HOT STOCK : AUROBINDO PHARMA

One of the largest API manufacturers in Asia, Aurobindo Pharma has commercialised over hundred APIs. Aurobindo's products are spread over six major areas encompassing Antibiotics, Anti-Retro Virals, CVS, CNS, Gastroenterologicals, and Anti-Allergics.

Aurobindo’s R & D strengths lie in developing intellectual property in non-infringing processes and resolving complex chemistry challenges. In the process, Aurobindo develops new drug delivery systems, dosage formulations and applies new technology for better processes.

This is an A group stock trading at a PE of only 10 at current market price. The price is near year's low and technically looks as bottoming out. The stock is also in FNO and can see some action in the near future. Being an A lister in the Pharma industry, this stock deserves a PE rating of 15-20 and thus, a price target of 780 to 1040 in the medium to long term.

Cheers!

HOT STOCK : UNICHEM LABS

Unichem brings to the customer a blend of modern-day research and nearly six decades of rich experience in the Indian pharmaceuticals industry. The Company was promoted by the late Mr. Amrut Mody, a pioneer in the Indian pharmaceuticals business.

Even though formulations account for a significant portion of Unichem's revenues, the Company also manufactures active pharmaceutical ingredients (API or bulk actives). The Company has prudently addressed relevant and growing therapeutic areas like gastro-intestinal, cardiovasculars, diabetes, psychaitry, neurology, anti-bacterials, anti-infectives and pain management, among others.

Unichem is headquartered in Mumbai with five manufacturing locations in Roha (Maharashtra), Goa, Ghaziabad (Uttar Pradesh), Pithampur (Madhya Pradesh) and Baddi (Himachal Pradesh). The Company's facilities enjoy credible certifications: for instance, the Goa plant has been approved by UK MHRA (earlier MCA), MCC (South Africa), WHO (Geneva) and TGA (Australia). The Baddi plant has been approved by UK MHRA and MCC (South Africa). The Company has received ISO 9001:2000 for all its plants and corporate office. Similarly the Company has received ISO 14001:2004 certificates for its formulation plants ( Goa, Ghaziabad and Baddi) and Corporate Office at Mumbai.

As a future-focused initiative. Unichem has expanded its Research and Development facility in Jogeshwari (Mumbai) to spearhead research in Novel Drug Delivery Systems (NDDS) and develop non-infringing routes for the manufacture of products directed at the regulated markets. The Company has also funded a collaborative research with the Indian Institute of Sciences, Bangalore. Unichem's growth strategy is fueled and backed by more than 2400 talented and motivated human resources.

Source : www.unichemindia.com

The financials of the company are robust. With the full year earnings expected to be in the 23-25 range, the stock is trading at a PE of only 7.7 at cmp of 190 which is quite low as compared to its peers. The stock deserves a PE rating of 12-15 and thus the fair value of this stock should be around 300 to 375 levels. Technically, the stock looks like it has bottomed out and will now go up.

SPICEJET

Prabhudas Liladhar has initiated ‘buy’ on the stock for target Rs 84. SpiceJet is the most efficient low cost player in the industry. With a fleet size of 11 in 2006-07 and passenger load factor of about 77 per cent, the company has a market share of about 8 per cent. SpiceJet's identical fleet configuration (all B737-800s) helps reduce its operational costs. Also, the absence of food on board helps it achieve a better turnaround. Irrational pricing prevalent in the industry a couple of years back has largely ceased. With improving yields and the lowest cost per ASKM in the industry, Spice is poised for a turnaround. The company has also started focusing on ancillary revenue to further boost sales. The share of ancillary revenue is expected to go up to 10 per cent (from 7-7.5 per cent earlier) in 18 months. Prabhudas expects the company to achieve profitability in 2008-09. SpiceJet is currently trading at 2.0 times 2008-09 estimate and 1.7 times 2009-10 estimated adjusted enterprise value per sales, which appears attractive for a growing company. Prabhudas expects topline to grow at 64 per cent CAGR over the next three years to Rs 2,823.9 crore by 2009-10 and achieve profit after tax of Rs 76.1 crore (from a loss of Rs 70.8 crore in 2006-07). source : Economic Times

HOT STOCK : GUFIC BIOSCIENCE

Gufic Bioscience, with one of the finest Tissue Culture labs in India, along with a sophisticated R&D Center and a robust infrastructure has a vision to grow into a global Bioscience major. Informed buying has been taking place for the last few days around 10 levels and the share price is tipped to double in the near future. The Promoters hold a very healthy 70% stake in the company.

