SumanSpeaks: The Information Super Highway

Reliance Communications Ltd: Where it is heading? CMP: Rs.33.30 It has been a harrowing tale for all those who invested in the shares of Reliance Communications Ltd. The stock had been falling since the last few months even though the much expected tower sell deal, a mega merger, a number of investor friendly steps, etc has been effected. However, it seems with the near termination of the free offer of RJio, this bas phase looks to be over. The sun is again likely to shine over the telecom horizons. Moreover, telecom sector being from the essential service space should be least affected by the demonetisation fiasco; as we are approaching the deadline of 30th December 2016. The stupid and mindless demonetisation move of  Narendra Modi -- Urjit Patel has already failed, as expected and as predicted by eminent economists like Prof.Amartya Send and Dr.Kaushij Basu. Besides, no RBI governor, I have seen has spoiled the reputation (so badly and cheaply) of the RBI like Dr.Urj...

Cashless India: Advantage Telecom  Companies Photo :  The Indian Express The NDA government at the centre is taking lot of measures to make a 86% cash economy into cashless. But the things should have been done slowly, due to India's structural problems. Anyway, it is important to mention here that, India has among the highest usage of cash across global economies. According to a 2015 report from PwC, 98% of all transactions by volume happen in cash. 68% of the total value of transactions are conducted in cash. Admittedly, high cash usage often comes with a cost. In 2013, research firm McKinsey found a strong correlation between high cash usage and the size of a country’s shadow economy.  The size of India’s own shadow economy — which includes black market transactions and undeclared work—is roughly a quarter the size of gross domestic product (GDP). Indeed, India suffers from a serious rash of corruption, which hurts honest, hardworking families. Accord...

Narendra Modi's demonetisation: A Monument of Chaos & Confusion.... According to some media reports, though lndia's GDP grew at the fastest pace for a large economy in the September quarter, the nation could experience some amount of uncertainty in the third quarter of fiscal 2016-17 due to the government of India's (led by the BJP -- Bluffers' Party of India..?) decision to demonetize Rs.500 and Rs.1000 currency notes. Also, the Contraction in capital investment deepened further. India's Gross domestic product (GDP) clocked an annual 7.3% growth between July and September, faster than 7.1% in the previous quarter and higher than China's 6.7%. It is pertinent to mention here that, Reserve Bank of India posted this notice on November 8: Government of India, vide their Notification number 2652 dated November 8, 2016 have withdrawn the Legal Tender status of ₹ 500 and ₹ 1,000 denominations of banknotes of the Mahatma Gandhi Series issued by the Rese...

India to go cashless? These days after the ill conceived demomitisation drive of the "Copy - Paste" Narendra Modi government, lot of stories are being spun to make India, a country where still more than 25 crore population struggles to get two square mills a day, Cashless -- a sort of Utopia, in the prevailing socioeconomic conditions. The Modi brigade has suddenly becomes aficionados of "Plastic Money".  However, it is to be remembered that in India more than 80% of the financial transactions are done through cash. The current "Tughlaq-ian" policy has suddenly brought this system to a standstill. There is no 100% cashless economy in the world. Moreover among the 150 - plus, small and big countries, only a few Scandinavian and African countries,  apart from UK and Canada has gone for partial cashless; with Sweden topping the list. However, Germany, a super power in Europe is one such place where the usage of cash is stil...

India to go cashless? These days after the ill conceived demomitisation drive of the "Copy - Paste" Narendra Modi government, lot of stories are being spun to make India, a country where still more than 25 crore population struggles to get two square mills a day, Cashless -- a sort of Utopia, in the prevailing socioeconomic conditions. The Modi brigade has suddenly becomes aficionados of "Plastic Money".  However, it is to be remembered that in India more than 80% of the financial transactions are done through cash. The current "Tughlaq-ian" policy has suddenly brought this system to a standstill. There is no 100% cashless economy in the world. Moreover among the 150 - plus, small and big countries, only a few Scandinavian and African countries,  apart from UK and Canada has gone for partial cashless; with Sweden topping the list. However, Germany, a super power in Europe is one such place where the usage of cash is stil...

