1. Rajesh Exports to mop up $1 billion - Indian express
2. SATYAM RESULTS JUST A FORTNIGHT AWAY
3. POWER GRID CORP PLANS RS 15 000 Cr CAPEX
ANY VIEWS / REPORTS ?
PLS DO SHARE
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Sensex
|
Monday, June 07, 2010
[Ways-2gain] ANY REPORTS
2. SATYAM RESULTS JUST A FORTNIGHT AWAY
3. POWER GRID CORP PLANS RS 15 000 Cr CAPEX
ANY VIEWS / REPORTS ?
PLS DO SHARE
[indianstockmarket] Lehman Crisis: Lessons to Learn - Excellent Read!!!!!!!!!!
Excellent read! It's an interesting article by Yogesh Chhabria. LATELY, I have been thinking a lot about the Lehman crisis. Spending money that they didn't have and going beyond their means is one of the main reasons for their situation today. In fact, that is the cause for the current economic crisis in the US. When I see this entire happening, I can only remember the good old days. Then, borrowing was bad. People looked down upon those who took loans. Parents would not give their daughter's hand in marriage to a man with loans. But of course, the times have changed now. Everyone I know has a loan. The buzzword is EMI (equated monthly installment) . Today, you can buy everything on EMI - a house, a television, an i-Pod. In fact I know of someone who just bought a fancy BMW 3 series on EMI, instead of buying a cheaper car outright with cash. I mostly prefer to take public transport, but then I am an old man with old thoughts! Anyway, coming back to what caused the crisis. Imagine having Rs 200,000 in your bank account, no regular income, yet buying a house worth Rs 6,500,000, in the hope of selling it for a higher price. Even if the price of the house fell by just 5 per cent (that is Rs 300,000), you will go bankrupt. This is what Lehman Brothers did; with around USD 20 billion they went and bought assets worth over USD 600 billion. Isn't it suicidal and simply foolish? I am sure things would have been different, had I been the head of Lehman brothers. But who wants an old conservative man like me to head a complex financial institution. But there are a few lessons that we can learn: 1.Live a balanced life and avoid overspending. 2.Don't buy things we don't need. 3.Don't buy Branded good's. 4.Don't buy excess Food, Cloths, Cosmetics, Footwear, Electronics and Fashion accessories. Just think before you buy. Tip: World still has a lot of growth ahead and the future holds immense opportunities for us. Let us make the most of it and save and invest it wisely instead of wasting our precious little on things we don't need. 5.Try to balance life with work (No one is happy to work in their professions) . 6. Don't stress out your self. After work try to do some extra activities like swimming, yoga, walking, running where you can divert your mind from stress. A thumb rule: Health is more important than money. 7.Try to understand each other (Wife and Husband) in financial matter's and help each other. Tip: As soon as you get your monthly salary, set aside a fixed amount, usually 35 per cent, for insurance, savings and investments. You can then spend the rest. 8. Not all loans are bad. Loans that are 'need based' (home loans, education loans) can always find a place in your finances against those that are largely 'want based' (Credit cards, personal loans, car loans). 9. Borrow only if repayment is financially comfortable. A thumb rule: Keep EMIs within 35 to 45 per cent of your monthly income In that respect, there is one American who I really respect - WARREN BUFFET. He has lived in the same ordinary house for over three decades, drives his own medium sized car and leads an extremely regular 'middle class' life. If that's all it takes for the richest person on earth to be happy, why do all of us need to take extra stress just so that we can get things which aren't even essential? |
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[indianstockmarket] Please beware of copy cats and so called analysts
