Greece Hangover

Greece hangover continues…

The market is yet to recover from the Greece crisis, as markets across the world continues to slide with standard 2 % down on daily basis!

Indian markets fall in the morning and tries to recover in the late afternoon.

Chinese market will be up when the whole global market is down and vice-versa!!!

EU and IMF finally rescued the beaten up EURO and came up with 1 trillion $ package to resolve the debt and budget deficit crisis in Europe.

The news sparked around 5 – 10 % rally, but finally came down on the subsequent days with analysts calling for more fundamental action rather than ornamental changes.

Germany passed EU aid package and USA passed financial reform bill.

Germany banned naked short selling of EURO thereby providing stability to EURO but markets usually doesn’t like any restrictions and effect is there to see. Markets were down for couple of days, due to the short sell ban.

Dow Jones has entered the correction zone officially.

Meanwhile, there was 998 points fall in US markets and 500 point recovery in span of 30 minutes. Initially, rumor was that the market crashed due to Greece. Many were envy of Greece ability to bring down markets so heavily! .One of the theory going around was that the crash was due to a typing error by a broker! Instead of ‘M’(Million), ‘B’(Billion) was typed. Ahhh.. that makes a real difference.. !!

Couple of events that needs to be watched:

1. Greece fallout spreading to other countries. (Old issue)

2. South vs. North Korean possible war. (New issue)

Indian markets are keeping a close watch on Euro / US events as there are no major events in India and are looking for the world market for direction.

Hope to see GREEN soon, RED is so scary!!!

Follow up blog on Greece crisis

The news from Europe is getting worse day by day.
After Greece it was the turn of Portugal ratings getting degraded.
But the real worry came in the form of Spain.
Spain is considered to be heavyweight compared to Greece or Portugal.
The deterioration of Spain economy will have a major impact on the world economy compared to Greece.
There are some concerns on China's asset bubble but positive data are emerging from US economy.
The markets are falling daily. But the correction was much needed since the markets rallied heavily in recent months.
So the market initially used the bad news as an excuse for correction. But now the concerns are threatening the markets.
As of now , EU has agreed to bail out Greece but on condition that it will reduce the expenditure.
Many Greeks have been outraged by the measures, which slash salaries and pensions for civil servants and hike consumer taxes.

Hopefully
1. The austerity bill will get passed in Greece Parliament.
2. The crisis is limited only to Greece and Portugal.
3. Spain remains unaffected.

We need to wait and watch if economy is really recovering from the recession or the economy is
entering double recession dip. The likely scenario is that the worse is behind us.

Greece debt crisis

Last year Iceland was bankrupt due to the collapse of the major banks.
Normally we hear companies go bankrupt !
Now , Greece is under tremendous pressure to clear debt. Its outlook is reduced to
JUNK by S&P !!!
Even Portugal ratings is reduced.
If further action is not taken then Greece may become next Iceland and
Portugal may become present Greece.
EU is trying hard to bailout Greece but there exists lot of difference among the Euro nations.
EU is struggling nowadays. EURO is showing weakness.
Hope EU succeeds in making Greece stable since its very important
for world economy.
The present rally across the globe is pulled down regularly
by Greece bad news. And in turn affecting common investor in India like me who is very very far
from Athens... !!!

Berkshire Hathaway's 15 Biggest Stock Holdings - CNBC

The below link contains Warren Buffett's (Berkshire Hathaway) top 15 stocks.

Berkshire Hathaway's 15 Biggest Stock Holdings - CNBC


The portfolio includes mostly banks and strong revenue based companies such as NIKE, COCA COLA etc. Important point is not a single Tech company is present in the list.
The top 15 stocks are

1. Costco Wholesale
2. Nike
3. M&T Bank Corp
4. Washington Post
5. Moody’s
6. US Bancorp (USB)
7. Johnson & Johnson
8. ConocoPhillips
9. Wesco Financial Corp
10. Wal-Mart
11. Kraft Foods
12. Procter & Gamble
13. American Express
14. Wells Fargo
15. Coca Cola

And also Warren Buffett holds Goldman Sachs. It was a sweet deal (and not sweat deal !!!) for Warren since he invested when the banks were roughed up last year. His investment was to instill credibility and stability to the company. After the recent Goldman Sachs fraud it would be interesting to hear Warren's take on that.

