» Business » Retail buying boom can fuel markets

Retail buying boom can fuel markets

September 07, 2004 17:55 IST
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sureshkumar : dear sir, i saw saterday your talk on the cnbc it was nice, and i am reading the book u told one up on wall street it is very good. thanks
Ramesh S Damani : Thanks for joining. Let's start. Glad you are enjoying the book.

Abc : Sir i have bought Godrej industries at 51, mc dowell at 66, UBH at 36, Sundaram finance at 220 , Gillette at 90 and Dabur at 70, Goldium at 51 . Sir i like all of these stocks and have full conviction in it but just want to have ur valuable opinion
Ramesh S Damani : They all seem to be doing well. When did you buy Gillette?

Abc :  Sir, pls explain us about Scottish and new castle and Mc Dowell deal. Is it true that U B holdings liabilities of 300 cr. will be paid out of his deal
Ramesh S Damani : I think what Mr Mallys does is his guess. It is unpredictable. Just buy the asset and hope he unlocks value.

srree : sir i bought 250 tcs shares whats u r view on tcs
Ramesh S Damani : Positive

KiranShah : Sir what is your opinion on Jisco, TCS, Telco & HTMT ?
Ramesh S Damani : I like TCS and HTMT. I trade in them.

hasmukh : Sir,Did you get a chance to look at the balance-sheet of TITANOR COMPONENT? What's your reading on it??????????Thanks as always.......
Ramesh S Damani : I did go through the balance sheet, but have not formed an opinion.

Ramesh S Damani : It may eventually but I think it has a way to go.

chet : Hi: First time caller...How do NRI invest in market. Thanks
Ramesh S Damani : Through a bank like Citibank.

baracuda : did yu see the clsa report on hll they put a price target of 150,congratulations on puttinga buy on hll a month before clsa put theirs and i know yu never put price targets but do yu see double digit growth coming to hll in 12-24months
Ramesh S Damani : It should start growing. Couple of bad quarters remain, but it is in the price.

kanchan : Sir, I had picked 500 shares of compudyne @Rs.59/- you may recall when. Since then holding'what more to see and what to do sir, please.
Ramesh S Damani : That hasn't worked out unfortunately. I also own a small amount.

aman : Mr. Damani as you have followed macmilan for long time you must be trecking Navneet also.Its annual report has given good growth for next 3 years.Do you see navnnet appealing at this prise ??(investment or trading???)
Ramesh S Damani : Yes it is good. Navneet however has no exposure to BPO.

venk : Hi Mr Damani.,Hi Mr Damani ..what is your call on gujarat PSUs GSFC, GNFC, Guj alkali
Ramesh S Damani : Generally positive though I don't follow it day-to-day.

vvinay : sir,today`s news on hughes software wiht flextronics support becoming largest telecom software player your view Hughes has the potential to become another wipro (For Telecom software vertical)
Ramesh S Damani : A stock to watch. I am trying to read up on it. I own it.

sudhir : sir whats your view on torrent pharma
Ramesh S Damani : Generally upbeat on Torrent Pharma and Torrent Cable.

police : Hi, Sir, I have a question regarding impact of Turnover tax on existing equities which certainly would result into long term losses. For example, I am holding Share A for which I would take up long term loss of 1 lac. Now if this share is sold once turnover tax is in place, I would not be able to carry it forward. Would then it be the right strategy that I will book the long term loss & cancel it against some of the holdings which would balance this out with an equal long term gain ?Is it also that one needs to set the long term losses/gains to zero (if possible) before the transaction tax gets implemented ( 1st October)?
Ramesh S Damani : Good question. I am not qualified to answer it. Check with a CA

Prabhu : sir, what about shri Rajastan syntex, buy more, sell, hold ?
Ramesh S Damani : Book profits and buy Shri Raj Texchem around 6

baracuda : have yu read the millionaire next door .
Ramesh S Damani : Yes

aman : Mr. Damani your advise for gati still hold with full quantity or have you changed your view??
Ramesh S Damani : I think at this market cap it remains attractive. I own it.

hasmukh : Sir,Should I tender part of my holding in E-Serve in this revised offer?? I am holding more than 2000 shares of E-Serve???????
Ramesh S Damani : Yes, but do it after the Finance Bill is notified, that way it is tax free.

sudhir : sir should one buy mcdowell-n as itsurged today on huge vol. Do u think it has break out. if not at what price u think it will break out
Ramesh S Damani : I think the next technical target is 80.

sureshkumar : sir Ub holding counter is hitting upper circuit from few days , is there any news on this counter sir
Ramesh S Damani : Nothing new.

