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Tuesday, February 26, 2008

HDFC BANK - CENTURION BANK OF PUNJAB MERGER

The Boards of both banks, HDFC and Centurion Bank of Punjab, have okayed a swap ratio of 1 share of HDFC Bank for every 29 shares of CboP, reports CNBC-TV18.
The merger ratio has come in favour of HDFC Bank at current market price.
HDFC Bank will make a preferential issue to HDFC after the merger to maintain 23.28% stake. The merger values CBoP at Rs 50.80 per share.


Visitors to my site may recall that in response to numerous recent queries about CBOP when it was trading above 70, I had given a SELL call on it. Today's closing price on the BSE was 48.25. My call stands vindicated.

Cheers!

30 comments:

LN said...
This comment has been removed by the author.
LN said...

dear superstar what is your suggestions to the present CBoP holders.....

Abhishek said...

You didn't approve my last comment? Didn't expect that from you......!!! Its totally not meant to be negative to you.... I hope you know that.

Superstar said...

Hi In,
I would say that CBOP is not a great stock to be in with a view of next one two years. I would switch to some better quality and high growth stock like JK Lakshmi Cement.

Hi Abhishek,
I do not delete any post unless it is malicious. but it often happens that in trying to delete the 100s of spams that come everyday, a real post gets deleted by mistake. Sorry for the inconvenience!

Cheers!

prashanth said...

Hi S*

I want to buy Crazy Infotech. Its PE is around 5. can you suggest me what to do? I have already invested in JK Lakshmi Cement, Aurbindo Pharma based on ur reco.But I dont want to invest in these stocks again as I am interested in diversifing my portfolio.

Please reply me ASAP
Thanks

prashanth said...

Hi S*,

Please suggest me on CRAZY INFOTECH

saurabh said...

hi superstar can please add my email id to ur mailing list where u give calls
gogiasaurabh@gmail.com
thank you

Gaurav said...

Hi Superstar,

Please give your advice on Parsvanath developers which trading at P/E of around 11 and has lot of big projects lined up.
Secondly i want to invest in a bank for 3-5 years perspective. Please suggest some banking stock.

Gaurav

abhishek said...

Hey super star plz advice me on

pepl
Jasch ind
I have next 2 years with this.
What is the future prospects of the company.
Will this scrip become bullish or no.?

Superstar said...

Hi Prashanth,
I know that Crazy Info was going in for a stock split. But I checked this stock for the first time upon your query and I am surprised to see that the price has fallen from 268 to 31 in less than two months! How can this be if the record date for the stock split is yet to be announced? I'm sorry, I have no idea about what's happening in this stock.
You've asked me some more stocks to invest in besides JKLAKSHMI. You can pick up stocks like Allahbad Bank, Suraj Diamonds, Agrodutch, FCS Software on dips for a long term folio.

Hi Saurabh,
I don't have any mailing list. I post my free tips on this site only.

Hi Guarav,
Although property prices are likely to come down in the future, Parsvnath is a low PE stocks and gives good value at current price. One can pick it up on dips.
Among banks I like Allahbad and Syndicate Bank.

Hi Abhishek,
I remember having given a sell call on Pearl engnrg here in the first week of Jan also around 16-17 levels. Today it is at 6, and my view is still the same on it. Jasch is much better than pearl and it can be held with a long term view.

Cheers!

natureworx said...

Hi Superstar, I am one of thos eunfortunate guys having pearl engg ..

Here you mentiponed to Abhishek that u are having same view on pearl . do you mean to sell it ..?

so was this stock fundamentally very bad ..? I am just trying to understand the stock.

Superstar said...

Hi Natureworx,
As per the last financial data available, pearl eng is still posting NEGATIVE eps. Why would I buy a loss making company when there are so many good profit making companies available at cheap prices today. I am not saying that the stock cannot go up from here. It may, along with all the other penny stocks. But it is not backed by fundamentals. I would much rather switch to good quality stocks in the present scenario.

Cheers!

Surbhi said...

Hi Navin

Can you give some idea of how much time Cybermate Infotek take will take to reach the highs it made few months back...

Vani said...

Superstar,
What is your opinion about teledata informatics? Can retail investor buy it for 1 yr period. Currently it is trading btw 18-20rs and its PE ratio is 0.9-1.0

Looks like good bet, but something legally wrong with management/directors

mithun said...

HI Super star

What is your view on Godrej Industries, Bajaj Hindustan and Alps Industries in the current scenario.

Thanks
Mithun

Sankaranarayanan said...

What is your call on Thomas Cook (India).

Hansika said...

Hi Superstar Navin,
I have always admired you for your contribution to the moneycontrol forum. It is sad that you have left that site. But after discovering this website of yours and finding out more about you I have become your fan. I benefitted from your advice many times and doubled my money in stocks like Kohinoor Foods, Basant Agro and Anik Industries. Just wanted to thank you personally.
Btw you look very cute and handsome in your pictures.

Take care

Superstar said...

Hi Vani,
It is a well known fact that the management of Teledata is not shareholder friendly. The PE ratio is not the issue here. The basic issue is the poor quality of management and their lack of trustworthiness. The company has recently demerged into three cos. and the other two cos. are yet to get listed. It is a gambler's stock. It can either win big, or it can lose big.

