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!

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