STOCK BUZZ

Last week, yet another student loan lender announced it's not issuing any more new loans. Brazos Higher Education Service Corporation joined more than 30 other institutions that are pulling back from student lending because of the credit crunch and lower federal subsidies. Many have also stopped making consolidation loans, but for students who are still hoping to consolidate, SmartMoney.com reporter Anna Maria Andriotis says “Hang On”. Source: Marketplace Money and smartmoney.com Loan consolidation was first introduced in mid-1980 and was touted as a much-needed solution for those struggling to pay their debt from college. Borrowers could combine their Stafford and Plus loans into one payment and lock in the prevailing interest rates. However, times have changed, and consolidation is no longer a cheap and attractive option. Thanks to the declining federal funds rate and the phasing out of variable-rate loans, consolidating your student loans will actually cost you more over the lif...

Market is in different Mood . Take Day off and rest ....

The private sector mortgage industry is struggling to cope with its credit problem due to the Subprime lending debacle. This week, some former executives of Countrywide announced the creation of a new company called Private National Acceptance Company LLC, PennyMac for short. The company plans to buy up risky loans to help struggling home owners stay put. PennyMac will go to banks and offer to buy distressed mortgages from them on the cheap. What they will say to the bank is "We will buy this mortgage from you at a discounted rate, but that rate will still be above what you would get paid back if this home goes into foreclosure." For many banks, the offer will come as a big relief. It'll allow them to clear bad or risky loans off their books and that'll improve their image with shareholders. Stan Kurland (who left Countrywide ( CFC ) in late 2006, will head the new venture backed by investment management firms BlackRock Inc. ( BLK ) and Highfields Capital Management.)...

Buy for March 31st Infosys Tech ( 1520, 1518, 1550, 1555 SL 1500 ) Hold for delivery with 3 months target of 1700 /-

There are many readers who would like to know options about Islamic investment opportunities. One can chose to invest in : The Amana Funds , which has been around for some time. The Amana Funds (started in 1980, with initial deposits of about $250,000) invest according to Islamic principles, or Sharia. Generally, these principles require that investors avoid interest (riba) and investments in businesses such as liquor, pornography, gambling, and banks. The primary objective of the Growth Fund is long-term capital growth. It favors companies expected to grow earnings and stock prices faster than the economy. The one year, 5 year and a 10 year returns were 14.12%, 19.22% and 8.75%, respectively. The Income Fund seeks current income and preservation of capital. It invests only in dividend-paying common stocks, which are expected to have more stable stock prices.The one year, 5 year and a 10 year returns were 12.24%,20.74%,and 12.55%, respectively. It is not possible to invest into Amana f...

The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., one of the largest global investment banks and securities trading and brokerage firms in the world. The main business areas, based on 2006 net revenue distributions, are: capital markets (equities, fixed income, investment banking; just under 80%), wealth management (under 10%) and global clearing services (12%). Since Mid 2006, Bear Sterns has been in considerable financial crisis: primarlily the subprime mortgage crisis , but this article does not divulge into financial crisis of Bear Stearns.(Please read the wiki link for details) On March 16, 2008, under the supervision of the Federal Reserve, the company signed a merger agreement with JP Morgan Chase ($2 Per share) under which JPMorgan Chase would assume the counter-party risk and exercise management control over Bear Stearns pending shareholder approval.The Federal Reserve issued a non-recourse loan of $30 billion which would cove...

The TATA brand is a well-established brand in India. As you would know, the TATA group has a diversified portfolio of brands whether it be in the steel industry ( Corus, for example) or other industries such as automobiles, hotels etc. So, they know how to manage brands. Plus, they are a highly efficient group and have always been since their inception. The only difference is that they are now going global (though frankly, the Indian market itself provides ample scope). I would be surprised if the American public subscribed to the view of this gentleman. Rather, i believe that people will appreciate the core values that the TATA's live by, especially their work ethic. As Jaguar deal is finalized, one would hope their efforts will maximise value for shareholders and help in growing the value and visibility of brand jaguar. Further, i must add that the gentleman's remarks show that even businessmen wear blinkers. Indian business talent, managerial skills etc have developed over d...