RBI monetary policy

RBI monetary policy is reviewed quarterly and the policy is spelled out which modifies the key interest rates.
Following are the key rates definition.

CRR (cash reserve ratio)
Its the reserve amount bank has to keep with RBI.
If CRR is hiked then bank has to keep more money with RBI. Due to this RBI sucks out extra liquidity out of the financial system.
If CRR is reduced then bank has to keep less money with RBI. Due to this bank will have more lending power thereby increasing the liquidity in the financial system.

RR (Repo rate)
Whenever the bank faces shortage of funds it can borrow from RBI. RR is the rate at which bank borrows money from RBI.
If its hiked then bank has to pay more money on borrowed money from RBI. The bank might pass the burden to the customer.


RRR (Reverse Repo rate)
Similarly RBI might need money !. During such scenarios RBI itself borrows money from the banks.
Therefore RRR is the rate at which RBI borrows money from the bank. Banks will be obviously happy to lend the money to RBI since it will be in safe hands.

SLR (Statutory Liquid rate)
Its the minimum amount of money the bank needs to park into Govt bonds,gold etc before providing credit to the customer. They can even hold in the form of cash.
The main difference between SLR and CRR is that in CRR the bank parks its money in RBI whereas in SLR it parks money in the markets.

Bank Interest rate
Its the rate at which RBI lends money to the bank. Depending on this bank will lend money to the customers keeping the banks profit in mind.
For customers like us hike in interest rate means hike in deposit rates and also hike in EMI !. Similarly lower interest rates means lower deposit rates and lower EMI propelling the customer
to take loans and thereby fueling the economy.

Inflation
Its a generic term to measure the cost price of food and goods in the country.Higher inflation rates means you need to pump in extra money for the same 1 kilo of sugar thereby bleeding your purse. Normally RBI in turn hikes the interest rate so that value for money is retained. But due to this growth will be affected due to higher rates.
Therefore RBI policy needs to look into inflation vs growth aspect before changing the policy . Its indeed a tough job for RBI Governor.

The rate sensitive sectors are normally affected by RBI policy. Sectors are Real estate, Auto, and obviously Banking.
If rates are cut then loans will be cheaper and customers will be more interested in buying lands and vehicles. Similarly when rates are hiked loans becomes dearer.
If rates are cut then depositing money in banks will not be attractive enough and money will be pumped into stock markets.
Normally the markets are smart enough to factor in the possible rate cut or hike even before the policy is announced.
Therefore when the policy is announced market doesn't react as expected since it has been factored already. But if the policy is full of surprises then the market will move up or down drastically. Many traders speculate in this period whereas long term investors review the policy and if need modify their portfolios.

Beware of Stock Advisors!!!

A lot of stock advisors have recently sprung up just like how they surfaced during the previous boom.

They mostly use technical tools and advise their client for day trade or medium term stocks and rarely for long term stocks.

No problem but one should follow them albeit with a pinch of salt. When market is rising all tips will work irrespective of their advice.

But when market is on decline all these shops shut down and wait for the next boom to re-open!

So it’s always better to do your own research because in the long run you will be equipped with knowledge. Blindly following the stock advisors won’t fetch any knowledge.

Conclusion is that it’s fine to be client of stock advisors but don’t follow them blindly. Do your research before investing because at the end of the day what maters is your money and how much knowledge you have gained.

South Korea Financial market

South Korea Financial market

It’s quite obvious to explore an alien country on travel. I love to explore the financial condition of the place when I travel.

I have penned down some important aspect of the financial market in South Korea.

Korea region is divided into North and South. North Korea is banned country (as per United Nations) and it has historical problems with South Korea. The main reason is Communist to Capitalist conversion of South Korea.

South Korea is one of the developed countries in Asian continent. It’s due to the benefits of capitalistic approach and also it’s a key ally of USA. Traces of USA development impact can be found here.

South Korea is considered to be one of the world's most successful economies, which was the second fastest growing economy in the world for over four decades.

