WINNING STOKES: THINK DIFFERENT:
As expected and mentioned in this blog in advance, the UPA survived the no confidence motion and the Crude Oil is also receding: But when I said that Crude Oil will crash to $110 per barrel (when everyone was talking of $150--$200 per barrel), I was labelled as "Rabble rouser and Moron" by a section of "Great Analysts". Now everything is crystal clear and all those who shouted for $200 per barrel, for Crude Oil have mud on their faces and no one is there to give them a hanky to remove those stains. Even Jim Roggers tried to rubbish my claim. Hence it is proved that big names carries no significance when the equity markets are concerned. I have earlier commented the same thing about Mark Faber when he was saying the same thing but bucked the trend after I started writing contrary to what he was saying on Television Channels. It is a known fact that TV Channels will bring these controversial guys because they know that if they pay $1, 000 to these rottens as appearances fees, these channels will get $10, 000 in terms of advertisement revenues, because the moment Mark Faber opens his mouth he will generate a controversy which will increase the TRPs and hence the revenues of the channels. Therefore, please keep safe distance from what these cunning fellows speak on Televisions. These kinds of fellows have been fooling the world masses since a long time and making money: But then who will question all those analysts who repeatedly proliferate TV Channels and misguide everyone. When I hear As**ni Gujaral on TV Channels and saying the markets will go down, I feel elated because now the reverse will happen. In fact I feel bad when he says the market will rise up, because I fear the market might come down. He will soon find his place among his peers like, Am**ish Bal**a, Ashu Ma**n, Ashu Kak**r, Nil**h Shah (not of ICICI Direct), Shankar Sh**ma, etc. I do not know when will TV Channels learnt to separate rice from husk. Now NDTV Profits has suddenly fallen in love with Shankar S for some unknown reasons or may be due to the fact that this time at least his late prediction of a "Crude Oil bubble" came out to be true. But he was very late in spotting the Crude Oil bubble (almost after a month after I said so....).
Anyway, ADAG Group staged a strong rally yesterday. I had repeatedly told the Paid Groups to buy only Reliance Group of companies and in my last write up in this blog I mentioned the same thing, with a special stress on Construction Related shares---ditto is being spoken now on Television Channels and some of the big names in the construction space starting from Punj Llloyd to Reliance Industrial Infrastructure Ltd were seen shooting over the roof. RNRL did extremely well yesterday, as Anil Ambani has direct interest in the company. I think Paid Members and the Free Members are earning a lot from resurrected Reliance Group shares: Reliance Industrial Infrastructure Ltd hit the buyer freeze with huge pending buy orders. It could be a runner for the Nuclear Related construction projects, like L & T, besides Anil Ambani has indirect interest in the company as Reliance Capital has some holding in RIIL. Yesterday Reliance Capital was recommended as the buy and you must have seen the end results. Mundra Port (it was recommended by Kotak Securities yesterday) and IVRCL construction did well yesterday : Premier Explosives almost hit the buyer freeze before cooling down a bit. The company is expected to gain from the Indo-US civil and nuclear co-operation: Kohinoor Broadcasting Corporation Ltd hit the buyer freeze before cooling down a bit: Why did Ennore Coke Ltd hit the buyer freeze?? What is the new development in the company?? Did you see the volume built up Southern Online Bio Technologies Ltd--what for??!!
Besides my recently recommended Yes Bank, HDIL, Kotak Bank Ltd, Punj Lloyd, L & T , BHEL, HCC, Astra Microwave, Suzlon (Recommended in the morning), Asian Electronics Ltd (Recommended in the Morning), Unitech Ltd (recommended in the morning), Engineers India Ltd, Lok Housing Ltd, H India Ltd, etc did well yesterday. Besides my earlier recommended Ritesh Properties Ltd, Kamanwala Housing Construction Ltd, Walchandnagar Industries Ltd, Elnet Technologies Ltd, Envair Electrodyne, etc did well yesterday:
Please Exit Facor Alloys Ltd if you are holding the shares of this company, taking the help of this rally. Many do not know that it is Re.1 face value share and not Rs.10, Face value share and hence run after it...... Please note that if we consider its face value to be Rs.10, then the effective price of each shares of Facor Alloys Ltd is Rs.103.7. Just compare its share price with that of SAIL (CMP---Rs.146) and you will understand what I am saying. Some analysts have tried to romanticise this company and its share price, as many of their clients are struck up at high prices. I think it will find difficulty to cross Rs.12.5. So why take risk when they are so many good shares available.....: What are the new developments in some companies?? How will the markets behave in the next few days?? Which stocks to average out and which stocks to buy for short term in this rally??? All these to the Paid Groups:
I am thinking of increasing the subscription fees of my Premium Group and Quickie Group, so that the service could be further enhanced/improved. I am also thinking of making monthly schemes like Jumping Stocks do. I think Jumping stock takes Rs.50, 000 per year or Rs.8000 per month.
However, what I see is that every body needs free service but none takes into account the huge cost involved in Research of a scrip--its seems that sources give information without spending money on them.