The markets opened on a quiet note and proceeded to drift lower as the bulls paused for breath after a big uptick session on Tuesday. This was along expected lines as was advocated on Monday (Bears are here to Stay; but Speculators have enough oppurtunities) . The market breadth was positive as the combined exchange figures were 2536:1373. The capitalisation of breadth was negative as the commensurate figures were Rs 8344 crore:Rs 9792 crore. The bulls refused to return on Thursday, even though the markets were trading at the lower end of intraday range. On Friday Markets will be lack luster with not significant signs of bulls returning. The Indian market will take cue from the global markets, following the similar trend in other Asian and European markets. The recommendations for today: Tata Chemicals - >260. - This stock is trading at lower levels of its 52 week high/low ( 431-199.50). Also in recent past, Tata Chemicals Ltd has informed that the Company has entered into definit...

Buy Nagarjuna Construction at 297.00. Buy Chennai Petro at 348.00

A big booyah !!!!!!!! One of the blogger here at StockPM, has developed a strong liking to the Mad Money show on CNBC, so we have an article about Mad money. "Mad Money" is an American finance television program hosted by Jim Cramer that began airing on CNBC on 2005-03-14. Its main focus is investment and speculation, particularly in publicly-traded securities. Cramer defines "mad money" as the money one "can use to invest in stocks ... not retirement money, a savings account, bonds, or the most conservative of dividend-paying stocks. Jim Cramer is a former hedge fund manager who has mad millions in the Stock market. For those who have yet to see the show: Cramer usually starts off his shows by saying this, or an alternative version of this phrase after the opening credits. "Hey, I'm Cramer, welcome to Mad Money, welcome to Cramerica, other people want to make friends [at this point, Cramer adds an extra, original statement], I just want to make you mo...

Networth Stock Broking is bullish on Opto Circuit and ahs recommended buy rating on the stock with a target of Rs 429 in its March 19, 2008 report. "Opto Circuit has diversified products in Invasive & Non-Invasive segment. Acquisitions: A growth ladder. The company has received USFDA approval for its new generation range of M30 and M40 models of patient monitors. Pricing strategy to acquire market share. Company’s revenues to grow exponentially and it has strong distribution network through its subsidiaries. Company has received a formal approval from the Central government to set up a SEZ." "Opto’s Net Sales and Profits are expected to grow at CAGR of 42% and 41% from FY08E to FY10E. At the CMP of Rs 330 the stock trades at 23.6x and 16.9x its FY08E and FY09E Diluted Earnings respectively. We recommend BUY on the stock with one year price target of Rs 429, an appreciation of 30% from the current level." Disclaimer: The views and investment tips expressed by ...

The Markets closed on a high yesterday, but experts in the financial world are suggesting Bears are here to stay. JP Morgan raised its bid for Bear Stearn which pushed DOW Jones average to higher levels at closing on Monday. A few other Asian markets were also trading higher on Monday. But experts suggest that their is lack of sufficient enough good news in the market to bring back the bulls at full pace. The big Financial institutional investors are still struggling with the credit crisis and show no signs entering BSE or NSE any time soon. So here are few recommendations for various investors. 1. Speculators: There is just enough good news in the market to book some profits, but keep an eye on stop loss. Here are few recommendations for today: Texmaco : 1360, 1365, 1370 Stop loss 1350 Exide Industries: 67, 69 stop loss 60 2. For long terms investors it time to re-align your portfolio with long term outlook. There are strong oversold stocks rite now, a few recommendations for long te...

A truncated last week began with a massive fall on Monday and ended with a weak recovery on Wednesday. After the US Federal Reserve rate cut, Both foreign institutional investors (FIIs) and domestic funds were net sellers. Every sector has lost ground in the past week and in some senses, every sector is oversold. Financial stocks, metals and real-estate counters were among the biggest losers while pharmaceuticals, select FMCGs and some information technology (IT) stocks held more defensive ground. Quite a lot of selling was delivery-based and perhaps triggered by margin calls that ended in collateral being sold. The rupee is liable to strengthen further and that will hit IT stocks. However, in several sectors, specific stocks moved against the market or held their ground. After the Feds approved the JP Morgans purchase of Bear Stearns, and provided further lending options to major financial institutions on the Wall Street, investors had shown some confidence in the US markets at closi...

The World Bank on Wednesday approved a $600-million loan to power transmission giant Power Grid Corporation of India (PGCIL) to strengthen the electricity transmission system to increase reliable power exchange between regions and states. The Power System Development Project -IV of PGCIL aimed at reducing transmission losses would help cut cost of energy through further investments in transmission systems. The project is expected to allow the transfer of power from surplus hydro electric power states to power deficient regions and help creating power generation facilities. India's growth potential is constrained by inadequate electricity services and limited power generation and supply infrastructure. Over 40 per cent of the population is without electricity, and the cost of erratic and insufficient power supply is high for industry as well as households, which causes 60 per cent of Indian firms and a large percentage of homes to rely on captive generation. "India's policy...

