Story Time

SUCCESS DOES NOT HAPPEN IN ISOLATION


There was a farmer who grew superior quality and award-winning corn. Each year he entered his corn in the state fair where it won honor and prizes. One year a newspaper reporter interviewed him and learnt something interesting about how he grew it.

The reporter discovered that the farmer shared his seed corn with his neighbors'.
"How can you afford to share your best seed corn with your neighbors when they are entering corn in competition with yours each year?" the reporter asked.
"Why sir, "said the farmer, "didn't you know? The wind picks up pollen from the ripening corn and swirls it from field to field. If my neighbors grow inferior, sub-standard and poor quality corn, cross-pollination will steadily degrade the quality of my corn.

If I am to grow good corn, I must help my neighbors grow good corn."
The farmer gave a superb insight into the connectedness of life. His corn cannot improve unless his neighbor's corn also improves. So it is in the other dimensions! Those who choose to be at harmony must help their neighbors and colleagues to be at peace. Those who choose to live well must help others to live well.

The value of a life is measured by the lives it touches.
SUCCESS DOES NOT HAPPEN IN ISOLATION. IT IS VERY OFTEN A PARTICIPATIVE AND COLLECTIVE PROCESS .

So share the good practices, ideas, new learning's with your family, team members, neighbors.

SEL Manufacturing Company Limited -IPO Prospects

SEL Manufacturing Company Limited

SEL Manufacturing Company is open for subscription with an initial public offering (IPO) of 41,38,410 equity shares of Rs 10 each through 100 per cent book-building process

IPO Period: July 22 to July 31
Price Range: Rs.80 to Rs. 90
Minimum Share Lot: 75 Shares
Recommnedation: Skip
Grade: Average

Premium on Listing: 10 -15%*

Asian Granito India Limited -IPO Prospects

Asian Granito India Limited

Asian Granito India, a manufacturer of vitrified tiles plans, is open for subscription with an IPO of 70 lakh equity share of Rs 10 each through a 100 per cent book building issue.

IPO Period: July 22 to July 31
Price Range: Rs.85 to Rs. 102
Minimum Share Lot: 60 Shares
Recommnedation: Subscribe
Grade: Average- for Long term

Comments

Asian Granito is a good company.Its R&D facility is very strong and it is leading player in vitrified tiles. Clients are Kalpataru, HPCL, Omaxe, HCC etc, so investors can subscribe with long term view.

Premium on Listing: 20 -25%*

Numbers Game

Traders :

weekly close below 15480 will herald major correction(5 to 10 percent correction).At this juncture book profit/cut positions in Midcaps and stay with Long caps.Dont take calls from brokers(recos of midcap stocks).Stay in cash.

may bounce back but will show strength only if it regains all time high closing.TIll then bulls and bears will slug it out.Dont go short in Reliance,take position only after results.

Long term Investors
Accumlate fundamentally good stocks,good oppurtunity to buy such stocks.

Central Bank of India -IPO Prospects

Central Bank of India:

Central Bank of India is open for subscription with an initial public offering (IPO) of 80,000,000 equity shares of Rs 10 each

IPO Period: July 24 to July 27
Price Range: Rs.85 to Rs. 102
Minimum Share Lot: 60 Shares
Recommnedation: Subscribe
Grade: Good - for Long term

Valuations

In FY07, the bank posted EPS and Book value of Rs.13.1 and Rs.77.3. At the upper price band of Rs.102, the bank is trading at 7.8x FY07 earnings and 1.3x FY07 book value, which is cheaper as compare to its peers. Expect an net profit of the bank to grow at a CAGR of 18-20 percent for the next 2 years.

Comments

Central Bank of India is a good issue. The price is very reasonable. Banking sector is also doing well and it's government owned bank. So no need to worry on the banking front. People can apply for the issue. It is expected to list at around Rs 120-125.

