Investing in Stock - discussions?

Hi all,

Despite a firm start and strength across global markets, the Indian indices failed to retain the momentum as the occasional bouts of profit booking took a toll on the index heavyweights yesterday. Although, in the afternoon session,selective buying at lower levels seemed to be rejuvenating the markets, the bears made their presence felt by dragging the indices near the day's lows.

he BSE Sensex closed at 19,796 (up 58 points) while the NSE Nifty closed at 5,955 (up 15 points). The rupee was trading at 39.50 to the dollar.

There was this interesting observation in one the patpers..if 1985 to 2000 was the bull market, this looks more like the the bear market. time and again the bears are making their presence felt..

So investors, trade cautiously. If you are only a speculator, book your profits do not be greedy. if you have reasons to feel a share has more steam in it for the correct reason you can wait.

happy trading today...will come back later in the mid morning....

Hi team,

How are you all faring. the market started on a strong note in the morning, though as i write it there is heavy selling across certain counters and buying in some.

Heard FAccor Steel could be taken over by L&T as it has demand for steel for its sez, and other projects...don't know the truth of this...but some days back i was hinting that the company was good fundamentally and has been hitting uc few times....and has been brought in bulk lots.....

so if you hear something on this keep all posted. there is too much buzz in both faccor alloy and faccor steel though ferro corporation is also part of the same group.

FACOR Steels-A Friendly Take-Over On The Way
BSE 532657; CMP Rs 7

The Saraf family owned Nagpur based Alloy Steel Manufacturer FACOR Steels may soon find itself into the arms of Larsen Toubro, if market grapevine is to be believed.

The take-over price being whispered is Rs 25 per share valuing FACOR Steels at Rs 500 crore. The transition can be done easily, as the Sarafs and their co-promoters own 86 per cent of the Equity which they have been regularly selling in the open market. For instance, Cornell Corporation has sold close to 13 per cent of the Equity out of its 23 per cent stake in the company. While Saraf family members too have found the current buoyancy suited to Sell their stock in the open market.

So instead of doing piecemeal selling, the management might do well to sell the entire unit at one go. This is important as the Sarafs have to support two more equally weak entities FACOR Corporation and Facor Alloys, and fund infusion will help the other two concerns.

So where does Larsen and Toubro fit in? To be precise L&T needs huge quantities of special steel, alloy steels and carbon steels for its various units across the country and its ship-building units in Gujarat and upcoming SEZs. Location wise Nagpur is much closer to the point of utilisation where Facor Steels existing unit has a capacity to produce about 50,000 tonnes of special steels per annum required by the forging and heavy engineering units. So the product makes an ideal fit for L&T.

Secondly and more importantly, Facor Steel has won a Coal block in Orissa on which a 250 MW pit-head plant is to be built. Under the New Power Access Policy, Power Producers who supply the generated power to PGCIL, can draw equal quantities of Power from anywhere in the Grid.

While current Power Units being planned in Orissa will produce and supply power at Rs 2.33 per unit, the going per unit rates in Gujarat are as high as Rs 6 to Rs 8 per unit. Shipbuilding is a power intensive business and it hurts L&T to Buy power at unaffordable rates.

It thus makes sense to put up a power plant in Orissa and use the same power in Gujarat by paying an extra access tariff. Very Uniquely inspite of its long history L&T has no manufacturing facility in Orissa so far and this may turn out to be their first investment in the State. The integrated Power plant and Coal mines in Orissa will cost Rs 1500 crore add to which Rs 500 crore for the Special Steels unit and we have a friendly take-over in process.

The risks to this deal remains an aggressive sell-out price asked for by the Promoters of Facor Steel and their continued dumping of stock in the open market. On current performance, Facor Steel will close FY08 with Revenues of Rs 500 crore and marginal post tax profits on a Rs 20 crore Equity (Face Value Rs 1).
A price of Rs 25 per share seems amply logical and needs to be accepted by the promoters.

Hi All,
Good to see continuing discussions here. Today US market (Dow) fell by almost 300pts. It was little strange because usually market is all up when fed cuts the rate…
Tulasi

Hi Ladies

Was outta town.

