Sensex
|
I guess market has done very hard work for the day and will rest from hereon. 2.5% move…….. And that too across resistances.
Hold on to the bull……………
Abe
The signals are yet missing as of y’day
Wait
Abe
From:
Sent: Wednesday, December 23, 2009 9:14 AM
To:
Subject: [sharetrading] PIPAVAV SHIPYARD
| Dear Abe, Pipavav Shipyar looks good at current level for the 20% hike in next quarter. can you tell me whether its advisable to invest or not? |
The INTERNET now has a personality. YOURS! See your Yahoo! Homepage.
We told you that we expect the Spot nifty to Touch 5110.. It is near our Target.. Regards, Money Creation Group. --- On Thu, 17/12/09, Stock Winner <moneycreation@
|
5000 Call at 35 Zoomed to 106.... Money Just Tripled in Single Trade Join us for Exact Levels Regards, Money Creation Group. --- On Wed, 23/12/09, Stock Winner <moneycreation@
|
We Gave a Buy call on Nifty at 4945 now trading at 5041.. Almost100 points gain in one single Trade.. Pls book profit at around 5050.. Also we gave a BUY Call of 5000 Call at 35 to our paid members now Trading at 69.. Almost 100% profit also in one single Trade Join us for Exact Levels Regards, Money Creation Group. --- On Mon, 21/12/09, Stock Winner <moneycreation@
|
Dear Abe, Pipavav Shipyar looks good at current level for the 20% hike in next quarter. can you tell me whether its advisable to invest or not? Regards, VBHN Advisory |
--
Plan Your Work and Work Your Plan to Get Ahead in 2009-2012... ..
--
Bull Markets are Born on Pessimism,
Bull Markets Grow on Skepticism,
They Mature on Optimism, and
Die on Euphoria - Sir John Templeton
------------ --------- --------- ------
Bear Markets are Born on Recessionism,
Snowball on Momentum & Technical-Breakdown s,
Mature on Eco-Political- Nightmare Talks, and
Die on World-Is-Coming- To-An-End Euphoria - KKP
------------ --------- --------- --------- --------
>BUFFET: My rule is to be fearful when others are greedy,and be greedy when
others are fearful. All day you wait for the pitch you like, then when
the fielders are asleep, you step up and hit it. Stay dispassionate and
be patient. First the crowd is boozy on optimism and buying every new
issue in sight. The next moment it is boozy on pessimism, buying gold
bars and predicting another Great Depression. Most people get interested
in stocks when everyone else is jumping in. The time to get interested
is when no one else is interested. You can't buy what is popular and
expect to do well.
ABOVE ALL: Whatever God Does, Accept that as Good; Leave Behind ALL Other Judgements/Justific ations.
------------ --------- --------- --------- --------- --------- --------- --------- --------- --------- -------
Disclaimer> Do you homework for your ownself and then invest. My ideas are not advice.
Attachment(s) from Ganesh Iyer
3 of 3 Photo(s)
Indian Stocks BSE |
| Posted: 22 Dec 2009 08:42 AM PST Free Intraday Cash Tips from Tipz.in for 23rd December 09 523537  ( APM INDUS. )
( NATIONAL FER)
( BHARAT PET. )
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| Posted: 22 Dec 2009 08:41 AM PST |
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Tyre Sector
Pricing discipline - The differentiator
We expect a re-rating of the tyre sector over the next few quarters, as concerns on the earnings front are put to rest. The current valuations of tyre companies indicate expectations of a sharp earnings decline (atleast 40%) in FY11E due to concerns on rising raw material prices (rubber prices only 7% below its previous peak) and capacity additions (affecting pricing power). The markets seem to be factoring in a repeat of the FY03-05 period, where profitability was significantly affected due to the above factors. EBIDTA margins declined by 410 bps to 6% and net profits declined by a CAGR of 22% during FY03-05.
While we share concerns on the rising raw material prices, we believe that pricing discipline will be the biggest differentiator. The industry has shown good pricing discipline since FY06. It should be noted that during FY06-FY08, the EBIDTA margins expanded by 500 bps to 11% and net profits increased at a 77% CAGR. This was despite a sharper increase (1.1x) in the rubber and oil prices during FY06-FY08 vis- -vis FY03-FY05. Even in FY09, when there was a drop in volumes, (resulting in lower capacity utilization) , pricing witnessed an uptrend.
We do not expect the ambitious capex plans during FY09-FY13 (gross block to increase by ~58%) to adversely impact tyre pricing as the expansion is more of a necessity than an option.. Capacity addition during FY09-FY13 is mirroring long term growth trends. More importantly, capacity additions will happen in a phased manner and can be curtailed if the situation so warrants.
We consider 1HFY10 profitability as abnormal and hence, are factoring in a drop in earnings of 15% to 25% for domestic business in FY11. Barring a further spike in rubber prices, we believe that earnings would surprise positively.
While all the tyre companies will benefit from pricing discipline, we expect Apollo Tyres (ATL) and JK Tyre (JKT) to outperform as the contribution from their recent international acquisitions become more visible in FY11 and FY12. We are initiating coverage on ATL (BUY) and JKT (BUY). We like ATL for its thirst for market leadership with a clear focus on profitability. We like JKT purely from a valuation view.
Reco
Company
CMP (Rs)*
TP (Rs
BUY
Apollo Tyres Ltd.
49
60
BUY
JK Tyre & Industries Ltd.
150
192
* CMP as on 14th Dec-2009
