Weekly forecast 1 - 5 September.

>> Sunday, August 31, 2008

The markets remained extremely choppy through the week gone by with extreme bouts of volatility as it moved towards the end of the derivative settlement for August. This F&O expiry which was among the most uninspiring in the recent past against the backdrop of unusually low volumes and rollovers, however gained momentum on the last day of expiry. Thus even though 75 % rollover in August Nifty futures can be termed as higher when compared to the average of 67 % witnessed in the preceding three months, in absolute terms, the numbers do not enthuse.

Thus both, the bulls and the bears remained perplexed about the near-term prospects of the markets. Fears of further monetary tightening by the Reserve Bank of India to rein in inflation which remained at a 16-year high also haunted the bourses and kept investors on the sidelines for most of the week.

Nevertheless, the marginal decline in the inflation numbers (@12.40% for the week ended 16 August 2008 from 12.63% in the previous week) and strong global cues helped the markets to make a sharp rebound of more than 500 points on the last trading day. Resultantly, the benchmark indices which had remained largely subdued for the large part of the week recovered from its losses to end on a positive note.

Though now, the headline inflation has declined marginally it still remains a concern area for the Indian stock market. This was also reflected in the economic growth for the first quarter of the current fiscal which dipped below the 7.9% mark from 8.8% in the last quarter of the previous fiscal. Meanwhile, sharp appreciation of the US dollar against major G-7 currencies, with the notable exception of the yen caused the Indian rupee to depreciate at an unmatched pace of 4.3% within 13 working days.

However, with growth decelerating there can now be hope that the unabated increase in interest rates could be close to an end. Another important factor that could impact the week ahead is the Nuclear Suppliers Group meeting in Vienna to be held on September 4, 2008 which, if it goes through, could provide some boost to the markets on the upside.

Thus for now, though the stage may seem set for an uptrend in the near term (much would still depend on the global cues) it still remains anchored by the RBI and its hitherto hawkish stance. Hence, with uncertain cues from both, domestic and global markets plus a truncated week ahead, investors would do well to tread cautiously in the near-term, but pouch portfolio picks with a long term perspective.

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By in every Dip - Rajesh Exports.

>> Saturday, August 30, 2008

Scrip: - Rajesh Exports Ltd.
CMP: - 46
BSE Code:-
531500
52 Week H / L: - 168.30 - 45.80
Market Cap: - 1059.73
Target: - 120 (1 Year)

Summary: -
Rajesh Exports is involved is business of exporting gold and diamond cutting. Recently this stock has hammered due to weakening rupee. Dollar has appreciated at Rs 44 which come to 17 months low. The second reason why it came down is Gold from 13 K sliped to10.8K.
Rajesh Export now the largest established private gold buyer, accounting for 1.2% of the global gold trade. Having attained this scale of operation, the company is now shifting its focus to find ways of increasing its net profit margin.
In order to meet its objective of increasing its net profit margin, Rajesh Exports has identified three major divers of growth:
Jewellery retailing: increasing presence across value chain by catering to different segments of consumer needs
Diamond jewellery: expanding product range with higher margins
White labels: expanding its market by supplying white labels to retail chain stores across the world.

Key Financials: - Its sales keep on increasing almost every quarter. Before the recent split and bonus of this scrip this was one of the favourate scrip of the investors.
EPS & PE both have bottomed out.
Rajesh Exports Ltd had reported revenue growth of 40.7% on year-on-year basis to Rs 25.25 bn for Q4 FY 08. Profits grew by 46.8% YoY to Rs 489m as against expectation of Rs 528m,according to market analysts.

This was due to high tax outflow in the last quarter, which was not provided for in the previous quarters. Operating margins declined by 298bps YoY to 3.3% due to higher share of its low margin bulk business.

For the year, revenue grew by 25.7% YoY to Rs86.67bn and PAT grew by 103.9% YoY to Rs2.07bn against our expectation of Rs2.11bn and OPM increased by 130bps to 4.4%.

The Real Estate: - Rajesh Exports has about four million sq.ft. land in Bangalore and Kerala. It is now planning to develop these properties and acquire competence in property development by setting up a 100% subsidiary, Bangalore Infra. The company may look at property development as a separate business in future.

Calculations: - Calculating all the above points and the real estate it has the Market cap should be the double of what it is now. So the stock prices will give 100 - 200 % returns in 1 Year.

Positive Factors: -
World’s largest gold exporter at lowest cost.
Stock is currently trading at low valuations.
Big order book.
Foreign investors increased their stake by 10% .
FIIs bought this stock at around Rs 95 then why should you wait to grab this stock at Rs 46.

Key Concerns: -
Continued volatility in gold prices and adverse market conditions have forced Rajesh Exports, India’s leading gold and diamond manufacturer to go slow on its retail expansion plans.

The 100 Shubh stores which were expected to be rolled out by FY09, has been reduced to 40 due to continued volatility in gold prices and adverse market conditions. It is not expanding its Laabh stores either, and would keep the number of stores at a 30 in
FY09.

However, the growth in bulk business to Middle East would compensate for the loss of growth in retail, according to company sources.

The company expects its other businesses of bulk exports,white labels and diamond jewellery to more than compensate for the slowdown in its retail division.

The slowdown in its retail business is likely to affect its overall financial performance.

The Real Multibagger.

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Live Technical Charts.



Intra Day Chart CMP can be seen on the chart.

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Larsen Toubro fixes Record Date for Bonus Issue

L&T informed the market today that it has fixed record date for the proposed bonus issue 2 months back it had fixed 1:1 bonus and have not info9rmed until now the record date for the same , yesterday in a meeting that was conducted they had fixed the same , and October 3rd is the record date for the proposed Bonus Issue of 1: 1.

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Stock Idea - Kolte Patil.

>> Friday, August 29, 2008

Scrip: - Kolte Patil developers Ltd.
BSE Code: - 532924
CMP: - 62
Target: - 100
52 weeks H/L: - 272.00 / 45.00

Summary: -
Kolte Patils IPO came just a year ago. Its issue price was Rs. 140. At CMP this scrip looks attractive as it has bottomed our like anything.
This is a Pune based company with its majority of its project in the same city.
This scrip has come down due to reality bomb in Indian markets. With good fundamentals this is the one which is attracting me.

Financial : -
Its EPS is 17.13 is one of the major reason why I am bullish on this scrip.
The current valuation of this scrip is undervalued. It at not this range one should accumilate this scrip at around 50 levels.
When the scrip was above 200 its PE was well above 10.
We can expect this happen all over again.

Key Positive: -
Its majority of projects are in Pune which comes in Tire 2 city which means lots of development can take place.
Its has also entered UAE markets.
Reality prices are touching all time highs.