Hell Everyone, We have seen that there are many copy cats or jokers who have started forwarding our reccomended calls to innocent retail investors. Please do not follow such so called analyst, they are jokers. For example now all of a sudden everyone started giving arman as potential multibagger. Arman - Potential Multibagger? Please donot go by comments. We have already said its fairly priced now. But yes speculation is high and its an operator based calls which can move to 35-40 atleast and may even cross 50. Same was with other microfinance bets like S.E investment and capita trust. Also the list is long like Tulsan NEC, parekh aluminex, hanung toys, precision wires, camson biotech, Insecticides, kavveri tele, spanco etc. How can you identify the jokers and the real analyst (His own research). 1) The analyst or the research house must have been tracking stock price movement for atleast few weeks before reccomendaion. So he must able to anwer all your queries and regarding future projection and price movements. 2) He can easily give future projections of stock price movement. For example we gave exact levels where one may buy the stock. a) In precision wires we gave 92-93 as best entry point. The level never came and the stock moved to 110. then we indicated clients to have patioence and it will soon fall to 92-93. Finally it fall to 92-93 where we grabbeed the same and then it rallied to 114-115 yesterday. ame level was also given buy us last week itself. b) Buying level for RCOM as 132-133 where given in jan'10 itself. One may verify the same with any of our paid clients. c) Levels for Oil india, 1350 as profit booking level, given at the time of reccomendation. We bought near 1120. Please note that a copy cat must not be knowing details about the stock. He even never know what's the business of the company which he telling to buy. He hav never seen the balance sheet, annual report, talked with management, even never look whether its a loss making company. When we reccomenda stocks we generally donot reccomend stock at c.m.p . We give exact levels where the stock may fall which may be rock bottom and best for accumulation. we gave exact bottom for HDILas 193 and then updated clients that its maynot fall to 193 once and may bounce from 205. Now, there is a Inverted Head & Shoulder formation in Nifty anf sensex. If 4875-4925 not broken on downside we may see 5400-5525 in Nifty by july. Just wait and watch. Every second technical analyst and so called copy cats will start discussing about the formation. "Jago Graha Jago". Use your brain and be with the best advisor to make money i n stock market. When a new client enquires, we always say join Midcapmannia first rather than joining all platforms or combo's. We clealry said in Midcapmannai you will get the best accuracy. Its the safest and most trustable platform as you get daily follow up on all reccomended stocks. If suppose you want to buy a stock, or anyone who reccomend stock must say that buy the stock at these levels, and book out some at xxx. But he just say its a buy for every call and never gives follow up or give exact profit booking levels or any followup means he is not an advisor he is just a copy cat forwarding others paid calls. |
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Disclaimer:Stock Market trading is risky and this email does not warrant or make any representations regarding the use or the results of the materials posted on this group or other sources in terms of their correctness, accuracy, reliability, profit, or otherwise. This group does not guarantee the accuracy or completeness of any information and is not responsible for any omissions.
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[sharetrading] Nifty ID
Keep raising SL to near lows… FUT 5030 for now..
Abe
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Please use your discretion before acting on the ideas expressed in the group.
Happy Trading,
United we grow!!!
Happy Trading,
United we grow!!!
MARKETPLACE
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[sharetrading] ABAN
If aban does not breach 668.5, then it would form a rock solid support, if next 2 days it stays above it. That is if markets do not crash……………..
Buy signal is still far away (870)… It could take another 2 weeks before some strength begins to show. But GOM tragedy, is bound to increase the rig rates in LT, hence these companies will do well in long run. And the reason for this drop is not valid in MT….
Previous low near this low is 631. Which is hardly 5% away… And 640-680 has provided support many times in past. Hence one may begin buying SIP on every drop or rise…. Or add if already invested in..
Abe
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Please use your discretion before acting on the ideas expressed in the group.
Happy Trading,
United we grow!!!
Happy Trading,
United we grow!!!
MARKETPLACE
.
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**[investwise]** Why Are DIIs Selling?