Important 1. Those who have still now not sold the shares of Prajay Engineers Syndicate Ltd (Rs.14.05) can continue to hold with a SL of Rs.11.70 for earlier mentioned targets of Rs.18-21. The property prices in Hyderabad and Vijayawada are showing some buoyancy amidst all the doom and gloom in NCR, MMR, Bangalore, Pune, Kolkata, etc. How this opportunity is utilized by the Prajay management to effect a turn around, remains to be seen. 2. The shares of RCom should soon break out from the current levels and move towards Rs.53-54. The investors are suggested to have a little patience. Some of the analysts with qhom I spoke during the last couple of months have more or less given a target of Rs.72, for the scrip. 3. Shrenuj & Co hit another buyer freeze at Rs.3.65. The investors are suggested to book some profit. 4. With lot of fanfare, the Mumbai based operator S P Tulsian recommended MBL Infrastructure Ltd (Rs.105) and Jai Corp Ltd ( Rs.72.55). But once both the s...

"Muhurat" Picks and Other Stocks First of all, let me wish you all a very happy Deepawali and Kali/Lakshmi Pooja. These days, I am too busy with some Bollywood (and other) Assignments, which calls for frequent change of locations and therefore,  I mostly update this blog from my mobile and Tab. The things at my end are likely to get streamlined from the 2nd week of next month -- till then please bear with me. The Samvat 2072 was very challenging as the Nifty fell from around 8000 to 6900 during the first four months. However, post budget day, it had a secular bull run with Nifty gaining around 8% during the whole of Sambar 2072; mid and small caps outperforming their larger peers. The Indian markets at present are on a Bull Run inspite of the global headwinds like Brexit, talks of a rate hike in the US, Crude Oil meltdown and most importantly, a destabilizing northern frontiers; where the Indian defense forces are struggling to contain streams of terrorist inflo...

Do You know...? Mr.Amar Singh and Anil Ambani were once in the same party, viz, SP of Mulayam Singh Yadav, isn't it? Now it is interesting to note that while shares of Energy Development Company Ltd of Amar Singh (in which once Amitabh Bachchan held stake) raced from Rs.19-20 to Rs.220 plus in one year, RCOM (Rs.45.95) is still a laggard. I feel with Mukhesh Ambani now firmly behind RCom (Anil said Reliance Communications Ltd has virtually merged with RJio Infocom of Mukhesh Ambani) and Both the brothers suddenly becoming Narendra Modi fans, I don't think this dichotomy can continue for long. Amar Singh, the powerful "Thakur" from the UP is a friend of Ambani Brothers, especially the Junior one.....

Important 1. My recently recommended Prajay Engineers Syndicate Ltd (Rs.12.40) is hitting new high. The investors can hold the scrip for targets of Rs.18-21. The buoyancy in the real estate market in Telengana and Andhra Pradesh is positive for the counter. 2. MBL Infrastructure Ltd (Rs.102) is likely to come up with good set of numbers for the September quarter. Among the smaller companies in the infrastructure space, road player MBL Infrastructures is well placed to gain from the improving outlook. For one thing, MBL Infra has not followed an aggressive strategy unlike some of its peers. In the build-operate-transfer segment, the company has four road projects under implementation. Two of these have a relatively lower risk, being on an annuity model, where the road developer receives fixed half-yearly payments from the state or national highways authority and is not subject to the volatility of traffic flow. MBL has one completed BOT project on which it is colle...

Important 1. Buy Sure Shot: MBL Infrastructure Ltd at Rs.106.55, T: Rs.125 -- 132, SL: Rs.97. 2. Short term traders can book some profits in Jai Corp Ltd (Rs.74.80). 3. Increase your holding in RCom (Rs.47.35) for a Short term target of Rs.54. 4. The infrastructure sector should do well post monsoon -- so remain heavy.