Share Your Views in Comments. I will appreciate your response.
Live Technical Charts.


Did you read Stock Idea - Hotel Leela.

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Stock Idea - Hotel Leela.

Scrip: - Hotel Leela.
BSE Code: - 500193
CMP: - 31

Summary: -
Hotel Leela has been listed on the stock exchanges of Indian i.e. BSE & NSE since 19th of July 1995.
It is in Hospitality industry from a long Time.
The company has four fully functional hotels all over India i.e. at Mumbai, Goa, Bangalore & Kerela.
It comes in a luxury Hotel segment. Its Bangalore property has been rated as one of the best business hotel.
It current market capital is 1200 crores with a PE ratio of 8 per share of face value of Rs.2/-.
The company is planing to double the capacity by 2010 and tripple by 2012 i.e 12 hotels in all.
Logically if it starts eight new hotels their cost of building, licensing, etc would be approx 400 crores per hotel i.e. 400 x 8 = 3200 crores.
And at present the company's market capital is 1200 crores which would add 3200 crores to it.
So assume the market cap is 5500 crores approx which surely tipple the stocks value by the same period.
Another key factor is the zooming land rates.
Development in economy and development in tourism will add to scrips hidden value.
So keeping the long term factor in mind one can accumulate this scrip at any rate within Rs.32/-.
I would keep a price target of Rs.150/- approx by the end of 2010.

Financial Highlights: -
With the current EPS od 3.97 and a face value of 2 with a market cap of 1200 it looks undervalued.
Operating income increased by 50% compared to lats year.
From mere 7 cr net profit in 2004 and now at 120 cr net profit this stock looks very attractive and cheap.

Key positive: -
A dividend paying stock.
Good long term perspective.
Undervalued.
Lots of developments taking place.
Good management.

"Buy or cry the stock will fire"

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Dow Up will pull Indian Markets up.

US stocks rose sharply on Thursday as the government reported the economy grew at a surprisingly robust clip in the second quarter and oil prices eased, driving gains in major industrial and financial companies.

The Dow industrials rose nearly 2 percent after the government said strong export growth and consumer spending helped gross domestic product expand at a 3.3 percent annual rate between April and June, above an initial estimate of 1.9 percent.

That lifted the fortunes of large industrial companies. Shares of heavy equipment maker Caterpillar, often described as an economic bellwether, rose 3 percent.

The brighter economic outlook coupled with a management shake-up at top US mortgage finance company Fannie Mae boosted financial shares, which led market gains.

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Inflation for week ending August 16 2008 at 12.40 percent

Finally after a long time not sure when it went down but this week its good news it dint go up but it just came down by .20 percent or so .The inflation for the week ending August 16 2008 is at 12.40 percent versus 12.63 percent.

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Thomas Cook Right Issue.

>> Thursday, August 28, 2008

Thomas Cook India Ltd informed the market that on the meeting that way back in march 23rd 20077 they decided on a rights issue in the ratio of 1 : 3 ratio for the existing share holders with a issue size of upto Rs 225 crores. But now they have decided the fund raising will not exceed more than 200 crores.The record date for the same will be soon announced.

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Systematic investing pays when markets correct - ET.

>> Monday, August 25, 2008

For those expecting the Sensex to touch 16,000 in the near term, last week's market trend came as a jolt. With inflation continuing its upward trend, there wasn't much good news and as a result, on Thursday, the Sensex lost over 400 points. It has once again brought back the fears of corrections at regular intervals and consensus is growing in favour of a weak market in the near term.

While the earlier sore points of high inflation and resulting higher interest rate regime continue to exist, the bad news during the week came in the form of higher crude oil prices. The mild surge in oil prices has strengthened the case for bears who are once again back in action. With traders too taking comfort in going short, one cannot expect a huge recovery in the stock prices in the coming days. Much of the uptrend would be triggered by short covering than value buying.

But the good news for long-term investors is that the market has begun to show resilience and the current weakness has factored in most of the bad news. The intermittent selling pressures , largely driven by foreign financial institutions, needs to lose momentum for the local investors to commit larger cash. The local institutional investors like insurance companies and mutual funds, have been sitting on a larger components of cash and have preferred to play the wait and watch game.


The strategy can't be completely different for retail investors. While those who are playing a long game can still have a go at equity, it would be advisable to opt for a staggered approach. In fact, many analysts recommend a much lower allocation for equity during the current year if the time horizon is less than two years. For such investors, the systematic approach would be a better option. In the case of direct stocks, buying at regular intervals would be the right strategy. The immediate question is how one chooses the buying opportunity .

A weakness in the market could be of two types. As has been the trend over the last couple of quarters, the markets slip into selling pressure on regular intervals where the indices end up losing over 300-400 points in a single session. On such trading days, there is a significant downtrend in most stocks and you can use the day to pick up stocks in large and fundamentally-strong mid-caps .

Buying in such a market trend is probably easier though one would be tempted to wait for the bottom . The easier option in such a case would be to fix a range for the index for getting into the buying mood. For instance, the index level could be in the range of 14,000-14 ,200 or even 13,500-13 ,800.

While the broader index level can make you jump into a buying mood, keep an eye on your individual stocks. There have been instances where individual stocks have managed to hold on to their levels or not buck up under pressure despite the general weakness. While such instances are far and few, investors should look for such stocks and investment decisions need to be driven by the strength and weakness of individual stocks.

While picking stocks in a weak market is probably much easier, particularly in large-cap stocks, another option for equity investors is to allocate a portion of the corpus for mutual funds too. Mutual funds allow you to buy into a larger basket of stocks and it's probably much easier for investors to take exposure in the current scenario. The added advantage with mutual funds is the fact that a systematic approach is much easier thanks to daily systematic transfer or weekly systematic investment plans.

Source ET



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A potential Multibagger - Chowgule Steamships Ltd.

>> Sunday, August 17, 2008

(This is a repost to benefit the people who didn't read it earlier.)

Scrip: - Chowgule Steamships Ltd.
BSE Code: - 501833
CMP: - 48
Market Cap: - 180.23 Cr.
EPS : - 7.41
P/E: -
6.70
Target: - May go even in 4 Digit in 4 -5 Years.
52 Week H/L : -
104.55 - 30.35

Summary: -
Chowgule's are one of the old and prominent players in the Shipping Ind. , promoted by the Goan Iron Ore Mine owners, the Chowgules, who happen to be one of the large mine owners of Goa In the late eighties when the shipping co. were finding difficult to survive Chowgule had survived.
with diverse interests.

