Archive for October, 2007

I am going on a holiday!!

Posted on October 31, 2007. Filed under: General |

I am taking a break for 3 weeks starting Thursday (01 Nov). This is my annual vacation and I plan to accomplish the following:

1. Go to gym regularly and work towards reducing weight by another 3 kgs. (Working on a separate post on my experience with gym)
2. Complete rationalisation of demat accounts and email accounts.
3. Learn about investing by reading books which are mentioned in the blog.
4. Catch up with movies which I have missed during the year.
5. Spend more time with my family.
6. Rest and relax to relieve myself of the day to day stress and strain.
7. Last but not the least, celebrate Diwali at home. No it is not a joke. I have not been at home for the last 5 diwali’s atleast.

Let me see how much I am able to achieve during the next 3 weeks.

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Demerger of companies – potential for value unlocking – some companies in the race!!

Posted on October 29, 2007. Filed under: Stocks |

The demerger of companies resulting in value unlocking for the shareholders is a theme which has become a big hit after the Reliance group demerger. I think the following list of companies have plans to demerge their companies to create value for the shareholders are as below:

1. JSW Steel – is planning to demerge their Infrastructure, Energy and steel business into separate companies. I dont think the company has made the announcement in this regard but the market rumours has set the stock soaring towards Rs1000/.

2. Alok Industries – is seeking to demerge the textile and real estate business. The company has notified the stock exchanges that the Board of directors of the company would discuss about the demerger and assign this activity to a professional consulting company. The stock ran up a bit to Rs80/- but came down to trade in the range of Rs65-68.

3. Teledata Informatics – is planning to demerge the company into three different companies with focus on a specific area of operations. The company has made the announcement as well as carrying out huge advertisements in Business newspapers about the demerger and the record date details. The record date for Teledata is 23 November. The share swap ratio is 1 share each in Teledata Marine Solutions and Teledata Technology Solutions for every two shares held in Teledata Informatics. All the three companies would be listed. The stock has closed today at Rs64.

4. Gujarat Heavy Chemicals Ltd (GHCL) – It has interests in Caustic Soda and home textiles. It has been in a buying spree in the last couple of years in the home textiles front and has so far acquired 4 companies in the last 2 years. 3 in US and 1 in UK. The owners want to demerge their textile business from the Chemicals business in the near future.

So watch out for these 4 companies as the market currently fancies these demergers.

Disclaimer: The usual one. It is not an invitation to buy or sell stocks. Please take your own decisions.

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Indian Cricket Team for the first two ODI’s against Pakistan – no surpises!!

Posted on October 27, 2007. Filed under: Cricket |

The team for the first two one day games against Pakistan were announced today. As expected Rahul Dravid has been dropped from the team along with Dinesh Karthick. Both Karthick and Rahul were in poor form against Australia.

Virender Sehwag and Gautam Gambhir comes back into the team. In my opinion, instead of giving a chance again to Virender Sehwag, the selectors should have tried the in-form Badrinath. Badri came up with two good knocks in the ongoing Challenger series in Ahmedabad. When he is in top form I really wonder why we should go back to Virender Sehwag if the intention of the selectors is to test the youngsters. Badri, dont lose heart. You will get your chance!!

Praveen Kumar of Uttarpradesh gets a chance to be among the Indian Squad. Thats what he will get after the first two ODI’s as there is no place for an bowling all-rounder unless Irfan Pathan makes way.

The squad:
Sachin Tendulkar, Sourav Ganguly, Gautam Gambhir, Virender Sehwag, Robin Uthappa, Rohit Sharma, Yuvraj Singh, Mahendra Singh Dhoni (capt & wk), Irfan Pathan, Praveen Kumar, Zaheer Khan, RP Singh, Sreesanth, Harbhajan Singh, Murali Kartik.

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Indian Cricket Team for the first two ODI’s against Pakistan – no surpises!!

Posted on October 27, 2007. Filed under: Cricket |

The team for the first two one day games against Pakistan were announced today. As expected Rahul Dravid has been dropped from the team along with Dinesh Karthick. Both Karthick and Rahul were in poor form against Australia.

Virender Sehwag and Gautam Gambhir comes back into the team. In my opinion, instead of giving a chance again to Virender Sehwag, the selectors should have tried the in-form Badrinath. Badri came up with two good knocks in the ongoing Challenger series in Ahmedabad. When he is in top form I really wonder why we should go back to Virender Sehwag if the intention of the selectors is to test the youngsters. Badri, dont lose heart. You will get your chance!!

Praveen Kumar of Uttarpradesh gets a chance to be among the Indian Squad. Thats what he will get after the first two ODI’s as there is no place for an bowling all-rounder unless Irfan Pathan makes way.

The squad:
Sachin Tendulkar, Sourav Ganguly, Gautam Gambhir, Virender Sehwag, Robin Uthappa, Rohit Sharma, Yuvraj Singh, Mahendra Singh Dhoni (capt & wk), Irfan Pathan, Praveen Kumar, Zaheer Khan, RP Singh, Sreesanth, Harbhajan Singh, Murali Kartik.

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Mahindra Logan named among best cars not sold in US!!!

Posted on October 26, 2007. Filed under: General |

Came across this on the internet. Truly a proud moment for Indian car manufacturers. Ofcourse, the car has been designed by a different company, it has been built and delivered by Mahindra Renault in India.

Click here to read the complete report.

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Surya Pharma – Interesting stock to look at!!

