Microsoft offers to acquire Yahoo! for $44.6 bn Microsoft today offered to acquire Yahoo! Inc for about $ 44.6 billion. Yahoo! said its Board of Directors would evaluate the unsolicited proposal "carefully and promptly in the context of Yahoo!'s strategic plans and pursue the best course of action to maximize long-term value for shareholders." The Microsoft CEO, Mr Steve Ballmer, in a statement, said the deal would help both the companies to "become better positioned to compete in the online services market". Microsoft said its $31 per share offer represented a total equity value of approximately $44.6 billion of Yahoo!. The offer represents a 62 per cent premium above the closing price of Yahoo! common stock on January 31. Microsoft's proposal would allow the Yahoo! shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock, with the total consideration payable to Yahoo! shareholders consisting of one-half cash and one-half Microsoft common stock.

Sandur profits skyrockets.. Sandur Manganese has reported a net profit of Rs.14.84 crs for the quarter ended 31st December, 2007 vs a loss of Rs.1.53 crs for previous year's quarter. However the net profit for the quarter is after a prior period expense of Rs.31.92 crs which means the actual profit for the quarter would had been Rs.46.76 crs. The net sales has jumped from Rs.21.85 crs to Rs.88.87 crs. The company has posted an EPS of Rs.16.96 for the quarter on an equity of Rs.8.75 crs.

Indian Toner update...

INDIAN TONER investing Rs 45 crs in ITDL Imagetec ltd its subsidairy. Its equity is Rs 8 crs and market cap is just Rs 24 crs.

This co is a multi bagger in view of the fact that it is investing Rs 45 crs in its subsidairy which has been announced in BSE announvement.

"the Board of Directors of the Company for making investments, to acquire by way of subscription, purchase or other-wise the Equity Shares, giving Corporate Guarantees, providing Securities, giving Loans and Advances, etc. not exceeding Rs 45 crores in / to ITDL Imagetec Ltd, a Subsidiary Company of Indian Toners & Developers Ltd"

Indian Toners & Developers Ltd has informed BSE that the Company has decided to set-up a New Project in Sitarganj in the state of Uttranchal for the manufacture of Toners and Developers.

In view of the same we suggest long term saavy investors may catch this early recomenation of I Develop.

Since the board is investing Rs 45 crs its net worth has to be at least Rs 45 crs which will happen at market price of Rs 60. It is very unlikey that promoters may shed further stake anything below Rs 60 per share. At the same time it is also certain that promoters are going to pump in Rs 45 crs leaving no doubt the the stock is under priced.

On merits the earnings of the co are likley to improve quarter after quarted as its import content is very high in toners.

Opportunities ahead.... At a time when managing capital flows is becoming a challenge for the authorities, the government on Wednesday said it expects to add $100 billion to the forex reserves in the current financial year. "We added $47 billion last fiscal. In 2007-08, we expect to add $100 billion," Finance Minister P Chidambaram said here at a lecture on 'Law - an Instrument for Economic Growth.' Overall, India's forex reserves stands at $284.8 billion for the week ended January 19. Yesterday, Chidambaram had said he would discuss with RBI Governor Y V Reddy shortly, measures to manage the flow of capital. While agreeing that RBI's status quo on interest rates and US Federal Reserve's move to cut interest rates would increase the gap between the rates in the two countries, he had said there was no certainty that this would increase capital flows. Capital can also flow out due to payment obligations abroad, he had said. Moreover the Government on Wednesday liberalised the foreign direct investment policy, opening new areas like commodity exchanges, credit information and aircraft maintenance for overseas investors while enhancing the ceiling in public sector oil refineries. While putting a number of areas on automatic route, particularly in the civil aviation sector, the amended policy allows 100 per cent FDI in maintenance, repair and overhauling (MRO) facilities for aircraft as also aviation training units, Information and Broadcasting Minister Priya Ranjan Dasmunsi said at a briefing on decisions taken by the Cabinet. FDI up to 100 per cent has been permitted in the mining of titanium bearing minerals and foreign investment up to 49 per cent has been allowed in credit information companies. The permission of the Reserve Bank of India will be required for FDI in credit information firms. The new policy has done away with compulsory divestment of 26 per cent equity in fuel and gas trading ventures, a move that could provide relief to companies like British Gas. Hitherto, 100 per cent FDI was allowed through the automatic route on the condition that 26 per cent equity in such ventures be divested in favour of an Indian partner within five years. The government raised FDI in public sector refineries to 49 per cent from the current 26 per cent. A few months back, the government had made a one-time exception to allow steel baron Lakshmi Mittal to pick a 49 per cent stake in HPCL's Bhatinda refinery. Just imagine that when last year 47bn$ flowed in the markets went all the way up to 21k now just imagine what would 100bn$ do to the market......