The present global crisis has thrown out many theories. One of the theories going around is that the world power is shifting from USA & Europe nations to Asian regions. If true then China India along with South Korea should provide leadership to the new world.

The currency of South Korea is Won. 1 Dollar is roughly equal to 1300 Won depending on the market conditions. Korean Won has been constantly devaluated due to Korean War, financial crisis etc. The devaluation of the currency is directly contradicted with the development of the country. I would be grateful if someone explains me this contradiction.

Important companies are Samsung, LG, Hyundai, Posco etc.

Samsung is world wide leader in technology. It’s ranked second in mobile industry whereas it’s ranked one in LCD television industry. It has an IC foundry and world’s majority of memory solutions are fabricated here. Samsung Corporation has won the contract to build the world's tallest building (the Burj Tower in Dubai).

LG follows Samsung in electronics industry. LG is ranked three in mobile industry. These 2 companies along with Japanese companies are ruling the electronics industry.

South Korea's largest automaker, Hyundai Motor Company and its subsidiary Kia Motors are the fifth largest car groups in the world.

Posco is the fourth largest steel producer in the world. Posco is proposing to set up a 12-million-tonne steel plant envisaging largest foreign direct investment in India of Rs 52,000 crore at Paradip in Orissa.

South Korea is one of the favorable destinations for ship building in the world.

South Korea's "big three" shipbuilders, Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering, dominate global shipbuilding, with Hanjin Heavy Industries also being a significant presence.

The stock market index of South Korea is called KOSPI (Korea Composite Stock Price Index). KOSPI follows the global movement of stock market all over the world.

It’s truly a “Coupling of Markets” all over the world. Whenever I come late to the office I look at the display screen in the elevator where I can get info on Korean Won vs. Dollar. If Won is high against dollar then I assume KOSPI is down, When Kospi is down then our Sensex should also be down!!! Similarly if Won is lower then Sensex will be higher.

The assumptions are true for most of the time clearly indicating that truly we are living in a GLOBALIZED VILLAGE.

Buy GOLD in form of STOCKS

This is a very interesting blog in which I talk about buying gold to stabilize your investment portfolio. Buying gold refers buying gold in form of stocks and not the usual buying of gold in physical from a jewelery shop. Gold is used as a tool against stock market risk and inflation.

This blog is directly influenced by OUTLOOK MONEY issue dated 31^st March 2008.

Gold price is inversely proportional to Stock market movement. So when the stock market is at a high the gold price actually will be in the downside. While the stock market crashes gold price is at all time high. That means by adding little gold in your portfolio you can neutralize the stock market crash (another way to neutralize the crash is to buy Nifty Put Option).

If you follow gold price movements, gold prices hit an all time high during January- February period of 2008. And that was the period when stock market crashed to 14k levels. Gold prices were hovering around Rs 1200 per gram during the same period.

You can buy gold in various forms. But investment in gold is bit different. If you buy physical gold and wear it then it’s not an investment. It should be in your portfolio in some other form so that it is easy to buy and sell just like any other investment. And also by buying physical gold, security issue comes into picture. But if your gold is in paper form then there is no question of security issues.

Reasons for upward movement of gold in the future

1. Since Dollar is crashing countries are looking at gold as a instrument to store value.
2. US sub prime crisis which is prompting investors for alternative investments such as gold.
3. Rising oil prices in turn raises inflation which in turn raises gold price.
4. Limited supply of gold.

How to buy gold

1. Jewelery shop: where you buy gold in physical form. Not advised for investors.
2. Gold futures: bit complexity.
3. Gold ETF: in plain words it means Gold in form of shares. This is advised and I will discus this method in deep.

GOLD ETF (GETF)

ETF means electronic traded fund. GETF are funds maintained by fund houses. The fund house buys physical gold and stores it in their place. So you are not bothered about usual shopping and security. Roughly 1 gram of gold is 1 share of GETF. So if you buy 1 share of GETF from a fund house, the fund house in turn buys 1 gram of gold and store it. You can sell the share whenever you want. So there is no difference between buying GETF shares and a normal share (say an Infosys share).

The GETF shares which you buy is shown in your demat column as normal shares.

