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'Apollo is good long term hold'
April 12, 2005
jatin: good evening sir, do expect value to unlock in VST ind any time soon or within the next 4 to 5 quarters?
Ramesh S Damani:That is not possible to answer.Value investors buy shares and are patient.
vatsa:How ru sir? Thanks again for ur very good advise. Sir i want to ask u today bt one sector. Sir what's ur view on partiula textile sector is that sector also be rerated after qoata demolished. Sir give me ur view plz.
Ramesh S Damani:Sorry, don't follow it, please send the question only once.
pogo:IS THE CHAT NOT THERE TODAY??
Ramesh S Damani:Thanks all for joining, let's start.
SingaporeJB:SANDESH. Considering PE of Deccan (35) & Midday(34), Does not SANDESH) looks value buy for the following reasons?1) Low PE - 11 2) News of Govt interest in allowing NRE and FII to invest in the stock 3) High Book Value 178 which is going to raise in current financial year 4) Willingness of goverment to increase FDI limit in print media from 26% to 49%. 5) expecting increase in EPS in the current finscal year 6)Likely Bonus Candidate 7) Decent track record 8) increasing income from the newly formed Export-Import division 9) above all, the great Ramesh damani's willinglingness to looking into the stock.
Ramesh S Damani:Your logic is right. WhileI am not very familiar with the company, it does merit attraction. One must understand the growth matrix.
Madhu:Hello Sir, I am really appriciating you for your advise on Mcdowels when it was Rs 38/-..that was a wonderful call. Please let us know whether we can add more Mcdowels at this price of Rs300/-? Mcdowels is still moving at large volumes, please advise
Ramesh S Damani:Now it is for the momentum guys. At 40 with a Rs 2 deal it gave us a margin of safety. If you had to buy one,I would look at UB holding
baracuda:while a huge question mark howers over mallyas financial muscle there is room for scepticism around his airline business model,whilst resource raising is clearly the biggest factor that will determine the airlines sucsess will mallya last the long haul and how confident are yu that he will sucseed and that valuations of his cos will move higher
Ramesh S Damani:Long termI don't know. However, Mr Wilcox who ran Jet blue is CEO and he knows a thing or two about running a start-up. Also it is not in the price. You are in effect getting it free
BLAZING:Ramesh, sterling show by BEML today. do u think of it as a long term investment?
Ramesh S Damani:The long term investment was when it was in the 30-50 range. My sense is that the momentun guys have taken over. I see a good short term move.
probal:Sir can u pl tell me about the sensex pe now ? or where can i find those information ?
Ramesh S Damani:bseindia.com
kans:Do you feel GAIL and NTPC at the present pricing worth picking up with 2/3 years time line ?
Ramesh S Damani:I would prefer gail
AHMEDABADGUY:As an Ahmedabad Residence I see not much growth In Sundesh. It is third no. in circulation and competition has eroded the margins by way of every month free gifts...Paper prises are on rise too..Sandesh looks cheap but growth seems hard to come...
Ramesh S Damani:That is why it is available so cheaply. Howevermanagement should be focussing on growth and the story could change
vatsa:Sir u said me last time that ur also a student in the market but sir it's fact that u r the person who is really respectable in the general public. Sir one time i told u bt one company name matsushita lakhanpal it is right now at 49 rs and sir they have a 90 rs cash per share and u said me that u will look so sir have u looked it still? otherwise plz look sir once
Ramesh S Damani:Somehow your numbers don't seem correct, I will take a look at it.
jpj:Dear Sir ,would appreciate your view on Paper Products Ltd [Get Quote] and Murli Agro(5 bagger since May 04)
Ramesh S Damani:Paper product looks good to me
kans:Gati Cargo � has moved up over 20 % since you spoke few weeks ago ? At the present levels do you still remain bullish on this stock ?
Ramesh S Damani:Yes. Over time this company should do well
vel:pls tellme opto circuit can i hold or sell now please
Ramesh S Damani:I think next year should be strong, so would tend to hold on
SingaporeJB:Though we become a patient investor, Sundaram finance [Get Quote] is not moving as expected. I think it lack one thing, the Daman's intererview in CNBC-TV18. Will you arrange one?
Ramesh S Damani:That is never a reason to buy a stock
AnjanaBhopal:SIr..WHat is logiv and all will be befiteed with merger of 10 UB group companies..
Ramesh S Damani:Mallya increases holding to 51% and then takes a controlling stake in theUB spirits etc. In the long run it helps us all.
gargr:You asked, FMCG Sector Sir, How do you feel of MArico & ITC in FMCG sector?
Ramesh S Damani:I like them both
jatin: your good friend who suggested u vxl seems to have hit a goldmine. what r your views on the stock? thin clients seem to be getting popular
Ramesh S Damani:I think at current prices it makes sense.
vatsa:ir give me some clue bt Surya Roshni [Get Quote] bcoz they have 1000 cr turnover and just 10 cr profit so what's the reason to buy just give me one clue plz?
Ramesh S Damani:Profit changes. That is why stocks can move up or down.