Hi Mithun,
Godrej Ind and Alps Ind can be bought on dips. They present some value at present levels. Godrej Properties, a subsidiary of Godrej Ind is coming out with an IPO in the near future.

Hi Surbhi,
It will now depend upon what direction the overall markets are going to take post the budget. If there is big rally immediately after the budget then it may recover early. But is there is a selloff in the overall markets after the budget, Cybermate will also take longer to recover to its last months highs. It will also depend upon what kind of net profit figures it comes out with in the coming quarters.

Hi Sankaranarayan,
A similar question was asked from me here on Thomas Cook couple of months back and I had given a sell call on it. At that time it was around 130 level. After that it fell to nearly half of its peak price. At current levels one can buy it on dips for a long term view.

Hi Hansika,
Thank you so much for your appreciation and compliments. You are the first person on this site to call me "cute". I almost blushed. ;)

Cheers!

Superstar said...

Mithun,
You asked about Bajaj Hindustan also. Sugar stocks will take a cue from what the FM has in store for them in tomorrow's budget. One can take a call on that sector only post the budget analysis.

Cheers!

vivek said...

Hi Superstar,

You had given a tip on Godrej Industries some time back (about a month back i guess) and i had bought it then. Thanks to you.. its been hitting UCs for the past few days :). What should be the target for this stock. I mean at what price do you suggest we should book profits in that? Or should this be held for long term?

Regards,
Vivek

ashok kumar said...

DEAR SUPERSTAR

ANY IDEA ABOUT GKW AND AHUNIK METALS. I AM HOLDING BOTH THE STOCKS. ADHUNIK METALS 100% SUBSIDIARY HAS BEEN VALUED AT RS. 1500/- CRORES. A PRIVATE PLACEMENT HAS BEEN MADE AT THIS VALUATION. ADHUNIK METAL GETS RS. 150/- PER SHARE VALUATION FROM THIS ONLY. THEY HAVE OTHER ASSETS ALSO. THIS NEWS IS GOING TO COME VERY SHORTLY.

THANKS

ASHOK

Sunil said...

Hi Superstar,
I have hexware technology at 115, should I exit at this level. How much time can it take to recover my cost. Thanks

samir said...

Hii.. superstar

Cybermate is below 9. should i still hold ??? having 1000 @ 16/- pls guide..

paddy said...

Hi Superstar.,
Please let me know your views on these three stocks. Would you recommend a buy @CMP.
(1) Pyramid Saimira theatres
(2) Asahi Songwon colors ltd
(3) YES bank.
Thanks for your advice in advance. I am buying only after checking with you. It reassures me and that is my EXPERT'S OPINION after I spot a candidate.
thanks and regards.,
Venu

manoj kogata said...

Hi,
please suggest me on BRPL @ 63

LN said...

dr supstar...

what is ur opinion on having the foll in portfolio apart from JK Lakshmi.
1.CBoP
2GMR Infra
3.GDL
4.graphite india
5 jyoti st
6 Man ind
7 oil country
8 power grid
9.praj ind
10 SPEL Semiconductor

with medium term view
regards.

Superstar said...

Hi Vivek,
One can hold Godrej Ind till the time the Godrej Prop Ipo comes out. After that one can take a decision based on the prevailing mkt conditions at that time.

Hi Ashok,
The BSE website has been hacked by some Chinese hackers this weekend. So I am not too keen to visit that website to dig more info on your stocks at this time. Therefore, I won't be able to comment.

Hi Sunil,
Hexaware has reported a big loss in the last qtrly results. It does not make any sense to hold it unless it improves its results substantially in this quarter. I would have switched to some better quality stock.

Hi Sameer,
That's why a stop loss of 14 was given on cybermate. It should have been followed strictly. All sub 20 rupees stocks have fallen a lot since the January crash. Now it will depend upon its earnings performance of the next couple of quarters.

Hi Venu,
Pyramid and Asahi can be value picks on dips. As far as Yes Bank is concerned, I had advised my clients to buy it around 100 levels. At cmp, I am not too interested in it, unless there is some news of some M&A activity.

Hi Manoj,
BRPL can be a value pick on dips.

Hi In,
I have said this time and again here to restrict your queries to a maximum of TWO stocks at a time. I am answering questions here purely as a social service and there are time constraints.
Out of your long list of stocks, I had given a sell call on CBOP and GMR Infra on this site many times when they were on their highs. They have fallen substantially since then, but I still do not think they qualify as buys. Man Ind and Praj can be bought on dips.

Cheers!

LN said...

thanks supstar for replying...any way i have started posting my queries very recently to you after following your site for months..now on wards i will maintain my queries to two....pls suggest on SPEL Semiconductor and graphite india...

Superstar said...

Hi In,
SPEL Semi is likely to be a market performer and not likely to outperform. Graphite Ind is a better option out of the two, acc to my mind.

Cheers!

Superstar said...

Hi Ashok,
I checked GKW and Adhunik Met for you. I think both of them are more than fairly valued at current prices. I would recommend switching from at least GKW to some better quality stocks.

Cheers!