Navi Mumbai and Jai Corp Ltd Photo : Twenty22--India The land prices in  Navi Mumbai are shooting up due to: (i) the proposed international airport near Ulwe, (ii) the proposed trans-harbour sea link between Navi Mumbai and Shewri, south Mumbai. After its completion,  commuters will be able  reach Nariman Point from Panvel in mere 30 minutes. (iii) the metro linkage between Navi Mumbai airport and Belapur. In future this metro project is likely to extend up to Chembur via Taloja and Vashi, (iv) due to Navi Mumbai Sez. The Financial Express writes on 3 October, 2016: Navi Mumbai is now also connected via the eastern freeway in Chembur to Nariman Point in south Mumbai. With real estate costs that are nearly as competitive as those in Gurgaon, Pune or even some pockets of Bengaluru, Navi Mumbai is staking a claim to become the next big IT hub.  The  direct beneficiary would be Jai Corp Ltd  (Rs.71), which has large land holdin...

Astronomical Pricing of 700 MHz auction to help Ambani brothers...? The result of Telecom auction failure is a disaster of an exercise that had the potential to give a new leap to high speed internet at affordable prices. KNDA government's greed and plundering attitude destroyed the opportunity. However, I am of the view that spectrum pricing of 700 MHz category in the recent auction might have been done to help Ambani brothers, because RCom has enough of 800 MHz spectrum (probably highest among all telecom players in India) which is comparable with 700 MHz. It is pertinent to mention here that virtually RCom and RJio is now a single company --- RJio can use RCom's 800 MHz spectrum for its 3G and 4G services, across the length and breadth of India. Therefore, no telecom company bidding for 700 MHz (or getting it and losing money for infrastructure spend) is positive (advantageous) for both RCOM and RJio in their present day avatars.

Do you know..? Jai Corp Ltd (Rs.72.95) made a high of Rs.1,282 on January 10, 2008.....while RCom (Rs.47.30) had made a high of Rs.800 plus in 2008. However, both the companies now have expanded their businesses few fold from that avatar to the present state. While in between Jai Corp Ltd has started venture capital fund and they are developing Rewas Port near Mumbai having a draft of about 14.5 meter with 10 berth for which again 2,000 acre of the inter-tidal land has already been given by the maritime board to the company and that port is expected to go on steam may be by the end of this year. RCOM has done one of the biggest handshakes in the telecom sector, virtually merged with RJio (which has very strong Financial Muscle) and is to sell its Tower business by the end of this week. So lot is there on the plate for patient investors. It is pertinent to mention here that Jai Corp Ltd, incorporated in 1985, has traditionally been into manufacturing businesses like ...

Winning Strokes: Think Different Gitanjali Gems Ltd (Rs.87.95) recommended repeatedly in this blog, made a 52 -- week high of Rs.91.40 today in the BSE. The stock touched my targets of Rs.62 and Rs.75. The investors can book some profits. Adani Enterprises Ltd (Rs.69.20) recommended in this blog from around Rs.66, today made a high of Rs.70.35. Unless Rs.67, is broken on the downside, this is a hold now. Shrenuj & Co Ltd hit the upper circuit today in both the exchanges. However, unless it crosses Rs.2.70, with good volumes, these rallies should be used as exit opportunities. Jai Corp Ltd  (Rs.72.95), an Anand Jain company, the half brother of Mukhesh Ambani was recommended today for targets of Rs.81-86-91. Mukesh Ambani's company Reliance Jio Infocom Ltd is in the news these days; the positive effects could spill on to the share of Jai Corp Ltd; apart from other bullish factors. According to a report publiahed in Business Standard, Mukhesh Ambani, an inv...

Winning Strokes: Think Different Gitanjali Gems Ltd recommended repeatedly in this blog, made a 52 -- week high of Rs.91.40 today in the BSE. The stock touched my targets of Rs.62 and Rs.75. The investors can book some profits. Adani Enterprises Ltd (Rs.69.20) recommended in this blog from around Rs.66, today made a high of Rs.70.35. Unless Rs.67, is broken on the downside, this is a hold now. Shrenuj & Co Ltd hit the upper circuit today in both the exchanges. However, unless it crosses Rs.2.70, with good volumes, these rallies should be used as exit opportunities. Jai Corp Ltd an Anand Jain company, the half brother of Mukhesh Ambani was recommended today for targets of Rs.81-86-91. Mukesh Ambani's company Reliance Jio Infocom Ltd is in the news these days; the positive effects could spill on to the share of Jai Corp Ltd; apart from other bullish factors. There were media reports today, that Reliance Communication'sCommunication's Ltd (Rs.47.30) towe...