Premium on Listing: 15 -20%*

Refex Refrigerants -IPO prospects

Refex Refrigerants:

Refex Refrigerants, a company engaged in the business of refilling non ozone depleting refrigerant gases, or hydrofluorocarbons (HFCs) proposes to enter the capital market with a public issue of 38 lakh equity shares of Rs 10 each at a premium of Rs 55 per share

IPO Period: July 23 to July 26
Price Range :Rs.65
Minimum Share Lot: 100 Shares
Recommnedation: Skip /Subscribe -only if you have an extra cash in your account
Grade: Average - Hold for Long term

Comments:

Refex is a good and very small issue, come out with fixed price band. It is expected to list with Rs 14-15 premium but people should avoid the issue as there are numbers of issues available in the market.
The future of the HFC gas is very bright, but the company would have competition from local manufacturers. Due to huge infrastructure cost, the margins of the company would always be under pressure. About 80% is the cost of raw material for the company. If trading turnover is removed, the increase in topline in FY 08 won’t be significant. High equity base of Rs.15.20 crores would also be a dampner.
Considering the trading and service nature of business, the issue has very limited room for appreciation.

Premium on Listing: 15 -20%*

IVR Prime Urban Developers Limited -IPO status

IVR Prime Urban Developers Limited:

IVR Prime Urban Developers, a subsidiary of IVRCL Infrastructure and Projects, has come out with an initial public offering (IPO) of 1,41,50,000 equity shares of Rs 10 each

IPO Period: July 23 to July 26
Price Range: Rs.510 to Rs.600
Minimum Share Lot: 10 Shares
Recommnedation: Subscribe
Grade: Good - for Long term

Comments:

IVR Prime looks to be good issue though it is an expensive issue. Looking at real estate and infrastructure growth, people can apply for the issue.

Premium on Listing: 25 -30%*

Zylog Systems Limited-IPO status

Zylog Systems Limited:

IPO Period: July 20 to July 25
Price Range: Rs.330 to Rs.335
Minimum Share Lot: 20 Shares
Recommnedation: Subscribe
Grade: Good - Hold on to short /Medium term

Valuations

The IPO is priced between a band of Rs.330-350. At the upper band, the company is priced at 10.5x its FY07 diluted EPS of Rs.33.36 and at 7.25x its FY08E EPS. The FY08 EPS is arrived at a conservative sales growth of 50% and net profit growth estimate of 45% against 79% net profit CAGR from FY05 to FY07

Premium: 200-220 Rs*

Omnitech InfoSolutions Limited -IPO status

Omni tech Info solutions:

IPO Period: July 19 to July 25
Price Range: Rs.90 to Rs.105
Minimum Share Lot: 60
Shares Recommnedation: Subscribe
Grade: Average - Sell on listing

Valuations

The issue is priced at 10x FY07 earnings on post issue capital at floor price and at 11x at cap price. Omnitech Infosolutions Limited is a technology service provider and delivers a range of technology services as well as technology enabled services to its customers.

Getting an allotment of Omni tech solution shares looks bleak - as the issue size is small and it has already been oversubscribed by 1.02 times (nseindia.com) - with still 2 days to go

Premium: 160-170 Rs*

Banking Stocks

Stock Must have in your portfolio for Long Term


Banking seems to be the flavour of the season with ICICI IPO hotting up. The excitement associated with this issue might result in a lot of action in the banking sector.This might be a good time to identify couple of strong banking stocks:

UTI bank which has just hit a high of 615 looks set for an upward move. Support at 550 levels.

Kotak Mahindra Bank which moved up,consolidated and is again ready to move up. The supports exist around 540-550 levels. 629,which happens to be the all time high looks to be the only resistance in its way.

HDFC Bank remains good above 1060 but it is might be better to observe an upward move from the stock for breakout confirmations. Supports around 1060 levels.

SBI is again beginning to move up. Off late ,it has been trending nicely. A strong closing this week might result in SBI breaking new grounds. Supports around 1300 levels.

ING Vysya bank which has support around 225 levels looks strong.But it is a little more volatile, so you should have the stomach for it.

Bank Of India has supports around 180 levels. Again a very volatile stock and looks like a favourite of intra-day traders.

