Scripscan:Sahara Housing finance
Code:511533
CMP:210
[Sahara Housing finance news,views and analysis/ political aspect of the company/reason for the sharp upmove/results/future prospects/Shocking valuations/banned by sebi/bad image of the sahara group/better companies available/rumuors of the sahara group housing company merger]
Story:Sahara Housing Fina Corporation Ltd has been such a company which has made people rich and eroded hell lot of money at the same time.From a low of 31rs in june 07 it went to a gigantic high of 1445 rs in dec 07 and subsequently fell back in no time to the present levels of 210.The reason which can be attributed to the mind boggline rise is that the entire unlisted Housing Construction business running into thousands of crore will get merged with Sahara Housing.Mind you no clarification whatsoever has been made by the management during any point of the time.The entire sahara group has been a huge failure be it their amby valley project or the sahara airlines which got sold and even the sahara tv has been a major flop show for them.Its been whispered that the chairman of the group has only got his existence because of the favour of some very shady and out of favour/out of power politicians from UP.It is hard to ascertain whether the rigging up of the Sahara Housing stock was carried out with the money funnell of the now disgraced politicians,who have been associated with a maverick businessman and a rapidly ageing filmstar.Just like the merger rumuor it could be true or just pure drivel.Sahara housing ended the fiscal 08 with a turnover of a mere 12crs and at present levels it commands a market cap of 150 crs.The majority of the shareholding is with the promoter.In a nutshell it can be only said if the buzz vindicates it can certainly be a stock to watch else this is another making of a saggy garbage in the portfolio of retail investors.All those who believe in the Sahara Housing stock may do well to re-evaluate their investment thesis.But who knows maybe the "STUNT JUST GOT PLAYED IN THE GALLERY".
Saturday, May 31, 2008
GMR Infra:-Why to avoid?
Scripscan:GMR Infra
View:Avoid
Reasons:Read on
[GMR Infra news,views and analysis/why to avoid/valuations expensive/large gestation period for projects/private equity play/no growth in earnings/stay away and avoid/much better bets available]
My view:-In my community a stock which has been a hot subject offlate has been GMR Infrastructure.Its included in the fno segment thereby making it a favourite of both the traders and investors fraternity.I have really got no clue regarding this inclusion of fno mechanism.Valuation wise its horrendoulsy expensive having a forward PE of over 80.People without any idea about the business have been speaking amazing things about the company.Nevertheless its an "infra" stock and our investors are great fans of the word,"infra".So if its attached behind a company name dont lag behind but just go for it.SO in my own language let me dig a bit more and present the same to you guys.It can be a buy for everyone but not for me,why?Read on.
Now the company is executing a number of projects on the basis of PPP,including the Delhi and Hyderabad Airports.Even DIAL and HIAL, are separate concerns partially owned by GMR and the JV partners including india govt and some other institutions.Apart from the 2 Airports, in separate SPVs a number of projects are being put up in the Power and Road Development segment.The Revenues on commencement would accrue to these SPVs and in turn to GMR in proportion to its ownership of a slew of enterprises under its belt. This will make earnings not only extremely volatile, but lumpy depending upon the accounting policy implemented by GMR Infra.It would be prudent to note that the projects are on a BOOT basis, with periods ranging from 15 to 60 years. These are large gestation periods projects with high executional risks and it would take a long time before gmr can even make some money out of them.
Gmr infra is expected to post an EPS of 1.80 paisa in 09 and 2rs in 10.Further equity can get diluted which hasnt been taken into consideration.Being simple gullible investors we opt for companies which have got high growth potential,huge growth in earnings and tiny equities.So that growth comes profits increases multifolds and eps blosters equity being low.God knows why people are sticking to GMR which is discounting its 2 year forward multiple by as high as 75 times.To me stocks like GMR hold no relevance to an individual investor as the companies will show only marginal profits on huge and ever growing equity, that is being constantly raised to bag new projects with minor and majority stakes.
So its not gonna give you a great dividend yield,neither its going cheap valuation wise.These stocks can only suit to momentum players and those which are in the Venture Capital, Private Equity play etc.So will you still buy it?
View:Avoid
Reasons:Read on
[GMR Infra news,views and analysis/why to avoid/valuations expensive/large gestation period for projects/private equity play/no growth in earnings/stay away and avoid/much better bets available]
My view:-In my community a stock which has been a hot subject offlate has been GMR Infrastructure.Its included in the fno segment thereby making it a favourite of both the traders and investors fraternity.I have really got no clue regarding this inclusion of fno mechanism.Valuation wise its horrendoulsy expensive having a forward PE of over 80.People without any idea about the business have been speaking amazing things about the company.Nevertheless its an "infra" stock and our investors are great fans of the word,"infra".So if its attached behind a company name dont lag behind but just go for it.SO in my own language let me dig a bit more and present the same to you guys.It can be a buy for everyone but not for me,why?Read on.
Now the company is executing a number of projects on the basis of PPP,including the Delhi and Hyderabad Airports.Even DIAL and HIAL, are separate concerns partially owned by GMR and the JV partners including india govt and some other institutions.Apart from the 2 Airports, in separate SPVs a number of projects are being put up in the Power and Road Development segment.The Revenues on commencement would accrue to these SPVs and in turn to GMR in proportion to its ownership of a slew of enterprises under its belt. This will make earnings not only extremely volatile, but lumpy depending upon the accounting policy implemented by GMR Infra.It would be prudent to note that the projects are on a BOOT basis, with periods ranging from 15 to 60 years. These are large gestation periods projects with high executional risks and it would take a long time before gmr can even make some money out of them.
Gmr infra is expected to post an EPS of 1.80 paisa in 09 and 2rs in 10.Further equity can get diluted which hasnt been taken into consideration.Being simple gullible investors we opt for companies which have got high growth potential,huge growth in earnings and tiny equities.So that growth comes profits increases multifolds and eps blosters equity being low.God knows why people are sticking to GMR which is discounting its 2 year forward multiple by as high as 75 times.To me stocks like GMR hold no relevance to an individual investor as the companies will show only marginal profits on huge and ever growing equity, that is being constantly raised to bag new projects with minor and majority stakes.
So its not gonna give you a great dividend yield,neither its going cheap valuation wise.These stocks can only suit to momentum players and those which are in the Venture Capital, Private Equity play etc.So will you still buy it?
Modern Dairies:-Rising star in the agro product sector
Scripscan:Modern Dairies Ltd
Cmp:36
Code:519287
[Modern Dairies news,views and analysis/Prospects/big FMCG beneficary/amazing results/attractive valuation/growing at over 100%/Modern Dairies target price/robust business/Great buy/a potential doubler]
Story:-Another company which has got a super prospect.But scrip got hammered,why?No rationality and the result was bogus for most investors.Sales got more than doubled but Np slided.Well look at the EBITDA people,forget it,just add up deprication and interest to net profit and you would see the profit actually got doubled.Its a small company which has earmarked an expansion of 155 crs.Marketcap at present prices would be less than 70crs i assume.Previous year it made exports of less than 20crs this year already the exports have hit around 120crs.The promoters themselves put in 25crs to garner themselves more 15% stake.They could have placed the shares to any FII but they alloted themselves.Now when a promoter buying its own company shares,what can be the indication?Surely there is some great stuffs going on in the company..Promoters bought at 80 odd and at present its 30 odd.Do you feel owning a dairy business at these point of time would be fruitful for you given the above lines?Decide yourself.
Cmp:36
Code:519287
[Modern Dairies news,views and analysis/Prospects/big FMCG beneficary/amazing results/attractive valuation/growing at over 100%/Modern Dairies target price/robust business/Great buy/a potential doubler]
Story:-Another company which has got a super prospect.But scrip got hammered,why?No rationality and the result was bogus for most investors.Sales got more than doubled but Np slided.Well look at the EBITDA people,forget it,just add up deprication and interest to net profit and you would see the profit actually got doubled.Its a small company which has earmarked an expansion of 155 crs.Marketcap at present prices would be less than 70crs i assume.Previous year it made exports of less than 20crs this year already the exports have hit around 120crs.The promoters themselves put in 25crs to garner themselves more 15% stake.They could have placed the shares to any FII but they alloted themselves.Now when a promoter buying its own company shares,what can be the indication?Surely there is some great stuffs going on in the company..Promoters bought at 80 odd and at present its 30 odd.Do you feel owning a dairy business at these point of time would be fruitful for you given the above lines?Decide yourself.