Chowgule Steamships Ltd is a small Shipping Company owning 3 Panamax bulk

carriers, 1 Supramax Bulk Carrier, and 3 mini bulkers (detailed below):-


Name Vessel Type Built DWT Market Value

(In Million US$ )

m.v. Maratha Messenger Panamax 1995 71252 48.00

m.v. Maratha Providence Supramax 1995 47574 36.00

m.v. Maratha Courage Mini Bulker 1994 2053 1.00

m.v. Maratha Crystal Mini Bulker 1997 3500 2.00

m.v. Maratha Coral Mini Bulker 2000 3427 2.00

m.v. Maratha Explorer* Panamax 1990 68849 32.00

m.v. Global Triumph * Panamax 1996 72870 48.00

*(Owned by 100% Subsidiary Chowgule Steamships Overseas Ltd)

The market value given above is based on estimated current valuations of similar vessels by leading International Shipbrokers.

Based on the above, the estimated value of its fleet is US$ 169 million which is approx crores . But the current Market cap isRs.680 180 Cr. and CMP Is 48 . So the real value should be 3 times of CMP i.e. at 145 Rs.

Further More.
Their office premises at Bakhtawar Building, Nariman Point, which had been revalued to apporx Rs. 20 crores in 2002 should now be worth more than 3 times this amount i.e. at least 60/65 crores..
Thus the hidden real estate value of the Company is approx Rs.70 crores, which itself is worth Rs.15-16 per share !! This is coming free.

The real Multibagger: -

Chowgule in 2012 is coming up with a 100% port at Raigad. This Investment is worth more than 1000 Cr.

Secondly by the sales of ships it earns a huge sum.

Financial s: -
Its operating income has increased 125% compared to 2007 .
Its net profits increased 200 % odd.
PAT increased by 110%.

So the company looks with a good financial sound.

Key Positive: -

A dividend paying stock. Paid 1.5 rs Dividend.

Good valuation.

New Port coming up.

Company is exploring new corners of the unseen ocean.

Key Negative: -

Highly Risky business.


Companies Site: - www.chowgulegoa.com

P.S. I personally own a bulk of this scrip.

Chirag Jethmalani.

Please read the Disclaimer before investing.

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Weekly Markets Fore cast - 18 Aug.

For the week gone by, even though the equity markets reacted positively to falling crude prices and positive global cues, the macro picture remained hazy on account of the consistently decelerating Index of Industrial Production (IIP).

For the month of June 2008, the growth in the IIP amounted to a mere 5.4%, which though higher than 4.1% (revised) growth in May 2008. This was well below the 8.9% recorded during the corresponding period in the previous year due to slowdown in the manufacturing sector which registered a growth of 5.9% as compared to 9.7% for the period under review.

Uncertainty was the order of the day during the early part of the week as investors awaited the outcome of SEBI`s board meet on issuance of Participatory Notes (PNs), which eventually did not materialize and merely got deferred.

Moreover, crude prices which had dropped to three month lows (below USD 115 per barrel) also rallied sharply against the backdrop of supply concerns near the end of the week. However on Friday, as Indian markets remained closed on account of its 61st Independence day, crude prices fell again to end below USD 115 per barrel mark on account of renewed concerns of slowdown in the global economy, which could put further pressure on the already falling demand for crude oil and thereby its prices.

Resultantly, the benchmark indices lost almost all its gains made in the previous week as investors decided to book profits at higher levels and stay on the sidelines towards the end of the truncated week. Higher inflation numbers and the global markets ending on a mixed note may cast its shadow on the opening trades of the week ahead..

The deceleration in industrial production has come on the back of tight monetary measures initiated by the RBI in the recent past which resulted into higher interest rates along with a rise in input cost. All this is affecting the investment climate in the Indian economy and the same is reflected in the weak IIP numbers. Resultantly, the Prime Minister’s Economic Advisory Council (EAC) has now revised the growth rate at 7.7% for 2008-09.

Though the fiscal stimulus provided by the Government in the form of reduction in excise duties and tax burden may increase consumption demand and hence mitigate the adverse impact of moderating the investment climate to a certain extent, the overall apprehension of slowdown still remains. Further, the implementation of the Pay Commision Report with retrospective effect is unlikely to bring cheer to investors.

Moreover, market is likely to come under some pressure as inflation galloped to its 16 year high at 12.44% for the week ended August 2, 2008 as compared to 12.01% during the week earlier. This rise in inflation has stoked fresh concerns about further tightening of monetary policy over the next few months.

However, with the revival of monsoons and most negative factors being already discounted, the market appears to have formed a higher bottom and this could trigger value buying at falls. However, the undertone may remain weak against amid renewed concerns over rising inflation and slowing economic growth. Participants would thus do well to keep a close watch on the movement of crude prices as its potency cannot be underestimated.


Read More.


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Investing in VRE.

I don't know whether all of you are familiar with the VRE i.e. Virtual Real Estate.
What does this mean ?
VRE means parking your money online. What people have done in past , they had invested a much of their money in good domain name say money control (.) com . They tried their luck.
Is this a good way of investing ?
Yes , it is . Many people had done this in the past and many are doing it yet.
How much to invest?
Starts from 2$ and any where between 20$ .
Key positive: -
High returns can even give 1000$ .
Online mania.
This is dot com world.
Key negative : -
Low liquidity.

Where can you start this?
Best site is godaddy.com

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A presentation on power of equity.

>> Saturday, August 16, 2008

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The Inflation Irritator.

>> Thursday, August 14, 2008

Inflation for the week ended August 2 has come at 12.44% versus 12.01%. Inflation is at a 16 year high.
This means that there will surely be an action taken by RBI.
This will tighten the monetary.
This will increase the fuel and food prices.
This is a matter of great concern.
Experts expect that inflation will reach 17% before coming down.
Our Finance Minister Mr. Chidambaram had said that Inflation will come down by December '08 .
Did Read our other posts: -

A potential Multibagger - Chowgule Steam Ship.
Stock Idea - Germach Infra.

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A potential Multibagger - Chowgule Steam Ship.

>> Wednesday, August 13, 2008

Scrip: - Chowgule Steamships Ltd.
BSE Code: - 501833
CMP: - 48
Market Cap: - 180.23 Cr.
EPS : - 7.41
P/E: -
6.70
Target: - May go even in 4 Digit in 4 -5 Years.
52 Week H/L : -
104.55 - 30.35

Summary: -
Chowgule's are one of the old and prominent players in the Shipping Ind. , promoted by the Goan Iron Ore Mine owners, the Chowgules, who happen to be one of the large mine owners of Goa In the late eighties when the shipping co. were finding difficult to survive Chowgule had survived.
with diverse interests.

