SumanSpeaks: The Information Super Highway

Competition panel approves Diageo-United Spirits deal Deal may give Dr. Vijay Mallya a chance to revive parent UB Group’s grounded KFA Ltd Mumbai: The Competition Commission of India (CCI) on Thursday cleared the proposal of Diageo Plc. to acquire a majority stake in Vijay Mallya’s United Spirits Ltd (USL), strengthening its presence in the country. The deal may also give Mallya a chance to revive the parent UB Group’s grounded Kingfisher Airlines Ltd. On 9 November, Diageo, the world’s largest distiller by revenue, agreed to buy a majority stake in USL for a total consideration of Rs.11,166.5 crore, offering the Indian liquor tycoon a way out of mounting debt woes. London-based Diageo, the maker of Johnnie Walker Scotch whisky and Smirnoff vodka, aims to acquire a 53.4% stake in USL, the producer of Royal Challenge and McDowell’s No. 1 whiskies and Romanov vodka, in a complex deal. The transaction entails the direct purchase of a 27.4% stake in USL, including 19.3% promoters’ ...

Railway Budget 2013 – Key Highlights Changes in Fares : No hike in passenger fares Propose hike in reservation fee, tatkal charge by Rs 15 - 25 in Sleeper class & Rs 100 for executive class Supplementary fee for tatkal, cancellations, reservations To increase supplementary charge for super fast trains Freights Outlook : Average hike in freight below 5% on fuel price hike Fuel-linked adjustment to raise freight by avg 5% No increase in parcel, luggage transport rates Freight charges on urea up by 5.8% Freight charges on diesel, LPG up by 5.8% Freight charges on iron and steel, iron ore, cement up 5.8% Freight charges on grains to increase by 5.8% Freight charges on coal to rise by 5.8% Scaled down FY13 freight target due to economy slowdown 1,500 km to be awarded for dedicated freight corridor FY14 Propose fuel adjusted freight rate increase from Apr 1 To have dynamic fuel adjustment charges for freight tariff Financial Operations : FY14 planned inves...

Market Mantra Southern Online Bio Tech Ltd hits the 2nd consecutive UPPER CIRCUITS in the opening trading. The scrip was repeatedly asked to be accumulated during the last couple of months. Congratulations to those who have been picking up or have kept holding their stake.  Buy Tata Steel  Ltd at Rs.350--351, T--Rs.370, SL-Rs.330. The point is that  it has bought 512,000 shares of TATA POWER from the open market on Monday for 49.9 mln rupees.  Glodyne Tech Ltd has been hitting continuous Upper Freezes since the last few days--locked at the UC at Rs.18.75 . The scrip was asked to be accumulated on all declines, like I have been telling now to corner the scrips of Tulip Tele Ltd (CMP: Rs.10.35), KFA L td and Geodesic Ltd (Rs.11.65). The point is that wh en there is a distress selling of the shares of reputed companies, due to some external factors, then you sho uld grab them. Yesterday, a P ositional B uy call was initiated in Nifty _Futures at 5766--5770...

SBI may issue loan recall notice to Kingfisher soon [ This is another of those superfluous news which does not make any sense in the current context when the company is making restructuring efforts. This kind of effort comes into play when the other side is not willing to do any restructuring or not doing anything, to run the business again. 2ndly, calling of loans does not mean recovery of loans, because there would be long drawn legal process whereby, there could be possibilities of  KFA Ltd winning the case too and create problems for the Banks. The consortium of Banks know the legal hurdles and hence this will be the last option they would probably try against a business tycoon like Dr.Vijay Mallya. Therefore, Hence, this is another of those junk news, which needs to be ignored or thrown in to dust bins].  State Bank of India ( SBI ), the largest lender to Kingfisher 's said that a loan recall notice is likely to be issued to Kingfisher Airlines in a month t...

Mallya Can’t Fly [The headline of this article has no connect with the main story. The headline should have been "Mallya Will Be Able To Make KFA Ltd Fly"? This is called "Yellow Journalism" and these types of media channels and dailies abound in India; who earns by creating unnecessary sensations. Many a times these acts as "FRONT RUNNERS or DALAL's of some operators/promoters. However, the article admits, my yesterday's take that, the recent government decision has nothing much to do, with the ongoing restructuring plans of Kingfisher Airlines Ltd. There is unnecessary panic selling by the vested groups. Therefore, those who have deep pockets should accumulate the shares of KFA Ltd..........] Is this the end of the road for Mr Vijay Mallya’s Kingfisher Airlines? The government’s decision to withdraw all international flying rights and domestic slots from the airline may or may not be worse than the fact that it is struggling to raise funds to ...

Mindless Panic : Kingfisher Airlines Ltd ~~Suman Mukh opadhyay Kingfisher Airlines has been grounded since 1 October 2012, first because of staff protests against unpaid salaries and thereafter because of regulatory issues. Its flying license expired on 31 December 2012, although that can be revived through a re-application. Recently, there were were some media reports that the Minister of Civil Aviation, Mr. Ajit Singh has decided to withdraw all International Bilateral Traffic Rights allocated to Kingfisher Airlines with immediate effect. Under the International Bilateral Traffic Rights, Kingfisher Airlines was allowed to fly the sky of 8 countries namely Bangladesh (14 services per week), Hong Kong (14 services per week), Nepal (7 services per week), Singapore (7 services per week), SriLanka (14 services per week plus 21 services per week from unlimited 18 destinations), Thailand (21 services per week), UAE Dubai (21 services per week) and UK (7 services per week each ...

