the supply sides issues by bringing in large corporations from overseas, who has the capacity to tame down the prices and help the common man.   (ii) Take all measures to increase inflation, by allowing the "Local Kirana" traders to have monopoly over things. Allow them to hoard things, beyond the levels and then results in Food inflation. Allow them to sell unbranded spurious products and have no accountability. Public life is very cheap----if someone dies due to consumpton of substandard oil or develops dropsy, speak of giving few thousand rupees as compensation. Stop all reforms so that India gets downgraded by international rating agencies. (iii) Give the subsidized LPG Cylinders to President, Vice-President, Big I...

Market Mantra Koutons Retail Ltd hit the buyer freeze in the mid afternoon trade, after the government stayed firm on FDI in retail. Now is the turn for other stocks in this space, like V2 Retail Ltd (CMP: Rs.12.40), Pantaloon Retail Ltd (CMP: Rs.175.65), Shoppers Stop Ltd (CMP: Rs.379.65), CESC Ltd (Rs.317.10) etc to move higher up. Buy Nifty Futures at 5170, for a target of 5630, keeping a SL of 5500. Since, it is certain that the government would not fall and the it would continue with its reform agenda and hence we can expect the market to move up in the coming days; especially in the scenario, when the Irritating, Trinomool Congress (of Ms.Mamata Banerjee) is out of the government.  Glodyne Tech Ltd which was recommended a couple of days back around Rs.83--84, today touched Rs.91.90. The stock could be heading much higher in the coming days. I have spoken with the sources, before giving the buy call.  Those who have taken position in Vijay Shanthi Builders Ltd, wi...

Reliance Communications Ltd: Ready to Soar... Please Click on the Chart to Expand Reliance Communications Ltd is India's second-largest telecom player in terms of subscribers. Recently, Mr. Anil Ambani said, "Reliance Communications is committed to bring down its high debt. Its debt of Rs. 35,000 crore is only 10 per cent of the cumulative Rs. 3.5 lakh crore debt of the entire telecom sector".  Moreover, the company is looking to improve productivity as part of a four-step strategy to pare debt. Reliance Communications will monetize assets to increase revenue growth and improve profitability, and become the lowest cost-service provider. It is looking to unlock value in Reliance Infratel, its wireless tower subsidiary.  Reliance Communications Ltd sold a 5 per cent stake in the unit to international investors in July 2007. It is continuing to evaluate strategic options, including a sale or a listing, for the subsidiary. The company still plans to list its over...

Banks may now cut lending, deposit rates The Paid Service Blog:  http://sumanspeakspremiumservices.blogspot.com, has been updated The loan rate for consumer segments such as home and automobile loan rates might see a further fall, following a reduction in the cash reserve ratio (CRR). Since most banks are offering small value home loans, that is up to Rs 30 lakh, at the base rate, the interest rate for home loans of more than Rs 30 lakh might see a fall. In addition, according to bankers, small and medium enterprises (SMEs) are also likely to benefit, as they might offer a reduced rate. But, since RBI’s CRR cut of 25 bps will provide additional liquidity support, banks might start cutting the deposit rates, too. Bankers said a fall in the deposit rate will lead to a decline in the cost of funds, which will eventually bring down the base rate, the benchmark lending rate to which all the loans are linked. “With the additional liquidity support due to reduction in CRR, deposit ra...