SOUTH ASIAN PETROCHEM LIMITED

SOUTH ASIAN PETROCHEM LIMITED operates in the Petrochemicals market and has been doing quite well in recent times. Its half year EPS is already Rs. 2.71 and with a projected full year EPS of 5 plus, this stock deserves a re-rating upwards. Especially when petrochem companies have become the darling of the markets recently, with some stocks in this sector doubling and tripling in no time. Promoters are acquiring more stake in the company and this stock is a potential multibagger.

GODAWARI POWER & ISPAT LIMITED

GODAWARI POWER & ISPAT LIMITED is all set to move up. IT IS ONE OF THE MOST UNDERPRICED STOCKS IN THE RED HOT POWER SECTOR. First half EPS already stands at 17 plus rupees. With a projected EPS for full year of Rs. 34-36, GPIL is grossly undervalued. While peer companies in the Power Sector are having PE ratios of anything between 30-150, this stock deserves a re-rating. Recently the company has cleared fund raising plans of 210 crores. Technically also, this stock looks ready for a big move ahead. Current price is only Rs. 267. Can easily become a multibagger in the medium term.

ALPS INDUSTRIES : DEEPAWALI PICK

Alps Industries is a gem of a stock currently trading at dirt cheap prices. It has delivered a half year EPS of rs. 5.52 and projected EPS for full year is 11-12 rupees. The company is the owner of the well known Vista brand of window dressings and its book value is nearly 88 rupees. The stock is currently trading at a huge discount to its Book Value around the price of 46-47. In my opinion this company deserves a PE rating of at least 12, so Fair Value of this stock should be 12x12=144. It is reported that Clearwater Capital Partners has bought 3 lakh shares at Rs 47 per share (1.54 % stake) very recently. Promoters of the company and FIIs have upped their stake in the company considerably during the last one year. Alps Industries presents a huge upside potential from current levels.

SALONA COTSPIN REVISITED

Action seems to be returning in Salona Cotspin (bse code : 590056). The textile industry as a whole has underperformed the market for the past one year or so due to the appreciation of the rupee against the dollar. Govt. seems to be genuinely concerned about the hardships being faced by the exporters and is taking steps to help them. Salona Cotspin has a good track record of consistently growing Net Profit figures and regular dividend payouts. Watch out for this counter, volumes are picking up. Cheers!

JAYASWALS NECO

Any level is a good entry level in Jayaswals Neco. The EPS for FY08 is likely to be in 8-10 range and EPS for FY09 likely to be significantly more. Somebody has asked what is the story in this counter, the story is that the company has turned around and is now going to make very good profits. This is the next Jai Corp or next KEC International in the making. Nagpur-based Jayaswals Neco has set up a commercial power plant at Moitra village in Hazaribagh district of Jharkhand. The 270-mw coal-fired plant will have two units of 135 mw each. The company has coal mines with estimated reserves of 30 million tonnes in Moitra village itself.Jayaswals Neco has planned to sign the power purchase agreement with PTC India. The company already has a 40-mw captive power plant at Siltara in Raigarh district of Chhattisgarh where an integrated steel plant has come up.Incorporated in 1972, Jayaswals Neco essentially produces iron castings and pipes that find applications in railways and construction sectors. In 1992-93, the company diversified into the solvent extraction business. The integrated steel plant in Chhattisgarh signifies an important backward integration move. This move will bring down their costs very significantly and propel their earnings to a new level. Cheers!

POWER PLAY

The power sector is red hot right now. This sector is set to reap the rewards of major reforms initiated in the country some time back. Current events like Reliance Energy coming up with an IPO of Reliance Power and the listing of Power Grid Corp will fuel the fire in Power Stocks. PTC and NTPC are going to set up Power Exchanges to trade power. Power Grid is expected to list around rupees 80. We may see a big rally in Power stocks like PTC, NTPC, Torrent Power etc. in the near future.