Chowgule Steamships Ltd is a small Shipping Company owning 3 Panamax bulk

carriers, 1 Supramax Bulk Carrier, and 3 mini bulkers (detailed below):-


Name Vessel Type Built DWT Market Value

(In Million US$ )

m.v. Maratha Messenger Panamax 1995 71252 48.00

m.v. Maratha Providence Supramax 1995 47574 36.00

m.v. Maratha Courage Mini Bulker 1994 2053 1.00

m.v. Maratha Crystal Mini Bulker 1997 3500 2.00

m.v. Maratha Coral Mini Bulker 2000 3427 2.00

m.v. Maratha Explorer* Panamax 1990 68849 32.00

m.v. Global Triumph * Panamax 1996 72870 48.00

*(Owned by 100% Subsidiary Chowgule Steamships Overseas Ltd)

The market value given above is based on estimated current valuations of similar vessels by leading International Shipbrokers.

Based on the above, the estimated value of its fleet is US$ 169 million which is approx crores . But the current Market cap isRs.680 180 Cr. and CMP Is 48 . So the real value should be 3 times of CMP i.e. at 145 Rs.

Further More.
Their office premises at Bakhtawar Building, Nariman Point, which had been revalued to apporx Rs. 20 crores in 2002 should now be worth more than 3 times this amount i.e. at least 60/65 crores..
Thus the hidden real estate value of the Company is approx Rs.70 crores, which itself is worth Rs.15-16 per share !! This is coming free.

The real Multibagger: -

Chowgule in 2012 is coming up with a 100% port at Raigad. This Investment is worth more than 1000 Cr.

Secondly by the sales of ships it earns a huge sum.

Financial s: -
Its operating income has increased 125% compared to 2007 .
Its net profits increased 200 % odd.
PAT increased by 110%.

So the company looks with a good financial sound.

Key Positive: -

A dividend paying stock. Paid 1.5 rs Dividend.

Good valuation.

New Port coming up.

Company is exploring new corners of the unseen ocean.

Key Negative: -

Highly Risky business.


Companies Site: - www.chowgulegoa.com

P.S. I personally own a bulk of this scrip.

Chirag Jethmalani.

Please read the Disclaimer before investing.

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Stock Idea - Germach Infra.

Scrip: - Germach Infra
CMP: - 88
BSE Code: - 532836
52 Week H/L: - 504 / 78
Market Cap: - 133.84
Target : - 350 (1 year)

Summary: -
Gremach Infrastructure Equipments & Projects (GREMACH) in engaged in the business of providing construction and earthmoving machinery on rent. It provides equipment consultancy and maintenance services to optimize use and reduce costs and also hires equipment owned by other parties to rent them out to clients.

Gremach Infrastructure Equipments & Projects (Gremach Infra) acquired a controlling 75% stake in 11 coal mine licenses in Mozambique in Karoo basin. Mozambique is a prime Hard Coking coal bearing area in Africa.

Financial: -
Its Cash EPS has increased from 6.16 to 7.97With the current EPS of 24.43 and a PE of 3.71 the stock looks reasonably cheap. It looks undervalued. Its June 08 result shows decline in sales but a 200% increase in operating profit. . Its net Profit increased 25% odd.

Why it went so high and now come so down: -
FII's sold out this stock in a large proportion.

Key Positive: -
Gremach Infra has come out with Ipo of group company Austral Coke soon, so it will have to show good performance of Gremach Infra stock.
Undervalued.
Paid dividend of re. 1
Good Long term bet.

Key Negative: -
Has bottomed out like hell. Technicals are not in favour.




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FMP or FD. Confused ??

By number of funds as well as money invested, one of the most important type of mutual fund in India is something that is generally called a Fixed Maturity Plan. Of the 1920 mutual funds that are currently available, no fewer than 805 are FMPs, as they are known. And of the Rs 5.61 lakh crore that is invested in Indian mutual funds today, 68,000 crore is in FMPs. FMPs are generally used by companies and large investors as an alternative to bank fixed deposits. In general, these funds resemble FDs more than they do other mutual funds. These are closed-end funds, meaning that one can only enter them when they are launched and exit them when their pre-stated term is over. Actually, one can exit them earlier, but generally after paying a load that is high enough to be a serious discouragement. More importantly, fund companies offer an ‘indicative return’ for FMPs. Unlike other types of mutual funds, FMPs are run in such a way that this indicative return actually has some meaning.

FMPs invest in debt instruments with the intent of holding them to maturity. This means that regardless of any ups and downs in the market value of the investments, the final earnings are predictable. Therefore, the indicative returns that FMPs provide to investors reflect the reality.

One obvious question is why investors should prefer FMPs to bank deposits. The reason is mostly to do with tax efficiency. When you put money in a fixed deposit, the interest gets added to your income. In FMPs longer than a year, if you elect to take all your gains as capital appreciation, the taxation is merely 10 per cent with indexation benefit or 20 per cent with indexation. That’s generally quite a saving from the tax rate which either individuals or companies would pay on the interest earned from a bank deposit.

Even for investments less than a year, there’s a tax advantage if the investor takes the option of receiving the gains in the form of dividends. In this case, individual investors will get taxed at 12.5 per cent of the returns and corporates will get taxed at 20 per cent. This is the dividend distribution tax that is deducted by the fund company. Once this is paid, no further taxation applies to the income. Although this is obviously not as much of a tax advantage as the long-term capital gains option, it’s still a lot lower than the full tax payable on bank deposits.

The only question that remains is if they are as safe as bank deposits. In theory, they aren’t. Like any other mutual funds (and unlike banks), you could lose all your money in an FMPs. In practice, FMPs have been predictable and safe.

However, to enhance the overall yield FMPs may assume high credit risk and run the risk of default. Nowadays, the increasingly tight liquidity and credit situation could mean that some of the companies in which FMPs invest could be sailing closer to the edge than earlier. There’s plenty of talk about how some real estate companies are facing tough times. If an FMP has invested in such a company’s debt, the chances of an FMP returning less than the indicated yield or even turning in a capital loss cannot be ruled out completely.

Generally speaking, FMPs invest in high quality instruments, which have been rated by at least one credit rating agency. In case of investment in unrated papers, prior approval of the board of directors of the AMC or the Trustee has to be obtained. All things considered, even though FMPs are generally seen as something that only companies invest in, there’s no reason why individuals should not use them as more tax-efficient fixed deposits.

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What is an FMP ?

>> Tuesday, August 12, 2008

Fixed Maturity Plans(FMP) seem to be the latest bug to bite the Indian mutual fund industry. Practically every mutual fund house is dishing out new FMPs. Since January 2005, almost 40 FMPs have been launched with many more lined up in the near future.

What is an FMP ?