GETF share value will roughly reflect the gold price movements since the fund house invests in gold only.

Difference between a normal stock and GETF stock

Since the fund house needs to preserve your gold they charge an expense ratio of 1 % annually and also the tax structure is different from normal tax structure for stocks. (There is a long term capital gain tax of 11.33 %). Even the brokerages are usually same as a normal stock.

List of GETF fund houses

1. UTI GETF
2. Kotak GETF
3. Benchmark Gold BeES
4. Quantum Gold
5. Reliance GETF

The stock value of GETF of the entire above traded fund is more or less same and in turn they are more or less same as actual gold value.

So you can buy 10 shares of UTI GETF in National Stock Exchange through your broker.

That means you have bought 10 grams of gold as investment. It’s as simple as that!!!

(Many women may view this as an unromantic move!!!)

Final Words (Golden words!)

Buying gold as an alternative investment is a world wide phenomenon.

OUTLOOK MONEY advises 5 % of gold in your investment portfolio.

But certainly it’s not as attractive as stock market. Profit out of gold is not highly attractive. Gains are moderated. In stock market you might get 100 % returns within a few weeks which is next to impossible in gold trading. So gold acts as a protection against stock market risk.

SO TIME HAS COME TO VIEW GOLD AS AN INVESTMENT IDEA RATHER THAN FASHION STATEMENT!!!

Happy Investing in GOLD.

Resources to start studying STOCKS

Some of my friends keep on asking me to teach about Stock Market.

I am studying market on my own with a personal interest. So I can list out what all resources are needed to start studying Stock Market. It’s left to users to study on their own in a hard way rather than simply relying on others.

If someone had not derived half baked knowledge from friends or any relative UNCLE then I can assure that person is best qualified to start studying about Stock Market!

But I would like to introduce 2 principles of investing at the end. It’s based on my personal experience and certainly its not any HOT tips or any half bake knowledge which I am trying to drive!

I will list each of the medium where one can derive info one by one

1. Daily morning News Paper.

It might be TOI or Indian Express. Most of the morning news papers have BIZ sheet in the middle which gives info about business round up and stock market related news.

Though a fresher will not understand anything in the initial stages they should not give up. It’s the basic requirement. Day to day news is very important. It gives a general feeling about things going around the world. (If possible one must also read the first sheet i.e. Politics! since it’s also one of the major factor driving the Market)

2. TV

One can spend half an hour or so in front of BIZ news channel viz CNBC, CNBC Awaaz (Hindi), NDTV Profit, ZEE Biz.

There is a 7 30 pm half an hour show on CNBC on business market days (Mon - Fri). This show is hosted by Udayan Mukarjee. It covers daily Market updates and it features many technical and fundamental experts commenting on the market. Most active stocks are discussed.

Have a look at business news at any channels mentioned above anywhere between 9 PM and 11 PM.

3. WEBSITES

Since many of us spend major part of our activity on net, websites are most integral part in our study of Market.

www.moneycontrol.com

This website is a part of TV18 (CNBC) networks. News, stock specific movements, message boards, Mutual funds, IPO etc are the numerous sections which are updated regularly on hourly basis. One can create portfolio and keep tab on specific companies’ news and stock movement.

It’s easily the Rediff of Indian Stock Market.

www.myiris.com

www.capitalmarket.com

These are juniors to moneycontrol.com!

www.nseindia.com

It’s the official website of National Stock Exchange. Mainly comprises of official stock prices. Latest corporate announcements and financial results should be updated compulsory in this website by the companies. Similarly www.bseindia.com

One can also create portfolios and view news on Yahoo finance, Rediff money, Sify finance etc.

4. BIZ news papers & BIZ magazines

When you are familiar with market you can have a look at BIZ news papers such as Business Line, Business Standard and Economic Times.

Magazines such as OUTLOOK MONEY are very useful for financial planning.

DALAL STREET deals with only stock market and nothing else. It looks like a bit danger with so many hot tips flowing in many pages!

Decent magazines such as Business Today, Business World are helpful.