Tuesday, May 27, 2008
Mold-Tek Technologies:-All set to double your money
Scripscan:Mold-Tek Technologies
Ltd Code:526263
cmp:68
Target:90
Duration:1-2 months
[Mold-Tek Technologies news,views and analysis/Prospects/big KPO boom beneficary/amazing results/attractive valuation/growing at over 200%/Mold tek target price/robust business/Demerger to unlock lot of value/Great buy/a potential doubler]
Story:Mold-tek is the leader in Plastic Pail Packaging industry in the country.It is the only supplier to its clients like Reliance Petroleum Ltd,ICI, Emirates Petroleum Ltd.etc.With time the company has diversified into providing structural engineering services for global clients in USA, Canada, Gulf & Europe.The KPO Division is currently providing services to more than 25 US Clients and has aggressive marketing plans to add further 10-15 clients in the current year.To unlock value for its shareholders mold tek is demerging its Kpo and Plastic business and plans to list both companies seperately.The demerger ratio is expected to be 70:30,with plastics packaging accounting for 70% and the remaining 30% would be KPO business.Both the divisons of the company has got tremendous potential and prospects.Go for it.
Techinally:-The scrip has formed a base at 66-67rs i dont feel that would get violated again.Infact after a long time with good volumes it has shown strong movements.I expect the scrip to zoom past 90 mark fairly soon.So both from the fundamentals and from the technical aspect,mold tek is a clear-cut buy.
Ltd Code:526263
cmp:68
Target:90
Duration:1-2 months
[Mold-Tek Technologies news,views and analysis/Prospects/big KPO boom beneficary/amazing results/attractive valuation/growing at over 200%/Mold tek target price/robust business/Demerger to unlock lot of value/Great buy/a potential doubler]
Story:Mold-tek is the leader in Plastic Pail Packaging industry in the country.It is the only supplier to its clients like Reliance Petroleum Ltd,ICI, Emirates Petroleum Ltd.etc.With time the company has diversified into providing structural engineering services for global clients in USA, Canada, Gulf & Europe.The KPO Division is currently providing services to more than 25 US Clients and has aggressive marketing plans to add further 10-15 clients in the current year.To unlock value for its shareholders mold tek is demerging its Kpo and Plastic business and plans to list both companies seperately.The demerger ratio is expected to be 70:30,with plastics packaging accounting for 70% and the remaining 30% would be KPO business.Both the divisons of the company has got tremendous potential and prospects.Go for it.
Techinally:-The scrip has formed a base at 66-67rs i dont feel that would get violated again.Infact after a long time with good volumes it has shown strong movements.I expect the scrip to zoom past 90 mark fairly soon.So both from the fundamentals and from the technical aspect,mold tek is a clear-cut buy.
Remember the following points when investing in the market:-
[Rules of investing in indian stock markets/herd mentality/patience and conviction/dont go by broker tips/avoid margin trading/be a long term investor/find value and make a hell lot of money]
1)Sentiments change overnight as people are emotional.
2)If analysis really workd all the time market would have become very boring.They are interesting because we cannot predict human behaviour.
3)When you get information on a stock find out if market already knows it.Know your level ofinformation ladder
4)Life is never fair.You may find incompetent people being highly successful.Dont feel bad,they are reaping the rewards of their past karma,lolz……
5)You cannot get investment opportunities everyday.5-6 of them in a quarter would be great.
6)Patience is always rewarded.The law of firm is applicable in walks of life.
7)Control your emotions.Do not follow the herd blindly.
8)You never miss the buss in the markets.If you have the money opportunities would always come.Preserve your money and don't forget "cash is the king"
9)Bear markets offer better investment opportunities than bull markets.
10)Avoid margin trading.You are only enriching your broker.Ask your margin trading friends how they are treated in the present market situation.
11)Derivatines are good hedging instruments.Unfortunately they are used as speculative instruments.They only enrich the intermediary at the expense of the investor.Avoid them.
1)Sentiments change overnight as people are emotional.
2)If analysis really workd all the time market would have become very boring.They are interesting because we cannot predict human behaviour.
3)When you get information on a stock find out if market already knows it.Know your level ofinformation ladder
4)Life is never fair.You may find incompetent people being highly successful.Dont feel bad,they are reaping the rewards of their past karma,lolz……
5)You cannot get investment opportunities everyday.5-6 of them in a quarter would be great.
6)Patience is always rewarded.The law of firm is applicable in walks of life.
7)Control your emotions.Do not follow the herd blindly.
8)You never miss the buss in the markets.If you have the money opportunities would always come.Preserve your money and don't forget "cash is the king"
9)Bear markets offer better investment opportunities than bull markets.
10)Avoid margin trading.You are only enriching your broker.Ask your margin trading friends how they are treated in the present market situation.
11)Derivatines are good hedging instruments.Unfortunately they are used as speculative instruments.They only enrich the intermediary at the expense of the investor.Avoid them.
Thursday, May 22, 2008
Expo Gas Container:-A dark horse
Scripscan:Expo Gas Container
CMP-15
Code-526614
[Expo Gas Container news,views and analysis/multibagger potential/turnaround story/penny stock/settlement with lenders/good trading play/Downside limited/Can buy it]
Introduction:Expo gas Containers limited is an integrated company specialiizing in the field of manufacture of low pressure Gas cylinders,fabrication of equipments like pressurre vessels,heat exchangers,site constrruction of tanks and spheres e.t.c.Its manufacturing facilities are located at Murbad(norrth of mumbai) and are approved by the Chief Controller of Explosives, under Indian Boiler Regulations.
But from the last few years the performance and profitability of the Company was severly affected due to some factors:
High steel prices
Stiff competition
Lack of sources
Huge debt burdern and interest costs
Now if the market talks are beleived to be true then it can very well be the next buzzing one in the bourses.It is said that the company has settled its outstanding debt with IDBI at 60% of the principal amount.The company was granted waiver for 40% principal amount as well as exemption in interest and penal interest.The company is striving very hard to increase its topline and is giving a huge thrusts to market its product in the outside world.
Conclusion:Expo is all set to make a sparkling turnaround in the current year.The management of it is one of better management from its peers.With the economy in a move and with its increasing order book,Expo can regain its lost glory in the coming days.
CMP-15
Code-526614
[Expo Gas Container news,views and analysis/multibagger potential/turnaround story/penny stock/settlement with lenders/good trading play/Downside limited/Can buy it]
Introduction:Expo gas Containers limited is an integrated company specialiizing in the field of manufacture of low pressure Gas cylinders,fabrication of equipments like pressurre vessels,heat exchangers,site constrruction of tanks and spheres e.t.c.Its manufacturing facilities are located at Murbad(norrth of mumbai) and are approved by the Chief Controller of Explosives, under Indian Boiler Regulations.
But from the last few years the performance and profitability of the Company was severly affected due to some factors:
High steel prices
Stiff competition
Lack of sources
Huge debt burdern and interest costs
Now if the market talks are beleived to be true then it can very well be the next buzzing one in the bourses.It is said that the company has settled its outstanding debt with IDBI at 60% of the principal amount.The company was granted waiver for 40% principal amount as well as exemption in interest and penal interest.The company is striving very hard to increase its topline and is giving a huge thrusts to market its product in the outside world.
Conclusion:Expo is all set to make a sparkling turnaround in the current year.The management of it is one of better management from its peers.With the economy in a move and with its increasing order book,Expo can regain its lost glory in the coming days.
Jenson & Nicholson:-The penny stock to rock.