Omaxe India Limited -IPO Prospects

Omaxe India Limited:

IPO Period: July 17 to July 20
Price Range: Rs.265 to Rs.310
Minimum Share Lot:20 Shares
Recommnedation: Subscribe
Grade: Average - Good (Long term)
Expected Returns on Listing Day: 20 -25 %
Valuation:
At Rs 265 -310 price bands the stock would be valued at a FY07 PE of 16-18.7 x FY07 EPS and EV/SQFT of Rs 324 – Rs 367 of the developable areas of 183 million sqft which seems reasonable given the upside from Company’s Commercial and Ultra-luxury projects.

Premium: 55 -60 Rs*

Celestial Labs (IPO Update)

Celestial Labs Limited will be listed on 17th July, 2007 (Tuesday)

Past Reccomendation: Subscribe/Skip (Dep।on Funds availibility)
Grade: Average
Expected Returns on Listing Day: 5% to 20%
Updated Expected Returns on Listing Day: 13% to 25%

Premium on Celestial labs -15 -20% *

Alpa Laboratories Limited

Alpa Laboratories Limited:

IPO Period: July 12 to July 17
Price Range: Rs.62 to Rs.68
Minimum Share Lot: 100 shares

Recommnedation: Skip
Grade: Average
Expected Returns on Listing Day: Nil
Valuations: Expensive

Alpa Lab manufactures generic drugs, veterinary products & various other pharma products. The vaulations are on a bit expensive side & members can reserve the money for earning better yield in other upcoming IPOs. A clear 'Skip' call for this IPO.

Premium on Alpha Labs - Discount

Simplex Projects Limited

Simplex Projects Limited:

Issue Period: July 10 to July 13
Issue Range: Rs.170 to Rs.185
Minimum Lot shares 30 shares

Recommendation :Subscribe
Grade :Average
Expected Return on Listing :70 -90%
Book Gains on Listing day due to Average Grading।

Simplex Projects is a construction infra company. The company in involved in Build-Own-Operate & Transfer business. The company is also involved in running multi-level Parking spaces. The IPO is raised through 100% Book-building process.

How long to hold an IPO scrip?

It has been observed in many countries that while IPOs generally yield abnormal return in
terms of listing gain, more often than not these stocks under perform over the longerterm.
We examine this aspect for book built IPOs in India।

The proportion of scrip with market price above the allotment price is the highest
on the listing day. Therefore, for those companies where the investor does not have
strong conviction about robust fundamentals, it may be a good strategy to exit on listing
day।

After one calendar year of listing (over 240 trading days), more than 50
percent of the IPO scrip trade below the respective allotment prices. This, prima facie
indicates that initial performance of IPO issuing companies often disappoint investors
leading to de-rating. Therefore, investors need to be cautious about the ability of IPO
companies to deliver the forward looking strategy they project during the run-up to IPO।

Despite strong underperformance of a large number of IPO scrip during ~50
trading days, the index for IPO scrip continue to outperform Nifty for at least 100 days
of listing. After that, for about next 80 trading days it yields similar return as nifty. Therefore,
around 100 trading days after listing could also be an important point where an investor
can exit IPO scrip.

Overall the IPO index continues to outperform nifty even after one calendar year of
listing. Therefore, buy and hold strategy for IPO scrip where the investor is confident of
company fundamentals is likely to yield above index return.

INFOSYS 1Q Result will set the tone of the market

Infosys profits face hurdels on strong Rupee & salary hikes that could trim forecast
It's a contrast they won't like, but can't avoid। As another season of earnings announcements gets under way this week, investors will likely look forward to Infosys Technologies' results Wednesday with butterflies in bellies, hoping market leader won't cut its outlook for the year started April 1.

For investors who are used to the company's superlative earnings growth & staggered earnings forecast revision (upwards) at the end of each quarter, it will probably be a first.

But the near 6% appreciation for the Indian rupee against the U।S. currency during the April-June period was just too bad. Together with the salary hikes Infosys was to give its employees during the quarter -- wages are its biggest expenditure item -- the impact on margins could be significant.