Winning Strokes: Think Different Gitanjali Gems Ltd recommended repeatedly in this blog, made a 52 -- week high of Rs.91.40 today in the BSE. The stock touched my targets of Rs.62 and Rs.75. The investors can book some profits. Adani Enterprises Ltd (Rs.69.20) recommended in this blog from around Rs.66, today made a high of Rs.70.35. Unless Rs.67, is broken on the downside, this is a hold now. Shrenuj & Co Ltd hit the upper circuit today in both the exchanges. However, unless it crosses Rs.2.70, with good volumes, these rallies should be used as exit opportunities. Jai Corp Ltd an Anand Jain company, the half brother of Mukhesh Ambani was recommended today for targets of Rs.81-86-91. Mukesh Ambani's company Reliance Jio Infocom Ltd is in the news these days; the positive effects could spill on to the share of Jai Corp Ltd; apart from other bullish factors. There were media reports today, that Reliance Communication'sCommunication's Ltd (Rs.47.30) towe...

Winning Strokes: Think Different Gitanjali Gems Ltd recommended repeatedly in this blog, made a 52 -- week high of Rs.91.40 today in the BSE. The stock touched my targets of Rs.62 and Rs.75. The investors can book some profits. Adani Enterprises Ltd (Rs.69.20) recommended in this blog from around Rs.66, today made a high of Rs.70.35. Unless Rs.67, is broken on the downside, this is a hold now. Shrenuj & Co Ltd hit the upper circuit today in both the exchanges. However, unless it crosses Rs.2.70, with good volumes, these rallies should be used as exit opportunities. Jai Corp Ltd an Anand Jain company, the half brother of Mukhesh Ambani was recommended today for targets of Rs.81-86-91. Mukesh Ambani's company Reliance Jio Infocom Ltd is in the news these days; the positive effects could spill on to the share of Jai Corp Ltd; apart from other bullish factors. There were media reports today, that Reliance Communication'sCommunication's Ltd (Rs.47.30) towe...

Today's Call 1. Buy JSW Energy Ltd at Rs.73.90, T: Rs.84, SL: Rs.71. 2. Buy Reliance Communications Ltd at Rs.47.90, T: Rs.55, SL: Rs.46.70. The company has copious spectrum in the 800 MHz category, which is comparable with 700 MHz category.Since no bids were received for 700 MHz, 900 Mhz bands and hence those who are having could have lot of advantages; especially when 3G penetration is still very low in India ( Chance of growth is very in this space). Four years after the launch of 3G services, there are just about 120 million 3G subscribers, barely 10 per cent of the total mobile user-base. Even here, the quality of access leaves much to be desired with the average connection speed the lowest in the Asia-Pacific region. Therefore, I feel in future the Centre and TRAI will keep this reality in mind while fixing the reserve price for upcoming auctions. So, in the coming days, the spectrum price in 700 MHz can come down substantially. Also, contrary to expectations...

Today's Calls 1. Buy Adani Enterprises Ltd at Rs.66.70, T: Rs.85, SL: Rs.66. 2. Add Reliance Communications Ltd at Rs.46.20, as a sharp rally post spectrum auction is on the anvil. 3. Hope you have Booked - out complete profit from MBL Infrastructure Ltd at Rs.117-119. The company has a pledged share issue disliked by market. If you have few lakh rupees then do let me know, I have a scrip where money can be doubled in one year -- this will however be I investment and not trading.

Today's Call 1. Buy Lanco Infratech Ltd at Rs.4. 20, for a target of Rs.5.50. The company has taken a comprehensive plan to reduce its debts. A hold of couple of months can give you good returns as the company is likely to selling its power assets worth $1 billion. A  consortium of lenders  earlier decided to take control of Lanco Infratech by converting a part of the cash-strapped company's debt for a 60 per cent equity stake... 2. MBL Infrastructure hit another buyer freeze today at Rs.13.75 in the BSE. You can book some profits, today or tomorrow.