LAST PRESS RESEASE OF KINGFISHER AIRLINE S LTD 31 December, 2012 Kingfisher Airlines applied for renewal of its License as a scheduled carrier. Subsequently, Kingfisher Airlines submitted a restart and rehabilitation Plan to the DGCA and also attended meetings to respond to queries. The plan itself clearly states that the funding required would be provided by The UB Group.The DGCA has asked for certain no objection letters which are in the process of being procured. Further, a few additional questions have been raised which will be answered to the regulators satisfaction. Despite the impending expiry of its License tonight, there is no cause for concern as the regulations permit License renewal within two years of expiry. Kingfisher Airlines is confident of securing approval from the DGCA on the restart plan, License approval and reinstatement of its AOP.

MARKET MANTRA : ONLY BUY Glodyne Tech Ltd hit 5th consecutive buyer freeze in the opening trade. I have mentioned earlier why the stock is hitting circuits and what are its future prospects. Locked at the UC at Rs.17.05.  The Free Sell Call on PVR Ltd gave enough returns to the investors intra-day, as the stock touched Rs.229.30 intra-day. The Sell Call was initiated at Rs.266. Those who made money, congratulations to them. Keep visiting this blog and stay ahead of others.  There is absolutely no reason to sell the shares of Kingfisher Airlines Ltd as the company is making all preparations to start the airlines from the end of the next month. Hence, any dip should be used to accumulate the counter. At the current moment it is locked in the LC at Rs.11.30. Good news is expected of the United Spirits--Diageo Ltd dea l and there is no reason to panic in U B H oldi ngs Ltd (CMP: Rs.57.45) ---the scrip is now over reacting or some operat ors might be playing it on the d...

Expect a U-shaped recovery : Pawan Munjal The manufacturing sector is either stagnating or contracting, and the services sector has been hit by slowdown ~~PAWAN MUNJAL Let me state at the outset that I have been a firm believer in the India story. And that is precisely the reason why I am not quite happy at the state of our economy today. What also concerns me is the lack of any meaningful debate within the political fraternity on the ways and means to revive the economy. In 2012-13, good news has invariably been mixed with bad news. Even as the months of complacency and inaction on the policy front seemed to have ended in September 2012 with a show of welcome political resolve, it was accompanied by poor economic performance. Now, if one has to look at the 2.5 percentage points gross domestic product (GDP) slump over the past two years, I would flag the following four root causes—high inflation and interest rates, inaction on the policy front, a lack of fresh investments, and po...

Sell : PVR Ltd

The Greece of Asia: Japan's Growing Sovereign Debt Time Bomb ~~By Anne Seith The eyes of the financial world are on Greece and other heavily indebted euro-zone countries. But Japan is in even worse shape. The country's debt load is immense and growing, to the point that a quarter of its budget goes to servicing it. The government in Tokyo has done little to change things. Graphic: Japan's Climbing Debt Load Today's Tokyo has become a permanent mecca of consumption, its boroughs seemingly divided according to target markets. The city's Sugamo district, for example, is dominated by the elderly. Escalators in the subway station there go extra slow, while the stores along the Jizo Dori shopping street offer items such as canes, anti-aging cream and tea for sore joints. The Hurajuku neighborhood, on the other hand, is teeming with fashionistas made up to look like Manga characters. This world of glitter, however, is but an illusion. For years, the world's t...

Debt-laden software company Spanco defaults on salaries [India Inc is virtually on the verge of collapse, but a group of theoretical economists and the RBI is celebrating its death; as if at last they have conquered Mount Everest. This kind of clerical job, which the RBI is doing can be done by my "Maid Servant", if given 6 months of training. Instead of acting fast, to bring the economy back to track, the RBI is waiting for that " Sacred I nflation Numbers " to be flushed out by the government agencies, so that dumb brains can find a suitable plank to justify their acts. The time has come to leave India. Young and Talented Indians, should leave this country for better prospects abroad. CLICK HERE . This country has become diseased, starting from politicians to bureaucrats] BANGALORE: Project delays and an inability to raise money from banks have pushed Mumbai-based software and BPO company Spanco into a situation where it has not paid a majority of its 15,0...

Market Mantra Glodyne Tech Ltd, hit the 2nd consecutive buyer freeze, and I have explained recently, why this stock should be accumula ted.  Geodesic Ltd has come out of the Freeze and those who could not average the scrip earlier should do it at the earliest. The stock could start hitting buyer freeze anytime from now.  KFA Ltd hit ano ther buyer freeze, both due to bullishness in the company and also due to the o verall buoyancy in the aviation sector. It should now continuo usly hit the buyer freeze at least till Rs.14 . Today, after lot of tr ies since the last few days, I could increase my holding in the company. MANY INVESTORS FORGOT THIS REGARDING TULIP TELECOM LTD : The company's CMD announced that, he would be buying about 2.5 crore shares through convertible warrants for himself at about Rs.80 per share, bringing in almost Rs.200 crore into the company. And in early 2012, Tulip Telecom Ltd invested about Rs.900 crore in building the world’s fourth-largest d...

