LIFE LEARNED LESSONS BY SEVAK

Global markets are more likely to influence the domestic bourses. Volumes may take a hit in the truncated trading week, as the market remains closed on Thursday, 30 October 2008, on account of Bhaubeez. On Tuesday, 28 October 2008, market will be open for just one hour from 18:15 IST to 19:15 IST for Muhurat trading to mark the beginning of the Samvat Year 2065. Global stocks tumbled to a new five-year low, last week, as investors withdrew from equity markets on worries that global economic slowdown may hurt corporate profitability. UK’s Gross domestic product dropped 0.5% between July and September, the first contraction in 16 years, the Office for National Statistics said today, 24 October 2008 in London. The official definition of a recession is two consecutive quarters of negative growth. Volatility is likely to remain high as derivative contracts for October 2008 series expire on Wednesday, 29 October 2008. As per reports, Nifty had seen 37% rollover of positions from October 2008...

Fundamental Call From Sevak Company Name: Core Projects& Technology Ltd. Reco : Buy CMP: INR 41 Target: INR 140 Holding Period: 12-18 months Best Buy Price Level: INR 36-38 ( Accumulate Dip around this level) Investment Rational: 1. The company is in software development related to Education and so it will be less impacted of global slowdown in demand of IT services. This also reflects in its financial performance. It has registered 3 yr CAGR in Net Sales = 183%, Net Profit = 145%. 2. Core Projects & Technologies has been awarded a prestigious contract to implement FAIM, its Admissions and Examinations Management System, by the Karnataka State Open University (KSOU) on 24-09-08. FAIM is Core's flagship product in the examinations management segment and is presently being used successfully in eight African countries, three Caribbean countries and more than 25 institutions in the UK. The contract with KSOU represents a significant breakthrough for CORE in the Indian subcont...

Company Name: Aegis Logistics, Reco: Buy CMP: INR 70 Target Price: INR 210 Holding Period: 12-18 months Best Buy Level: INR 65-67 (Accumulate at INR 65 level) Investment Rational: 1. Aegis, a leader in oil and gas logistics, is expanding its liquid storage capacities to ride the soaring demand for oil and petroleum products, In order, It has acquired a) Sealord Containers (Storage Capacity-75000 kl), also acquired Konkan Storage System (Storage Capacity 51000kl). 2. Currently trading at a PE of 3.9, Div Yield = 6.4%,

Concerns about a Global Recession may continue to weigh on the domestic bourses, which have tumbled in a global equities rout in the past few days. Lack of buying support has accentuated the decline on the bourses Foreign institutional investors (FIIs) continue to press sales. They have sold shares worth Rs 46,661.20 crore in the calendar year 2008 so far (till 16 October 2008). Investors now await the Mid-Term Monetary Policy Review by the Reserve Bank of India (RBI) due on 24 October 2008. Some reports suggest that RBI is set to cut the repo (repurchase) rate by a steep 50 basis points, to signal a strong shift in policy focus to growth from inflation. Repo rate is the rate at which RBI provides funds to banks against the collateral of government bonds for a day to three days. On the inflation front, experts feel that the wholesale price index is expected to move downward, and will eventually come down to single-digit numbers by January 2009. Inflation based on the whole price index ...

Where will Go Crude Oil Prices in Future? Currently crude oil is trading at $ 71-74 per barrel that is almost 50% less than its level of $147 per barrel, within 3 months duration. People are quite confused about the price movement of Crude Oil prices. Before coming to any deciding point, first let me put some facts and figures related to Crude Oil prices: US alone consume 25% of total world output of Crude Oil. And, there are widespread signs of demand destruction in the largest consumer of oil – US. Oil, too, is a cyclical business; the length of cycle may vary, but in the end it has to come down based on efficient market theory. The Crude Oil market is well supplied and this year its production; even after all type of supply constraints; has increased or going to increase by some1.5-2%. In other words of demand and supply, there is no big gap – if any – between the two. Oil spending as a share of the Global Economy has risen to > 7%, a level last seen in late 1979. And, What happe...

Stock Name: Chennai Petroleum Corp. Ltd ., Reco: Buy CMP: INR 160 Target Price: INR 240 Holding Period = 6 - 12 months Best Buy Price: Dip Around INR 145-150 ( which may come in few trading sessions) Investment Rational: 1. Currently trading at a PE of 1.6, Div Yield = 10.25 % 2. 5 yr CAGR of Net Sales = 28.39% and that of Net Profit = 29.96%.

The Stocks Which May see action on Oct15,08 Ø The alliance between Jet Airways and Kingfisher Airlines could reportedly result in a combined annual savings of Rs 800 crore and a lay-off of 1,500 employees, or 5% of their combined workforce. Ø Meanwhile, Jet Airways and Kingfisher Airlines are reportedly open to include state-owned Air India in their recently formed operational alliance. The alliance would have a 72% market share if Air India were to join, the reports added. Ø Reliance Industries has reportedly tied up with three foreign firms for its plans to set up an integrated coal mining, a coal-to-liquid plant, and a 1,000 megawatt power plant and fly-ash utilisation unit. Ø Reliance Infrastructure reportedly plans to raise Rs 2500 crore as loan this fiscal and is in talks with banks including IDBI, Axis Bank and IIFCL for raising the funds. Ø Nusli Wadia Group is reportedly set to acquire Groupe Danone's stake in Britannia Industries with a committed $200 million funding fro...

Co name: Sintex Industries Reco: Buy CMP: INR 216 Target: INR 350 Holding Period: 6-12 months Best Buy Level: Dip around INR 200-210 Investment Rational: 1. Sintex Industries Ltd (SINTEX) reported a revenue growth of 84.9% y-o-y to Rs 7198.4 million. The net profits also improved by 86% to Rs 838 million as against Rs 450 million in Q2FY08. 2. It has presence in potential markets India and abroad and it has well diversified business model among Textile, Plastics and Pre-Fab segments (Telecom Sector).

Is Stagflation Likely in Near Future Yes, As I have written the title "Is the world economy especially US and Europe economy going to enter Stagflation" phase, has turned to be the main issue of debate and contention between the economist, governments & policy makers and central banks of almost all countries. If we put a cursory look on what changes has taken place in Financial sector in last one month, we 'll see that most of big institutions have fallen flat. And, today joined the list Glinter Bank of Iceland; the third largest of Iceland; to the collapsing list of companies. Today the circumstances has turned such that no one is ready to believe anyone and the whole banking industry moves on the hinge of belief and confidence of people upon the institutions. All the major economies including India China, Us and Europian countries facing high rate of inflation and at the same time big institutions are collapsing causing a substantial cut in the job opportunities. At...