Scripscan:Jenson & Nicholson
Cmp:7
Taget:12
Return expected:50%+
Duration:4-6 months.
Traded in:Nse-bse
[Jenson & Nicholson news,views and analysis/multibagger potential/turnaround story/penny stock/real estates and land play/settlement with lenders/good trading play/Downside limited/Can buy it]
Company:-Jenson & Nicholson is engaged in the business of manufacturing and selling of paints for the decorative and industrial applications in India.The company has got a country wide presence with 33 branches and stock points across the country and manufacturing plants at Naihati,Sikandrabad and Panvel.The company over the years has fallen on bad times and ended fiscal 07 with a small turnover of 24crs.The story is that it has got lucrative real estates in form of its panvel factory land which has been closed.The company has further got some land in naihati where its operation has been suspended.If i add up the too the present marketcap of the company would look too little(Though the mangement denied to figure the exact value of the lands)The company has got lots of debts in its book which ARCIL has taken over aggregating to nearly 39% from IDBI, SBI, UBI, BOB and BOI.On words of the management," They are actively involved in the restructuring process and is likely to take over the remaining debts from other Banks and Institutions".Further AAIFR has appointed SBI Capital Markets Ltd. as Consultants to conduct the TEV study and valuation of assets. It is expected that once the process is complete, total restructuring plan made with the help of ARCIL will be submitted before the BIFR for their final approval.
Conclusion:Lots of developments are expected to happen for the company in the coming days.It is because of the rumours the company went on to hit a high of 26rs in these jan itself before nosediving to the present levels.Technically speaking too the company has got very strong support at rs 7.Downside is very limited but on happening of any of these developments the company is set to hit double digits for sure.
Trading range:7-12 is the trading range for the company.One can accumulate the counter and exit partly at that level.
Cmp:7
Taget:12
Return expected:50%+
Duration:4-6 months.
Traded in:Nse-bse
[Jenson & Nicholson news,views and analysis/multibagger potential/turnaround story/penny stock/real estates and land play/settlement with lenders/good trading play/Downside limited/Can buy it]
Company:-Jenson & Nicholson is engaged in the business of manufacturing and selling of paints for the decorative and industrial applications in India.The company has got a country wide presence with 33 branches and stock points across the country and manufacturing plants at Naihati,Sikandrabad and Panvel.The company over the years has fallen on bad times and ended fiscal 07 with a small turnover of 24crs.The story is that it has got lucrative real estates in form of its panvel factory land which has been closed.The company has further got some land in naihati where its operation has been suspended.If i add up the too the present marketcap of the company would look too little(Though the mangement denied to figure the exact value of the lands)The company has got lots of debts in its book which ARCIL has taken over aggregating to nearly 39% from IDBI, SBI, UBI, BOB and BOI.On words of the management," They are actively involved in the restructuring process and is likely to take over the remaining debts from other Banks and Institutions".Further AAIFR has appointed SBI Capital Markets Ltd. as Consultants to conduct the TEV study and valuation of assets. It is expected that once the process is complete, total restructuring plan made with the help of ARCIL will be submitted before the BIFR for their final approval.
Conclusion:Lots of developments are expected to happen for the company in the coming days.It is because of the rumours the company went on to hit a high of 26rs in these jan itself before nosediving to the present levels.Technically speaking too the company has got very strong support at rs 7.Downside is very limited but on happening of any of these developments the company is set to hit double digits for sure.
Trading range:7-12 is the trading range for the company.One can accumulate the counter and exit partly at that level.
Stock review:-Selan Explorations Technology Ltd
Scripscan:Selan Explorations Technology Ltd
CMP:240
Traded in:Nse-bse
My view:The "Show Stealer"
[Selan Explorations Technology news,views and analysis/Oil exploration company/turning it on/upcoming results/great future prospects/going to do wonders/target price/Hidden gem/Great bet to own]
Industry Structure and Developments:The Government has awarded and signed a number of Production Sharing Contracts with Private Sector Oil Companies for Exploration Blocks under New Exploration Licensing Policy (NELP) and Coal Bed Methane (CBM) Projects.Private Companies and Joint Ventures have contributed significantly in exploitation of existing oil reserves in the country with the striking of huge reserves of oil and gas within the Country. As a result, the domestic crude oil production is continuously improving with significant contributions of crude production from private operators,thus reducing foreign exchange outflow on crude imports.Oil sector today is one of the most prospective sectors where newer growth avenues for business and employment are opening up. India currently produces about 32.19 million tonnes of crude oil annually as against the requirement of 130.11 million tonnes.The balance is imported, making crude oil India's single largest item of import.All these factors make "Selan Exploration" a scrip to be a part of very investors core portfolio.
Why i like it:Selan exploration is set to produce around 130,000 bareels of crude oil from the onshore operating fields of Bakrol,Indrora and Lohar in the current fiscal compared to around 100,000 barrels produced in entire FY07.Further in FY09,Selan is expected to produce over 150,000 barrels of crude oil.Now things entirely changes for the company starting fiscal 09,As against an average price realisation of $ 71 per barrel in FY08, the realisations in FY09 would exceed $ 110-112 per barrel putting FY09 Revenues of Rs 68-70 crores with profits expected to exceed Rs 25crores.
Conclusion:The company recently signed agreements with Indian Oil Corporation to uplift the existing and additional production at the international rates for Crude Oil. The IOC and the State of Gujarat have also agreed to refund the levies on account of Sales Tax and surcharge on Sales Tax.The promoters are raising 30crs alloting themselves 18 lakh shares of Rs 165 each.Promoters in the past have hiked their stake in the company a number of times.Everytimes they does so the company performs bigtime.Selan is expected to clock an EPS of rs 15 in 09.At present prices the valuations looks quite attractive considering the prospects of the oil exploration industry.Seeing the trend of crude ,selan may just avail an increase in per barrel realisations.In case that happens expect the company to post better profits thereby giving more chances of higher capital appreciation.Watch out for the company folks may just become the "Show Stealer".
CMP:240
Traded in:Nse-bse
My view:The "Show Stealer"
[Selan Explorations Technology news,views and analysis/Oil exploration company/turning it on/upcoming results/great future prospects/going to do wonders/target price/Hidden gem/Great bet to own]
Industry Structure and Developments:The Government has awarded and signed a number of Production Sharing Contracts with Private Sector Oil Companies for Exploration Blocks under New Exploration Licensing Policy (NELP) and Coal Bed Methane (CBM) Projects.Private Companies and Joint Ventures have contributed significantly in exploitation of existing oil reserves in the country with the striking of huge reserves of oil and gas within the Country. As a result, the domestic crude oil production is continuously improving with significant contributions of crude production from private operators,thus reducing foreign exchange outflow on crude imports.Oil sector today is one of the most prospective sectors where newer growth avenues for business and employment are opening up. India currently produces about 32.19 million tonnes of crude oil annually as against the requirement of 130.11 million tonnes.The balance is imported, making crude oil India's single largest item of import.All these factors make "Selan Exploration" a scrip to be a part of very investors core portfolio.
Why i like it:Selan exploration is set to produce around 130,000 bareels of crude oil from the onshore operating fields of Bakrol,Indrora and Lohar in the current fiscal compared to around 100,000 barrels produced in entire FY07.Further in FY09,Selan is expected to produce over 150,000 barrels of crude oil.Now things entirely changes for the company starting fiscal 09,As against an average price realisation of $ 71 per barrel in FY08, the realisations in FY09 would exceed $ 110-112 per barrel putting FY09 Revenues of Rs 68-70 crores with profits expected to exceed Rs 25crores.
Conclusion:The company recently signed agreements with Indian Oil Corporation to uplift the existing and additional production at the international rates for Crude Oil. The IOC and the State of Gujarat have also agreed to refund the levies on account of Sales Tax and surcharge on Sales Tax.The promoters are raising 30crs alloting themselves 18 lakh shares of Rs 165 each.Promoters in the past have hiked their stake in the company a number of times.Everytimes they does so the company performs bigtime.Selan is expected to clock an EPS of rs 15 in 09.At present prices the valuations looks quite attractive considering the prospects of the oil exploration industry.Seeing the trend of crude ,selan may just avail an increase in per barrel realisations.In case that happens expect the company to post better profits thereby giving more chances of higher capital appreciation.Watch out for the company folks may just become the "Show Stealer".