5. Online Brokers

Finally when you are ready for trading its necessary to have a stock broker since individuals can’t directly deal with Stock Exchanges. You must be equipped with PAN card to have a DEMAT account. (Demat account are like your Savings Bank account; Savings account holds your money where as Demat account holds your shares)

It’s better to have online brokers such as

www.sharekhan.com

www.indiabulls.com

www.indiainfoline.com

6. RICH DAD POOR DAD

It’s a book by Robert Kiyosaki which deals with how to manage money and not stocks in particular. It’s a must read.

So these are the mediums and I have given materials on each medium so that you can access the financial and stock market knowledge.

And yes here are the 2 principles

1] You are responsible for your investment. No one should be blamed either for loss or profit! You should study and you should invest. Brokers give recommendations .Go through them research then take a final call.

2] Have patience in Stock Market maybe in LIFE also!!!

Suggestions are most welcome. If anyone thinks some other medium or some other websites or materials are good please post as a comment.

HAPPY INVESTING.

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.

CASE STUDY on 4 STOCKS

Online brokers are usually involved in research of stocks. Based on which they come up with the recommendations of stocks primarily for their clients. Normally theses stock recommendations are for long term. That is to say that if a broking house comes up with recommendations today it does not mean that it will hit the target tomorrow. So it is always advisable to hold stocks (recommended or non recommended) for a longer period provided the fundamentals are good.

Based on the above introduction I present a case study of 4 stocks which are recommended by the broking houses. I have taken 3 stocks recommendations from SHAREKHAN and 1 from KOTAK. The selection of these 4 stocks is based purely on the maximum upside potential from the current market price. The 4 stocks for case study are

1. Universal Cables (By Sharekhan) [Target Rs 179, Current market price Rs 120]

2. Hindustan Unilever (By Sharekhan) [Target Rs 280, Current market price Rs 198]

3. Strides Arcolab (By Kotak) [Target Rs 500, Current market price Rs 335]

4. Tourism Finance Corporation of India (By Sharekhan) [Target Rs 30, Current market price Rs 23]

It should be clearly noted that the case study is just an experimental way to track the market .The case study involves the following plus points viz.

1. Those who are new into the market can track these 4 stocks on experimental basis along with the general index (SENSEX, NIFTY) movements.

2. Keeping track of these 4 stocks one can fairly judge the quality of recommendations by the brokerage houses.

3. And of course one can invest in these 4 stocks for long term investments. (Purely on their own risk and no one should be blamed either for profit or loss!!!)

Now let us discuss each of the recommended shares

1] UNIVERSAL CABLES

Currently Universal cables is trading at an average rate at Rs120.This stock comes under the Power cable sector.

Universal cables manufacture cables, conductors and capacitors. The company was established way back in 1962.They are based at Satna, Madhya Pradesh. The company is part of M.P.Birla group.

Its 100% subsidiary Optic Fibre Goa Ltd (OFGL) has turned profitable. The subsidiary is into optic fibre business.

Universal cables has recently commissioned and commenced the first phase of the technological up gradation-cum-expansion project. The project uses Vertical Continuous Vulcanization (VCV) process for manufacture of XLPE Power cables.

The company is implementing a capex plan of Rs64 crore wherein it will double its capacity of medium tension cables and put up a new capacity of extra high tension (EHT) cables (>220KV). This plant is expected to get fully commissioned by December 2007, after the capacity expansion. Universal cables will be the only player in India to produce EHT cables (>220KV) other than Cable Corporation of India.

In the optical fibre division the company has successfully developed a newer version

of fibre known as Low Water Peak Optical Fibre (G-652D), with its in-house expertise and has also taken necessary approvals to supply this fibre to most of the customers in India.

Final Comments: Due to the above plans one can definitely expect a lot of buying interest in the coming months. So this is the right time to enter into the stock. Its financial performance is improving. And as per Sharekhan’s calculation the target for this company is around Rs180.If anyone is interested in financial aspect or any other detail of Universal cables they can just visit their website www.universalcablesltd.com

2] HINDUSTAN UNILEVER

Currently Unilever is trading at an average rate at Rs198.This stock comes under the FMCG (Fast Moving Consumer Goods).Its a SENSEX and NIFTY component stock.