Posted on October 24, 2007. Filed under: Stock Ideas - Long term |

Surya Pharma is a stock to watch. The half yearly results are good with a 6 months EPS of Rs15. The stock is currently quoting at Rs116. If the current quarter EPS is maintained for the next two quarters, the company would end up with an yearly EPS of around Rs31. The stock is quoting a FY08 PE of less than 4.

There are many positive developments happening in the company which I will share in the days to come once I am able to collate.

On the technical side, the stock has broken out of the trading range and the first support for the stock is around 96 and below that at 90 levels.

Disclaimer: This is not an invitation to buy or sell shares. Pls take your own decision. I dont own these shares at this moment.

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Quote for life!!

Posted on October 24, 2007. Filed under: General |

Came across an interesting quote of Mr APJ Abdul Kalam, former President of India.

Dreams are not what you see in sleep; but dreams are those which do not let you sleep“.

This single line has a great depth of meaning when I thought about it. What do you think?

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World’s 5th most powerful women buys an apartment in Chennai!!

Posted on October 22, 2007. Filed under: Real Estate |

Indira Nooyi, the CEO of Pepsico has concluded a property deal in Chennai. She has purchased a 4100 sq.ft flat promoted by KGEYES Residency in Poes Garden area. Poes Garden is already posh with Ms Jayalalitha, former CM of Tamilnadu and Mr Rajnikanth, the superstar of Tamil Cinema. Now Indira Nooyi joins this exclusive list of people owning a residence in Poes Garden.

The builder KGEYES Residency has sold this property at the rate of Rs16000 per sq.ft. The total cost of flat comes to around Rs7 crores. (Equivalent USD1.7 Mio). This is a small sum for Indira considering her last year’s salary, I guess. The details of Indira Nooyi’s salary as reported in http://www.sajaforum.org/.

Indira Nooyi earned $6,230,366 in Total Compensation last year.

Here’s the breakdown…
Base Salary: $964,413
Cash Bonus: $3,000,000
Perks/Other: $153,506
Stock Awards: $1,033,505
Option Awards: $1,078,942

Another piece of information on Indira Nooyi. She is the niece of ace Carnatic Musician Ms Aruna Sairam.

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World’s 5th most powerful women buys an apartment in Chennai!!

Posted on October 22, 2007. Filed under: Real Estate |

Indira Nooyi, the CEO of Pepsico has concluded a property deal in Chennai. She has purchased a 4100 sq.ft flat promoted by KGEYES Residency in Poes Garden area. Poes Garden is already posh with Ms Jayalalitha, former CM of Tamilnadu and Mr Rajnikanth, the superstar of Tamil Cinema. Now Indira Nooyi joins this exclusive list of people owning a residence in Poes Garden.

The builder KGEYES Residency has sold this property at the rate of Rs16000 per sq.ft. The total cost of flat comes to around Rs7 crores. (Equivalent USD1.7 Mio). This is a small sum for Indira considering her last year’s salary, I guess. The details of Indira Nooyi’s salary as reported in http://www.sajaforum.org/.

Indira Nooyi earned $6,230,366 in Total Compensation last year.

Here’s the breakdown…
Base Salary: $964,413
Cash Bonus: $3,000,000
Perks/Other: $153,506
Stock Awards: $1,033,505
Option Awards: $1,078,942

Another piece of information on Indira Nooyi. She is the niece of ace Carnatic Musician Ms Aruna Sairam.

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Update on Gujarat NRE coke.

Posted on October 22, 2007. Filed under: Stock Ideas - Long term |

I wrote about Gujarat NRE Coke on 19 Oct 2007. The initial write up can be viewed here.

Yesterday, I came across an interview by Capitalmarket magazine with Mr Arun Kumar Jagaatramka, Vice Chairman and MD of Gujarat NRE Coke on the future plans. I reproduce below few important points from the chat.

1. The ongoing Metcoke prices are around USD300-310 CIF compared to USD225-230 in March-May 2007.

2. Gujarat NRE coke has the following subsidaries:

a. Bharat NRE Coke India – Met coke plant – holds 60% stake.

b. India NRE Minerals – Listed in Australia and holds 93% stake.

c. Gujarat NRE Resources NL – Listed in Australia – owns NRE Avondale and Elouera Collieries and six mining licenses for exploration of gold, iron ore and coal. The stake held by Gujarat NRE is 84%.

3. Has an offtake right for 400,000 tonnes of ultra-low ash coal per annum from Pike River coal company in New Zealand.

4. Planning to mix NZ coal with the coal from Australian mines. Expected addition to the bottom line by USD20-50 per million tonne in 2008.

5. Coke-oven unit being set up in Dharward Karnataka would go live in phases by Oct 2008. Expected production of coke from this unit is 50,000 tonnes of coke by FY 2009.

6. Setting up a railway siding facility in Dharwad which reduce the cost by USD5 per tonne.

7. Capex planned in the next two years is around Rs175 crores and met through internal accurals and debt of Rs100 crores.

8. Turnover is expected to increase to Rs1000 crores in FY 2008 from Rs500 crores in FY 2007.

The above developments if takes place within the timelines mentioned would definitely be a positive trigger for the stock. The company has exhibited good excution skills in the past when it acquired mines in Australia, went for IPO in Australia etc., Therefore, I believe they would be able to meet the targets they have set for themselves.

I reiterate that Gujarat NRE coke is good long term bet. Pls wait for price dips to happen and buying in sub-90 levels would be a good price.

Disclaimer: This is not an invitation to buy or sell shares. The views expressed are my personal opinion and pls consult your financial planner before taking your decision. I own the shares of Gujarat NRE Coke.

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