GOOD BUY : HPCL

HPCL is a grossly undervalued stock in the currently hot and happening Oil & Gas sector. This has been largely due to APM (administered pricing mechanism) of the govt. Once APM is dismantled, this stock can sky rocket. Even otherwise, the stock is grossly undervalued and underowned. With previous year EPS standing at 75.65, this stock deserves a price of at least rs. 750. Compare that with its current mkt price and there is a lot of room for appreciation. Also there is a huge valuation gap between HPCL and its peers like RPL after a major rally in RPL, RNRL and other refinery/energy stocks. HPCL definitely deserves a re-rating upwards and market participants seem to be slowly realising this now.

SUPERSTAR GEM : DCM SHRIRAM CONSO

DCM SHRIRAM CONSOLIDATED Ltd. is a diversified company operating in the Agri (Fertilizers, Bioseeds, Chemicals etc.), Cement, Sugar, Rural Retail business. Fenesta Buildings systems (UPVC Window and Door systems pioneered by DSCL under the ‘Fenesta’ brand ) is a new addition to their portfolio with great growth prospects. The company has recently received Rs. 837 crores from the sale proceeds of its Mill land in Delhi to DLF. This windfall will make the company debt free. The company has cash alone of approx. rs. 100 per share. The company has also declared an interim dividend of rs. 3 per share. This stock is a multibagger in the making.

Another Gem : SHRINGAR CINEMAS

SHRINGAR CINEMAS is an excellent pick in the media sector. The Promoters holding is 48.06% qtr ending June, 2007. The EPS for June qtr was rs. 1.65 as compared to 40 paise last year. At a projected eps of rs. 6 for fiscal 2007-2008, the share trades at a PE of approx. 9. This is very low as compared to other media stocks. If the stock is brought near the PE levels of its peers, the fair value should be around rs.90. The company is adding new properties to its kitty of Multiplexes and the growth for this company's business is expected to be good. Technically, once this stock closes above 62 with good volumes, it could then go up to the next level of 75.

INVESTMENT PICK : AGRO DUTCH INDUSTRIES LTD.

Hi friends,

Presenting a gem of an investment opportunity for patient investors: Agro Dutch Ind Ltd. Agro Dutch is a premier packaged mushroom producer in the country and exports its products to many countries across the globe. The current valuations of the stock are mouth-wateringly cheap. The first quarter eps jumped from 1.37 last year to 2.89 in the current year. With projected eps of rs.10 plus for 2007-2008 fiscal, this stock trades at a PE of a mere 2.5 approx. at current price. The promoters of the company have added 4% shares to their kitty from June 2006 to June 2007. This stock can easily go over 50 rs. within a one year time frame. Strong BUY rating.

SUPREME PETROCHEM

There have been lots of rumors floating around on Supreme Petro that the Operator is going to take the stock price to around 33-34 levels within a month. If we look at the stock fundamentally also, it seems to be a good buy. Trading at a single digit PE, the downside from the cmp of 24 is limited and the Upside prospects look good. The company had also entered into a MOU with the govt. of Maharashtra for a project, which should help in the growth of this company.

Investment Pick : SATNAM OVERSEAS (KOHINOOR FOODS)

Satnam Overseas (Kohinoor Foods) presents excellent value for money at current mkt price. Having posted an eps of rs. 11 plus for 2006-2007, this share is trading at a very low single digit PE. Dividend of 10% has also been declared. Since this company is primarily in the exports of Basmati Rice and other Processed Foods, the stock price is currently depressed because of the depressed dollar value against the rupee. But going forward, the future should be good for this company. Excellent BUY at current levels and one can expect minimum 50% appreciation within one year.

Investment Pick : THIRUMALAI CHEMICALS

Thirumalai Chemicals is a great stock for investment, at current mkt price. The company has posted an excellent eps for the June 07 quarter of Rs. 11 plus. The full year's eps for 2006-2007 was Rs.24 plus. The company has recently given 90% Dividend also (9 rs. per share). The medium term target for this stock is Rs. 300 and Long term Rs. 400. Currently trading at a low single digit PE. Downside risk is minimum and Upside gains can be huge.

Momentum Play

Momentum is back in the mid-small caps and traders should make hay while the Sun shines. The volumes have increased many fold in the smaller stocks and one can take short term positions in stocks like Supreme Petro to make quick gains. Cheers!