Stocks advance following sharo drop in oil
Wall Street extends advance as oil continues decline, earnings reports offer some optimism
NEW YORK -- Stocks rose moderately Wednesday as another decline in oil prices and several upbeat profit reports eased some of Wall Street's concerns about the economy.
Investors appeared unfazed by the Federal Reserve's Beige Book, which provides readings on the U.S. economy by region and indicated that business conditions have slowed in recent months as consumer spending has turned sluggish. The report arrives two weeks before policymakers' next meeting but seemed to hold few surprises for investors.
Regardless, Wall Street believes the recent easing of oil prices, if sustained, could give a crucial boost to the economy. Crude has retreated as Hurricane Dolly looked likely to spare key oil installations in the Gulf of Mexico and after the government reported Wednesday that domestic inventories increased last week as consumers curbed their energy use. But oil came off its lows -- and stocks pared their gains -- after the hurricane strengthened to a Category 2 storm.
While oil again tugged at stocks as it has for months, investors also examined a raft of earnings reports that indicated not all corporate profits were suffering because of the slower economy. That left some investors more upbeat about the prospects for the overall economy. AT&T Inc., McDonald's Corp. and Pfizer Inc., all among the 30 stocks that make up the Dow Jones industrial average, weighed in with reports that generally pleased investors.
"Oil is a positive but I think bigger than that is the earnings news is not as catastrophic as people were thinking," said Noman Ali, portfolio manager of U.S. equities for MFC Global Investment Management in Toronto. "Some of the bellwethers are reporting earnings that are better-than-expected. And outside of the financials things, aren't so bad."
In midafternoon trading, the Dow rose 52.92, or 0.46 percent, to 11,655.42 after rising nearly 100 points in the early going. On Tuesday, the blue chips gained 135 points.
Broader stock indicators advanced. The Standard & Poor's 500 index rose 8.70, or 0.68 percent, to 1,285.70 and the technology-laden Nasdaq composite index rose 21.25, or 0.92 percent, to 2,325.21.
Advancing issues outnumbered decliners by about 3 to 2 on the New York Stock Exchange, where volume came to 1.09 billion shares.
Bond prices declined as investors moved some money into equities. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 4.15 percent from 4.10 percent from late Tuesday.
The dollar was mostly higher against other major currencies, while gold prices fell.
A barrel of light, sweet crude fell $2.74 to $125.68 on New York Mercantile Exchange. Oil is down more than $20 since hitting a record above $147 just weeks ago.
A drop in energy prices would benefit a wide spectrum of companies, including airlines, manufacturers and even retailers. It also helped distract investors from some disappointing earnings delivered this week -- especially from struggling banks and brokerages.
AT&T rose $1.51, or 4.8 percent, to $33.33 after the company said quarterly profits rose amid a big spike in wireless subscribers that offset its shrinking landline business. The biggest U.S. phone company is the official carrier of Apple Inc.'s iPhone, and that helped add 1.3 million wireless subscribers during the period.
Pfizer, the world's biggest drug maker, said its second-quarter earnings more than doubled as restructuring charges declined and the weak dollar helped lift overseas revenue. It narrowly beat Wall Street expectations. The stock rose 72 cents, or 3.9 percent, to $19.07.
McDonald's credited strong overseas sales with driving the company's second-quarter profit. The nation's largest restaurant chain easily surpassed Wall Street's expectations. The stock fell $1.24, or 2.1 percent, to $58.88.
Boeing Co. fell $2.56, or 3.7 percent, to $66.70 after reporting that second-quarter earnings fell 19 percent because a $248 million charge related to a defense program. The world's second-largest commercial airplane maker had already warned it would book the expense.
Washington Mutual Inc. fell 74 cents, or 13 percent, to $5.08 after the nation's largest thrift reported a $3 billion loss due to increases in its loss reserves to cover souring loans in its mortgage portfolio.
Costco Wholesale Corp. warned that its fiscal fourth-quarter and full-year profits will fall short of Wall Street's expectations. The warehouse club operator expects higher energy costs to hurt its results. The stock fell $7.73, or 11 percent, to $64.26.
Fannie Mae and Freddie Mac advanced as the House planned to vote Wednesday on legislation that would tap the mortgage giants' profits to cover any losses from saving 400,000 homeowners from foreclosure. The measure would give the Treasury Department authority to extend the companies a temporary lifeline. Fannie Mae rose $1.31, or 9.8 percent, to $14.72, while Freddie Mac rose $1.05, or 11 percent, to $10.75.
Ali said the government's action to help Fannie Mae and Freddie Mac has reassured investors that the financial system is not in danger of collapse.
"Things are not blowing up because of Fannie and Freddie still being in business and the financial system still being intact," he said. "I think you're seeing some relief on that."
Still, he remains cautious.
"Some of the biggest rallies happen in bear markets. The outlook for the market is still pretty negative," he said, pointing to a general decline in earnings, a slowdown in international growth, rising prices and a weak dollar.
The Russell 2000 index of smaller companies rose 4.79, or 0.67 percent, to 721.61.
Overseas, Japan's Nikkei stock average rose 0.97 percent. Britain's FTSE 100 added 1.60 percent, Germany's DAX index rose 1.45 percent, and France's CAC-40 jumped 1.88 percent. [With inputs from the Intenet]
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