Tuesday, May 20, 2008
Interworld Digital Ltd:-The probable multibagger
Scripscan-Interworld Digital Ltd
Code-532072
CMP-2 (FV-1)
Target-5
Duration-12 months.
[Interworld digital news,views and analysis/robust prospect and great story/penny priced stock/multibagger potential/reason for upmove/promoter increasing stake/a great media and entertainment play/a great buy/downside limited upsides huge]
Introduction-Interworld Digital is in the business of development of end-to-end distribution technology and support services for the delivery of digital cinema to theaters worldwide.It provides a complete range of capabilities to serve the emerging digital distribution needs for the motion picture industry based on an open standard that covers all of the stages for taking a movie from a studio master to a theater's digital projection system. This includes compressing, encrypting, and transferring the master onto a deliverable media, delivering the content to the theater-either by physical media or via satellite-for storage scheduling and playback.
Positives of Digital cinema-One of the major revenue-streams for D-Cinema can be in the form of advertisements.It is expensive to copy advertisements to 35mm, and the distribution costs are high. This will limit the market to only large national/international advertisers. By using digital format, it is only necessary to hand in a disc, or down load the content. Distribution can take place centrally from a hub, which will control the running of each individual advertisement for each cinema through a large server, or it can be done by each individual cinema. The reduced cost of distribution, will reduce the advertising costs, and make cinema advertisement more competitive against other media.
Apart from advertising potentially Interworld Digital will enable new revenue opportunities for theater owners by extending their revenue base to include corporate presentations, live events, large-scale training and seminars, and multi-location interactive conferences. But the biggest advantage will come for distribution. Making and distributing copies is a lot easier with digital files than with physical film. Digital copies of a movie save millions by eliminating the cost of creating 100 or 1,000 odd movie prints.
A film print can cost up to Rs 600,00 per print so making 100 prints or for a wide-release movie can cost up to Rs 60 lakh.By distributing them electronically,the cost savings on the distribution to the theater and back alone saves millions of rupees.Apart from this, D-Cinema will be of great benefit to B and C cities where 70% movies are of poor quality (B-grade, C Grade and X movies) or are movies that were released a couple of years back. With D-Cinema, they will able to view A-grade movies simultaneously along with their counterparts in cities.
Negatives-On the downside, the upfront costs for converting theaters to digital are high: up to $150,000. Theatres may be reluctant to switch without a cost-sharing arrangement with distributors.
Prospect-Interworld Digital Ltd is in the market with the first digital movies that will be transmitted to theatres through satellite. In the first phase, Interworld Digital plans to digitise 50 theatres across the country.Movies transported in encoded format, which would have the highest quality of print, would be shown in these theatres. Digitising of movies would render piracy practically impossible for two reasons. One, the quality of the pirated version would be pathetic. And two, a watermark on the theatre screen would show the place and date on which the pirated copy was made.One big gain for producers would be that they would save huge amounts on prints as each print costs about Rs 8000 and they need to make scores of prints to distribute across the country and abroad.
Outlook-As the Indian economy grows and merges further with the global economy, the focus of demand for IT and entertainment services will shift from large deals signed by the large enterprises to increasing number of mid-size and small enterprises signing IT and entertainment services which is expected to be the next phase of growth in the Indian IT and entertainment services market.
Conclusion- Digital technology is already taking over a big chunk of the home entertainment market. Movies might not be able to escape the digital onslaught for long. While digital cinema is yet to take off in a big way in India, it is surely showing prospects of cinema without reels.For viewers, digital projection offers crisp pictures that don't fade or scratch, no matter how many times they are shown. Create the content once and deliver to millions without any generational loss or image degradation.
"Interworld looks to have a bright future ahead.Its quoting at a mere 2rs and upsides can be huge from these level.The promoters too realising the huge potential has been increasing their stakes in the counter.Digital cinema is set to be the next boom for sure and the company having the first mover advantage deserves a better valuation.Interworld basically is following the business model of a Belgium-based company called EVS Belgium.In the US,Dolby Digital is the leader in this industry segment.Being a 2rs counter there is not much to loose but chances are always there that the scrip may just turn out to be the next multibagger."So watch out for it".
Code-532072
CMP-2 (FV-1)
Target-5
Duration-12 months.
[Interworld digital news,views and analysis/robust prospect and great story/penny priced stock/multibagger potential/reason for upmove/promoter increasing stake/a great media and entertainment play/a great buy/downside limited upsides huge]
Introduction-Interworld Digital is in the business of development of end-to-end distribution technology and support services for the delivery of digital cinema to theaters worldwide.It provides a complete range of capabilities to serve the emerging digital distribution needs for the motion picture industry based on an open standard that covers all of the stages for taking a movie from a studio master to a theater's digital projection system. This includes compressing, encrypting, and transferring the master onto a deliverable media, delivering the content to the theater-either by physical media or via satellite-for storage scheduling and playback.
Positives of Digital cinema-One of the major revenue-streams for D-Cinema can be in the form of advertisements.It is expensive to copy advertisements to 35mm, and the distribution costs are high. This will limit the market to only large national/international advertisers. By using digital format, it is only necessary to hand in a disc, or down load the content. Distribution can take place centrally from a hub, which will control the running of each individual advertisement for each cinema through a large server, or it can be done by each individual cinema. The reduced cost of distribution, will reduce the advertising costs, and make cinema advertisement more competitive against other media.
Apart from advertising potentially Interworld Digital will enable new revenue opportunities for theater owners by extending their revenue base to include corporate presentations, live events, large-scale training and seminars, and multi-location interactive conferences. But the biggest advantage will come for distribution. Making and distributing copies is a lot easier with digital files than with physical film. Digital copies of a movie save millions by eliminating the cost of creating 100 or 1,000 odd movie prints.
A film print can cost up to Rs 600,00 per print so making 100 prints or for a wide-release movie can cost up to Rs 60 lakh.By distributing them electronically,the cost savings on the distribution to the theater and back alone saves millions of rupees.Apart from this, D-Cinema will be of great benefit to B and C cities where 70% movies are of poor quality (B-grade, C Grade and X movies) or are movies that were released a couple of years back. With D-Cinema, they will able to view A-grade movies simultaneously along with their counterparts in cities.
Negatives-On the downside, the upfront costs for converting theaters to digital are high: up to $150,000. Theatres may be reluctant to switch without a cost-sharing arrangement with distributors.
Prospect-Interworld Digital Ltd is in the market with the first digital movies that will be transmitted to theatres through satellite. In the first phase, Interworld Digital plans to digitise 50 theatres across the country.Movies transported in encoded format, which would have the highest quality of print, would be shown in these theatres. Digitising of movies would render piracy practically impossible for two reasons. One, the quality of the pirated version would be pathetic. And two, a watermark on the theatre screen would show the place and date on which the pirated copy was made.One big gain for producers would be that they would save huge amounts on prints as each print costs about Rs 8000 and they need to make scores of prints to distribute across the country and abroad.
Outlook-As the Indian economy grows and merges further with the global economy, the focus of demand for IT and entertainment services will shift from large deals signed by the large enterprises to increasing number of mid-size and small enterprises signing IT and entertainment services which is expected to be the next phase of growth in the Indian IT and entertainment services market.
Conclusion- Digital technology is already taking over a big chunk of the home entertainment market. Movies might not be able to escape the digital onslaught for long. While digital cinema is yet to take off in a big way in India, it is surely showing prospects of cinema without reels.For viewers, digital projection offers crisp pictures that don't fade or scratch, no matter how many times they are shown. Create the content once and deliver to millions without any generational loss or image degradation.