The most prominent theme in defence production today is the surging presence of India’s private sector. At the Defence India ‘08 exhibition (Defexpo), in New Delhi last month, private Indian corporate houses like the Tatas, Larsen & Toubro (L&T) and Mahindra Defence Systems have seriously challenged the traditional dominance of Russian conglomerates, and the eight Indian defence public sector undertakings (DPSUs). Amongst the most aggressive of India’s hopeful new Lockheed Martins is the Rs 1,30,000-crore Tata Group, which has launched a carefully crafted bid to become a major player in India’s defence industry. Since the time defence manufacture was opened to the private sector in 2001, the 98 companies of the Tata Group — including Tata Motors, Tata Power and Tata Advanced Materials — have notched up significant successes. Now senior Tata Group executives have told Business Standard the details of a coordinated group strategy to grab a serious share of India’s defence mar...

This summer promises to be heady, with about half-a-dozen beer brands making their India debut. These are some of the best-known names in the business: Lowenbrau, Stella Artois, Beck’s, Baron’s Strong Beer, Tiger, Cobra Bite and even an array of British ales. The country’s beer market is estimated to be 137 million cases a year and growing at 30 per cent annually. That and the reduction in additional customs duty on liquor have made it a land of opportunity for multinational companies. “With the Indian economy burgeoning, we see a great opportunity for exporting our lager and ale to India,” said Janet Witheridge, deputy director, Brewing British Beer Pub Association. Asia Pacific Breweries launched Baron’s Strong beer last month. Next, the company plans to brew its flagship brands Tiger and Heineken. “We are looking at all opportunities that come our way,” said James Wong, the company’s general manager, Singapore cluster. “By widening our portfolio, we are certain that within the n...

New Delhi (PTI): The country's largest software exporter Tata Consultancy Services on Tuesday said it has set up a software development and delivery center in North America with a capacity of 1,000 seats to cater to the customers there. The center located in Milford, Ohio, a suburb of Cincinnati, can accommodate up to 1,000 associates, TCS said in a statement. "Most of them will be locally hired from the region and its universities," the statement added. "The Cincinnati campus is a strategic investment to create an information technology eco-system in the state together with our customers and local universities. It reflects our long-term commitment to customers in one of our key markets globally," TCS Chief Executive Officer and Managing Director S Ramadorai said. The company has selected Cincinnati and the Ohio region as it met all its criteria in terms of proximity to customers, strong talent pool, and a significant economic base that includes 10 Fortune 500 C...

Market Recap : Be careful for day trading. Market will be consolidated today around 15K. Buy RNRL for current value and Hold for delivery

Recap: Sail and Reliance communication did not reach the entry price Market Summary : Market is in different mood. I am of the opinion that for the time being one should avoid day trading as a technical bounce back will drown the short sellers and since markets have broken the key support levels and thus any buy now may lead one into loss. No action is also a strategy in market at times to preserve the capital and fight another day.

In what could transform into the biggest public-private joint venture in the power sector, public sector Bharat Heavy Electricals (Bhel) and Reliance Power (RPL) are exploring possibility of a tie-up for equipment manufacturing. Reliance Power recently announced its intention to venture into power equipment manufacturing. The company, which is part of the Reliance-Anil Dhirubhai Ambani Group (R-ADAG), is in talks with the public sector engineering major to leverage its expertise in manufacturing. Bhel and Reliance Power would have equal equity partnership in the proposed special purpose vehicle (SPV). “Initial talks have taken place between top officials of both the companies and a high level meeting between officials of Reliance Power and Bhel is also likely this week to finalise the road map for the proposed venture. The venture is likely to be implemented by an SPV where both the companies would have 50:50 equity partnership,” an industry source close to the development said. When c...