FMPs are mutual fund schemes that last only for a fixed period of time. FMPs are nothing but Fixed Maturity Plans.

Two features that make them distinct from other fund schemes are:-

1. Tenure-: FMPs have a fixed maturity date. It could be 15 days, 30, 90, 141, 180 or even 365 days. Some even have a three or five-year time frame. At the end of this period, the scheme matures, just a like a fixed deposit.

2.Investments -: FMPs invest in fixed income instruments, like bonds, government securities, money market instruments (very short-term fixed return investments), to name a few.

Investing in the right FMP only does makes sense. We advice you on a perfect FMP to know more details Contact us . Click Here.

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Investment Idea - Rishi Lasers.

Scrip: - Rishi Laser.
BSE Code: - 526861
CMP : - 68
Market Cap: - 55 Cr.
52 Weeks H/L: - 206 / 51
Tgt: - 120 (6-7 Months.)

Summary: -
Rishi laser is a leader in the usage of Laser Cutting for manufacturing components and assemblies.Rishi(RLCL) set up its first Laser Cutting facility in 1995. Even though Laser Cutting was very popular in Western Countries at that time, Laser Cutting of metals was very new to India.The progress in the first five years was very slow because Laser Cutting was still looked as a very expensive method of processing steel. Also the Indian Engineering Capital Goods Industry was passing through a very difficult period in later nineties. The scenario has completely changed today for the sector and the company. The Engineering and Capital Goods sector is booming in India and Laser Cutting is fast becoming a very standard method of processing flat steel.The fabrication industry is highly fragmented and there are very few organised large Companies in the business. Rishi Laser continues to be the leader in the business in terms of capacity with 20 CNC steel processing machines. RLCL is now embarking on major growth path to add further facilities to enhance capacity.

Financials: -

Its reserves are increasing year over year. The current reserves are 19 Cr. Odd. Its sales have increased considerably. Rishi has been consistently perfoming well over the last 4 years or so and the same trend is expected to continue in the coming years as well.We expect RLCL to deliver a topline of aound 75crs and a bottomline of about 4.8crs for fy08 .With a low equity base of 6crs the bottomline results in an EPS about 5rs.At the current price of 67rs RLCL quotes at a P.E of slightly above 11.8 times.

Key Positive Points: -
Demand in this sector is growing consistently.
Good sales.
It is there in Rakesh Junjunwalas Portfolio.

Key Negative Points: -
High operating cost.
Not a dividend paying stock.


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Investors Protection.

It is important to be aware and well informed so that you don’t get carried away by hot ‘tips’ and rumors spread by unscrupulous people out there to make a quick buck. Please read this and send it to everybody to spread awareness.

Here I would like to share with our growing community of investors, how ‘cheats’ operate. It is very important to know how the ‘cheats’ and ‘unethical’ people operate in order to prevent oneself from being cheated and losing hard earned money.

The regular technique adopted to rig up stock prices and cheat small investors is as follows:

1. Select a stock with a very small market cap. Small is a relevant term depending on the capital available to the cartel of ‘tricksters’
Usually it is a company with a market cap of less than $ 10 million/ Rs. 45 Crores

2. The cartel/group starts buying or already hold a large part of the company's shares. Usually such companies have very low share prices since they are making heavy losses.

3. The cartel now own a large part of the shares at very low prices, it can be sometimes as high as 98% of the total shares available in the market.

4. The cartel and group start spreading positive rumors about the stock, through the media and network of brokers and friends. Usually keeping very high target prices for the stock in question.

5. So the Rs 2 stock will have a target of Rs 2000 in the next 1 years.

6. Because of this hype everybody starts buying, and nobody is selling because only the ‘cartel’ owns the shares.

7. This causes the stock to keep hitting an upper circuit everyday. There are no sellers because the only people who hold a large part of the so called gem are the ‘cheats’ and ‘manipulators’

8. Whoever gets in the stock keeps making huge gains as the stock shoots up from Rs 20 to Rs 200 within days. They start praising the stock too, unaware of the hidden story behind it.

9. Now that the cheats have made huge profits, as their purchase price is very low. They start selling.

10. A few times it hits lower circuit, however several innocent investors with the dreams of making huge returns continue investing. The manipulators continue spreading rumors that it is just a short term correction, and suggest people to start ‘accumulating’ it

11. The manipulators have made their fortunes and decide to drop the stock, the stock crashes back from its high. Causing millions of innocent investors to incur loses.

Feel free to share this information with each and every investor you know.

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Disclaimer.

Use of this website indicates your acceptance of our Disclaimer.
Disclaimer: Any action you choose to take in the markets is totally your own responsibility.IndianMoneyPlus.Com will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. This information is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

(c) 2008 All Copyrights belong to IndianMoneyPlus.Com

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Mutual Funds Basics.

What are Mutual Funds?

A Mutual Fund is a trust that pools together the savings of a number of investors who share a common financial goal. The fund manager invests this pool of money in securities - ranging from shares and debentures to money market instruments or in a mixture of equity and debt, depending upon the objectives of the scheme.

Why to choose / invest in Mutual Funds?

Diversification: Funds are invested across different companies & different sectors which reduces the risk.

Anytime Liquidity: You can withdraw all or part of your investment any time at current NAV.

Transparency: Portfolio is available to Investors Quarterly / Monthly. You can see your money growing everyday through NAV.

Prompt Service: Account statements & redemption cheques are couriered within 4 days. Liquid Funds redemptions are effected within 24 hours.

Professional: Professional money management has long been available to large MANAGEMENT institutions & high networth individuals. Mutual Funds make this expertise accessible to everyone

Regulation: All Mutual Funds are regulated by SEBI, Board of Trustees & regular inspection by SEBI authorities.

Choice: A wide choice of Income Funds, Gilt Funds, Liquid Funds, Balance Funds, Equity Funds, Sector Funds, Tax Saving Funds, Index Funds.

Flexibility: Flexibility to transfer / shift your investment from one scheme to another.

Accessibility: Mutual Fund schemes are easy to buy any time & also available in convenient installments through Systematic Investment Plan (SIP).

Tax Free Dividends.......


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Equity Bascis.

Indian Stock markets have corrected lately because of the Global worries and the resign prise of Oil along with the rising Inflation.
India has major two stock markets Viz. BSE, NSE . Most of the shares are traded in both Stock Exchanges.
Indian Stock markets have given Good returns over the last couple of years.

Stock Market Basic - Trading and Settlements

What is a Stock Exchange?
A common platform where buyers and sellers come together to transact in stocks and shares. It may be a physical entity where brokers trade on a physical trading floor via an "open outcry" system or a virtual environment.
What is electronic trading?