"Interworld looks to have a bright future ahead.Its quoting at a mere 2rs and upsides can be huge from these level.The promoters too realising the huge potential has been increasing their stakes in the counter.Digital cinema is set to be the next boom for sure and the company having the first mover advantage deserves a better valuation.Interworld basically is following the business model of a Belgium-based company called EVS Belgium.In the US,Dolby Digital is the leader in this industry segment.Being a 2rs counter there is not much to loose but chances are always there that the scrip may just turn out to be the next multibagger."So watch out for it".
Monday, May 19, 2008
Indian stock market outlook
[Indian stock market outlook/Any chances of falling again/Will it hit new high/Indian stocks valuations attractive/effect of US reccesion,inflation and high crude prices/Fii activity/Support and resistance level of indian stock markets/Liquidity flow/Economic growth/Creating indian mnc/Sectors to outperform/16000-18000 range]
Everytime market trades higer, members have got a query-"Is the same trend going to continue?Will the market make another high?If you people get hold of both the aspects, the cause of the bull run and its duration backed by high confidence and conviction,it would be easier isnt it?While in the long term, the market is driven by factors like economic growth, earnings, valuations etc, in the short term, only two factors work — sentiment and moneyflow or liquidity.
Our country is among the top 10 countries in the world to have a trillion-dollar GDP and m-cap simultaneously.It is the 14th largest country globally in terms of m-cap and 12th largest economy in terms of GDP. It is also the fourth largest market in Asia (after Tokyo, Hong Kong and Shanghai), and India's GDP growth rate is the second-fastest globally. The country's per capita income has risen over 7-8% in the past 2-3 years.
We have heard of global multinational companies and the growth stories of them.Now our entrepreneurs are ready to play the global theme with the mindset of creating Indian MNCs. These easily signifies that India has reached global scale and size. The economy is on its way to becoming an economic super power. There will be some speed bumps along the way, but there won't be any U-turns.As is the case globally, when economies undergo this transformation, the equity asset class creates wealth in the economy and outperforms most asset classes. India will witness the same phenomenon; equities will outperform most asset classes over 3-5 years. From a macro perspective, our country can look a bit expensive, but taking into account the growth profile and possibility of value unlocking from balance sheets, it is bound to remain expensive.The idea is to take exposure in the right sectors and stocks.Mind you guys arun would be always there to guide for the same.
India is the classical bottom-up market, where investors can find hundreds of stocks which can generate huge returns over the longer term. Indian equity investment opportunities can be classified into five macro themes:-
(i)Outsourcing-based opportunities-IT, pharma, auto components
(ii)Domestic consumption/lifestyle-based opportunities-FMCG, retail, entertainment
(iii)Infrastructure spending-based opportunities-power,ports,roads, airports,mining,construction
(iv)Agriculture-based opportunities-irrigation,agri processing
(v)Banking and financial services. Allocation in each of these themes can vary, depending on investor profile and time frame.
Greed- and fear-driven sentiments cause market movements in the short term. What happened in feb/ March '08 reflected fear among market participants.As people realised the overselling of equities the fear started receding, backed by strong corporate earnings and domestic and international inflows.Though the market performed well till now post that period, there is a lot of scepticism.We are slowly coming out of the fear stage and moving towards the buying stage.How long it will last is a function of liquidity in the short term, global markets and news flows. There is still room for some upside from here, before another correction sets in.Macro level concerns like the crude prices,inflation will remain and may create an overhang.At the same time, there's enough appetite for corrections to buy Indian paper.The Sensex may remain in the 16000-18000 range in the next quarter.
Everytime market trades higer, members have got a query-"Is the same trend going to continue?Will the market make another high?If you people get hold of both the aspects, the cause of the bull run and its duration backed by high confidence and conviction,it would be easier isnt it?While in the long term, the market is driven by factors like economic growth, earnings, valuations etc, in the short term, only two factors work — sentiment and moneyflow or liquidity.
Our country is among the top 10 countries in the world to have a trillion-dollar GDP and m-cap simultaneously.It is the 14th largest country globally in terms of m-cap and 12th largest economy in terms of GDP. It is also the fourth largest market in Asia (after Tokyo, Hong Kong and Shanghai), and India's GDP growth rate is the second-fastest globally. The country's per capita income has risen over 7-8% in the past 2-3 years.
We have heard of global multinational companies and the growth stories of them.Now our entrepreneurs are ready to play the global theme with the mindset of creating Indian MNCs. These easily signifies that India has reached global scale and size. The economy is on its way to becoming an economic super power. There will be some speed bumps along the way, but there won't be any U-turns.As is the case globally, when economies undergo this transformation, the equity asset class creates wealth in the economy and outperforms most asset classes. India will witness the same phenomenon; equities will outperform most asset classes over 3-5 years. From a macro perspective, our country can look a bit expensive, but taking into account the growth profile and possibility of value unlocking from balance sheets, it is bound to remain expensive.The idea is to take exposure in the right sectors and stocks.Mind you guys arun would be always there to guide for the same.
India is the classical bottom-up market, where investors can find hundreds of stocks which can generate huge returns over the longer term. Indian equity investment opportunities can be classified into five macro themes:-
(i)Outsourcing-based opportunities-IT, pharma, auto components
(ii)Domestic consumption/lifestyle-based opportunities-FMCG, retail, entertainment
(iii)Infrastructure spending-based opportunities-power,ports,roads, airports,mining,construction
(iv)Agriculture-based opportunities-irrigation,agri processing
(v)Banking and financial services. Allocation in each of these themes can vary, depending on investor profile and time frame.
Greed- and fear-driven sentiments cause market movements in the short term. What happened in feb/ March '08 reflected fear among market participants.As people realised the overselling of equities the fear started receding, backed by strong corporate earnings and domestic and international inflows.Though the market performed well till now post that period, there is a lot of scepticism.We are slowly coming out of the fear stage and moving towards the buying stage.How long it will last is a function of liquidity in the short term, global markets and news flows. There is still room for some upside from here, before another correction sets in.Macro level concerns like the crude prices,inflation will remain and may create an overhang.At the same time, there's enough appetite for corrections to buy Indian paper.The Sensex may remain in the 16000-18000 range in the next quarter.
Bartronics India Ltd:-A monopoly business with huge potential
Scripscan:-Bartronics India Ltd
Cmp:217
Target:343
Return expected:55%
Duration:6-9 months
[Bartronics India news,views and analysis/Prospects/big retail boom beneficary/amazing results/attractive valuation/growing at over 100%/bartronics target price/Monopoly business/1000crs company soon/Great buy/a potential doubler]
Story:Bartronics is a market leader in system integration for barcode solutions and has been in this business for last 17 years.Its a pioneer in introducing Automatic Identification and Data Collection (AIDC) technologies like Barcoding, Radio Frequency Identification Device (RFID) and Smart Card which has manifold application in Manufacturing,Service and Retail Industry.Bartronics has a strong client base, with 60% of its orders from repeat customers.The company provides end-to-end solutions in this space, including pilot testing and software integration.The company has a Monopoly position in the Industry as there are hardly any competitor in RFID and AIDC products.Its recent focus on the emerging domains of RFID and Biometrics is likely to augur well.At the present price of 217rs its just quoting at a PE multiple of 7 times its expected fy10 earnings.Bartronics is India's first and only Smart Card manufacturer as of now, having 100% EOU status from Govt. Of India.Giving a PE multiple of even 11 takes the target price to 343rs.The management has confirmed talks with some european companies for acquistion the same hasnt been taken into consideration for the target price.On outcome of any acquistion the story may just anvil much more.Considering all the developments and looking at the huge potential of the retail industry the company is set to go places.A must have in anyones core portfolio.
