How are our 4 stocks performing ???

BULLS are back in the market and are roaring to move forward!!!

Bullishness returned to market after US Fed rate cut. The market indices are at all time high and also many stocks are trading in new higher territories. The market is expected to do well further provided the central government doesn’t fall!

** Bull is a term used to signify stronger market where there are more buyers than sellers.

** Bear is a term used to signify weaker market where there are more sellers than buyers.

Time is ripe for a review of case study of 4 stocks. Though one should take a longer term view on stocks this review is an exercise to study the quality of the recommendations.

Any news flow from the company can also be reviewed.

The 4 stocks in focus are Universal Cables, Hindustan Unilever (HUL), Strides Arcolab (STAR), Tourism Finance Corporation of India (TFCI).

Company	Target	Market price as per last blog (July 1 2007) [X]	Market price as of today [Y]	Gain / Loss (In %) [between X and Y]
Universal Cables	179	120	96	-25
HUL	280	198	219	+11
STAR	500	335	278	-20
TFCI	30	23	35	+52

By the above table information Universal Cables had performed pathetic in this 3 month period. STAR is also giving good company to it!

HUL has performed satisfactory but the real winner is TFCI. Just look at that, a neat 52 % upside.

Let’s review the stocks 1by1.

1] Universal Cables

The Quarterly result were pathetic .Its profit were down to 80 lakhs from 6.2 crores!
And the best part is that there is no company release regarding the bad results. And no update even from Sharekhan. This is not the way a company should behave with its investors.
Much depends on the next quarterly result. Hope the company comes up with good results and some explanation.

2] HUL

The quarterly result was better than expected and the investors surely gave thumbs up. But still this stock is a defensive play.

One major news is that HUL have offered to buy back some portion of shares from the market at Rs 230. This means that the company management thinks that the current price of the stock in the market is not fair and it expects a better price valuation. So in future Rs 230 can become a solid support.

There was a rumor floating that many of the real estate owned by the company in prime locations are up for sale.

HUL has terminated an agreement with frozen foods exporter Temptation Foods (TFL) to sell its marine business, putting an end to all media speculations over the past couple of months.

It has been ranked number one among the 2007 top companies in terms of leadership development in the Asia-Pacific in a study of the global top companies by the consulting firm Hewitt Associates.

One can still buy the stock since it’s a defensive stock and it doesn’t fall much in turbulent times. Good results expected.

3] STAR

There is no negative view fundamentally in this stock. Results were also good but the major worry is rupee appreciation. Since the company derives major profits from exports it’s badly hurt. So the Pharma sector along with IT sector is undergoing a negative sentiment.

Good news flowed in this period. The approval of its first injectable ANDA for Ketorolac Injection is positive for the company. It has also completed the acquisition of Grandix Pharmaceuticals, enabling the company's domestic foray for a branded pharmaceutical strategy. It has also completed the acquisition of Diaspa, Italy and has acquired its fermentation assets including its ongoing business in Milan.

This stock is an exellent buy at this level. It’s surely the best buy among the 4 stock but one should have a long term view since upside is limited as of now due to rupee factor.

4] TFCI

This is certainly the darling of 4 stocks. A whooping 50 % upside in 3 months.

Sharekhan had set a target of Rs 30. It has not only hit the target but also trading at higher levels.
The share has risen on talk of institutional participation. Activity in this stock has been amid news of a likely induction of strategic investors into IFCI, which is TFCI’s single-largest shareholder.

The New Delhi-based financial institution holds close to 19% in TFCI, which specialises in financing tourism projects. In recent times, IFCI has diluted its stake in some of its strategic investments such as NSE and ICRA.

There were also talks about IFCI looking to dilute its stakes in its brokerage and factoring businesses, as part of its restructuring exercise. Other key shareholders of TFCI include SBI — 7.4%, LIC — 6.2% and Bank of India — 3.5%.

When a stock hits the target it is time to review the fundamentals before taking any call.

For short term gains one can look at Real estate sector and Banking. IT and Pharma continues to drift down due to rupee factor. Sugar sector is back in news on hopes of solid announcement by the Union Agriculture ministry.