nriinv : Mr. Damani heard that the new law on taxation will be on Octobe 1st, so the sellof should begin from October 1st onwards. Whats your call.
Ramesh S Damani : It could but you must ride the tide and hold on.

venk : Sir are you coming for the Mcdowell AGM at Bangalore?
Ramesh S Damani : I doubt it, I would be too angry.

susmita : goodevening sir , I`ve been following ur suggestion for quote a long time & have benifitted a lot from ur time to time good advice. thank you very much . sir can u plz let me knowsome good small caps where i can invest for short term.
Ramesh S Damani : Thanks, happy to help. I recently bought VST Tiller around 60 for trade. To know about stocks to invest in, please read my earlier column.

baracuda : are yu amember of the cciand if so will ty be coming to goa for their conference at the taj village
Ramesh S Damani : Yes, but no.

balladsandblues : I am holding 600 max,your views please..Should i hold or sell??
Ramesh S Damani : Tender in the open offer.

Brando : Do you expect a different kind of a bull market this time; I mean we do not see a complete trend reversal, but steady upmoves over next 10 years? If long term pension funds and FII money comes in over next 2 years, we could see a phenomenon like USA did in the 90s?
Ramesh S Damani : That could happen particularly if retail buying coninues.

kanchan : sir, any thing positive going to come with compudyne, or put in 13.
Ramesh S Damani : Nothing new. Sorry

ssunil : sir,tvs electronics could find new growth driver in set top box business with star and zee keen to scale up their dth initiative also telecom playsers awaiting regulatory clearance your view can one enter after correction
Ramesh S Damani : Yes

try : Hi, Sir, I have a question regarding impact of Turnover tax on existing equities which certainly would result into long term losses. For example, I am holding Share A for which I would take up long term loss of 1 lac. Now if this share is sold once turnover tax is in place, I would not be able to carry it forward. Would then it be the right strategy that I will book the long term loss & cancel it against some of the holdings which would balance this out with an equal long term gain ?Is it also that one needs to set the long term losses/gains to zero (if possible) before the transaction tax gets implemented ( 1st October)?
Ramesh S Damani : As I said earlier your CA would be your guide in this, not me.

nriinv : Mr. Damani, CNN Intenarnational is running a media blitz on Indian Outsourcing, suddenly India in again in the news. This happened earlier and the stock index jumped from 3000 to 6200. I have a feeling that this kind of publicity will take the index to another level. Your comments!!
Ramesh S Damani : That was a great series by Tom Friedman. I think on Thursday they will have a debate. That should be fun. The outsourcing story is strong, the logic will continue.

vikas2 : Last time also we saw our portfolio growing and then hit it badly when came down from 6240 to 4500. Do u think thisis good time to book profit as mid cap has run a lot
Ramesh S Damani : Timing the market is hard. I would remain invested in companies I like.

baracuda : have yu read the monk who sold his ferrari if not please do soa wonderfull book
Ramesh S Damani : I will.

sudhir : sir did you know about a company called tricom. it is in the bpo segment. any idea about it
Ramesh S Damani : Keep an eye on it, the company seems to be attractive.

Victor : Mr.Damani, I hold some stock of Four Soft which came out with an IPO at 25 per share earlier this year (CMP 23). They've made a profit of 5 Crs on a net block of less than 2 Crs. They enjoy a 100 % income tax holiday upto 2010 and have a very impressive management profile. They're sitting on 33 Crores of cash which they plan to deploy acquiring overseas companies. I've just received the annual report. Can I send it across to you. If yes, how do I do this? I couldn't get your mailing address from the BSE site.
Ramesh S Damani : Thanks. Victor, I own the stock from the IPO days based on the logic you are using . We have to see how quickly they can grow and utilise cash. I cerainly am following it.

sureshkumar : sir What is the target price for kale consultants.
Ramesh S Damani : I bought some more Kale. We need to give management time to implement a strategy. M-cap of Rs 65 crs is very appealing.

varunesh : Any take on GMDC
Ramesh S Damani : Generally doing well. Also some friend has recommended Tata Metaliks and IPCL.

ajay_ : what's ur view on Indian hotels. do u advise long term hold on it. I bought at 260 & it's been posting good quarterly results. ur view on hotel industry
Ramesh S Damani : Hold on.

punit : SIr last time i have asked to you regarding titanor components. as techicals it works i ahd asked you when it was 70-72 rs and hardly voulme of 5000 sh per day today it was upper freeze with volume of 1 lac share both nse and bse and price is 89. pls see it in this shares it may be our new madhuri dixit..... thanks
Ramesh S Damani : I will.

sanjana : sir ur call mid cap pharma stocks like lupin, cadila ,glenmark and mnc stocks like aventis and gsk pharma
Ramesh S Damani : Generally they are all holds. MNC pharma could move up.

aman : Mr. Damani congratulations sir on considered by Business standard
as very very successful investment broker.Appreciate about your thoughts on giving back to society and work on water problems for poor people.
Ramesh S Damani : Thanks. Let's hope I can do something about it.

