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'Nucleus is a well run company'

May 17, 2005 16:57 IST
Ramesh S Damani : That would be nice of course, but I am having a great time in India.

deepinsight : Hinduja TMT - nominal growth with "hidden value" - When will thisbe realized? Waiting for a trigger..Your views?
Ramesh S Damani : It should happen with HUTCH IPO.

scrippy : Respected Sir,What are your views on Crompton Grieves? With the current dismal power scenerio does not the demand for its product look good? Is it good to accumulate at these prices?
Ramesh S Damani : Script has had a good move. I don't follow it closely so no view at this time.

deepinsight : macmillan - is it a buy hold or a sell at this juncture?
Ramesh S Damani : Results were poor for Q1. The company is on the right path but not moving fast.

scrippy : Respected Sir, With the constant Government interest to revive ITI do you think it offers a good buying scope at current levels?
Ramesh S Damani : I would look at it closely, it has a large labour force otherwise it could turn around.

Ramesh S Damani : Good for patient investor.

kunal : sir please give me view on hfcl,pentamedia
Ramesh S Damani : Avoidable

Ramesh S Damani : Yes, it could.

coolrks : Hello Sir, rajesh this side, i won't be able tojoin in chat, so early message. With due respect to all analyst,they are predicting that MID CAP script are well appreciated , so major correction will be there in scripts , we all boarder require your view point. Last time you mentioned the small tech stocks basket, is it for long term or short term. What is your view about earlier recommended script UB Holding, McDowell ,Gail, Nucleus Soft. So sir please reply it will be helpful for everyone and give clear idea for now sit on cash or invest
Ramesh S Damani : Hello everyone thanks for joining. Lets start. I remain optimistic on the market. I am broadly continuing to hold the scripts I have discussed.

Ramesh S Damani : Bullish.

sanujkadavil : sirhow is looking godrej runup.looks like rock solid like rahul dravid. any news on demerge or something. hope you got my notes on godrej industries
Ramesh S Damani : It has had a great move. No news to account for it. I keep hearing rumours of a move into retail.You called it correctly recently. Congrats.

JainV : Sir: China Yuan REVALUE: Good for coal and steel? TISCO and GUJ NRE should benefit?
Ramesh S Damani : They should. Coal is booming.

Ramesh S Damani : Thanks for the kind words.

Neewbieatstock : sir what are your views on agro tech food, the company is divesting stake in advanta to unlock value, do you think the scrip warrants a buy ?
Ramesh S Damani : Keep an eye on the stock. It is for patient investors.

deepinsight : You see many companies going for raising FCCB while good from the perspective of raising cheap capital its seem to dilute the common shareholders! Do you have an opinion on this?
Ramesh S Damani : Some do need capital. Others are getting greedy.

minaliamin : good afternoon... any sectors where you would want to reduce or increase your exposure becoz of recent price changes? tho i know u might be more of a bottom up stock picker
Ramesh S Damani : Logistics.

ferozahmed : Dear Sir, do u think companies like zicom security, will benefit in the coming 3-5 years as security requirements are increasing with growwth of the country in various sectors
Ramesh S Damani : Your logic is correct.

deepinsight : Are we in "irrational exuberance" phase of the market?With the speculative fever in small and mid caps- do you see value out there?
Ramesh S Damani : I think we have a way to go.

Keshav : Sir pl give your valued opinion on Linc Pens at current levels
Ramesh S Damani : Good run up, good company but with poor margins.

deepinsight : Nucleus Software: Know that you like it - but is good company already trading at 22 times earnings. What are key competitive advantages?
Ramesh S Damani : Well run company. That should be growing well. Look at FT articleon Nucleus dated May 11, I think.

ritesh : Sir What shoud one do with limited money. You give so many ideas.. Whether to diversify in all those stocks or have concentrated bets(This too is your theory). If Concentrated bets than what should be stoks currently??
Ramesh S Damani : That you have to decide. Correct strategy is to concentrate. Do your homework, before concentrating.

