i Develop Stocks Advisory

National Integrity at stake

Whole world was crying foul play by the de famed Australians did yesterday by de morale cricket game in the world as far as market was concerned many started giving sell call. We at Cni stood like a ROCK again to see that market takes U turn from 200 points weaker opening only to come in plus 125 points at the end of the day. Market will cross 21 K tomorrow and set to roar further till 18^th Jan as first target which is very close to my prediction of correction on 21^st and 22^nd Jan for roll over.

In this column I had written earlier that GURU G Chappel was inserted by Australian Board into Indian cricket to wreck the back of the biggest enemy of Australia which he has done by divide and rule. We fail to detect the same and yet again Rajasthan Govt deployed him proving that GORA is always our weakness. This time THEY realized that bookies can’t book Indian’s and there is no way to stall the Indian team from marching and hence probably they hired umpires to the job in collusion with bookies. This was visible when umpires consulted Ponting for giving out…? Also if Buckner has become old not to hear then the same mistakes should have happened on either side which is not the case.

I think it is high time to bring this in public domain that umpires were booked to be biased with India and Ponting who has lost cricketing wisdom has done acts which even a prostitute could shy at…?

The height of the fact is that BCCI will continue the series because their stake involved personally or otherwise is greater than NATIONAL integrity. How can a Board get a right to fiddle with COUNTRY's SOVEREIGN PRIDE proprietary gains and at least one country from this sub continent must rise to the occasion and BAN playing cricket with the World champions….? If we need to create records then it is better we play 20 test matches against Zimbabwe and create records for that matters.

The one absolutely certain way of bringing this nation to ruin, of preventing all possibility of its continuing to be a nation at all, would be to permit it to become a tangle of squabbling nationalities .

Coming back to the market, REL Power could get oversubscribed by at least 100 times because most of the merchant bankers have set aside 4K to 5K for this issue and I have no doubt in my mind that it will start its debut in 4 digit. In fact, REL is almost close to our target of Rs 2700 yet sources close to management bet of Rs 3700 price by 18^th Jan 2008.

Yet we will not draw call on this stock having run up very sharply. If market fails to sustain the momentum then these stocks may get hammered first. Similar is buzz heard in Grasim but again we will restrain to only few calls at our end. Instead of Grasim and REL, IDBI and IFCI will offer more returns. IFCI is holding 3.57 cr shares of Essar Power which is close to 6% stake and with General Atalanta having acquired 10% stake in the 1250 MW power co Essar Power for 600 mn USD the E V of Essar Power has been sealed at 6bnUSD pre IPO. CO is coming out with IPO and promoters are infusing 4 bn USD for capacity expansion from 1250 MW to 3600 MW which clearly means the post IPO IFCI will have close to 1 bn USD valuation of Essar Power which is cool Rs 55 per share. NSE, Stockholding, shares of quoted cos. Govt Bonds etc are over and above this Rs 55 per share and hence IFCI is free at Rs 98 per share. This makes very clear that Govt was justified to reject Sterlite offer. Whereas IDBI is a safe bet as the stock is under immense accumulation. In fact, when market opened 200 points down I thought IDBI will open at Rs 170 but surprisingly it has shown the strength never shown before. IDBI is just waiting for one trigger to brace towards Rs 210 in very short span of time.

RNRL was sparkling the way we had projected and RPL too was going great guns. Now RPL has the last leg of consolidation left from Rs 255 to 280 which should happen in next 3 trading session then only it could see Rs 330 or 350 on REL P issue date.

In cash segment we have initiated buy call on Rainbow Paper and Sirpur Paper. In both of these stocks we have vested interest. The former has completed huge capacity expansion and the later is fundamental story the details of which will be spelled by us very shortly. Since we have vested interest in both these stocks and we may buy or sell we request all the members to due their full due diligence in these 2 stocks before you enter.

ADAG in talks with NACC Tuesday, January 08, 2008

Anil Dhirubhai Ambani Group (ADAG) is entering into a strategic alliance with the largest lignite miner of the US, North American Coal Corporation (NACC), to ensure fuel supply to its 28,200 mw projects. The strategic tie-up could be in the form of joint venture company (JVC) and the two partners would undertake coal mining activities both in India and abroad.

“The group is looking at a strategic tie-up NACC to get the necessary expertise in the area of mining coal. The strategic association could take shape of a joint venture mining company or could be restricted to contract based mining. Details are being worked out,” a source said. It is understood that ADAG has identified the American miner due to its technical superiority and low cost mining operation.

The coal strategy would be implemented by Reliance Natural Resources (RNRL), the fuel company of the ADAG stable that plans to manage the fuel requirements for the power plants. The company would also source and produce gas and liquid fuel besides mining of coal.

It is understood that NACC would initially support RNRL to develop domestic coal mines for Sasan ultra mega power project (UMPP). Reliance Power has already been assured three captive coal mines for its Sasan project that would require about 16 mt of coal per annum.