Electronic trading eliminates the need for physical trading floors. Brokers can trade from their offices, using fully automated screen-based processes. Their workstations are connected to a Stock Exchange's central computer via satellite using Very Small Aperture Terminus (VSATs). The orders placed by brokers reach the Exchange's central computer and are matched electronically.

How many Exchanges are there in India?
The Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) are the country's two leading Exchanges. There are 20 other regional Exchanges, connected via the Inter-Connected Stock Exchange (ICSE). The BSE and NSE allow nationwide trading via their VSAT systems.

What is an Index?
An Index is a comprehensive measure of market trends, intended for investors who are concerned with general stock market price movements. An Index comprises stocks that have large liquidity and market capitalisation. Each stock is given a weightage in the Index equivalent to its market capitalisation. At the NSE, the capitalisation of NIFTY (fifty selected stocks) is taken as a base capitalisation, with the value set at 1000. Similarly, BSE Sensitive Index or Sensex comprises 30 selected stocks. The Index value compares the day's market capitalisation vis-a-vis base capitalisation and indicates how prices in general have moved over a period of time.

How does one execute an order?
Select a broker of your choice and enter into a broker-client agreement and fill in the client registration form. Place your order with your broker preferably in writing. Get a trade confirmation slip on the day the trade is executed and ask for the contract note at the end of the trade date.


Why does one need a broker?
As per SEBI (Securities and Exchange Board of India.) regulations, only registered members can operate in the stock market. One can trade by executing a deal only through a registered broker of a recognised Stock Exchange or through a SEBI-registered sub-broker.

What is a contract note?
A contract note describes the rate, date, time at which the trade was transacted and the brokerage rate. A contract note issued in the prescribed format establishes a legally enforceable relationship between the client and the member in respect of trades stated in the contract note. These are made in duplicate and the member and the client both keep a copy each. A client should receive the contract note within 24 hours of the executed trade. Corporate Benefits/Action

What is a book-closure/record date?
Book closure and record date help a company determine exactly the shareholders of a company as on a given date.

Book closure refers to the closing of register of the names or investors in the records of a company. Companies announce book closure dates from time to time. The benefits of dividends, bonus issues, rights issue accruing to investors whose name appears on the company's records as on a given date, is known as the record date.

An investor might purchase a share-cum-dividend, cum rights or cum bonus and may therefore expect to receive these benefits as the new shareholder. In order to receive this, the share has to be transferred in the investor's name, or he would stand deprived of the benefits. The buyer of such a share will be a loser. It is important for a buyer of a share to ensure that shares purchased at cum benefits prices are transferred before book-closure. It must be ensured that the price paid for the shares is ex-benefit and not cum benefit.

What is the difference between book closure and record date?
In case of a record date, the company does not close its register of security holders. Record date is the cut off date for determining the number of registered members who are eligible for the corporate benefits. In case of book closure, shares cannot be sold on an Exchange bearing a date on the transfer deed earlier than the book closure. This does not hold good for the record date.

What is a no-delivery period?
Whenever a company announces a book closure or record date, the Exchange sets up a no-delivery (ND) period for that security. During this period only trading is permitted in the security. However, these trades are settled only after the no-delivery period is over. This is done to ensure that investor's entitlement for the corporate benefit is clearly determined.
What is an ex-dividend date?
The date on or after which a security begins trading without the dividend (cash or stock) included in the contract price.

What is an ex-date?
The first day of the no-delivery period is the ex-date. If there is any corporate benefits such as rights, bonus, dividend announced for which book closure/record date is fixed, the buyer of the shares on or after the ex-date will not be eligible for the benefits.
What is a Buy Back?
As the name suggests, it is a process by which a company can buy back its shares from shareholders. A company may buy back its shares in various ways: from existing shareholders on a proportionate basis; through a tender offer from open market; through a book-building process; from the Stock Exchange; or from odd lot holders.
A company cannot buy back through negotiated deals on or off the Stock Exchange, through spot transactions or through any private arrangement. Clearing and Settlement



What is a settlement cycle?
The accounting period for the securities traded on the Exchange. On the NSE, the cycle begins on Wednesday and ends on the following Tuesday, and on the BSE the cycle commences on Monday and ends on Friday.
At the end of this period, the obligations of each broker are calculated and the brokers settle their respective obligations as per the rules, bye-laws and regulations of the Clearing Corporation.
If a transaction is entered on the first day of the settlement, the same will be settled on the eighth working day excluding the day of transaction. However, if the same is done on the last day of the settlement, it will be settled on the fourth working day excluding the day of transaction.

What is a rolling settlement?
The rolling settlement ensures that each day's trade is settled by keeping a fixed gap of a specified number of working days between a trade and its settlement. At present, this gap is five working days after the trading day. The waiting period is uniform for all trades.

When does one deliver the shares and pay the money to broker?
As a seller, in order to ensure smooth settlement you should deliver the shares to your broker immediately after getting the contract note for sale but in any case before the pay-in day. Simliarly, as a buyer, one should pay immediately on the receipt of the contract note for purchase but in any case before the pay-in day.

What is short selling?
Short selling is a legitimate trading strategy. It is a sale of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers take the risk that they will be able to buy the stock at a more favourable price than the price at which they "sold short."

What is an auction?
An auction is conducted for those securities that members fail to deliver/short deliver during pay-in. Three factors primarily give rise to an auction: short deliveries, un-rectified bad deliveries, un-rectified company objections

Is there a separate market for auctions?
The buy/sell auction for a capital market security is managed through the auction market. As opposed to the normal market where trade matching is an on-going process, the trade matching process for auction starts after the auction period is over.

What happens if the shares are not bought in the auction?
If the shares are not bought at the auction i.e. if the shares are not offered for sale, the Exchange squares up the transaction as per SEBI guidelines. The transaction is squared up at the highest price from the relevant trading period till the auction day or at 20 per cent above the last available Closing price whichever is higher. The pay-in and pay-out of funds for auction square up is held along with the pay-out for the relevant auction.

What is bad delivery?
SEBI has formulated uniform guidelines for good and bad delivery of documents. Bad delivery may pertain to a transfer deed being torn, mutilated, overwritten, defaced, or if there are spelling mistakes in the name of the company or the transfer. Bad delivery exists only when shares are transferred physically. In "Demat" bad delivery does not exist.

What are company objections?
A list documenting reasons by a company for not transferring a share in the name of an investor is called company objections. Rejection occurs due to a signature difference, or fake shares, or forgery, or if there is a court injunction preventing the transfer of the shares.

What should one do with company objections?
The broker must immediately be notified. Company objection cases should be reported within 12 months from the date of issue of the memo for the original quantity of share under objection.