Cmp:217
Target:343
Return expected:55%
Duration:6-9 months
[Bartronics India news,views and analysis/Prospects/big retail boom beneficary/amazing results/attractive valuation/growing at over 100%/bartronics target price/Monopoly business/1000crs company soon/Great buy/a potential doubler]
Story:Bartronics is a market leader in system integration for barcode solutions and has been in this business for last 17 years.Its a pioneer in introducing Automatic Identification and Data Collection (AIDC) technologies like Barcoding, Radio Frequency Identification Device (RFID) and Smart Card which has manifold application in Manufacturing,Service and Retail Industry.Bartronics has a strong client base, with 60% of its orders from repeat customers.The company provides end-to-end solutions in this space, including pilot testing and software integration.The company has a Monopoly position in the Industry as there are hardly any competitor in RFID and AIDC products.Its recent focus on the emerging domains of RFID and Biometrics is likely to augur well.At the present price of 217rs its just quoting at a PE multiple of 7 times its expected fy10 earnings.Bartronics is India's first and only Smart Card manufacturer as of now, having 100% EOU status from Govt. Of India.Giving a PE multiple of even 11 takes the target price to 343rs.The management has confirmed talks with some european companies for acquistion the same hasnt been taken into consideration for the target price.On outcome of any acquistion the story may just anvil much more.Considering all the developments and looking at the huge potential of the retail industry the company is set to go places.A must have in anyones core portfolio.
Saturday, May 17, 2008
TRF:-A tata group undervalued engineering hidden gem
Scripscan-TRF Ltd
bse code:505854
Cmp-1000
Target-1500
Duration-9 months
Traded in-BSE
[Tata group company/robust prospects/emerging blue chip/undervalued star/trf news/trf analysis/trf future outlook/results]
Introduction:TRF manufactures bulk material handling and processing equipment,bulk
material handling systems coke oven equipment,coal dust injection systems for blast furnaces,coal beneficiation systems and port and yard equipment.It caters to diverse industries from power, metallurgy, chemical, mining and cement segments.TRF operates through four divisions-bulk material handling equipment,BMH systems, port & yard equipment and the EPC division.
Would like to put some points for my bulishness in the scrip:-
1)All the industries that TRF services— power, steel, ports, cement, mines, chemical,fertilisers,and construction —have chalked out huge investment plans.This will directly benefit TRF.Corporate India has already announced hugecapital expenditure for the next 4-5 years
2)As per estimates,Rs 22k crore and Rs 262k crore are to be invested in the power and steel sectors between 2006 and 2015. Of this, Rs 42500 crore will beinvested in material-handling activities in this period.This presents huge potential for TRF, which caters to such industries.Coal and ports are also likely to provide anadditional Rs 5k-crore business to material handling companies over 2006-15.
3)TRF now gets its clients to purchase steel,unlike earlier days when the company procured the raw material.This saves it from the vagaries of volatile steel prices and provides more predictable margin.
4)Tisco's acquisition of Corus opens up new global opportunities for
the company.
5)TRF has chosen SAP as the E.R.P.package,implementation of which is in progress.With the Company going live on SAP,the effectiveness of its key business processes sholud improve further,helping it to retain competitiveness.
6)Trf in its quest for new opportunities to expand its business has signed an agreement with Messrs.KocksKrane,Germany,for supplying Shipyard Cranes and Container Cranes.
Conclusion:In FY09 TRF is expectd to register EPS of Rs 80.At cmp of 1000 itsquoting at a P.E OF 12.5X its 09 estimated earnings.Considering the pedigree quality and the buoyant outlook,a great buy.
bse code:505854
Cmp-1000
Target-1500
Duration-9 months
Traded in-BSE
[Tata group company/robust prospects/emerging blue chip/undervalued star/trf news/trf analysis/trf future outlook/results]
Introduction:TRF manufactures bulk material handling and processing equipment,bulk
material handling systems coke oven equipment,coal dust injection systems for blast furnaces,coal beneficiation systems and port and yard equipment.It caters to diverse industries from power, metallurgy, chemical, mining and cement segments.TRF operates through four divisions-bulk material handling equipment,BMH systems, port & yard equipment and the EPC division.
Would like to put some points for my bulishness in the scrip:-
1)All the industries that TRF services— power, steel, ports, cement, mines, chemical,fertilisers,and construction —have chalked out huge investment plans.This will directly benefit TRF.Corporate India has already announced hugecapital expenditure for the next 4-5 years
2)As per estimates,Rs 22k crore and Rs 262k crore are to be invested in the power and steel sectors between 2006 and 2015. Of this, Rs 42500 crore will beinvested in material-handling activities in this period.This presents huge potential for TRF, which caters to such industries.Coal and ports are also likely to provide anadditional Rs 5k-crore business to material handling companies over 2006-15.
3)TRF now gets its clients to purchase steel,unlike earlier days when the company procured the raw material.This saves it from the vagaries of volatile steel prices and provides more predictable margin.
4)Tisco's acquisition of Corus opens up new global opportunities for
the company.
5)TRF has chosen SAP as the E.R.P.package,implementation of which is in progress.With the Company going live on SAP,the effectiveness of its key business processes sholud improve further,helping it to retain competitiveness.
6)Trf in its quest for new opportunities to expand its business has signed an agreement with Messrs.KocksKrane,Germany,for supplying Shipyard Cranes and Container Cranes.
Conclusion:In FY09 TRF is expectd to register EPS of Rs 80.At cmp of 1000 itsquoting at a P.E OF 12.5X its 09 estimated earnings.Considering the pedigree quality and the buoyant outlook,a great buy.
Delton cables:-A power ancilary play with lot of real estates
Have suggested the company several times at several rates.At 90rs it looks a great bargain.
Scripscan:Delton Cables Ltd
Code:504240
Cmp:90
[Delton cables news/analysis/prospects/land story/huge potential/power ancilary play/hidden gem/good bet to own]
Introduction: This Delhi based company is one the earliest entrant in power cable business. Although company has been growing only steadily despite industry growing tremendously and competitors also grew much bigger. Its financial performance has been reasonable:
Expansion:The company has set up a new Division for the manufacture of Switchgears at Noida.This will enhance the value of the brand 'Delton' and add to the turnover and profitability of the company.It also plans to expand in the segment of power cables and RF cables.
On its core business, scrip is reasonably priced. However, company is sitting on massive surplus assets which, as and well, utilized/sold will unlock huge value for its shareholders
Land play:In Dharuhera, Haryana (Near Hero Honda factory), its plant is situated on approx 12 acre land. At this place, company has surplus land approx 48-52 crs. Prevailing land rates here are 9-10 cr per acre. Thus, market value of this surplus land should be nearly Rs 450-500 crs.It has another factory situated in Faridabad over 2 acre plot. This is prime location and going rates are approx 30 cr per acre.Although, at present, factory is running here. However, looking at huge land value, in future promoters may decide to relocate this factory which can fetch more than 60 cr cash to the company.
No of shares are just 28,80,000 and value of surplus land works out to Rs 1800-1900 per share as against CMP of Rs 90. Floating stock is low due to high promoter holding. Company has also got some land in delhi.
Conclusion:In future, some big builders are bound to offer highly attractive valuations for company's surplus land which promoters may find difficult to refuse.Also its a cashrich company with reserves to the tune of 16.5crs.Even a liberal bonus can be there on the offing.Delton cable is one of the scrips which is qoting at a significant discount to its land value.Even if we give the counter 1/4th of the total land value the price comes at 450rs.Again like my other scrips i give the counter to you members to value it on your own ways.
Scripscan:Delton Cables Ltd
Code:504240
Cmp:90
[Delton cables news/analysis/prospects/land story/huge potential/power ancilary play/hidden gem/good bet to own]
Introduction: This Delhi based company is one the earliest entrant in power cable business. Although company has been growing only steadily despite industry growing tremendously and competitors also grew much bigger. Its financial performance has been reasonable:
Expansion:The company has set up a new Division for the manufacture of Switchgears at Noida.This will enhance the value of the brand 'Delton' and add to the turnover and profitability of the company.It also plans to expand in the segment of power cables and RF cables.