AnandBhatt :  Hello Sir,Are you still holding your trading position in VST Tillers?I bought some at 62.5.Approx what price do you expext to exit.What kind of rise should we expext from current prices?
Ramesh S Damani : Yes, they are having a good year and let's wait for some good results.

Prabhu : sir, i'm talking about shri raj synatex @15.00, is it different from shri raj texchem
Ramesh S Damani : Yes.

vikas2 : GODREJ IND : I read its balance sheet . Looks great at this value. Dont you think it is one of the safest bet with huge potential. SOme broker say it may go upto 150
Ramesh S Damani : It is good value and good management. The balance sheet has lot of value. However, one needs to be patient.

tombay : sir, are you stiill remain invested in tata elexi? after supert up upto 155 level..... if not what can be your target as per my tech chart it shaws me target of 222 in 1 year.... pls answer.
Ramesh S Damani : I am hoping to have this in my portfolio for a few years. Let's hope things work out.

ssunil : sir,do u see improvements in earnings of visual soft over next few quarters company has always disappointed in the past also being a product company will it find favour with investors
Ramesh S Damani : They are no longer a product company.

vikas2 : MCDOWELL / UB : Would u tempt to sell if mcdowell toucjes 80 and UB hit uper circuit tomorrow too.
Ramesh S Damani : I doubt I would sell Mcdowell. The rest I could.

nriinv : Mr. Damani, just think about this, the new taxation policy was to come on September 1, 2004. Based on that my call was to buy more of TCS (since sellers would not get the benefit of new taxation), I did just that to find out that it has been postponed to October 1, 2004. Now dont you think the government should be picked up for such tricks. Maybe they were was vested interest in the govermnet to change the date. We should have a system where information flow should be made more transperent and control. Why should people who know certain information make merry. This is like insider trading. Your comments
Ramesh S Damani : This is India. Delays are part and parcel of everyday life.

aman : sir Macmilan stock is seem to be in cosolidation agree??
Ramesh S Damani : It is ready or a break out in my opinion.

Victor : Mr.Damani, I understand stocks for which the delivery ratio is rather low are transferred to the recently created T group (trade to trade segment) to prevent excess speculation. On what basis and in what period of time are stocks transferred back to B/ B2. Could you elobrate on this? Thanks.
Ramesh S Damani : That is a SEBI/BSE secret. They don't publish guidelines.

ajay_ : sir , pls advise on gail holding 2500. i'm an investor not a trader
Ramesh S Damani : Hold on.

ssreeeee : sir how to view u r old columns
Ramesh S Damani : They are archived in rediff.

vikas2 : TATA ELSXI : Everybody is suggesting to exit from Elsxi now as it has run up from 100 to 150 in no time but i feel this is just a begining of a great animation prospoect in india and elsxi and creast has a long long way to go. whats your advise for both
Ramesh S Damani : I plan on holding. Traders can book profits.

Investor : I need yr advice on this please: as of now Im an investor, but if I want to start a trading business and have a separate demat acct for trading what will be the short term taxes I will have to pay on my gains? will it be 10 percent or my marginal tax rate?
Ramesh S Damani : Check with your CA

AnandBhatt : SIR,I dont own Mcdowell but you have been holding it patiently for so long.Mallya is partying.You should go to yje AGM and break a bottle on his head.......
Ramesh S Damani : Beleive me I do that in my nightmares. What is sad is that management does not understand what a valuable business they have. I feel really bad.

Tina : Sir, how do you find Revathi Equipment, with a book value of 200 plus and a EPS of 40 plus. Atlas Copco, its peer group company is discounted very highly. Do you see scope for appreciation in Revathi?
Ramesh S Damani : I recently sold some. Good prospects but the management is trying to become a Warren Buffett clone. Read the annual report.

nriinv : Delay in understandabale, but we have PM and FM with honest reputation, dont we deserve an answer afterall these guys know that this information is very critical to the markets.
Ramesh S Damani : To be fair they did not say Sep 1

vikas2 : MACMILLAN : I feel this would be stock for next year. Easily they can do between 40-45 and then this co. should get higher PE of around 20 . So price of 800 looks possible . whats your say. Id yes then how Sundaram financ eis better than this
Ramesh S Damani : I like both these stocks and am confident that they will perform well over time.

