Potential GOLDMINE : K Sera Sera Productions UPDATE

K Sera Sera Productions has just released its results, and they are very good. The company has posted an EPS of 2.03 for Sept qtr. Half Year EPS already at 3.24. With annualized EPS of 6.5, this share is trading at a ridiculously cheap PE ratio of just 2. No other media company is available at such a cheap PE ratio. Average PE ratios of most media companies range from 15-30. Even if we give a conservative PE ratio of 10 to it, then the stock price should be at 65 (6.5x10=65).

Apart from the stupendous results, the company has also announced the following along with its results:

1.K Sera Sera Miniplex Pvt Ltd (a wholly owned subsidiary of K Sera Sera) has successfully tied its presence for miniplex theatres in 60 districts with 128 screens across India.

2.K Sera Sera Technologies Pvt Ltd (a wholly owned subsidiary) after successfully developing its mastering software is now conducting trial runs and would be commercially launching the technology under the brand name 'skycinex' in near future. Further, the company intends to convert about 3000 existing cinemas in India into 'skycinex' technology within a span of 3 years.

3.K Sera Sera Productions FZE, Dubai (a wholly owned subsidiary) announced the successful establishment of its wholly owned Australian company under the name of K Sera Sera Holdings Pty Ltd. (ACN No. 146 219 865). The main objects of this new subsidiary inter-alia are mining, oil and gas, natural resources and acquisition on a global platform.

4.K Sera Sera Box Office Pvt Ltd. (wholly owned subsidiary) is releasing its forthcoming film titled, '332 Mumbai To India' on 19th November, 2010.

5.K Sera Sera Productions FZE, Dubai (wholly owned subsidiary) have planned the launch of its B2C online shopping portal, 'kbazzar.com' in early November, 2010. This shopping portal will host approximately 10 million products ranging from books to cars.

6.Since the company is now a diversified entity with presence in various sectors, it is prudent to change the name in line with the new image. Appropriate steps are being taken for the same.

In light of the above stated corporate developments in K Sera Sera, the stock is a potential GOLDMINE. I would ACCUMULATE.

Website : www.kserasera.com

Cheers!

Hot Pick : ALOK INDUSTRIES BSE CODE : 521070 NSE CODE : ALOKTEXT

Time to re-visit Alok Industries. Last year I had recommended the stock at the price of 13.60 with an initial target of 25, which was immediately met. Currently the stock is quoting very cheap at around 21.60 levels. Book Value itself is 34.48 (March,2010) Source : http://www.moneycontrol.com/financials/alokindustries/balance-sheet/AI54

Not only is this stock trading at very low PE levels, technically also it looks ripe for a breakout after a long consolidation. The management is looking to reduce its debt levels and has aggressive growth plans. Alok Industries is a fully integrated textile company and is amongst India’s largest textile manufacturers. It has state of the art manufacturing facilities and boasts of the highest quality standards.

This stock is a potential multi-bagger for seasoned investors.

Company website : http://www.alokind.com/

Potential GOLDMINE : Cronimet Alloys India Ltd Bse code: 532990

Cronimet Alloys India Ltd (previously GMR Ferro Alloys) is a ferro alloys company, engaged in the manufacture of high carbon ferro-chrome for use in the stainless steel industry. It was created by GMR Industries Ltd by spinning off its metallurgical division in April 2006. It has a high carbon ferro-chrome manufacturing facility in Srikakulam district of Andhra Pradesh., and has an installed capacity of producing 25,000 MT ferro chrome in two grades, high silicon and low silicon.

Cronimet Mercon Invest Ltd (a Dubai based MNC) has completed the acquisition of GMR Ferro Alloys and Industries Ltd, part of the GMR Group which is into diversified infrastructure sectors. Post this development, the company has been renamed as Cronimet Alloys India Ltd. Consequent to the acquisition, Cronimet has shifted the headquarters of GMR Ferro Alloys from Hyderabad to Tekkali in Srikakulam district. This is a tightly held company. Cronimet MNC's holding in the company has increased to 70.48%. There is very little free floating stock of this company in the market which is fast drying up. The company posted an EPS of 3.82 in the June quarter, which means that on an annualized basis, the stock is trading at a very cheap PE ratio of just over 5. With the kind of growth the company is poised to make in the next few years, this stock can be a potential GOLDMINE.

Technically, the Cronimet Alloys India Ltd stock is making new highs and as there is hardly any floating stock left in the market, those who enter the stock quickly can possibly make huge gains.

Cheers!