New Astro Post

Check out your astro forecast for the coming month at my astro site: http://superstarastro.blogspot.com

MADHAV MARBLES REVISITED

Madhav Marbles was first recommended by me around Rs.90 levels approx. six months back after which it rallied to 162 levels within approx. one month of my reco. It stayed in the 140s for quite a long time. Then after the market crash in March, this stock has come down to its current lows of around Rs. 75. The company has already posted an EPS of Rs.20 for nine months and the full year EPS could be approx. Rs.25 or more. The reason for its fall to current levels could be the depreciating value of the Dollar against the Rupee, besides Operator activity. The company has a board meeting on the 28th of June, 2007 to declare the annual results and discuss dividend. I think it is available at a steal presently and can give rich rewards in the future, if held patiently. The delivery volumes are a very high 79% which indicate accumulation. Cheers!

HOT INVESTMENT PICKS: ARVIND MILLS

The demand for denim is picking up again, and Arvind Mills is currently trading near its year's lows. I reckon it's time to start buying this stock again. Arvind Mills is a frontline stock in the textiles sector and has posted an eps of Rs. 5.40 for the year ended, March, 07. There was a time when Arvind Mills used to trade at a PE of even 20, but currently trading at a PE of only 8. The delivery volumes for yesterday were a very high 69%. Technically also this stock looks ripe for an upmove, with immediate targets of 55 and then 68. For long term investors the targets can be over 100 also. Cheers!

PS: I continue to like SRF Limited, Salona Cotspin (bse) and FCS Software. These are at the top of my buy list.

Astro Forecast and Market Outlook

Hi friends,

Sorry for the delay in publishing this month's astro forecast for all the Moon signs of the zodiac. I have been quite busy lately and just could not find the time to do it earlier. The forecast has now been published and you can go to my astro site : http://superstarastro.blogspot.com/ to read it.

My outlook for the stock market in the coming month is cautiously positive. I feel that the worst is behind us and one can selectively cherry-pick good value stocks which have been beaten out of shape, for long term investment. The sectors to watch would be Textiles, Chemicals, IT, Pharma & select Banking in the coming weeks. The world wide mayhem in the stock markets was triggered by the inauspicious opposition of Mars and Saturn in the celestial skies. And once Mars moves out of Capricorn on 29th March, things should get better. But the real big change will only come only after 16th July, 2007 when Saturn returns to Leo.

Cheers!

FCS SOFTWARE : Value Pick

Continuing with my theme of concentrating on Value stocks in the current market weakness, I present another potential multibagger. The company has posted a nine months EPS of Rs.11.45 and at a projected EPS of Rs.15 for full year, the fair value of this stock should not be less than 150. But the stock is currently trading at only 82.30. Clearly, it is one of the most undervalued IT stocks in the market.

SRF Limited : Value Pick

SRF Limited is a textiles and nylon fibre manufacturing company with nine months EPS at rs. 36 approx. At cmp of nearly rs. 160, this stock is definitely a Value Pick. The year's low was 136.50 and high was 372.70. The company also stands to gain from carbon credits. It is a very attractive buy at current levels and the current weakness in the overall markets can be used to accumulate this stock.

Recent pieces of news from the company:

SRF Ltd has informed BSE that the Board of Directors at its meeting held on October 27, 2004 inter-alia, had approved capital expenditure proposal for Modernization and Expansion of capacity of Industrial Synthetics Business (now Technical Textiles Business) at Manali (Madras) and Gwalior.The Company has now informed that, following projects have been commissioned:
1. Expansion of capacity of Nylon Tyre Cord Fabric at Gwalior— from 10000 MTPA to 17000 MTPA
2. Expansion of Poly and Spinning capacity at Manali — from 11000 MTPA to 25400 MTPA.

SRF Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 20, 2007 has approved the following projects:
1. Upgradation of R&D facility and pilot plant at a total cost of Rs 14.40 Crores.
2. Manufacturing of a new fluoro speciality chemical at a total cost of Rs 14.35 Crores.

