SumanSpeaks: The Information Super Highway

Idea MD Sees Tariff Rise Ahead [ Editor : My daily inputs are there in PAID BLOG. In order to get access to that you need to either subscribe to my Premium Service or trade through my recommended brokerage house] It is likely that the Indian telecom industry may observe fewer discounts on data plans while also seeing increased voice tariffs in the coming months, as telcos try to improve margins in a fiercely aggressive sector. Idea Cellular’s Managing Director, Himanshu Kapania is of the view that the wave of subsidized voice and data services would not last forever. “Our voice prices are one tenth and data prices are one hundredth globally, which is not going to survive. Consumers have to get used to it. The consumer has expectations but there is a cost attached to it that has to be borne by someone,” Kapania said. Rajan Mathews, Director-General of COAI has also told Light Reading India, “You would see less discounts on both voice and data packages. Prices will ...

Bharti Airtel Hikes Stake In Qualcomm's Wireless Business Service [ Editor : After Tulip Telecom Ltd, now Bharti Airtel Lts's Nxtra Data, a newly created arm of the company, is planning to add new data centres across multiple locations. Some news is also expected in Kavveri Telecom Ltd (Rs.29), in short term. Also, speculators can buy Crest Animation Studios Ltd (BSE Code: 4526785, CMP: Rs.3.53) at whatever price they get today] Bharti Airtel has raised its stake in Qualcomm’s Wireless Business Service to 93.45% for R875 Cr, The Indian Express states. Airtel had earlier acquired a majority stake in WBSPL in July by increasing its stake to 51% from 49%. It had acquired 49% stake in the company last year for $165 Mn. The company plans to completely acquire WBSPL by 2014. Wireless Business Services is the JV formed between Qualcomm, Global Group and Tulip Telecom to offer Broadband services in India. WBSPL holds 4G spectrum in four areas, New Delhi, Mumbai, Har...

PRECIOUS-Gold jumps 3 pct; U.S. budget deal seen delaying stimulus change U.S. shutdown damage seen delaying Fed tapering   Sharply higher volumes trade on COMEX gold in European  hours Dollar under pressure from budget deal Traders await economic data, stimulus outlook LONDON/NEW YORK, Oct 17 (Reuters) - Gold prices surged 3 percent on Thursday, boosted by a dollar slide and expectations that a temporary deal to avoid a U.S. debt default might prompt the Federal Reserve not to reduce its monetary stimulus. Congress on Wednesday approved an 11th-hour deal to end a partial government shutdown and pull the world's biggest economy back from the brink of debt default.  "Now that we have reached an agreement on the debt ceiling, it's just a big unwind - people are flooding out of the dollar and covering all their shorts in gold," said Phillip Streible, senior commodities broker at brokerage RJ O'Brien. Yet, the news did not fully explain extremel...

TDSAT cancels relief to Tulip against dues claimed by TTSL [ Editor : This news is simply a nuisance and is used the by the Financial Daily to make something out of air. Does Rs.81 lakhs or Rs.0.81 Cr make any sense, when Tulip Telecom Ld (Rs.7.70) is expecting to secure orders worth Rs.6 billion (Rs.600 Cr) in 2014-15, which are likely to deliver revenues to the tune of Rs.1.2 billion (Rs.120 Cr) on an annual basis  in the coming months?  CLICK HERE . You have got an opportunity to buy it at a cheaper rate, so don't miss it.   CLICK HERE .  Glodyne Tech (Rs.11.99) and Geodesic Ltd (Rs.6.70) hit their respective buyer freezes. Those persons who do not take risk CANNOT make money from the stock market. The problem is that equity market literacy is very poor in India] Tulip Telecom Data Center New Delhi, OCT 16: Telecom Tribunal TDSAT has asked Tulip Telecom to pay Rs 81 lakhs to Tata Teleservices Ltd failing which it will face disconnection of services. ...

Tulip Telecom : Efforts To Regain Lost Ground Tuesday, 15 October 2013: Established in 1992, Tulip Telecom is a leading provider of IT and data centre services. Over the years, the New Delhi-based firm has grown from a software reseller to a network integration and data centre business. However, of late, Tulip Telecom has reported a decline in its performance. For the quarter ended June 30, 2013, it reported a consolidated net loss of Rs 1.57 billion as against a net profit of Rs 1.16 billion in the corresponding quarter in 2012. Its total revenues declined from Rs 7.16 billion in the second quarter of 2012 to Rs 2.54  billion for the same period in 2013. The company has been accumulating short-term debt owing to large investments in data centres and for meeting its working capital requirements. However, these investments have failed to yield results, leaving the company with a huge debt burden and increasing losses. To compound the financial challenges, there has b...

