52 week low stocks - BSE A & B1 Group

Stocks that hit 52 week low on BSE and NSE as on 6th May 2011 and which belongs to A & B1 category of BSE Stocks

Company	New Low Price	52 Week high
SKS Microfinance	331	1490
Power Fin Corp	210	383
United Breweries	171	346
Advanta India	233	531
ICSA India	109	162
Mastek	95	312
Adani Power	107	145
Transport Corp	88	161
Copyright - investorzclub

Crude falls below $100 - Great news for India

Crude oil and most of the other commodities were on free fall on 5th May becasue of weak economic data from Europe. US crude specifically fell the hardest and was down more than $12 at one point of time before closing down $9.44 to settle at $98.26. This suggests the huge speculative position unwinding in the commodity.

Additional pressure came from the news that OPEC was considering raising formal output limits when it meets in June to convince oil markets it wants to bring prices down and reverse the impact of fuel inflation on economic growth.


Oil is definitely on a strong tragectory but this massive fall will keep the crude prices under check for considerable period of time. This augurs well for India which is struggling to keep inflation under check.

JP Morgan downgrades SKS Microfinance

JP Morgan has cut the price target of SKS Microfinance from Rs 550 to Rs 200 due to its poor business outlook.

JP Morgan expects that the company will report a loss of close to 700 crores in the current fiscal year.

The SKS microfinance stock has reacted to this downgrade and the stock has corrected more than 16% to Rs 345 this morning.

Buy IDFC on declines - Recommends Investorzclub

IDFC, the Infrastructure development finance company, is India's largest exclusive Infrastructure finance company. It is directly proportional to India's growth story and hence can be included in your long term portfolio.

Recent RBI action is expected to put some pressure on margins and credit offtake for the company, and the stock price is expected to fall 5-10% from current levels, but considering it's unique business model and catering to the infrastructure sector, it's a classic top down bet for long term.

Investorzclub recommends accumulate rating on IDFC at every decline. At Rs 134 the stock is available at less than 11 times FY-12 earnings and 1.8 times fY-12 PBV.

Magic of compounding - The Millionares Secret

Millionares are not built overnight. Becoming millionare and staying millionare or perhaps become billionare from millionare requires dicipline and master of a trade. There is a very strong invisible natural force which helps us in growing our wealth exponentially and that is called the force of compounding. Most of us either don't know its true benefits or have failed to realize its advantages while doing investments.

Following is given a chart which assumes a one time investment of 1,00,000 bucks at the begining, and then calculates

Buy CESC - Recommends Angel Broking

Angel Broking is bullish on CESC and has recommended buy rating on the stock with a target of Rs 380 in its May 3, 2011 research report. The CMP of CESC is Rs 287. At the CMP, the stock is trading at 6.9x FY-13E EPS and 0.7x FY-13E P/BV. Retail Business and real estate business of CESC is valued by them at Rs 15 & Rs 11 Per share.



Download the full report here - http://www.moneycontrol.com/news_html_files/news_attachment/2011/CESC_AngelBroking_050511.pdf

Warren Buffet Biography

Early life

Warren Buffet was born in 1930 in Omaha, Nebraska, the son of a stockbroker and Congressman, and has become probably the world’s most successful investor.

As a boy, irrespective of his family background, he delivered newspapers to make extra money and this probably sparked his interest in the media where he has made several successful investments including the Washington Post Company, a stock that has made him a lot of money and which he vows never to sell.

Imbued with a determination to make good and an entrepreneurial nature, Warren dabbled in several part time businesses but his destiny was chartered early in the piece when, after graduating from the University of Nebraska, he studied business at the Columbia Graduate Business School under the legendary Benjamin Graham.

Working with Benjamin Graham

He tried to get a position with Graham’s firm and was at first unsuccessful. He finally got the job and, as he generously acknowledges, learned a lot about stock investment from The Master.

Cognizant overtaking Wipro

Cognizant Technology Solutions Ltd. reported stellar set of numbers on 3rd May showing a revenue growth of 43% to $1.37 Billion from $959.7 Million in the year ago period.

Cogniant is anticipating a revenue of $1.45 Billion in Q2. For full year Cognizant is expecting to clock a revenue of close to $6 Billion.

With this revenue outlook, Cognizant will overtake India's third largest software exporter Wipro, which has a target of $1.39 billion to $1.42 billion revenue for the April-June quarter. For full year Wipro is expected to clock a revenue of $5.8 Billion.

Reliance Industries block deal

Reliance Industries(RIL) today witnessed a huge block deal of 65 lakh shares at Rs 945 per share.

The stock is down more than 10% in last 10 trading sessions. On one year basis the stock has given a negative return of close to 8%.