Golden Opportunity

Friends, you have seen almost the entire market melt down in the last few days. The mid-small caps stocks have been badly hit. I would reckon that one should not look at the indices right now and concentrate on individual stock valuations. This current dip in the market is a golden opportunity to accumulate VALUE stocks, specially in the mid-small cap sectors. Stocks are now changing hands from the weak players to the stronger players in the market who have a better holding power. Some of my readers have been asking me what to do with the stocks they are holding. Instead of addressing each one personally, I'm writing this post. I personally am buying Value stocks on every dip. I feel that the dip in the value stocks is temporary and those who accumulate good stocks now, will turn out to be big winners in the medium term. And btw, I've posted the zodiac signs forecast for the next month on my astro site : http://superstarastro.blogspot.com/

Salona Cotspin : Another Gem

Friends, continuing with my endeavour of creating wealth for all my readers and well-wishers, I am presenting another gem: Salona Cotspin (bse), yesterday's closing price Rs.21.75. This textiles company has been posting excellent results consistently and the nine months eps for 2006-2007 stands at over rs.5. My attention was drawn to this stock by a guest on my site and after checking the fundamentals and technicals of this stock, I am giving it a Buy rating. Cheers!

TT Limited

TT Limited is a fast growing company in the hosiery business. I'm sure most of you would be familiar with their TT Brand. They have just declared an interim dividend of Re.1 (10%) which can be availed. The half year eps has been over Rs.3 so far and the stock's closing price yesterday was Rs.24.50. The stock looks undervalued and there is scope for a lot of appreciation from the current levels in the medium term.

Action Themes

The themes which will see heightened activity are likely to be the Carbon Credits theme, Leather goods, Mining and Minerals, Heavy machinery, Quality Realty apart from Metals and Oil related sectors. Stocks which immediately come to mind are SRF, Guj Fluoro, SAIL, Mirza Tanneries, Chemplast, BHEL, Lok Housing, Madhav Marbles.

Sectors to watch : Metals & Oil

Astrologically, the time is good for the Metals and Oil sector. There could be hightened activity in these sectors for the next one or one and a half months. One can take a look at these sectors for the medium term.

Maadhav Granite & Realty Ltd. (Madhav Marbles)

I had initially started coverage of Maadhav Granite at the price of Rs. 90 with a BUY rating. Within approx. one month of my call, the stock raced to 161.5. Since then it retraced to 140 levels, where it spent quite a lot of time consolidating. The third quarter results are now out, and as expected, they are excellent. The EPS for nine months now stands at Rs.19 plus. The management is good and some new projects are on the anvil. It is a BUY with a target of Rs.250 in the medium to long term.

Guest Stock Tips

Friends, in order to make this site more interactive, I'm introducing a column where each one of you can post their stock tips. This website is meant for sharing information about hot stocks, so each one of you can contribute. Instead of posting about stocks you like in other Stock headings, you can now post them all under this heading.

Some points to be noted while posting your tips:

1. Pls give the rationale behind your buy/sell call on any particular stock about which you are writing. Any info that you can give about the stock that will help the readers in making their buy/sell decision.

2. Pls give current mkt price and your targets for the stock which you are posting about.

3. Pls DO NOT post comments which are meant to market some other sites. Make sure your comments do not contain any links to other sites. Such comments will be rejected. Only relevant links to the site of the companies whose shares you are commenting about will be allowed.

Cheers!

The next Superstar Stock: MP Glychem (bse)

MP Glychem (bse) is a company belonging to the Ruchi Group and is in the business of solvent extraction. The new name for the company is Anik Industries (bse code: 519383). India is witnessing a retail boom and the prospects of this company look good. The fundamentals are just great too. The half year eps of this company is already approx. Rs. 3. So, it is currently trading at very low PE ratios. On fundamentals alone, the fair value needs to be at Rs.60. And there are also rumors of stake sale talks with Reliance retail. The Promoters are also buying this stock to add to their shareholding. Visit www.ruchigroup.com

Cheers!
Superstar

Important Information for every citizen

Received the following in my mailbox tonight. Thought I should share it with everybody:

"Did you know that there is a system in our constitution, as per the 1969 act, in section "49-O" that a person can go to the polling booth, confirm his identity, get his finger marked andconvey the presiding election officer that he doesn't want to vote anyone !!!!
Yes, such a feature is available, but obviously these seemingly notorious leaders have never disclosed it. This is called "49-O".

Why should you go and say "I VOTE NOBODY"... because, in a ward, if a candidate wins, say by 123 votes, and that particular ward has received "49-O" votes more than 123, thenthat polling will be cancelled and will have re-polled. Not only that, but the candidature of the contestants will be removed and they cannot contest the re-polling, since people had already expressed their decision on them.