chandani : ZEE TELE your views?/ is it worth holding??as court may throw away the petition challenging BCCI 's order as no channel can ever have experience for the first time but one can always get BEST TECHNOCRATES for the job from the existing sports channel and show the wonderful results.. What is your say???
Ramesh S Damani : My sense is that they will have the rights. I think their fortunes are about to improve.

ajay_ : How do u c LIC Housing. With interest rates expected to rise will it impact their growth. should i hold or sell
Ramesh S Damani : I would hold on.

nicolekidman : kale had its agm posted on my iris .com the management appears confident of growth coming in the 3and4 qrt
Ramesh S Damani : I will check it out.

nriinv : ZEE telefilms how do you rate them after bagging the BCCI rights. Please note cricket is not watched with passion anymore, most people feel they are fixed and this game is watched by gamblers and new spectetaros of cricket. Dont you think it is a big gamble for Zee. just in case some big scandal broke out in this four years.
Ramesh S Damani : Cricket and movies are going to command attention. I don't enjoy cricket however the public does. I think it makes sense for Zee.

nicolekidman : do yu follow a co called vimta labsthe stock has crossed 500today
Ramesh S Damani : Generally a well thought about company.

mansri : Sir, VISUAL SOFT takes at least 2/3 quarters to break-even in their BPO business. However, the serivces business will grow and compensate loss on BPO. What is your opinion on this? Pl advise.
Ramesh S Damani : Manamement has been very poor. They have not delivered. At the same price Elxsi offers a bit more promise.

ajay_ : sir, i live in chandigarh & when CNBC organised its maiden Investor's meet in Mumbai I went all the way there & was glad to meet u. i want to enrich my knowledge in this field. i've been reading books like ONE UP ON THE WALL STREET, REMINISCES OF A STOCK OPERATOR. can u pls suggest some more books, i like to read
Ramesh S Damani : Look at a previous column. I recommended 10 books for investors.

Ramesh S Damani : I don't predict returns.

Tina : Sir, Vijjay Mallya is obsessed with Richard Branson. Anything Branson does, Mallya has to ape, whether it's women or partying or planes or getting into the entertainment business. His obsession with Richard Branson will never let McDowell grow. Sabko lekar doobega Vijay Mallya.
Ramesh S Damani : Understand a principle that you have to buy a stock at a price. Then the worst they do cannot damage the price.

AnandBhatt : Sir,I tendered my Eserve during the open offer.Is it still not tax free as I had bought it after 1st march 2003[ Jaswant Singh budget] and it is in the BSE 500?
Ramesh S Damani : Then it is tax free.

chandani : Mc dowell-- then we may not enter the stocks NOW AT 40 % increase but we should wait for correction to 50 or sub 50 level to get the benefit.. What is your say???
Ramesh S Damani : It was 40-50 for last 2 years. Why did you not buy it them.

nriinv : Just a reminder Mr. Damani, Hathway is still in cash, Warren buffet will give poor returns this year. He does not mind it but he feels that US markets are too high.
Ramesh S Damani : That is correct.

AlanGreenspan : Rameshji, what're your views on Midday multimedia..the people who bring out Midday newspaper..they have a strong market in Mumbai and are said to be waiting for the govt to allow liberal FDI investment in print media. As soon as that happens they'll be selling a stake to a foreign publishing house. At 30 rupees, do you find it a good pick? Chidambaram has already expressed that he doesn't see any fundamental difference between allowing a 26% stake and a 49 % stake to FIIs and foreign companies.
Ramesh S Damani : Radio for MidDay is the problem. If revenue sharning comes in they will do well. Radio is a drag.

nriinv : I do check with my friends with whom I spent my younger days watching cricket. They all watch cricket over a glass of beer, they know the difference. The people who are hooked on to it are the people who are late entrants to cricket or people who are making money out of it.
Ramesh S Damani : Cricket and Bollywood is a surefire combination.

analystinvestor : Mr. Damani, have you looked at a company called Sunline Technology? A bio pharma co called Zenotech Lab is merging with it.
Ramesh S Damani : Not really, why does it look good?

AnandBhatt : THANKS,SIR WHY DO YOU LIKE TORRENT CABLES?..................................
Ramesh S Damani : Will udpdate you later it is a trading bet, earnings are increasing.

hasmuk : Sir,When a new ship is launched from a dock they break a shampane on its hull.Is it not a case with Macdowell......when breaking a bottle on Mallya AnandBhatt is suggesting??????????
Ramesh S Damani : Let's not get carried away but I am very disappointed at the way the company has been run. Not for shareholders for sure.

prabhu1 : is it worth buying shri rajstan texchem instead of shri rajastan syntex
Ramesh S Damani : Yes. Thanks all for joining. See you next week. Bye.
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