Essar steel is gonna buy back shares at Rs. 48 on Dec 14.The company will delist shares after trading on Dec 14.

The arguments were heard and the SAT has now vacated the interim stay given last week against the delisting of Essar Steel. According to company sources Essar Steel will go ahead with the delisting process and post the trading on December 14, Essar Steel’s trading will be suspended from the stock exchanges. So from December 14 onwards, Essar Steel will not be trading on any of the Indian exchanges.

But for those who may have bought Essar Steel shares or who maybe still holding them and not trading in them, the company mandatorily will buy them back at Rs 48.

The company has, on record, given the assurance that for the next six months post this delisting, they are willing to buy the shares from the minority shareholders at Rs 48 per share. People who may have bought shares above Rs 48 per share have taken a risk. So they will want to either square off their positions, take the losses or they give it to the company at Rs 48 per share

Any Essar steel shareholders out here ???

Luv

Ridge

hi

The Ruia's are at it again.....

What is happening about the delisting of essar oil...???


CENTURY Extrusion that i had discussed some time back...at Rs.6 and 8 is now at Rs.12..and there is news in the market that there may be rights issue..

will come back with more...later....

Hi All,
What is the max.rate of Century exetrusions to day?
Pam

hi pammor,

It hit highs of 13 and has settled at 12 today. the rihts issue has been approved.so how the market reacts should be seen now..


"Century Extrusions Limited has informed the Exchange that "The Board of Directors of the Company at its meeting held on Saturday, 15th December, 2007 has approved Rights Issue of Equity Shares to part finance the cost of expansion (enhancement of capacity for manufacture of aluminium extrusions from 7500 TPA to 15000 TPA, estimated project cost - Rs. 34.50 crores) and diversification (setting up facility for manufacture of 6000 TPA Power Transmission and Distribution Line Hardware - estimated project cost - Rs.1.00 crore) projects of the Company. The Right Equity Issue will be for 3,30,00,000 (three crores thirty lacs) equity shares of face value of Re.1/- each at a price of Rs.4/- per equity share (including a premium of Rs.3 per equity share) in the ratio of 33:47 (33 new shares for every 47 shares held) as on record date to be fixed in due course."

Hi all


Bears seemed to have saved the best for the last as intensified profit booking pushed the benchmark indices further into the red during the final hour of trade. Amidst the ruins, only a single stock on the benchmark indices has bucked the trend and has ended marginally in the positive today.


any guesses which one...i am not sure..but i think it is HINDUSTAN UNILEVER....


The BSE Sensex closed at 19,281 (down 750 points) while the NSE Nifty closed at 5,777 (down 271 points). The rupee was trading at 39.40 to the dollar.

though the market opened on a positive note, it had plunged so badly by closing..to be frank these days i don't keep watch on the portfolio...it is like 1-1-1. one at 10.30, then at 12.30 and then at 3.00. even if it looks so good at 10.30 and good 12.30...it really breaks my heart by 3.00...this has been happening routine for quite some time...


so investors, trade cautiously.....don't be greedy......

The hindu businessline has a buy on Cipla.

We recommend a buy in Cipla. From the weekly chart of Cipla, we note that it was on a long-term downtrend since its all-time high of Rs 304, made in April 2006. However, the stock found support at Rs 165 in late August 2007 (which coincides with the 200-week moving average line) and with this the long-term downtrend got arrested. Since then the stock has been on an up move. We note that the stock has moved above the 200-day moving average line and a key resistance of Rs 200 recently on good volumes. The daily momentum indicator is featuring in the bullish zone and the weekly momentum indicator is on the verge of entering this zone. The immediate support for the stock is at Rs 180 and the next support is pegged at Rs 165. Taking cues from the above mentioned factors, we direct the investors to buy the stock at current market price. We expect the stock to move up to Rs 240 in the short-term. The short-term traders can buy the stock with a stop loss at Rs 190.

My observations....

Though the whole pharma sector was a underperformer this whole year. with the R&D being separated and with other patent norms into play..it could start performing. Cipla is a regular dividend paying stock.

I have small vested interest in this stock.