Reliance Power, the flagship power company of the Anil Dhirubhai Ambani group, has struck a deal to buy out a coal mine in Indonesia located in South Sumatra. The valuation of the coal mine, based on its reserves, is estimated to be around Rs 20,000 crore. The company is expected to announce its acquisition in a day or two. The Coal mine has resources of 2 billion tonnes and is spread over 100,000 acres, equivalent to greater Mumbai. he greenfield coal mine, a discovered asset, will be the prime source of fuel for Reliance’s power project in Krishnapatnam in Andhra Pradesh. It is estimated that the Krishnapatnam ultra mega power project would require about 14 to 15 million tonnes of coal every year. Experts say that this coal mine could be compared to one of the largest coal mines in India — the Gevera coalmine — in Chhattisgarh which has reserves of 1.2 billion tonnes and is producing around 35 million tonnes annually. Given that the acquired mine has resources of 2 billion tonnes, it...

Recap: Cipla gave a profit of Rs 4.8/- and DLF gave a profit of Rs 22/- for every single share recommended to bought as per the recommendation. Buy for March 17th 2008 Buy Reliance communications>524.1,530,544 sl 509.9 Buy SAIL>208.5,213,215 sl 204.5

Recap: Only one sell recommendation was given and that was for selling Essar oil and it yielded a profit of Rs 19/- for every share sold as per the recommendation. Buy CIPLA >202.1,207,213 Stop Loss 197.8 Buy DLF >637.15,681,735,755 Stop Loss 628 (can be held as delivery with mininum 6 month time frame).

Sell for March 13th Essar Oil Sell Essar Oil

Technical Analyst, Rajat K Bose is of the view that any decline could be a good buying opportunity in Dr Reddys Laboratories . Bose told CNBC-TV18, " Bharti Airtel yesterday was a star performer; today perhaps there is some degree of consolidation . I am a little surprised that VSNL was also trading in a negative territory, it recovered while Bharti has not. But I would say that till such time it maintains above Rs 780, chances are that Bharti might actually recover and if it were to cross Rs 805 then there would be good movement in that." He furthr added, "From a medium-term perspective, if you look at Dr Reddy’s weekly chart or the end of day chart, I would say that there could be a good buying opportunity in any decline and chances are that you would see some gains happening there especially when it crosses Rs 585 it would show a considerable strength and above Rs 600 that strength would be bolstered even further." Disclosure: It is safe to as...

It was a rock solid session on Dalal Street. Powered by positive global cues, the indices powered ahead to close with handy gains. The Nifty closed at 4, 866 up 65 points while the Sensex shut shop at 16,123 up nearly 200 points. “When we started moving up, it was 4,620 and that was a very significant support level. The Sensex recovered from very close to January 22 low of 1,532. So, it was a bounce back from a significant support level. Now that the index is above 4,800, if it were to sustain above 4,860 chances are that one might see 4,925. There could be a short-term rally in markets,” said Bose. On Balrampur Chini , Bajaj Hindustan , Triveni Engineering : Balrampur definitely looks pretty good. In fact, I was expecting Balrampur not to go below Rs 78. But on Monday, it bottomed out at Rs 76.10 and then bounced back very strongly. If it were to move above Rs 104, then the target would be something like Rs 127 and that was perhaps the January 8 high as well. ...

Buy Asian Paints>1180,1200,1210 Stop Loss 1050. Buy HCL TECHNOLOGIES LTD>270,275,280 Stop Loss 265.

Buy for March 10th ( Maruti, Reliance Communication, Satyam Computers ) Buy Maruti >945.1,950,955,970 Stop Loss 938.8 Buy Reliance Communication >532.1,535.7,543 Stop Loss 527 Buy Satyam Computers >446.75,459.30 Stop Loss 438.8

Buy for march 7th 2008 : At current level one can buy RNRL & Power grid corporation and hold it for 3 to 6 months for 30% gains

Market Recap : Market seems to be in dangerous mood. I would allow market to consolidate for some time . Take a break and give few days for market condition to improve.

Market Recap : Mkt has to close above Nifty 4800 else one may see Nifty 4400 levels. Do not day trade without stop loss. Preferably go on a holiday and take a break and let the market stabilise. Avoid blindly shorting as a technical bounce back can not be ruled out as suddenly fundamentals of Indian economy has not changed drastically.

Market Recap : Market has not taken budget kindly and as per Finance Minister words it is the global cues which have caused havoc on the market. Avoid fresh purchases as market may touch Sensex 15300 levels as crucial supports for Sensex and Nifty has been broken.

Market Recap : Satyam did not reach the entry price and bank of India gave a profit of Rs 7.6/- per share bought as per Buy for March 3rd ( Navneet Publications, Malu Paper ) Buy Navneet Publications>122.1,125,127,130 sl 117.8 Buy Malu paper>36.1,37.8,40 sl 33.5