Some Good Steals...

[ssnkumar]

Hi Narendra, I am waiting still.
There are some interesting moves being made in the market, but we need to watch this longer I feel.
There is really no hurry to take new positions, as we will find good picks as the market moves along.
Cheers.

Thanks Amit.
I want to know your view on Hindalco?
It has announced a stock split of 1:10.
And also a rights issue.

I know what stock split means. But, what is this rights issue and how is it going to affect the shareholders?
Is it good to enter it at current point of time?

Regards,
Narendra

 

[AMITBE]

Hi Narendra, A rights issue is an issue of new shares for cash to existing shareholders in proportion to their existing holdings.
It is a way for the listed company to raise new cash from shareholders - this is an important source of new equity funding for publicly quoted companies.
Technically a rights issue must be made before a new issue to the public. This is because existing shareholders have the right of first refusal (otherwise known as a preemption right) on the new shares.
The rights issue is always issued to the existing shareholders at a discount from the price at which the shares will be offered to the public later.
About Hindalco...yes, a good defensive scrip for any portfolio. Not sure where it's trading now, but check for declines to enter. Or wait out a couple of days to see where things are headed. Like NTPC, this is unlikely to run away wildly so take your time..
Regards.

 

[ssnkumar]

Hi Narendra, A rights issue is an issue of new shares for cash to existing shareholders in proportion to their existing holdings.
It is a way for the listed company to raise new cash from shareholders - this is an important source of new equity funding for publicly quoted companies.
Technically a rights issue must be made before a new issue to the public. This is because existing shareholders have the right of first refusal (otherwise known as a preemption right) on the new shares.
The rights issue is always issued to the existing shareholders at a discount from the price at which the shares will be offered to the public later.
About Hindalco...yes, a good defensive scrip for any portfolio. Not sure where it's trading now, but check for declines to enter. Or wait out a couple of days to see where things are headed. Like NTPC, this is unlikely to run away wildly so take your time..
Regards.

Thanks for the explanation.
Right now it is trading at around 150.
It has dropped from 165 to 145 (last week) and again has started uptrend!
But, I don't know whether the split has already happened and what is the record date, etc.

I am eager to enter this, but don't have much info!!

Thanks,
Narendra

 

[kjvohra]

Hi Amit,

I am new to Traderji and this is my first post - so u could welcome me . I needed ur advice on what seems like a great stock, Uttam Galva Steel. There seems so much happening in terms of expansion, demand etc. What do u say and why. I feel this Steel is a Steal!

KJ Vohra

This is more of a pointer as most of the scrips have been mentioned by me earlier.
I had already posted Gammon Ind: Has started to get volumes back on the back of the news that it has got an order worth 800 crores fro the National Highways. Something similar happened to GujratNRE Coke which was unable to cross 116 after several attempts but came in strong after news of bagging large export orders etc. Possibly a similar move caould take place with Gammon. Sometimes the punters need a nudge to remind them of these great companies I suppose. A steal at current levels of 270 or so but needs a little consolidation and stability. Hardly any downside.
The other one is GujNRECoke. At the time of writing buying is out numbering selling by over a lakh, with volumes at 14 lakhs plus. Has bounced back after yesterday's close of 122 to current 123 plus. Seems quite convincing, this rally of the last few days. Has to cross 130 for bigger target and seems very likely. A steal I feel.
LIC Housing Finance after languishing for several weeks between 230-240 with very poor liquidity( 20000-30000 average volume), fell to 200 levels after dissapointing results. May have bottomed out around current levels of 202 where it has stood since three days with not bad volumes, one lakh plus. Keep a watch, is associated with LIC, the mammoth insurence coporation. It has come down from 270 levels of two months ago. Could be a steal here, but a little early to say.
Cummins is certainly a steal at current 132. Has strong support here.
India Bulls, Rolta, Century Textiles very good at 155, 125, 256(at the time of writing), but show strong sensitivity to the Indexes. Have not much downside at these levels but bigger targets.
Then there is the laggard, Dabur. Back at 127 after yesterday's rally to 136 where it reacted. Good defensive pick still.
NTPC on a daily basis clocks around 20 lakh volume and satys around 83-85. Not much downside and another defensive play. Exactly what IDBI was doing around 88-90 a few weeks ago.
IDBI and BOI seem set for a big break out after holding steady at 102 and 99 with large volumes for a few days. IDBI is consistently doing volumes of over 15 lakh! Perhaps awaiting a new rally from the Indexes, hey Seniors?
Thanks.

 

[mail2joshi]

Hi Amitbie,

Thanks for your suggestion regarding ITC and SAIL.
I am holding ITC @141.5 and Allahabad bank @91 and BONGAIREF@80
I am holding ITC for long term like PetronetLNG
but what about Allahabad bank and BONGAIREF.( I dont know hot to set decide the limits) so any suggestion regarding this.

Also I got one script GLFL circut at lower side...is there any chance of it to recover...I am holding them @18 when there was cuicut from upper side and I did mistake when GLFL was at 22.

Please dont mind as I already asked so many questions..

Hoping for a positive reply

Regards
sjoshi

 

[kkz59]

Amitbe

Views on Laxmi Mills (BSE No.502958) - Quoted at 1403/-.

Has huge holding of Lakshmi Machine Works shares. Even without this holding, the company has huge capacities in Spinning and Weaving.

Moving forward, this can be a very good textile story.

Saint, shall feel obliged if you could also reply.

Regards

Kamalesh

 

[kkz59]

Re. Laxmi Mills

Sorry to have forgotten to mention that the share is 100/- FV.

Kamalesh

 

[bmcg]

Amitbe,

Re: Tata Motors

This counter has been witnessing a lot of resistance at 517 and the 519.75-520 levels.

With a PE of only 15.50 and dividend payouts of 125% what is it that seems to be holding the price back. It s lagging visavis the Nifty also.

Could you throw some light on this please. On the up side I feel there is a resistance at 522.50 - 523 crossing which it could scale to 528.50

On the flip side 517 and 513 seem to be the support tags.

Could you please comment on the same.

Thanks

bmcg

 

[kkrish68]

Hi Narendra, I am waiting still.
There are some interesting moves being made in the market, but we need to watch this longer I feel.
There is really no hurry to take new positions, as we will find good picks as the market moves along.
Cheers.

Hi Amit,

Thanks for your inputs on YES bank and India Cem. Fully subscribe to your views on waiting for a while. I made use of the upside today to get into 50% cash position with some neat profits.

regds
Kishore

 

[madhura]

Hi Amit,
one graph i want to bring to your notice is Shriram Transport Finance
it is heading in ascending manner....
recently has it formed cup and handle trend?
if same trend continues, it will see 150 in more 15 days..
and also to add that when market was in correction mode, this graph has least downtrend in it's graph!
Thanks
Madhura