On its core business, scrip is reasonably priced. However, company is sitting on massive surplus assets which, as and well, utilized/sold will unlock huge value for its shareholders
Land play:In Dharuhera, Haryana (Near Hero Honda factory), its plant is situated on approx 12 acre land. At this place, company has surplus land approx 48-52 crs. Prevailing land rates here are 9-10 cr per acre. Thus, market value of this surplus land should be nearly Rs 450-500 crs.It has another factory situated in Faridabad over 2 acre plot. This is prime location and going rates are approx 30 cr per acre.Although, at present, factory is running here. However, looking at huge land value, in future promoters may decide to relocate this factory which can fetch more than 60 cr cash to the company.
No of shares are just 28,80,000 and value of surplus land works out to Rs 1800-1900 per share as against CMP of Rs 90. Floating stock is low due to high promoter holding. Company has also got some land in delhi.
Conclusion:In future, some big builders are bound to offer highly attractive valuations for company's surplus land which promoters may find difficult to refuse.Also its a cashrich company with reserves to the tune of 16.5crs.Even a liberal bonus can be there on the offing.Delton cable is one of the scrips which is qoting at a significant discount to its land value.Even if we give the counter 1/4th of the total land value the price comes at 450rs.Again like my other scrips i give the counter to you members to value it on your own ways.
Crazy Infotech:Another dubious company attracting abnormal valuations
Scripscan:Crazy Infotech
Cmp:8
View:Stay away from it
[Crazy infotech news/analysis/penny stock/dubious management/avoid and exit asap]
Being an ardent newspaper reader i regularly follow the business ones and recently a company which am gonna discuss, has become a known name in charting the biggest mover/biggest losser aspect of a renowned english daily.The company called "Crazy Infotech" made everyone crazy by moving from 4rs to 27rs within an year before nosediving to a mere 2rs only to recover and quote around 8rs today.
I am just trying to makeout the type of company that people are dealing within the stock markets.
The company claims to be a proactive organization based in Chennai, specializing in customized software development, web development & website design with interactive flash & multimedia animation, system integration, networking solutions, corporate training, web promotion and consultancy services.
I am going to open the website of crazy info now.Done and surprise surprise,the company ridiclues and humiliates each and every IT solution provider by proclaiming itself to be the 'most mature “Total IT Solutions” company in India'.I mean the company had no business till march 06 it was always in losses and look at the comment they are making.
The company acquired a firm named Aanjaay Software Limited based at Chennai in the year 2006 for 3cr rs.I glanced through the management team and found out 2-3 directors of crazy info as the owners of that aanjay software.Its anyones guess that aanjay proved to be a failure and therefore to meet both ends the company acquired it.So at one end the company to get stronger acquired a "growing company with rich credentials" and at the other end aanjay software-the failure rather than getting ruined became a part of the company.The equity more than doubled to 5.89crs due to the acquistion as the company made a preferential allotment to the owners of aanjay softwares.So who are the owners guys?
The company splitted its shares to FV 1 in view of increasing the liquidity of the company.I have got no words to express my gratitude towards the promoters.Comeon guys,why not?the only way thats there is to lure investors by having the worth to a single digit with heightened price activity.Everybody knows simple gullible investors have got a great votary towards the penny stocks.No matter what the business are the fraternity would always get swayed away chasing these stocks.
Pathetic balance sheets,Dubious management,Sun-setting business model,nothing commandable at all to speak of, defines the company perfectly.Mind you folks it has got nearly a marketcap of 50crs.So will you buy such a horrendous company attracting a mind boggling valuation?
Cmp:8
View:Stay away from it
[Crazy infotech news/analysis/penny stock/dubious management/avoid and exit asap]
Being an ardent newspaper reader i regularly follow the business ones and recently a company which am gonna discuss, has become a known name in charting the biggest mover/biggest losser aspect of a renowned english daily.The company called "Crazy Infotech" made everyone crazy by moving from 4rs to 27rs within an year before nosediving to a mere 2rs only to recover and quote around 8rs today.
I am just trying to makeout the type of company that people are dealing within the stock markets.
The company claims to be a proactive organization based in Chennai, specializing in customized software development, web development & website design with interactive flash & multimedia animation, system integration, networking solutions, corporate training, web promotion and consultancy services.
I am going to open the website of crazy info now.Done and surprise surprise,the company ridiclues and humiliates each and every IT solution provider by proclaiming itself to be the 'most mature “Total IT Solutions” company in India'.I mean the company had no business till march 06 it was always in losses and look at the comment they are making.
The company acquired a firm named Aanjaay Software Limited based at Chennai in the year 2006 for 3cr rs.I glanced through the management team and found out 2-3 directors of crazy info as the owners of that aanjay software.Its anyones guess that aanjay proved to be a failure and therefore to meet both ends the company acquired it.So at one end the company to get stronger acquired a "growing company with rich credentials" and at the other end aanjay software-the failure rather than getting ruined became a part of the company.The equity more than doubled to 5.89crs due to the acquistion as the company made a preferential allotment to the owners of aanjay softwares.So who are the owners guys?
The company splitted its shares to FV 1 in view of increasing the liquidity of the company.I have got no words to express my gratitude towards the promoters.Comeon guys,why not?the only way thats there is to lure investors by having the worth to a single digit with heightened price activity.Everybody knows simple gullible investors have got a great votary towards the penny stocks.No matter what the business are the fraternity would always get swayed away chasing these stocks.
Pathetic balance sheets,Dubious management,Sun-setting business model,nothing commandable at all to speak of, defines the company perfectly.Mind you folks it has got nearly a marketcap of 50crs.So will you buy such a horrendous company attracting a mind boggling valuation?
Wednesday, May 14, 2008
Bellary Steels & Alloys:-Fraud/bakwas/cheater company
Now a days one stock which has kept me busy reverting to people query is none other than "Bellary Steels".I have been told to have a close look on the counter as its scripting a new scripture for itself.So let me procced on:-
Scripscan:-Bellary Steels & Alloys Ltd
Cmp:5-6rs
My view:-Fraud dubious company
Year 2000-2001:-Several financial institutions on hopes of recovering their dues and to find out the unscrupulous activity of the company ordered a special investigative audit through a banglaore based firm which vindicated several inherent problems of the company like misuse of funds,horrendous financial condition etc.The investigation showed that without the permission and awarence of the board members bellary steel transfered funds to set of its own associate companies.Further the company wrote off debts,transfered goods from one company to other at a loss etc.
Year 2003-2004:-On september 2003 the Securities and Exchange Board of India and the stock exchanges decided to shift bellary steels and several scrips to the trade-to-trade (T-to-T) segment as a surveillance measure.Not withstanding the same bellary steel filed a case agaist the formers mentioning that the company has got listing agreement with BSE, which is a contract that binds the exchange into listing the shares in a particular segment and that it cannot unilaterally make a change.I havent heard much about the case after that its still pending i assume.
Year 2004-05:-Economy is in upswing and the steel rally begins.From fiscal 04 to begining of 07 all companies except bellary steel had doubled,tripled,quadruppled and so on.Some even became 15-20 baggers.From sick BIFR companies those companies except "Bellary" became financially sound dividend paying companies.I can mention atleast 20-25 such companies.But bellaries fortunes never changed infact it got surmounted with more losses.
Year 2005-06:-SEBI in an interim order directs Bellary Steel & Alloys Ltd and its directors not to issue any further shares or alter its share capital till further directions.The company and its directors have been prohibited from accessing the capital market or dealing in securities, directly or indirectly.The SEBI order follows a complaint filed by KSFC against Bellary for its failure to redeem Rs 1.5 crore NCDs that it had subscribed in 1996.The story is big but in a nutsheel i can only say "Mr S. Madhav" the Chairman and Managing Director of Bellary Steel is the guy behind all these scams with his malfide intention of cheating each and everyone.Mind you the guy is still the MD of the company.
Year 2007-2008:-The scrip gets an unprecedented rally and becomes a 15 bagger moves from 1 to 15 in just a matter of just 8 months.The reason which supported the spurt is said to be the company having "huge real estates(mortgages with FIs),takeover buzz by JSW steel(promoter luring of simple gullible investors),Turnaround story(Absurd company never posted any profits)blah blah.