Market Mantra Much Awaited Rally In Small And Mid Cap Space Has Started. However, the government should come out with schem es to a t tract the retail investors. Southern Online Bio Tech Ltd hits the buyer freeze, as expected after good Q3FY13 results. The company has a sure shot story to bring in cheers in the minds of the investors.  Tulip Telecom Ltd hit the buyer freeze, in the opening trade due to some positive developments. There is as such no problem in the company, except some selling by some entities. The debt will be  solved once CDP Scheme gets approved by a consortium of banks, which I feel is more or less given . One should buy the scrip, in all declines, and wait for the CDR package to get implemented. If you fail to p urchase the scrip when distressing selling is going on th e n you would be one of the greatest losers in the next coup le of months. It i s important to mention that Nomura Equity Research, in its latest recommendation has suspended ratin...

Airports B ody S eeks G uarantee F rom Kingfisher O n S ettling S ues [It seems these insane AAI fellows have lost all  their senses. When an airlines, which has around 4000 persons in its payroll is trying to start operations, inspite of GOI pursuing a predatory Airlines Policy since the last one decade, these bullshits are bent on creating problems. These fellows, need some refresher courses on how to save a "Mammoth Enterprise" from going into bankruptcy. Bloody Idiots....!! ] New Delhi, Feb. 19:  The Airports Authority of India (AAI) has made it clear to Kingfisher Airlines that until it gives a firm commitment on settling entire dues, it will not be issued a no objection certificate (NoC). An NoC is a must for the beleaguered airline to resume operations. The airline’s operating permit was suspended on December 31, after it failed to provide service according to its truncated schedule. AAI’s Chairman V.P. Aggarwal claimed that total Kingfisher dues, including pen...

Jai Prakash Associates Ltd : Explosive Chart I have seen most of the analysts have turned bullish on the infrastructure stocks, as the government is expected to give a thrust in this space in the next Union Budget. I am expecting it touch Rs.83-84 by that time. Earlier a number of brokerage houses have recommended the scrip for good targets going forward.  The Cement Companies have hiked cement prices across the country, barring few in southern territories, by Rs.10-15 per 50 kg bag this week---this augurs well for the scrip of Jai Prakash Associates Ltd. Note : This Chart based report was sent to the Paid Groups, today morning, i.e. on 19th February, 2013.

Market Mantra Buying continues in the small and mid cap space, as was mentioned yesterday.............. Tulip Telecom Ltd hits the buyer freeze at Rs.12.70. The stock was repeatedly recommend ed during the last few days as a buy, after I received some positive information. Meanwhile, there w ere media reports that, the g overnment may hold the third round of auction of spectrum in 18 regions immediately after the planned spectrum sale in March, 2013. Congratulation, to those who picked it up at the right moment.  ARSS Infrastructure Ltd today touched Rs.42.65, before coming down a bit. Most of the stocks in the infrastructure sector are expected to do well in the coming days. I am looking for a target of Rs.52-54 in future. T he stock was recommended at Rs. 39, yesterday.In the same s pace , I RB I infrastructure Ltd recommended recently around Rs.1 13, today touched Rs.11 8. U B Holdings L td (CMP: Rs.64.10) and Kin gfisher Airlines Ltd (Rs.10.53) hit the respe ctive...

Kingfisher Airlines pays salaries for June to select staff Ashwini Phadnis [Why should the management pay the old  employees, before the airlines flies o ff? Kingfisher Airlines management has decided to take care of their families or what, but what about the losses, these people created to the shareholders of both Kingfisher Ltd and U H Holdings Ltd---who will compensate them?] New Delhi, Feb. 18:   The cash-strapped Kingfisher Airlines has started disbursing some staff salaries after a gap of almost two and half months. Sources told the Business Line that sections of the staff, mainly airport staff, received their salaries for June 2012 on Monday. The monthly salary outgo for the airline is around Rs 20 crore and its staff members have not been paid regular salaries since June last year. In November last year the airline cleared some back wages with a promise of settling more wages. This promise was not fulfilled. The airline has over 4,000 people on its r...

CRAZY MARKET-MEN Loan Theory to Control Inflation ~~ Suman Mukherjee Yes, I have given this Crazy Theory of Monetary Tightening as "Loan Theory" to control inflation. In many countries it is used as the last option but in India, this is a common case, especially in times when we have an almost non--functional bureaucracy and an equally dubious government. We Indians become too crazy when the topic zeros in on controlling inflation and "Poor Management".  Yes poor people will suffer if the price rises but what will happen if there is no one to employ them? What will happen if the price of crops of a farmer comes down and down and down.....as the inflation becomes deflation? What will happen, if the poor have no money to buy, even at low price? In a growing economy there would be some inflation and I feel 7% should be normal, because we do not have a reserve currency like the US have. We are also not a developed country, and hence there will be some infra...