Who's who....... We were never confused and neither in two minds. We are sure about our destination and as well as market destination. Our research is always based on certain futuristic values and only we can understand this. Our institutional desk is sufficient to take care of our revenue too. We knew market at 4600, we knew at 8900, 12300, 16000, 20000 and 17500 also. For sure we can assess what you cannot. We have been trying hard to save you all from disgrace and preventing sale of your positions at 4700 Nifty and even at 5200 Nifty but yet there will be some community which would prefer to go short and earn for which we have no problem at all. Once again we request our members to refrain from making derogative statements which could affect the body language of our core team. This could damage you more than us as you will be deprived off the fruits of good times. From day one we have been making very clear one that we do not advocate day trading. Day calls are only optional and you are not a 10 year kid where we can hold your finger and make you trade. Two, whether you trade or not we will have least benefit. Three that we have always made clear that nobody can make profit in futures and these trades are only meant to satisfy your passion to trade. At no point in time you were asked to extraneous positions in the market. We are still here to prove that we will be able to bail you out from the sinking ship but for that time and patience both are required. Yesterday, I had suggested a 50 basis point cut too will not go well with US which was the fact. Today market opened 350 points lower went up by 250 points and still struggling to go up. The final score will be known only at 3.30 pm after knowing who sells how much…? To the best of my ability I try to give you the future of the market instead of post mortem. Today I would again refrain from giving you many comments on the future course of the market. You are also following other market intermediaries from you may seek guidance. You may also ask them how is the Hon’ble F M going to bring 100 bn USD to the FOREX in calendar year 2008 when the figures for 2007 was only 47 bn USD and market rose from 10000 to 21000…? Also ask the impact of this 100 bn USD which was my prediction at a time when nobody could even think of on rupee as well as market….? These answers will solve your problems to a great extent. We are bullish and we will remain bullish come what it may….I think it would not even be a bad idea for I DEVELOP management to spark my forward going analysis in the talk section instead of comments. In fact, I boldly admire the SEBI comments that market correction is normal and no authorities can be grilled for excessive F & O trading and intermediaries should refrain from giving day trading calls. The way to get things done is not to mind who gets the credit of doing them.

FED ...immaterial FED a ghost - the market is talking all about…? US market will definitely react negatively even if FED cuts it by 50 basis point because when markets are bad any good news could also spark sell offs. India has nothing to do with FED which I am repeating again and again. Indian market is going through identity crisis as lot of selling is happening at every rise. This will happen till tomorrow. Most of the brokers have refused to carry forward positions to FEB. I think this was intended. The rationale is simple. If you rollover then what the market maker will do….? Rs 30000 crs O I has already been rolled over which is a big sigh of relief for the market. In my opinion the total rollover will halt around Rs 50000 crs which is a good sign and hinting towards respectability. In another words the payment crisis is close to an end as stuck bulls have signed off huge lots yesterday. On 1st QIP will get back their funds whereas FED issue will also be at rest. Q3 results which were up by 26% on an average are more than robust to reiterate that market are now grossly undervalued. With entry into Q4, there is no point in talking about 08 earnings and PE. We are at 14 PE for 09 and hence we have potential to see the market rising from 18 K to 38 K because we believe that the growth will sustain at 30% and PE will stabilise at 20 to 22 levels which makes us believe 38K possible. I was bullish all along in GOLD which will be known by all old readers and not new ones. I had spotted the onset of GOLD rally at 265 USD with target of 1600 USD. It has come long way at 930 USD. I suppose it is time to sell GOLD in commodity market or sell even delivery at 12300 with a strict stop loss of 12950. Gold may correct by at least 20% in coming months to settle at 10500 or around before the next rally to 1600 USD starts. Nifty is correcting below 5200 but I am not disturbed. This volatility is must for building positions in FEB. JAN selling will happen only when weakness is shown. In any case 4910 is an ultimatum. Market will not fell below this level come what it may…? You know which stocks you can pick to make your life in B gr whereas if you leverage more in A gr the problem will aggravate though value remains intact. What made Century Textiles to crash to as low as Rs 163 in June 2006 from Rs 865 and again climb back to Rs 1250……………? Alternatively what has changed in Reliance Capital which was corrected from Rs 850 to 270 and rose to Rs 3000….? Fundamentals hardly matters when the stock is in A gr in bear attack whereas you tend to give excessive valuation everything gets going…. Come again I will show you the valuation of these very stocks in next 3 months. Who will believe then that these were the prices of JAN….. The three great essentials to achieve anything worth while are, first, hard work; second, stick-to-itiveness; third, common sense. Please keep this in mind.

No time to sell but to invest..... The annual session on Global Economic Outlook at Davos could not have been better timed as it immediately followed the recent global capital markets plunge. The IMF managing director, Dominique Strauss-Kahn, stated that the US subprime crisis was due to lack of financial regulation. Low interest rates, high liquidity, a breakdown of credit and risk management practices, and a shortcoming in US financial regulation and supervision had produced an economic storm in the financial world and called for its recognition. Strauss-Kahn called for a “serious response” to the risk of a US recession and encouraged fiscal stimulus programmes in some countries: “We cannot rely only on monetary policy. Some countries are not in a situation to increase the deficit, but others are in the position where there is some room for fiscal loosening.” Strauss-Kahn said that the first priority is the restoration of normal function in financial markets, which means that the central banks should provide funding to interbank markets. The IMF MD suggested that the slowdown could result in a decrease of the price of commodities, including oil, which would provide room for a more active monetary policy, “There will probably be even more room to lower rates in the coming weeks or months depending on the price of commodities and on the decreasing demand.” He recommended that larger systemic financial institutions raise capital instead of selling off assets. He warned against excessive supervision exacerbating the crisis by calling for financial institutions to make balance sheet corrections on the asset side rather than securing capital. Strauss-Kahn said that the IMF revised forecast to be released next week will forecast a slowdown even if emerging markets appear to be doing well, for the last week’s experience shows that the markets are not yet decoupled. Earlier, Finance Minister P Chidambaram had said that India was not affected by the slowdown. Its economy is driven by investment, consumption and exports, and has been undergoing an investment boom fuelled by savings that add up to 35% of GDP. He expects only minor secondary effects from the US slowdown, but it could be re-assessed if there is a full-blown crisis. India has a small current account deficit and a fiscal deficit. He cannot speak for other emerging economies.