Caught in the Euro cross-fire, mutual funds have begun liquidating Certificates of Deposit (CDs) to meet the redemptions of the foreign institutional investors (FIIs). FIIs are large investors in MFs, particularly in the debt markets schemes. FIIs are not allowed to invest directly in CDs. Traders said that redemptions were largely by FIIs driven by mounting risk aversion, as a consequence to the escalating Euro crisis. The fund sell-off of CDs, in turn, resulted in pushing up CD yields in the secondary market, leading to a sharp divergence between secondary and primary markets rates. Six month CDs in the secondary markets are at 6.3 per cent now. Buyers of the CDs are mostly banks — and they are doing so at steep discounts. CDs maturing in November are sold by some funds at yields as high as 6.3 per cent or well over the three month bulk deposit rates. The card rate for three-month bulk deposits range between 4.5 and 5 per cent, as of now, among the public sector banks. However, banks continue to receive CD subscription from corporates at rates lower than the prevailing one-year term deposit rates. On June 2, the State Bank of Travancore was able to raise Rs 290 crore at a weighted yield of 6.7 per cent. Subscription to the CDs was mostly from cash surplus corporates, both private and in the public sector, traders said. Some private sector corporates have opted to invest in public sector bank CDs, as capacity ramp up of investments continue to be on hold for some more time. Credit lines Corporates normally deploy internal resources in the initial stages of such investments, before drawing down their sanctioned credit lines. That credit lines have not been drawn down, was evident from the incremental CD ratio that is at minus 26 per cent now. FIIs, in May, sold the equivalent of Rs 9,436 crore ($2.4 billion) of equities and picked up only Rs 2,450 crore ($535 million) of debt, almost entirely short-term instruments for liquidity purposes. Yet, despite the FII selloff, liquidity in the markets remained under control. This was evident from the weighted average collateralised borrowing and lending obligations rates that remained well below the Reserve Bank of India's repo rate. On Wednesday, the weighted CBLO rates were barely 5.2 per cent or 5 basis points below the RBI repo rate. (CBLO platform allows money market participants to lend overnight/term liquidity against a collateral of eligible securities.) However, with advance tax outflows looming, short-term liquidity preference remained high. Yield As a result, the yield on the 91-day T-bill spiked to 5.20 per cent but was level with the 364-day T-bill cut-off yield, implying that the liquidity overhang could return to haunt the markets soon. This fear manifested in the 10-year YTM dropping to 7.49 per cent, down from last weekend's 7.58 per cent. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice. |
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INVESTMENTS IN INDIA
We are low-risk, long-term investors.
Stocks, mutual funds and the entire investment gamut. Only financing/investment avenues in India will be discussed.
For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in
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http://in.groups.yahoo.com/group/investwise/
INVESTMENTS IN INDIA
We are low-risk, long-term investors.
Stocks, mutual funds and the entire investment gamut. Only financing/investment avenues in India will be discussed.
For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in
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NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.
NEW! ==== Check "Tracklist" in Links and Files sections for Investment Ideas.
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[sharetrading] ASIA
It appears that the volume trade yesterday was very light, relatively 20% lesser. Which leads me to believe that as of now down side is limited.
The cues indicate an intra day rise. Or if in a gap up opening a down side spiral. Either way a positive day or so it seems.
5040-5090-5150. Play positive abv each with these as SL….. Or an ID signal….
Bounce now seen could turn out to be a dead cat one if 5150 is not breached.
Max low expected 5015…………. All values are spot 5034 CMP
Abe
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Please use your discretion before acting on the ideas expressed in the group.
Happy Trading,
United we grow!!!
Happy Trading,
United we grow!!!
.
__,_._,___
Re: [sharetrading] Mkts on 08-Jun-2010
Dow - 9816 Has to move up to 10000. But yes these days 5% up move happens in 2-3 days so let us wait and watch. It is going to be volatile. The range mentioned will hold good for the day as asia seems to be doing ok. 5020-5050 should be range till europe opens then it will be upto europe and US Futures that will guide us.
From: Ganesh Iyer <ganesh_iyer_
To: sharetrading@
Sent: Mon, 7 June, 2010 11:42:27 PM
Subject: [sharetrading] Mkts on 08-Jun-2010
Its 11.45 PM
Nifty range for 08-Jun-2010 = 5020 - 5080 close near 5054
This range is valid if DOW close is near 10020
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Please use your discretion before acting on the ideas expressed in the group.
Happy Trading,
United we grow!!!
Happy Trading,
United we grow!!!
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DG - How Promoters Cheat Shareholders
Siphoning off cash, dumping expenses, selling scrap for cash...dozens of
live examples of the ways companies cheat:-Source:HKG
Indian promoters manipulate accounts and market prices for two (opposite)
reasons. The first is a traditional game, which the majority of them play -
siphoning money from the coffers of a listed company for personal gains.