Tulip Telecom  Ltd's management expects to clear about two-month salaries after release of Bank Funds Mumbai, Oct.10:  Employees of Tulip Telecom have intensified protests against the company for not paying salaries due for nearly a year. A section of staffers told Business Line that more than 100 of them have been congregating outside Tulip’s offices in New Delhi and Mumbai. A company spokesperson did not comment on the protests but admitted that it has been facing difficulties in making payments. However, she reiterated that a part of the dues have already been paid. “Tulip signed the master restructuring agreement under the corporate debt restructuring process a few months back but is still awaiting release of funds. While the company continues to clear part salaries, it expects to clear about two-month salaries after release of bank funds,” the spokesperson said in an email response . Tulip had approached 13 of its lenders during October-December last year for recas...

Runaway Debt: Telecom companies take measures to deleverage their balance sheets The Indian telecom sector’s debt burden has risen to unprecedented levels. The total financial liabilities of telecom companies are estimated to have witnessed a compound annual growth rate of 19 per cent from Rs 827 billion in March 2009 to Rs 2.5 trillion in March 2013. Bharti Airtel is the most leveraged telecom company with a debt of Rs 583.8 billion as of June 2013. Reliance Communications (RCOM) and Idea Cellular have liabilities of Rs 388.64 billion and Rs 102.11 billion respectively. Aircel reportedly owes Rs 240 billion to lenders. RCOM has the highest debt-to-EBITDA (earnings before interest, taxes, depreciation and amortisation) ratio (5.65) among all the operators, followed by Airtel (2.23) and Idea Cellular (1.39). These companies had raised considerable capital to fund their capex and opex needs as well as to buy airwaves in the 3G and 4G spectrum auctions in 2010. However, the inv...

Winning Strokes : Think Different Tulip Telecom Ltd, hit the another buyer freeze in the opening trade. There were some positive news in the Telecom Sector, which I mentioned in Facebook, during the market hours. There were media report that, the DoT has awarded unified licence to the telecom operator, Idea Cellular, for seven circles; it raised international call rates by 25%. Bharti Airtel also raised international call rates by upto 80%. Kavveri Telecom Products Ltd (Rs.28.75) which hit lower circuits today on low volume is expected to do well in the coming days. The rupee depreciation is likely to help all the companies which gets some revenues form the overseas space. Now the market has become more broad-based  with buying coming also in small and mid cap counters, along with the large caps. Hence, this is the best time to pick up these kinds of stocks (Tulip Telecom Ltd, Kavveri Telecom Ltd), which have the potential to become multi-baggers, in the days to come....

Kavveri Telecom Products Ltd

GEMS school opens in Baniyas City [ Editor : Gems Education Ltd is the promoter of Everonn Education Ltd (Rs.32.80), which has started to perform. Very recently there were media reports that, GEMS Education Ltd's, Sunny Varkey is selling up to 33% stake of the company in a bid to raise $500m (Rs.3050 crore). It is speculated that some of the funds could be utilized to clear off a part of the debts of Everonn Education Ltd; thought it is widely believed that, this large chunk of funds raised would be used to pay off the company’s (Gems Education) existing loans with the Abraaj Group] GEMS Education boss Sunny Varkey is selling up  to 33% of the company in a bid to raise $500m. GEMS Cambridge International School – Abu Dhabi at Bawabat Al Sharq (BAS) project in Baniyas City has opened this academic year with over 1,205 students in Foundation Stage 1 (FS1) to Year 8. The school is owned and operated by GEMS Education, one of the world’s largest private school opera...

Some Important Points (i) Reserve Bank of India (RBI) on Thursday allowed banks to raise funds from global multilateral institutions until 30 November 2013 as long as the money raised is for general banking purposes and not for capital enhancement. This could give a forward push to all the Banking counters. (ii) The stock market regulator, Securities and Exchange Board of India (Sebi) on Thursday issued draft of guidelines on the setting up of real-estate investment trusts, or REITs. This could bring in new interest in the stocks in the Real Estate space.  (iii) The board of Kavveri Telecom Products in its meeting on 02 February 2011 had allotted 40 lakh equity shares of face value of Rs.10 each for cash at a price of Rs.113 per share on preferential basis.The board has allotted 10 lakh warrants convertible into equity shares, to promoters on preferential basis.Further, the board has allotted 20 lakh warrants convertible into equity shares to strategic investors / no...

A relationship worth $175bn When it comes to the trading ties between the Gulf and India, the numbers are colossal. Earlier this year, India’s minister for commerce and industry, Anand Sharma, said that bilateral trade between the Asian economic power and the GCC states would cross $175bn this year. To put that figure into perspective, that sum is roughly the value of Qatar’s nominal GDP in 2012. Around $75bn came from trade with just the UAE, a phenomenal sum given the relatively small size of the Gulf state’s economy. Not far off $1.5bn worth of goods are being traded every week between the two nations. Impressive as those sums are, they are only set to grow further. India’s economy may well be currently facing some short-term pressures, but the country is going to require around $1 trillion worth of foreign direct investment to help build a modern infrastructure to serve its growing middle class. The UAE is already playing a big part in this investment, of course.  Dub...