RBI Hikes Savings Rate to 4% from 3.5%

 Reserve Bank today raised its short term lending (repo) rate by 50 basis points to 7.25%, while lowering the economic growth projection to 8% for the current fiscal.

The reverse repo, the rate at which bank park funds with RBI, has been raised by 50 basis points to 6.25%. CRR remains unchanged at 6%.

The RBI has also increased the saving bank rate by 50 basis points to 4% to give higher returns to depositors in the wake of high inflation.

Savings rate is increased for the first time since 2003, which is negative for banks having high CASA ratio such as SBI, PNB ICICI Bank, HDFC Bank.

The tighter monetary policy have played spoil sport on Indian markets and the stock markets are heavily down today mainly draggged by the bank stocks

Related article http://investorzclub.blogspot.com/2011/05/should-one-invest-in-banking-stocks-now.html

Will Osama bin Laden fall have any positive effect in our Markets. Guests, please leave your comments in the comments section

Buy Crompton Greaves - Recommends Prubhudas Liladhar

Prabhudas Lilladher is bullish on Crompton Greaves (CG) and has recommended accumulate rating on the stock with a target of Rs 304 in its April 29, 2011 research report.

The current market price of the stock is 250. The stock is currently trading at 15.5x and 13.3x its FY12 and FY13 estimated earnings, respectively.

Download the full report from the below link

 

http://www.moneycontrol.com/news_html_files/news_attachment/2011/Crompton_Greaves_PL_020511.pdf

Lloyd Electric FY11 Results & Valuation

Lloyd electric & Engineering at the current market price seems to be tremendously undervalued in terms of price to book and PE multiples. For FY 11 the PBV and PE ratio of the company at the current market price of 62 are as follows:

Should one invest in banking stocks now?

Savings account deregulation is a fresh challenge that is emerging for all the banks and particularly those banks which has high CASA ratio as there will be compression in NIM once this regulation is implemented. Already banking stocks in India were at the top end of the Interest rate cycle 9 months back when the entire regime of loose monetary policy was about to end and RBI became hawkish on Inflation and started increasing rates. 

In an article dated 1st FEB 2011 "Banking stocks injured by tripple edged sword"  it was discussed how the pain on asset quality and lower NIMs will start getting reflected from the 4th quarter of FY11 onward which will take at least 6 to 9 months to bottom out. Only then the investors having 1 to 2 years of investment horizon should enter into quality large cap and mid cap banks. There is still enough pain to be witnessed by bank stocks going forward. So fresh allocation in bank stocks at this point of time should be avoided until both time and price correction happens and valuation on 1 year forward basis is compelling.

Infosys Management Change

Infosys Technologies, India's second largest software exporter reshuffeled its top managment to steer the next level of growth in the company and stay ahead in the competition with TCS, Cognizant & Wipro. The latest Mangement team announced is

Chairman - K V Kamath, formerly ICICI Bank Chairman, replaces Narayan Murthy


CEO & MD - SD Sibulala, formerly COO of Infosys


Executive Co-Chairman - Kris Gopalakrishnan, formerly CEO & MD of Infosys

Rakesh Jhunjhunwala Biography

Rakesh Jhunjhunwala is frequently dubbed “India’s Warren Buffett”, but in many ways the two could not be more different. The Oracle of Omaha is a teetotaller and a non-smoker. Mr Jhunjhunwala constantly alternates between his preferred 555 cigarettes, sweet chewing paan and Indian snacks. He is known for his taste for cigars and Blue Label whisky.

While Mr Buffett still lives in the same house in Omaha he had when he began, Mr Jhunjhunwala has moved his family into a plush flat in Mumbai’s upmarket Malabar Hill neighbourhood. Like Mr Buffett, however, Mr Jhunjhunwala is primarily a value investor and both are willing to share their investments and the rationale behind them with the public.

Firstcall Research - Buy PFC target 262

Firstcall Research has recommended a buy on Power Finance Corporation with a price target of 262 in medium term. Download the full research report here http://www.moneycontrol.com/news_html_files/news_attachment/2011/PowerFinCorp_FirstCall_290411.pdf

Trading Idea - Buy Chambal Fertilizers

Chambal Fertilizers and Chemicals appears to be good on charts and showing more relative strength compared to markets. It has taken support at 68 levels thrice in last six months, which suggests a strong bottom for the stock at around those levels. Traders can go long in the stock with a price target of 90 in 5-7 trading sessions keeping a stop loss at 82 levels.