Who has to replace the shares in case of company objections?
The member who has sold the shares first on the Exchange is responsible for replacing the shares within 21 days of the Exchange being informed. Company objection cases that are not rectified or replaced are normally auctioned.

How does transfer of physical shares take place?
After a sale, the share certificate along with a proper transfer deed duly stamped and complete in all respects is sent to the company for transfer in the name of the buyer. Once the transfer is registered in the share transfer register maintained by the company, the process of transfer is complete.

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Investment Idea - Rishi Lasers.

>> Monday, August 11, 2008

Scrip: - Rishi Laser.
BSE Code: - 526861
CMP : - 68
Market Cap: - 55 Cr.
52 Weeks H/L: - 206 / 51
Tgt: - 120 (6-7 Months.)

Summary: -
Rishi laser is a leader in the usage of Laser Cutting for manufacturing components and assemblies.Rishi(RLCL) set up its first Laser Cutting facility in 1995. Even though Laser Cutting was very popular in Western Countries at that time, Laser Cutting of metals was very new to India.The progress in the first five years was very slow because Laser Cutting was still looked as a very expensive method of processing steel. Also the Indian Engineering Capital Goods Industry was passing through a very difficult period in later nineties. The scenario has completely changed today for the sector and the company. The Engineering and Capital Goods sector is booming in India and Laser Cutting is fast becoming a very standard method of processing flat steel.The fabrication industry is highly fragmented and there are very few organised large Companies in the business. Rishi Laser continues to be the leader in the business in terms of capacity with 20 CNC steel processing machines. RLCL is now embarking on major growth path to add further facilities to enhance capacity.

Financials: -

Its reserves are increasing year over year. The current reserves are 19 Cr. Odd. Its sales have increased considerably. Rishi has been consistently perfoming well over the last 4 years or so and the same trend is expected to continue in the coming years as well.We expect RLCL to deliver a topline of aound 75crs and a bottomline of about 4.8crs for fy08 .With a low equity base of 6crs the bottomline results in an EPS about 5rs.At the current price of 67rs RLCL quotes at a P.E of slightly above 11.8 times.

Key Positive Points: -
Demand in this sector is growing consistently.
Good sales.
It is there in Rakesh Junjunwalas Portfolio.

Key Negative Points: -
High operating cost.
Not a dividend paying stock.


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Market Outlook on Monday.

A new week.
Expect a gap up opening.
Asia trading higher 1% odd.
US Dow was up 302 Points and Nasdaq up by 58 odd points.
Trading stratige is that don't carry your longs.
Book profits at higher levels. Buy in dips.
Crude well below 116$ / Barrel.

Stocks to look into are.
RNRL , Marksans Pharma , Cairn .
Banking & Metals look a bit strong.

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Weekly forecast 11th Aug - 14th Aug.

>> Sunday, August 10, 2008

  • Markets have closed well above 15 K mark. This is one good news.
  • Inflation is at a 13 years high of 12.01% went up 0.03% from 11.98% last week.
  • US Federal Reserve kept the interest rates steady at 2% and the discount rate at 2.25% against the backdrop of expanded economic activity in the second quarter on account of growth in consumer spending and exports.
  • Heavy profit booking was seen at higher levels.
  • IIP data is to be released on 12th Aug. at 12 pm. (So be careful)
  • The NYMEX Crude Oil is trading well below 116$ per barrel.

Conclusion: -
  • Profit booking expected at a higher level.
  • Crude expected to fall much further.
  • Inflation is one big concern.
  • IIP data is the second concern.
  • Senxex safe above 15,300 mark.
  • Target from our side till the end of the week is 15,600.

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Rich-i-ness Counts - All on the youngest billionaire.

>> Thursday, August 7, 2008

You dream to be rich , every one dreams to be rich but dost know how can we be rich.I am sure most of you must be knowing about Mark Zuckerberg, the founder of Facebook and the youngest billionaire in Earth’s history. He is just 23 years old and already is a billionaire. With the growth of the internet, the future is surely going to have several more billionaires just out of high-school. Anybody with a great idea or innovation can access tremendous amounts of wealth today.

The internet automatically helps those who have something unique and automatically eliminates those who aren't offering something that is needed. Companies like Facebook haven’t spent millions on advertising on TV, instead they have used the power of people and communication to grow and evolve.

For those of you who might still not be aware, Facebook is a social networking site that lets people connect better with each other, besides offering a lot of other interesting applications and tools. One can visit it www.facebook.com

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A Penny Stock Idea - Jenson & Nicholson (India) Ltd.

>> Wednesday, August 6, 2008

Scrip: - Jenson & Nicholson (India) Ltd.
CMP: - 6.90 Rs.
BSE Code: - 523592
Market Cap: -
26.55 Cr.
Target: - 11 Rs.

Summary: -
This company is involved in manufacturing and selling paints for Industrial and decorative applications. It has 33 centers all over India with manufacturing plants at Naihati , Sikandrabad and Panvel. the companies financial have fallen drastically in the current fiscal year the company has managed a turnover of just 24 cr. The companies EPS and PE both are running in Negative.

Financials are not so good why is it a must buy ?
The story is that it has got lucrative real estates in form of its panvel factory land which has been closed.The company has further got some land in naihati where its operation has been suspended.If i add up the too the present marketcap of the company would look too little. Company has got lots of debts in its book which ARCIL has taken over aggregating to nearly 39% from IDBI, SBI, UBI, BOB and BOI.On words of the management," They are actively involved in the restructuring process and is likely to take over the remaining debts from other Banks and Institutions".Further AAIFR has appointed SBI Capital Markets Ltd. as Consultants to conduct the TEV study and valuation of assets. It is expected that once the process is complete, total restructuring plan made with the help of ARCIL will be submitted before the BIFR for their final approval.

Key Positive: -
Lots of land near Mumbai in Panvel.
Restructuring taking place.

Key Negative: -
Negative EPS & PE.
Not a dividend paying stock.
Less turnover every year.

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Stock Idea - Suzlon Energy.

>> Tuesday, August 5, 2008

Scrip: - Suzlon Energy Ltd.
BSE Code: - 532667
CMP: - 233 Rs.
Market Cap: - 35813.33 Cr.
52 Week H/L: - 460.00 - 174.50
Target : - 350 (5-6 months)

Summary: -
This company was started in the year 1995 by Mr. Tulsi Tanti who was primarily in the textile business and was introduced to wind energy through a wind power project that he had commissioned for his textile factory. The first subscribers to the Memorandum were the family members and friends of Tulsi Tanti.
Later in the year they collaborated with a German Company sudwind to acquire technology to produce wind energy in India.