Sure, Infosys could have deflected some of that impact by executing an extra bit of work at its low-cost centers in India than at client locations in the west, cutting costs or by billing customers more dollars per hour। It will be really shocking if it didn't, but the impact from a giant move in currencies and wage inflationary pressures in an otherwise booming industry can't just be wished away.

Still, after the unusual underperformance of Infosys and its peers on the BSE during the past several weeks, the street seems to believe that the bad news is already priced in, and some devils in its earnings announcement could be overlooked। A 2%-4% reduction in its earnings-per-share forecast for the year, for example, may be forgiven, as some still believe that it will easily make up for it in subsequent quarters.

On the other hand, Infosys may just have to retain its forecast on Wednesday for another champagne bottle to be opened.

Everonn Systems India Limited

IPO Period: July 05 to July
Price Range: Rs.125/- to Rs.140/-
Minimum share Lot:50shares

Recommendation: Subscribe
Grade: Good
Expected Returns on Listing Day: Tremenduous
Chances of winning Allotment: Very
Everonn is a Chennai-based knowledge managament & training company. The IPO is Open on Book-building basis. from a price range of Rs.125/- to Rs.140/-.

Buy TCS (Long-term)

Buy TCS (for Long-term only) @Rs.1100 in Small Quantity

Strategy: Accumulating IT Major TCS starting from Rs.1100/- in small quantity & more on every 3% Dips slowly & steadily. Buy in small quantity to ensure that you don't run out of money & that u're able to take advantage of more Value-buying in this scrip at lower levels.

(P.S.: Buying in Small Quantity forms an important part of the strategy.)

Allied Digital Services Limited -IPO Prospect

Allied Digital Services Limited

Price Band: Rs.170 to Rs.190
IPO date: 2nd July to 5th July
Ranking: Good
Recommendation: SubscribeExpected Return on Listing: 35% to 55%

Overview: The company is a Mumbai-based IT infrastructue management services provider company. Post IPO, the shares of this company will be listed on NSE and BSE. 100% Book Building issue.

Story Time

CATCHING MONKEYS

The way to catch a monkey is to use a box with a small opening at the top- big enough for the monkey to slide its hand inside. Inside the box are nuts to lure the monkeys. The monkey will grab the nuts with its hand and forms a fist. When the monkey tries to get its hand out, the opening will be too small for the fist to come out. The monkey has a choice to either let go of the nuts in order to escape or to hang on to the nuts and get captured. It is sad that the monkey will hold on to the nuts and risks being caught.

SUCCESS PRINCIPLES
The monkey was caught because of its greed. Most of us behave like the monkey. We hold on to old things and ideas that can no
longer help us to succeed. We fear the uncertainties the future may bring and so we refuse to change. We are comfortable with where we are and what we have, so we prefer to remain there. To move forward in life we have to let go of the past and move ahead in faith. We may even have to break traditions. Let the dead bury the dead, just press on!

MOTIVATIONAL QUOTE

"Resentment is like taking poison and waiting for the other man to die."

How to pick Rght Person for the Right Job

Put 100 bricks in any particular order in a closed room with an open
window. Then send in two or three candidates and close the door.
Leave them alone. Come back after 6 hours. Then analyse the situation.


If they are still counting the bricks, put them in the accounts
department.

If they are recounting them, put them in audit.

If they have messed up the whole place with the bricks, put them in
engineering.

If they are arranging the bricks in some strange order, put them in
planning.

If they are throwing the bricks at each other, put them in operations ..

If they are sleeping on the bricks, put them in security.

If they have broken the bricks Into pieces, put them in information
technology.

If they are sitting idle, put them in human resources.

If they say they have tried many combinations, yet not a brick has
moved, put them in sales.

If they have already left for the day, put them in marketing.

If they are staring out of the window, put them on strategic planning.


And then, last but not least. If they are talking to each other and
not a single brick has been moved, congratulate them and put them In
top management.