This would bring fear into parties and hence they will have to look for genuine candidates for their parties for election. This would change the way, of our whole political system... it is seemingly surprising why the media and election commission has not revealed such a feature to the public.... please spread this news to as many asyou know... Seems to be a wonderful weapon against corrupt parties in India... show your power, expressing your desire not to voteanybody, is even more powerful than voting... so don't miss your chance. So either vote, or vote not to vote (vote 49-O) and pass this info on... "

Astro Forecast for the period 15th Jan to 14th Feb

Beginning today, I'll post a monthly Astro forecast for all the 12 Moon signs. Note that the forecast is based on Moon Signs and not Sun Signs. If you don't know what your Moon sign is then you need to take a look at your birth chart (horoscope) and see in which zodiac sign is the Moon placed. That is your Moon Sign. Forecast for the period 15th Jan, 2007 to 14th Feb, 2007:

Aries - This is a bright month for you. You will be in high spirits as your income will be good and you will have many opportunities to socialize with friends. Friends will also be instrumental in furthering your career interests. You will have to take care of your health and some minor problems related to kids.

Taurus - The month begins on a high note with opportunities of intimacy with the opposite sex. Travel is also on the cards, which maybe for business and/or pleasure. Elderly people may have trouble with their knee(s). Beginning of Feb will open up new income avenues for you.

Gemini - Mars is stationed in your house of spouse this month, so avoid unnecessary arguments with your spouse/lover, as that might escalate into bigger trouble. It is also prudent to get a complete health check up done. If contemplating some major career or health related decision then it is better to postpone it for later.

Cancer - Saturn has returned to your sign in retrograde motion to conclude some nagging issues which have been pending for the last few months. Children will be a source of joy at the beginning of this month. There is also a possibility of romance from more than one quarters. You need to take things easy this month.

Leo - Issues about loans given or taken will come to the surface this month. Listen to your mother for guidance and comfort. Your mental abilities will be sharp and students will do well in their studies. A domineering attitude, specially inside your house, will not be in your best interests, so be a little more democratic.

Virgo - You will receive help and comfort from younger siblings this month. Property related matters will come to the fore. Children will keep you busy with their activities. Health of father may be a cause for concern. Investment in petro product companies may give short term profits.

Libra - The month may start with an income boost or sharp gains in your investments. You will be courageous and willing to take risks in all aspects of your life. New vehicle or new house/renovation of house will be on your agenda this month. Be careful that your bubbling enthusiasm does not become recklessness.

Scorpio - Not just this month, but this entire year will be a lucky year for you due to the benign influence of the magnanimous planet, Jupiter. The first part of this month can bring some great monitary gains. Planning for some journey may also take place now. Enjoy this rosy period.

Sagittarius - You will think and act like a leader. Even in your family gatherings, people would like to make you incharge. You will have a commanding personality this month, but be careful not to give too many orders to your spouse/partner. Some chronic ailment may resurface, so take good care of your health.

Capricorn - This is going to be a hectic month for you. Your place of residence or work will be buzzing with activity. Learn to delegate work, else you might not be able to handle all the work that's coming your way. You are likely to reap the financial gains of your old work/investments in the month of Feb.

Aquarius - Your expenses will be heavy this month. But it is some consolation that your income will also keep pace with your expenditure. You may plan for a pilgrimage or a religious ceremony. Old contentious issues or pending court cases may resurface in the coming months. Seek divine help.

Pisces - If you have children, they might be a cause for concern. Your luck is shining this month and you will do well in your business/career. You will gain from the advice of your younger brother or brother-in-law. You are likely to splurge the money you'll make in the earlier half of this month, in the latter half.

Astrology Forecasts

Friends,

Those of you who know me for a long time and have been familiar with the various astrology columns and weekly forecasts I used to write online, have requested that I start an Astrology column on this site too. So, giving respect to that request, I am thinking of starting something on Astrology and maybe a monthly forecast for all the zodiac signs and how their fortunes will be every month in the stock markets.

But such an effort will take up a lot of my time and then you must support this site by clicking on the google ad-links. In order to keep this site totally free, every visitor should atleast click 3-4 google ad-links daily. It will not cost you anything but it will keep this site running.