Financial Snapshots: -
If you look at their balance sheet you will wonder that its a must buy. Their operating income in 03-04 was 791.15 Cr Rs. and in the current year it is 6,926.01 Cr Rs. On an average a 950 + % up move in OI . With an EPS of 8.46 I find that the company is currently undervalued compared to its assets.

Why is it a must buy ?
All factors are in favor to buy this scrip. Oil prices are well above 100 $ / barrel. We need an alternative source and an environmental friendly fuel which is wind . One day oil will be depleted but wind wont. Suzlon is a best bet in the current power sector. The companies financial are quite good assuring that it has a good future.

Please Read Disclaimer.
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7 Reasons for not investing in Reliance SIP+Insure Plan.

1] The type of Insurance is Group Insurance Policy. The cheapest and easiest form of insurance policy available with any insurance company.

2] Only the 1st Holder is insured. So, in case, a couple subscribes to SIP +Insure then only one person can avail of the insurance benefits.

3] The Sum Assured, in case of death is not paid to the nominee, but shall go back to the scheme of the AMC(Reliance Asset Management Company). Remember, the scheme benfits more than the dependents of the deceased in case of death of the holder.

4] Huge exit load of 2% for discontinued SIP. If you agree to pay your SIP for 11 yrs but pay only for 10 long and tiring yrs, still the scheme charges you 2% for the remaining 1 yr which you do not wish to continue.

5] No insurance upto 90 days (exception to it is accident cases only) , i.e 3 months. In case of death within 3 months, except of accidental deaths, the scheme shall not pay the dependents a penny.

6] The dependents will end up paying the scheme 2% back if the death occurs within 3 months due to reasons other than accidental death.

7] Minimum period of investment is 3 yrs and Rs 2,000 for each installment, i.e totalling to Rs 36,000 for Group insurance worth less than 10 lacs.

There are group insurance polices availables at a very low costs, which can be availed of for insurance requirements. Insurance worth of Rs 10 lacs may or may not be sufficient for your entire family’s needs.

The Exit loads are relatively very high even if investor is paying his SIP for a long period, if he discontinues even 1 day prior, he ends up paying 2% Exit loads.

Sunny Side to life :

SIP is also available without this offer.

Source: - Mutual Funds online.


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Stock Idea - Shree Ashtavinayak Cine Vision Ltd.

>> Monday, August 4, 2008

Scrip - Shree Ashtavinayak Cine Vision Ltd.
CMP: - 554
BSE Code: - 532793
Market Cap: - 554 Cr.
Target: - 625 Rs (3-4 Months)

Summary.
Shree Ashtavinayak Cine Vision is currently in producing Hindi Movies. Welcome , Jab We Met are the famous movies produced by them. They are coming out with 14 more films.

In The News.
The first release would be Shivam Nair's suspense thriller 'MAHARATHI' starting Nasseruddin Shah, Om puri, Boman Irani, Paresh Rawal, Tara Sharma & Neha Dhupia. The other releases include 'KIDNAP' by Sanjay Gadhvi starting Sanjay Dutt, Minnisha Lamba, Vidya Malvade, Rahul Dev, Imran Khan & 'GOLMAAL RETURNS' by Rohit Shetty starring Ajay Devgan, Arshad Warsi, Tusshar Kapoor, Shreyas Talpade, Kareena Kapoor, Celina Jaitley, Amrita Arora & Anajana Sukhani.

The other projects in the pipe line include Neeraj Vora's 'Run Bhola Run' starring Govinda, Tussar Kapoor, Tanushree Dutta, Amisha Patel & 'One Way Ticket' casting Anil Kapoor, Akshaye Khanna & two more heroines.

Other ongoing projects are 'Blue' directed by Anthony D'souza starring Sanjay Dutt, Akshaye Kumar, Lara Dutta, Katrina kaif, & Zayad Khan along with Soham Shah's 'Luck' which will have the debut of Shruti Hassan with Sanjay Dutt, Imran Khan, Danny Denzongpa, Ravi Kisshan with Mithun Chakraborthy.

The future projects include a co-production with Shri. Jaganaath Entertainment 'Mudh Mudh Ke Na Dekh Mudh Mudh ke' starring Himmesh Reshammiya, Niharika Singh & Jenifer Kotwal directed by Seema & Sudhir & Bond in association with Sanjay Dutt Productions Pvt Ltd to be directed by Anthony D'Souza starring Sanjay Dutt with two other heros.

Key Positive Points: -

  • With a EPS of 13.64 which is much higher than the face value the stock looks a good buy bet for short to medium term.
  • Its P/E too is trailing excellent at around 40.24
  • 14 Movies in pipeline.
  • Good Past record.
  • Profits rising every year.
  • Sales are also rising.
  • Paid 12% Dividend this year.
Key Negative Points: -
  • It is a "T" Group scrip.
  • Operator driven scrip.
Rating: - 4/5

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Mutual Funds Idea - DSP ML World Gold Fund.

Mutual Funds Idea - DSP ML World Gold Fund: -
Current NAV: - 13.19 Rs.
Min Investment: - 5000 Rs.
Total Assets: - 2062.44 ( June 30, 2008 )

Summary: -
This is an open ended growth scheme. Launched last September . The fund has never sliped below 10 Rs at which the company gave to the public. Its all time low is 11.50 and all time high is 16.30.
This fund basically invests in gold mining companies. Its an open-ended fund of funds scheme, investing in gold mining companies through an international fund, with the primary objective of seeking capital appreciation by investing predominantly in units of Merrill Lynch International Investment Funds – World Gold Fund (MLIIF –WGF).
Objective: -
The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in units of MLIIF - WGF. The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. The Scheme may also invest a certain portion of its corpus in money market securities and/or units of money market/liquid schemes of DSP Merrill Lynch Mutual Fund, in order to meet liquidity requirements from time to time.
Why to invest ?
Gold prices are rising at a never stopping rate. Currently gold is giving a side ways movement. A much uptrend is left to be seen in gold. Gold is currently trading range bounded within 12200 - 13250 Rs.
Portfolio: -

Top 10 Sectors Top 10 Stocks
Industry % to Net Assets Name of Instrument % to Net Assets
Gold 76.70% Newcrest Mining 7.90%
Platinum 11.30% Barrick Gold 6.90%
Silver/ Gold 8.90% Kinross Gold 6.60%
Cash 2.30% Impala 5.50%
Diamonds 0.80% Minas Buenaventura 5.40%


INDS Penoles 4.10%


Goldcorp 5.40%


Lihir Gold 4.60%


Agnico Eagle Mines 4.00%


Newmont Mining 4.00%

Verdict: -Buy.
Ratings: -3.5/5

Want to buy this fund through us mail us at contact@indianmoneyplus.com
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