Warren Buffet portfolio

Warren Buffet Latest Portfolio - 2011

Rank	Stock	# of Shares	% Weighting
		(millions)	of Portfolio	% Stake
			(as of 12/31/10)	in Co.
1	Coca-Cola (KO)	200	21.60%	8.73%
2	Wells Fargo (WFC*)	320	19.56%	6.51%
3	American Express (AXP)	151.6	12.28%	12.67%
4	Procter & Gamble (PG*)	79.1	9.83%	2.74%
5	Kraft Foods Inc. (KFT)	106.7	6.34%	6.02%
6	Johnson & Johnson (JNJ)	23.9	3.06%	1.55%
7	Wal-Mart (WMT)	39	4.26%	1.10%
8	Wesco Financial Corp. (WSC)	5.7	4.32%	80.10%
9	ConocoPhillips (COP)	34.2	3.43%	1.93%
10	US Bancorp (USB)	69	3.51%	3.59%
11	Washington Post Co. (WPO)	1.7	1.51%	20.46%
12	Moody's Corp. (MCO)	30.8	1.80%	12.31%
13	M&T Bank Corp. (MTB)	5.6	0.87%	4.48%
14	Costco (COST)	4.3	0.51%	0.99%
15	USG Corp. (USG)	17.1	0.58%	16.60%
16	Torchmark Corp. (TMK)	2.8	0.30%	3.53%
17	General Electric (GE)	7.8	0.28%	0.07%
18	Sanofi-Aventis (SNY)	3.9	0.29%	4.68%
19	United Parcel Service, Inc. (UPS*)	1.4	0.18%	0.14%
20	GlaxoSmithKline (GSK)	1.5	0.11%	0.06%
21	Ingersoll-Rand (IR)	5.6	0.39%	0.20%
22	Exxon Mobil (XOM)	0.4	0.06%	0.01%
23	Gannett Co., Inc. (GCI)	1.7	0.06%	0.73%
24	Comdisco Holding Co. Inc. (CDCO.OB)	1.5	0.03%	38.18%
25	Bank of New York Mellon Corp. (BK)	5.6	0.39%	0.14%
Acq	Burlington Northern Santa Fe (BNI)**	0	0.00%	100%

Citigroup downgrades BHEL, revises target to 2202

Citigroup has downgraded Bharat Heavy Electricals Limited (BHEL) to 'hold' from 'buy' and cut its target price to 2,202 rupees from 2,785 rupees because it sees the power equipment maker's order backlog declining from FY13.

"Increasing competition intensity in power generation equipment and imposition of 20 percent duties on imported equipment could lead to de-rating of the stock," Citi said.

ICICI Direct recommends Infosys as Strong Buy

ICICI Direct has adjusted their FY12E and introduced FY13E estimates. Their estimates assume 18%/13.5% CAGR rupee revenue/EPS growth during FY10-FY13E. They have valued Infosys at 20.9x its FY13E EPS of 160, a discount relative to its historical one year average forward PE of 22x, to account for the longer time horizon. Consequently, they have changed their rating to STRONG BUY with a 12 month target price of | 3350 per share.

Telecom companies market share

Telecom Companies market share in India as of August 2011



Sl. No.	Name of Company	Total Sub Figures	Additions in Aug	% Market Share
1	Bharti Airtel	171,846,824	1,150,298	28.09%
2	Vodafone Essar	144,144,031	1,133,024	23.56%
3	IDEA	98,441,714	2,330,239	16.09%
4	BSNL	90,622,219	388,057	14.81%
5	Aircel	59,191,661	602,312	9.68%
6	Uninor	27,738,154	349,488	4.53%
7	Videocon	6,382,493	-652,383	1.04%
8	MTNL	5,298,081	32,932	0.87%
9	Loop Mobile	3,181,967	19,035	0.52%
10	Stel	3,433,988	-67,259	0.56%
11	Etisalat	1,477,495	52,941	0.24%
12	All India	611,758,627	5,338,684	100.00%

# Telecom Companies market share in India as of march 2011
 



Rakesh Jhunjhunwala portfolio

Rakesh Jhunjhunwala Potfolio as of March 2011. 

Stocks to avoid in 2011

Its a well known lesson in investing that Capital protection should have the higher priority over return on capital. We all talk about which stocks to bet on that can giver superior returns on investment, but it is equally important to know which stocks to avoid to prevent the risk of capital loss. Here is a selective list along with reason:

Buy Bharti Airtel with an immediate target of 400

Bharti airtel seems to have broken out of a tough resistance of 360 and has managed to stay above this level in last few trading sessions. On 14th April the counter witnessed high volume of close to 8 million shares with unusually high delivery percentage of 74% which suggests that strong hands were buying stock in the cash segment. Based on options data for Bharti Airtel, it was seen that 380 call has seen a cut of 12% in open interest while the call of 400 has registered an addition of 40% in open interest, which suggest that the bias has shifted towards