However, in a bull market, a reverse trend starts. Many of them are not
interested in suppressing profits. They want to overstate revenues and
profits because this boosts their market-cap in a rising market; it helps
them to raise 'free' money. In the past three years, I have repeatedly
expressed doubts about the genuineness of the financial figures of many
companies, although foreign institutional investors (FIIs) and many
renowned
domestic institutional investors (DIIs) were shareholders of precisely such
shady companies, even as many brokerage houses, print and electronic media
wereflashing 'buy' recommendations on them. I mainly track mid-cap and
small-cap companies. Large companies are smart enough to camouflage their
figures. It is much easier to find flaws in the accounting of small- and
mid-cap companies. What is the arsenal of tricks employed by promoters to
siphon off money or fudge their accounts? How do they pump up their share
prices and dump them on the public?
Here are few examples of how promoters do it. These are actual examples,
but
we have opted to change their names because the idea is to educate
investors
about management tricks.
Suppress Income:Consider textile companies. All of us believe that they
don't make money. This is not true. It is only that the promoters are adept
at hiding margins. Some listed companies have at least 15-20 private
limited
companies, two or three proprietary firms, five or six partnership firms in
the promoter's wife's name, in his in-law's name, in the married daughter's
name or even in the names of trusted employees who have been working with
the promoter for 20-30 years. It sells finished products to private firms
that are directly or indirectly owned by the promoters at cost price or
even
a small loss. Those private firms, in turn, sell the products to the
dealer,
wholesaler or distributor and make huge profits.
I can definitely say that listed companies like Ramdiya Mills and Karma
Fabrics or Synth Fabrics - have adopted this practice since inception and
continue to do so even now. If you look at their cost structure, it will
become very clear. Ramdiya Mills and Karma Fabrics have large reputed
brands. Since they buy hundreds of crores worth of yarn every year, they
get
it at the lowest possible price. They get an additional price benefit by
making cash payments to suppliers. Since the product they sell is a premium
product, these companies ought to have a net profit margin of at least
12%-15% whereas they hardly show a margin of 2%-3%. Text100 Mills is one of
the oldest and reputed cotton textile mills with significant exports. But
if
you look at the segment-wise results, the cotton division always shows
losses. Where is the money going? Most promoters either invest it in real
estate or benami accounts in India or transfer the money abroad. Of course,
each promoter has a different way of looting the company and siphoning off
money. The promoter of Ramdiya Mills is a hands-on guy who looks after
practically everything. They do not have senior professionals in purchase,
marketing or branding. Since the promoter takes all decisions, overheads
are
also not large. In this category fall companies, like Gofar and other
powerloom companies, whose expenses are those of a powerloom, but selling
price is akin to the organised sector.
In some cases, shareholders' money goes to support the promoter's
lifestyle.
Look at a famous textile company like Monde Fabrics. It has a higher cost
structure - the bigger the brand name, the higher is the number of
employees. Monde's production cost is slightly higher but not high enough
to
show losses. Also, they should be able to show very decent profits because
they have the latest technology, wastage is low and the quality is very
good. Their polywool fabric is the most expensive in India but their profit
is negligible. Where is the money going? The promoter's daily expense is in
lakhs of rupees which is all debited to Monde's corporate account. So,
although the selling price of Daygod Mills is 20% lower than Monde's, its
margin is higher.
Under-reporting of revenues is also rampant in the steel industry. Each
listed company has at least six or seven unlisted companies through which
they do a lot of adjustments, depending on the opportunity. They decide
where to show profits and when to disguise them. In this category are
companies like Prism Steel and Modern Metals. Look at Modern Metals and
compare it with River Electricity, a company with a similar profile. River
Electricity did not have captive mines and neither did Modern. But profit
margins of Modern have been very low. Their profits are vanishing through
their unlisted group companies.Dealing in cash is very common in the steel
industry. Cash sales take place and are not reflected in the books. That is
why you will find that raw material costs rise disproportionately. I knew a
person who used to be with a sponge-iron company near Mumbai. He told me
that every year they sell Rs500 crore worth of sponge-iron from their
plant,
in cash. But all purchases and expenses are being fully accounted in the
books along with the promoter's personal expenses.