April 2008:-Market regulator SEBI bans Bellary Steels along with 3 other entities and their directors from accessing capital markets for five years in a case involving issuance of duplicate shares.SEBI also directs Bellary Steels to cancel the duplicate shares lying in the demat account of Panchloha Hotel and take "appropriate steps.. to recognise the valid shares pledged with the KSFC) in the books of the company/STA (share transfer agent)/depositories".SEBI passed the order after investigating a complaint by KSFC inJan 2006 that Bellary Steel has issued duplicate shares with the same distinctive numbers "with the malafide intention to cheat KSFC".
Conclusion:Have i said it all or still you folks thinks it to be the next multibagger?I wonder how still it can quote at 5-6rs.OOps sorry sorry.. i forgot about you guys and your investments in bellary steel.Many of you are still averaging for sure...isnt it?A fraud loss making company,a cheater promter who still is on board and holds the highest number of shares,its such a company which just exists on papers and on your demat accounts.
Still you feel it to be the next multibagger?
Scripscan:-Bellary Steels & Alloys Ltd
Cmp:5-6rs
My view:-Fraud dubious company
Year 2000-2001:-Several financial institutions on hopes of recovering their dues and to find out the unscrupulous activity of the company ordered a special investigative audit through a banglaore based firm which vindicated several inherent problems of the company like misuse of funds,horrendous financial condition etc.The investigation showed that without the permission and awarence of the board members bellary steel transfered funds to set of its own associate companies.Further the company wrote off debts,transfered goods from one company to other at a loss etc.
Year 2003-2004:-On september 2003 the Securities and Exchange Board of India and the stock exchanges decided to shift bellary steels and several scrips to the trade-to-trade (T-to-T) segment as a surveillance measure.Not withstanding the same bellary steel filed a case agaist the formers mentioning that the company has got listing agreement with BSE, which is a contract that binds the exchange into listing the shares in a particular segment and that it cannot unilaterally make a change.I havent heard much about the case after that its still pending i assume.
Year 2004-05:-Economy is in upswing and the steel rally begins.From fiscal 04 to begining of 07 all companies except bellary steel had doubled,tripled,quadruppled and so on.Some even became 15-20 baggers.From sick BIFR companies those companies except "Bellary" became financially sound dividend paying companies.I can mention atleast 20-25 such companies.But bellaries fortunes never changed infact it got surmounted with more losses.
Year 2005-06:-SEBI in an interim order directs Bellary Steel & Alloys Ltd and its directors not to issue any further shares or alter its share capital till further directions.The company and its directors have been prohibited from accessing the capital market or dealing in securities, directly or indirectly.The SEBI order follows a complaint filed by KSFC against Bellary for its failure to redeem Rs 1.5 crore NCDs that it had subscribed in 1996.The story is big but in a nutsheel i can only say "Mr S. Madhav" the Chairman and Managing Director of Bellary Steel is the guy behind all these scams with his malfide intention of cheating each and everyone.Mind you the guy is still the MD of the company.
Year 2007-2008:-The scrip gets an unprecedented rally and becomes a 15 bagger moves from 1 to 15 in just a matter of just 8 months.The reason which supported the spurt is said to be the company having "huge real estates(mortgages with FIs),takeover buzz by JSW steel(promoter luring of simple gullible investors),Turnaround story(Absurd company never posted any profits)blah blah.
April 2008:-Market regulator SEBI bans Bellary Steels along with 3 other entities and their directors from accessing capital markets for five years in a case involving issuance of duplicate shares.SEBI also directs Bellary Steels to cancel the duplicate shares lying in the demat account of Panchloha Hotel and take "appropriate steps.. to recognise the valid shares pledged with the KSFC) in the books of the company/STA (share transfer agent)/depositories".SEBI passed the order after investigating a complaint by KSFC inJan 2006 that Bellary Steel has issued duplicate shares with the same distinctive numbers "with the malafide intention to cheat KSFC".
Conclusion:Have i said it all or still you folks thinks it to be the next multibagger?I wonder how still it can quote at 5-6rs.OOps sorry sorry.. i forgot about you guys and your investments in bellary steel.Many of you are still averaging for sure...isnt it?A fraud loss making company,a cheater promter who still is on board and holds the highest number of shares,its such a company which just exists on papers and on your demat accounts.
Still you feel it to be the next multibagger?
Monday, May 12, 2008
GV Films :-Worst bet in the sunrising media sector
GV Films news,future prospects,analysis,Growth potential,Dubious management.
Scripscan:GV Films
Code:523277
Cmp:6rs
Target:2rs
Duration:9-12 months
Story:-I am tired of suggesting exit in the counter.Let me summarize my reasons.
1)Every single quarter the promters lures the common people with fake promises and they exits.Its been such now that they have got only 2% odd stake in their own company.Would you buy such a company where the promoters exits before yourself?Also having higher stake means the higher the scrip goes the richer the promoters would be but they are well aware that its not gonna happen.So lets opt for the safest route and exit completly from the company.The promoters would always get the salary no matter it makes profits or losses.
2)Its engaged in the business of Production & Distribution of films.One of the riskiest business models.In simple logic if 2 hits are suceeded by a flop then still its gonna succumb to losses.
3)Now its demerging its entities.The equity shareholders of GV Films have recently approved the scheme of arrangement between the company, GV Studio City and GV New Media Technologies.Its only in 2007 that the sales increased and chow lets do demerger but demerging for?God knows,Dont say unlocking value.lolz.
4)It has got a equity cap of 350crs.For delivering an EPS of re 1 it needs to deliver 35crs profits.Absurd stufff looking at the present condition.
5)The name "GV" stands for Mr G. Venkateshwaran,who hanged himself 5 years ago.He hanged bacause maybe "he cudnt manage the business at all",he was a legend in his field, but?you make out folks,wht i mean to say.
6)Its gathering all rights of english and hindi films and incresing its library size.Whats gonna do?take fees of re 1 from people and show them the films?
7)The company has esentially three business divisions wherein risks are huge. Further their scale of investment,gestation period are lots.There are so many better bets from sunrising sectors then why to get headache because of it?
8)6rs may look cheap but buying nothing for a marketcap of 215crs is horrendously expensive.Grow up guys.
Scripscan:GV Films
Code:523277
Cmp:6rs
Target:2rs
Duration:9-12 months
Story:-I am tired of suggesting exit in the counter.Let me summarize my reasons.
1)Every single quarter the promters lures the common people with fake promises and they exits.Its been such now that they have got only 2% odd stake in their own company.Would you buy such a company where the promoters exits before yourself?Also having higher stake means the higher the scrip goes the richer the promoters would be but they are well aware that its not gonna happen.So lets opt for the safest route and exit completly from the company.The promoters would always get the salary no matter it makes profits or losses.
2)Its engaged in the business of Production & Distribution of films.One of the riskiest business models.In simple logic if 2 hits are suceeded by a flop then still its gonna succumb to losses.
3)Now its demerging its entities.The equity shareholders of GV Films have recently approved the scheme of arrangement between the company, GV Studio City and GV New Media Technologies.Its only in 2007 that the sales increased and chow lets do demerger but demerging for?God knows,Dont say unlocking value.lolz.
4)It has got a equity cap of 350crs.For delivering an EPS of re 1 it needs to deliver 35crs profits.Absurd stufff looking at the present condition.
5)The name "GV" stands for Mr G. Venkateshwaran,who hanged himself 5 years ago.He hanged bacause maybe "he cudnt manage the business at all",he was a legend in his field, but?you make out folks,wht i mean to say.
6)Its gathering all rights of english and hindi films and incresing its library size.Whats gonna do?take fees of re 1 from people and show them the films?
7)The company has esentially three business divisions wherein risks are huge. Further their scale of investment,gestation period are lots.There are so many better bets from sunrising sectors then why to get headache because of it?
8)6rs may look cheap but buying nothing for a marketcap of 215crs is horrendously expensive.Grow up guys.
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