BLAZING:Ramesh, any updates on Opto circuits? Do you still think of it as a hold for 2 yrs for the whole story to unfold?
Ramesh S Damani:They seem to be doing things right.I would tend to hold on.
jatin:, it would be a fitting finale to finish your show 'WIZARDS of D strt' with the last episode featuring you as the guest.. hope to see it end that way sir
Ramesh S Damani:Thanks for your suggestion. However,I want the show to spotlight my guests. I am the eyewitness to history.
gargr:Sir , Would like to listen a new investment candidate may be a potential multibagger according to u?
Ramesh S Damani:Sure tell me.
sureshmakhija:sir ji good evening sir in last sessions why tech secror was hammered so heavily. is the really tech sectors resluts will not be up to the mark or just it was hammered on humors . plzz give u r views thamnx a lot
Ramesh S Damani:We will make up our minds after the results, otherwise it is pure speculation.
GaneshHegde:Mr Dhamani, I wanted people to sell the stocks in panic; so that I can buy my favorite stocks for long term. I strongly believe India's long term growth story is intact.
Ramesh S Damani:Investing is not a zero sum game.You can buy stocks that go up 10 fold even from these levels.
Madhu:Sir, you are recomending Mount Everest means, I am sure that there will be some good analysis behind it, please share with us the what made you to attract towards that Mount Everst? As you know there is hugu competition and less profts for this Mineral water busineess in India.
Ramesh S Damani:I have done it before. It is an immature company so be patient. Not ready for pick time. They have a brand, a water source and a global opportunity. over the next few years these will be exploited to unlock value
vatsa:Sir any buzz going on Shri Rajasthan Texchem?
Ramesh S Damani:Value buying maybe.
baracuda:i have managed to get BULL by maggie mahar and end of oil by pual roberts how are these books
Ramesh S Damani:Both are great books. End of oil is fabulous, Maggie describes end of the 2000 bull market.
STUDENT:SIR, WHEN ARE YOU GOING TO CONDUCT YOUR CLASSES AT BOMBAY STOCK EXCHANGE SUB INVESTIN WITH MASTERS I WANT TO PARTICIPATE.
Ramesh S Damani:It should be around May 11, check at bseindia.
chandani:sir you were witness to the growth of many WIZARDS as u narrated.. WHAT si the crux of the conversation with all of them??
Ramesh S Damani:A deep love for stocks and tremendous conviction.
TINI:sir, if someone holding balmer lawrie can he also but balmer investment as it holds 61% of balmer. thnaks
Ramesh S Damani:You could. But generally better to buy the business unless the discount is too great.
newbieatstock:Sir lets assume the mcdowll stake sale is at 500 (could be higher,could be lower) once that value is unlocked do you sell ? are you waiting only for that deal or do u think once that value is unlocked, over time profitbabliy will increase etc etc and u will continue to hold due to the growht that stands ahead ?
Ramesh S Damani:It's difficult to summarise all of this. I am not near the bridge yet.
Madhu:Sir, I have one ambetion,I just want to meet you personally and want to take your autograph, Please let me know how to meet you in person?
Ramesh S Damani:At someCNBC investor meet maybe.
JesseLivermore:Sir, there's another book on Oil, 'Oil Factor' by Stephen Leeb and Donna Leeb. Its scary what they detail, not just for oil but the US economy. Pls have a look sir.
Ramesh S Damani:Thanks. rajeshh:Sir I am holding mcdowell 50 ub holding @20 .I have benefitted from yr advice. Thks. What will you advice investor like me to hold on or book partial profits
Ramesh S Damani:It is perhaps the most difficult advice to give. It depends on your conviction and tolerance level for pain.
vatsa:Sir after the latest results has ur views change for J. l morrison?
Ramesh S Damani:Not seen the results
anaam:CRISIL....Is it advisable to offer one's shares now in revised offer?????????
Ramesh S Damani:I think most small retail investors are getting a good deal
deepak:How much Kingfisher Airlines will affect UBHoldings valuation? Don't you think UBHoldings already discounts it.
Ramesh S Damani:I don't think so. On expanded equity of 28 we are valuingUB holding around 500 cr. That is the worth of McDowell he has, forget other stocks. What value are you going to pay for a start up airline? It can't be 200 crs. It has to be more.I ownUB Holding.
AnjanaBhopal:sir please comment on MPHASIS BFL & APOLLO HOSPITAL
Ramesh S Damani:Apollo is agood long term hold. Mphasis lets see the results in detail.
JainV:Good day Mr Damani- Zenith Computers [Get Quote] at 21, believe it has mass story, They have a strong distrib network, value pick?
Ramesh S Damani:They do, butmanagement does not seem to focus on profits.
TINI:sir what is your view on arvind product & shree raj. texchem. are you still holding the same thanks
Ramesh S Damani:Yes.
amit:sir , would you mind telling your followers what are the latest script you have added
Ramesh S Damani:VXLl Instru, (trading/invt), Balmer Lawrie arestocksI recently bought. Investors who want a new liquor stock can look at Mohan Meakins(160). The investment has the same logic and Mcdowell,market cap is 120 crs. Value will have to be unlocked but be patient, Scrip is very ill-liquid so dont run up the price buy only around current prices.
alterego:Sir i had bought some skf india on your advice earlier , can you please tell me if i should tender to the company or hold on?