Take the example of Kanaka Leaf. Why did that company become sick? I know a
manager of one of its factories. He tells me that he used to take out 90%
of
the stock in cash and pay excise duty only on 10% of the goods. That is one
reason why this firm got into legal trouble and that factory had to be
closed. He was no longer on the payroll; but the owner was still paying him
Rs25,000 per month. You always know which companies are selling in cash by
sniffing around at the commodity markets. Look at the textile company ABC.
If you go to the textile market any time, you can buy ABC products in cash.
There used to be a company called Garvi Fils which closed down. It used to
sell most of its production in cash. In any textile market, you can get a
list of companies which will sell yarn in cash. All of them book expenses
fully; sell in cash and claim that costs have gone up. This is how they
fool
investors.
One major way in which promoters enrich themselves is by selling waste (or
passing off even quality material as waste) in cash and pocket the money.
This is rampant in the metals and cable industry. Jewel Steel is the king
of
this. It sells waste as well as fresh material as waste. It even sells zinc
which is used for galvanising. You can go to any metal merchant in Delhi
and
enquire how much zinc Jewel Steel is selling and how much copper Melton
Cable is selling in the open market. This is a common feature of the metal
traders in Delhi where almost 80% of the business is done in cash.
Companies
sell to wholesalers; wholesalers sell to small converters and so on. There
is an active cash market and promoters are able to sell as much of quality
finished goods, raw materials, by-products or waste.
Fake Bills:The most common practice among corporates is to buy fake bills
for a small price, make the payment against these bills by cheque and
instead of receiving goods, ask for the money back in cash. This is a
common
practice among the marwari business houses of Kolkata. They buy bills of
Rs10 crore or Rs20 crore ostensibly for raw material purchase and pay for
it
by cheque. The material never comes to the warehouse; instead they get the
money back in cash, minus a tiny commission for the fake bill. Naturally,
the companies show losses or meagre profits. They are not inefficient
companies, neither are the promoters fools. They simply siphon off cash by
buying the bills and under-report sales. This leads to losses.
When Laltane Solutions made its IPO, some Delhi-based operators regularly
contacted me to say that the stock would list at Rs500 against an issue
price of Rs250. They offered me shares at Rs400 and openly admitted that
they belonged to the promoter. That is how they made money in the stock
market. When you think of operators, don't think of shadowy individuals.
They could well be institutions with a big name and shining public image.
Visher Agro buys wheat from the market, converts it into flour and sells it
to a food company selling branded atta. It is also into rice milling. It is
not selling anything under its own brand name. It is just a converter. The
promoter entered into an agreement with an operator and his share price
rose
to Rs200+ from just Rs15; it has now dropped 70% from the highs. He claims
to have set up an unlisted company which will set up a 20MW co-generation
power plant for which he is in talks with Blackstone. He was making up this
story but he could not succeed in raising the money as the operator quit
the
counter.
Another trick by Indian promoters is to announce a joint venture (JV) for a
new project. After a while, there are reports about differences between the
JV partners. The money invested in the JV is never recovered. It is written
off over five or seven years. All this is well-planned. The JV is floated
precisely to siphon off money by taking away money invested in the JV. For
instance, Albert Hotels of Bengaluru paid Rs15 crore as its share in a JV
with a Pune-based company to set up a five-star hotel in Pune. It later
pulled out of the venture due to differences over management control and
said it would file a lawsuit to recover its investment. But industry
sources
told me that the promoter has already taken back the money in cash and
written off the investment in its books. This is a popular trick among
marwari companies. They lend money to unlisted companies owned by the
promoters either directly or indirectly and the money is never recovered.
As all these examples show, Indian promoters are not stupid or less
intelligent or don't know how to run their businesses. They are actually a
step ahead of other professionally managed companies. They are much more
intelligent, savvy and street smart. They know how to negotiate with
suppliers for the lowest possible price, how to cut costs and how to siphon
off money. Most of them have trusted people or relatives in key strategic
posts to prevent pilferage. Even while selling, they know how to negotiate
hard to get the highest price. They work hard and make a lot of money but
they don't want to share it with you.
__._,_.___
Regards
BigGains !!
BigGains !!
.
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Indian Stocks BSE
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| Posted: 07 Jun 2010 10:56 AM PDT |
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