Unilever is ranked 2^nd world wide in FMCG. It hosts popular brands such as Clinic, Close up, Fair & Lovely, Lux and many more. The list is endless.

But the movement in stock price is really dull due to the disappointing financial performance owing to margin pressure and stiff competitions. But the worst is over due to a management make up and stringent measures and hence Sharekhan has recommended this stock with a target at Rs 280.

The food business and ice cream business are reportedly doing well compared to other sectors which in turn are expected to boost the profits. The processed food business recorded a strong growth o 48% with all the key brands, viz Kissan, Annapurna and Knorr, growing strongly during the quarter.

Final Comments: Recently there is a strong rumor going around world wide that Colgate may buy part or full of Unilever. Though Unilever is 3 times more than Colgate it is quite surprising. Anyways the news is in rumors phase.

If the merger happens then Unilever-Colgate will command more than 60% of tooth-paste business.

There is yet another major managerial shake up to restructure the company.

So one should carefully look at these news before taking interest in the company. This stock is sure to test the patience of any investor. It has been a laggard in the bull market.

One can visit www.hll.com for more info on numbers and products

3] STRIDES ARCOLAB LTD (STAR)

Currently STAR is trading at Rs 335 and KOTAK has a target of Rs 500. The stock comes under Parma sector.

Their main focus is on AIDS, TB and MALARIA. They have a leadership position in soft- gel capsules and have a huge expansion plan which are identified as a key growth drivers as per KOTAK.

The company has tied up with Clinton foundation to make available a range of affordable anti-retroviral drugs for the treatment of HIV/AIDS.

STAR is emerging as a global player in steriles with a wide range of capabilities in freeze drying (FDV), pre-fill syringes (PFS), ampoules and vials, and specialized therapeutic formats, namely, penicillin, cephalosporins, penems and oncology.

The company proposes to construct a green-field facility in Bangalore for Oncology and Hormone products and capacity expansion in R&D.

Strides Arcolab has signed an agreement to acquire 100% of Grandix Pharmaceuticals Ltd and its subsidiary Grandix Laboratories Ltd.

Grandix is a branded pharmaceutical company mainly focused on south India and has an established distribution network. It has around 45-50 active brands in antibiotic, anti diabetic, anti-hypertensive/cardiac, neurology, pulmocare and vitamins segment.

Final Comments: Parma sector is a defensive sector which tests the patience of investor like Unilever. Currently Strides is trading at a dull movement daily. For more info on their plans log on to www.stridesarco.com

4] Tourism Finance Corporation of India (TFCI)

Currently TFCI is trading at Rs 23. As per Sharekhan the target for this stock is Rs 30. It comes under Tourism sector.

TFCI is a government owned company in which banks like SBI, Canara bank etc have stake in it. It provides financial assistance to tourism-related activities/projects. TFCI provides financial assistance to enterprises for setting up and/or development of tourism-related projects, facilities and services, such as Hotels, Restaurants, Holiday Resorts etc.

TFCI has improved its financial parameters which resulted Sharekhan in up gradation of the stock. The revival in the demand from the hotel and tourism sectors has helped TFCI to register an 81% y-o-y growth in sanctions for FY2007 compared with a 20% sanction growth in FY2006.

The business fundamentals of the company have improved significantly on the back of the capacity expansion in the hotel and tourism sectors planned for the next three to four years.

Final Comments: TFCI is in a sector which does not have much of a trading interest. So this serves as both advantage as well as disadvantage for the stock.

The stock had a 1 way journey from Rs 16.5 to Rs. Rs 24. The circuit breaker for this stock is 5%. So traders should be cautious since the stock tends to hit the circuit either upwards or downwards frequently. To know about the company one can visit www.tfciltd.com

Critics are most welcome along with suggestions. Please correct me if I had gone wrong somewhere. For the first timers one could do a Google search on new terms such as circuit breakers in stocks etc to gain knowledge.

HAPPY INVESTING!!!

DISCLAIMER: I personally have interest in all of the above stocks. No one should be blamed for any profit or loss!

The current market prices given are based on 10 day average prices rather than a particular day price. One can view the latest stock price by visiting the official website of the stock exchange www.nseindia.com