Cheers!
Superstar

Sugar Sector Outlook

Sugar Sector has been in a downtrend for quite a long time now............approx six months. But let's not forget that this sector had gone up 4-6 times in the year before that. Being a commodity sector which is regulated by the government, the fortunes of this sector are mostly guided by the govt. policies. The lifting of ban on exports can revive this sector. Technically speaking, one can expect some kind of bottom being reached soon in this sector. The stocks which can be accumulated on falls are Bajaj Hindustan, Oudh Sugar, KCP Sugar.

One can start entering Bajaj Hindustan around 195-200, Oudh around 80-84 and KCP around 26. These can be good starting levels of entry in a staggered manner.

Cheers!
Superstar

Dark Horse: Yash Management & Satellite

The future is Nanotech. It is believed that Nanotechnology will revolutionize the fields of Electronics, Medicine and Material sciences. Yash Management & Satellite is a Mumbai based media company which has now changed its operation profile.

Mr Anurag Gupta, Managing Director of Yash Mangement, confirmed that the company is indeed changing its operational areas completely. "We are dismantling the old business and the media content outfit is being hived off. Yash Management is now being shaped up as a joint venture with Cientifica, a global nano-tech research and consultancy services major. The new outfit is getting into contract research, consultancy and marketing of nano-technology related products," Mr Gupta said. At present, the company's nano-tech division - Yash Nanotech - is setting up a dedicated centre for contract research near Mumbai. "Immediately, we are starting research work in nano-tech in application areas of pharmaceuticals, paints and auto tyres for some of our clients," said Mr Gupta.

As a precursor to its collaborative research arrangement with IIT-Mumbai, Jawaharlal Nehru National Research Centre, Bangalore, and National Chemical Laboratory, three scientists have been inducted as advisors to Yash Nanotech. Visit www.yashnanotech.com for more info about the company.

PS: A strict stop loss of 12.50 was given

Cheers!
Superstar

Market Outlook

The feeling that 2007 may be the year of mid-small caps is catching on among Stock Mkt players. There was a total disconnect between the price rise of Index stocks and Mid-Small caps in the year 2006, where only the Index heavy weights and a select few pockets of the market saw action.

Talking about near term outlook, I feel there may be a dip in the markets before the coming budget, so one must excercise caution. If at all a dip comes, it will be a good opportunity to accumulate undervalued mid-small caps. The index might be rangebound, while action will shift to underpriced mid-small caps. But for the full year, the outlook is bullish. It is my expectation that by the end of 2007, the index may scale 16000 plus levels.

Cheers!
Superstar

Current Picks: Gupta Synthetics (bse)

Gupta Synthetics is a textile processing company having very strong fundamentals. First recommended by me at 118 levels, this stock ran upto 390 levels with a month and a half of my reco. Subsequently a 2 for 1 bonus was announced by the company, but since the record date was not informed, the stock corrected back to around 250 levels. The record date for bonus has been announced as 8th Jan, 2007 and the stock has started rising again after my second buy call. Currently at 309 levels, Gupta Synth is still trading at a PE of less than 5, leaving a great scope of appreciation. If the company continues to post good earnings figures consistently, a target of over 500 can very easily be achieved for the medium term investors. Visit the company's website: www.guptasynthetics.com for more information about the company.

Introduction

Does the name Superstar really need an introduction? I guess not if you have profited by following his calls on the moneycontrol website. Unlike stock tippers who come and go like flashes in a pan, Superstar has passed the test of time having been in the Indian Stock markets for nearly a decade. You have seen almost all of Superstar picks becoming Multibaggers. Investors who have been following the Superstar calls on moneycontrol over the last nearly five years will vouch for that. Some of the gems which were discovered by Superstar included Graphite India, CCL Products, KEC International, Sintex Industries, KCP Sugar, GE Shipping, IPCL, Kirloskar Oil, Shreyas Shipping, Gupta Synthetics, Plastiblends, Madhav Marbles, CESC, Today's Writings, CrewBos, Basant Agro, Adlabs, Prakash Industries, Garware Wall, KLG Systel and many many more have become MULTIBAGGERS since they were first discovered by Superstar.

This website is being created on the suggestion of many of Superstar's friends and clients so as to eliminate the dependence on the very unreliable moneycontrol site, where the admin keeps fiddling with the comments posted as per their vested interests. So, with the beginning of the new year 2007, let this be a new start in WEALTH CREATION for the individual investor, whether small or high networth. Amen.