Sunny Varkey to sell 33% GEMS stake for $500m [ Editor : Dubai-based investor Varkey Group (Gems Education) is the promoter of Everonn Education Ltd, a BSE listed company. CLICK HERE  and CLICK HERE ] GEMS Education boss Sunny Varkey is selling up to 33 percent of the company in a bid to raise $500m, Arabian Business can exclusively reveal. The Dubai-based education giant – believed to be the world’s largest private school provider – has appointed Credit Suisse to find investors to take equity in the company. In a document prepared by Credit Suisse, GEMS is valued at between $1.5b to $2bn, with a total of $500m being sought in return for equity. It is understood that a large chunk of any funds raised would be used to pay off the company’s existing loans with the Abraaj Group. Varkey later said: "We are a company that is growing. We are looking to raise approximately $500 million in the near term. "We will not sell more than 20 percent," Varke...

Market Mantra The Nifty traded with a positive bias yesterday. Although it was more or less a dull session, however, the Nifty hovered between 5980 and 6030 almost for entire trading period. At end it it settled at 6020, up 13 points.  The ball still remains in the court of Bulls as not only they have managed to hold the level of 5850-5920 levels with strength but have also able to give a close above 6000 mark (Nifty_Spot); which was a great psychological barrier in earlier trading sessions. Now today, with Infosys Ltd coming up with better guidance, and positive news coming from the US, the market is likely to trade in the Green in the remaining hours of the days. The traders are suggested to close all the short positions and go for Nifty_Long specially on the news that Dr.Janet Yellen would be the next Fed Chief, in the US. Resistance : 6090 / 6150 Support :  6000 / 5970 Kavveri Telecom Products Ltd as expected hit the buyer freeze in the morning trade. The s...

Kavveri Telecom Products Ltd : Could Give Speculative Returns Please Click on the Chart to Expand Kavveri Telecom is a leading telecom products manufacturer, providing world-class, hardware products and solutions for the telecom industry. Please Click on the Photo to Expand Founded in 1991 by a highly innovative team, Kavveri Telecom designs, develops, tests and implements a diverse range of products, from concept to deployment. With over 150 R&D man-years of experience, Kavveri Telecom is uniquely positioned to offer an array of world-class products and solutions to meet all hardware requirements of telecom manufacturers, telecom service providers and telecom users. Kavveri Telecom Products Limited is a company registered under Companies Act 1956 vide CIN L85110KA1996PLC019627. The company had changed its name from Kaveri Telecoms Limited to Kavveri Telecom Products Limited vide fresh certificate of incorporation dated 19.08.2003 issued by ROC Karnataka. Please ...

Market Mantra The market had strong rally yesterday. Nifty opened with a gap down and went down to 5877 but sustained buying during the day pulled Nifty up to a high of 6015. There was total absence of any intra-day correction. Finally Nifty settled at 6007 with a a gain of 79 points.  Market is witnessing extreme volatility which is making predicting future moves difficult. However, from the morning t. However, ball remain the court of the Bulls as they have managed to hold the level of 5800-5900 with strength, till now.  Resistance : XXX  / XXX (For Paid Members) Support : XXX / XXX (Paid Members) Nifty_Futures Trading Strategy : For the Paid Members Today's Call : Speculators can buy Kavveri Telecom Ltd (BSE Code: 590041) at Rs.29, for an immediate target of get of Rs.34-35. You can keep a SL of Rs.25.70. It's 21DSMA> 50DSMA--this shows the bulls have started to take interest in the scrip. Kavveri Telecom is a global solution provider of telecom inf...

Bank shares turn positive after September trade data The NSE bank index turned positive, up 0.5 percent after earlier falling as much as 1.9 per cent earlier in the day after September trade deficit came in better than expected at $6.7 billion, dealers said. The narrower trade deficit, as signalled by the fall in imports, bodes well for the current account balance, thus supporting the currency and reducing some of the inflationary pressures, analysts said. "A lower current account deficit will also ease the RBI's constraints on rupee-related concerns, which would help in reducing the exchange-rate led inflation pressures and in turn help in limiting expectations over repo rate hikes," said Siddhartha Sanyal, an economist for Barclays in Mumbai. Punjab National BankBSE 1.88 % was up 1 per cent after earlier falling as much as 1.9 per cent while State Bank of IndiaBSE 0.04 % pared losses, down 0.5 per cent compared to a 2.1 per cent fall earlier in the day. Courtesy...