Ramesh S Damani:My sense is you can get around Rs 250/ in a tender offer. I own it.
BAJAJI:Sir what is your E-mail id, please share it with us if you don not mind.
Ramesh S Damani:I actually can't answer individaul mails. Sorry.
Sharad:Sir @ current price EIH looks very attractively posied for up move??your view????
Ramesh S Damani:In a chart yes. Also take a look atEIH associates. Both look good on a chart.
chprakash:Sir, banks have got rid of NPA's due to the rise in price of bonds. Now, due to high disbursal to agricultural loans, again NPA's may reach high levels and thereby PSU bank valuations may come down as they have to follow governments dictats. do you agree
Ramesh S Damani:They will have to be careful otherwise you are right. That is why valuations are low forPSU banks.
nishant:ABG Heavy Ind. is the only private company apart from Bharati Shipyard [Get Quote] which is into ship-building in India. It seems that these companies will be operating at 100 % capacity utilization for next 4 yrs. ABG has an outstanding order book of 1300 cr. on an equity of 12 crs. your views on it?
Ramesh S Damani:I don't follow them, but your logic seems spot on.
rajeshh:Sir are you still bullish on indian markets. What % you have invested in equities
Ramesh S Damani:Over 90%.
hansraj:sire, in long run maybe another 10yrs from there will be enough retail investor in indian stock market, which will reduce FII impact...?
Ramesh S Damani:Yes we will have huge retail interest.
Tabu:Sir, I am along term invester & Iam ready to withstand the volatility of Mcdowell.How much valuations can it have after conlidations?Keeping in mind UB offer price of 575.
Ramesh S Damani:Look at global valuations. Those stocks will be cheap compared to its global peers
vatsa:ir what u believe at what level rajasthan texchem may reach? in long term
Ramesh S Damani:I don't set price targets generally.
newbieatstock:Sir do you think most sectors if not all should be globablly valued i mean was this a call only with liqour...or rather is this a case
Ramesh S Damani:Increasing tech/telecom are getting global valuations.
subodh:Mr. Damani I asked 7 questions on different stocks, at least answer one - BASF, Hatsun, DIC India [Get Quote], Sai Services, saregama :-)
Ramesh S Damani:I don't know much about them butI would look at BASF and DIC closely. Sai services needs a trigger. Lot of value. Saregama always comes out with right/placement and the price collapses.
erer:Which has more value United breweries [Get Quote] or Mcdowell
Ramesh S Damani:My sense is that UB Holding maybe the real dark horse.
sureshmakhija:sir tell me one thing why you are so conservative on your e mail id others analyst literally write their e mail id to have a feed back and queries even mark faber and jim roger give their e mail id in their website and the most beautiful thing is that they reply very quick i snede both of them a lot of mails and they reply same day i dont understand why you dont give your e mail id i asked u hundred times but you bluntly say no ok thanx
Ramesh S Damani:People are different. I don't like to answer emails all day long.
savvypicks:Good afternoon Ramesh, FUTURA POLYESTERS [Get Quote]: Rakesh Jhunjhunwala & Rajan Raheja both have stakes, Futura close to launching in-house developed oncology products, Would appreciate your views, Thanks in advance
Ramesh S Damani:No views.
himanshu:sir, your vies on TTML as tatas are investing 100 Billion dollors in Telecom Buisness
Ramesh S Damani:Check your numbers $100 billion?
sureshmakhija:sir i saked u about any multi bagger in hotel industry plzzz reply
Ramesh S Damani:May beEIH Associates over time say 3-5 years.
nishant:Whats your view on Mangalam Cement [Get Quote]? capacity is around 2 Mt. 45 MW captive power plant will commence in 2nd half of FY 06. which will result in cost savings of around 50 cr. FY 06 EPS expected to be around 25 rs. trading 3 times its FY 06 earnings. your views?
Ramesh S Damani:Sounds encouraging thoughI have not studied the company
subodh:Mr. Damani, Thanks. I would like to tell you one thing. DIC Japan has ended their OUTSOURCING contract with Sudarshan Chemicals and as per the GM of Sudarshan, all the benefit will go to DIC India. Don't you think this is interesting ? I am holding it for 18 months now ... I
Ramesh S Damani:That is good news.I would look at it.
penelopecruz:at the present eih associated owns only the jaipur hotel am i right
Ramesh S Damani:And Chennai
SingaporeJB:Sir, I really wonder, Busy people like you, how do manange to read 4 or 5 hours per day?
Ramesh S Damani:It is my passion and relaxation.
rajeshh:Sir yr take on tata investments. It has investments of about Rs. 1200 Crores. is it attractive
Ramesh S Damani:It does offer good value with safety. Thanks for joining. See you all next week. Bye.