Neewbieatstock : sir SEBI has bared UBS from rolling over its securities due to black monday last year,dont you think this would be very negative for FII's to invest further ? or maybe we dont know the details yet.
Ramesh S Damani : It is a short term negative.

deepinsight : Cranes Software:One of the more unique product companies, good management, good acquisition experience. Do you think this company has good prospects?
Ramesh S Damani : Look at the cashflow. Dividend payout is also very poor.

susmitasarkar : goodevening sir, aegis logestics touched 96 & now its back to 84.I`m holding 1000 @34.will it be wise ti exit at this point ,or do you think it will go up further.
Ramesh S Damani : I think it is an interesting company so hold on.

deepinsight : Nagarjuna Construction:Amazing ride on the infrastructure boom. Low margin business. However order book more than 3 times this years numbers? Still worth holding or buying?
Ramesh S Damani : I am still holding on but the ride has been dizzying.

HDC : Hi Ramesh... IFB Industries.... Promoter holding is going up....their products are doing decent.... In one of the annual report they told that they are not spending money on advertisements as they are in red...once they are in good financial state they will start doing it....oflate they are spending money on advertisements...2 yrs back the restructuring started
Ramesh S Damani : Yes, keep an eye on it.

dedhhosiyar : sir,recently SURYA ROSHNI moved with HUGE volumes..what do you feel of this stock at these levels... any targets.????
Ramesh S Damani : The company is linked to the construction industry so should do well. However no great earnings have come.

sanujkadavll : sirwe are watching your programme in ndtv with abhay and andrew .looks your bullish word continuing
Ramesh S Damani : Pretty much.

baracuda : whats your opinion on kales results would yu still continue to hold
Ramesh S Damani : Yes. I
think they will snap out, but are still struggling.

Believer : Damaniji - Most companies are increasing their EPS estimates by raising their equity.(for eg GACL etc). Do you think these cos are good investment as it defeats the basic purpose of Patience and conviction as epoused by so many - Your value fan
Ramesh S Damani : Good companies do not dilute equity frequently. They preserve equity that is a great principle to remember.

ritesh : Sir, Nucleus.. After the announcement with Sun, is this a level to buy?? CMP 207/-
Ramesh S Damani : It makes sense to me.

KRR : Good afternoon Sir.... I want to tell you something... everytime you tell people to do their home work and then invest but to tell you very honesstly, not all are well equipped to do the homework one way or other... I myself is a CA & ICWA... managing finance of an emerging corporate group... and I have been able to do homework and follow you at the same time... and that has given me fantastic results.... BUT not all can do that and they could only follow you... right thing for them would be to go for mutual funds i would say but many of them dont like MF... so, why dont you give them just blind pics... like... BUY A, B and C. thanks :-)
Ramesh S Damani : History has prooved that is not a good way to make money. Maybe a living but not wealth.

susmitasarkar : sir whats your views on arvind product & shree rajasthan texchem?I bought 1000@12 & the mkt price is rs 16 & rs 12 respectively.DO you think its still a good hold seeing the results?
Ramesh S Damani : They are low priced picks, that I would hold on. I own them both.

Believer : Damaniji - Garware wall ropes What are your views on a company where the ROE(return on equity ) is a constant 13-15 % for the last 5 years assuming that the profits are comstant and that stock is cheap and is a consistent divident payer ? - Your value fan
Ramesh S Damani : They are doing well.
scrippy : Respected Sir,In your valued opinion if FDI is allowed into the retail sector which scrips will show growth? Any picks?
Ramesh S Damani : Maybe some unlisted companies.

mihirr : Good evening sir, i did a small analysis on Tisco. This year they will have an EPS of 60. even if steel realisations are flat , with capacity addittion of 25% eps shouls atleat go to 75.p.e just 6. if it pays rs15 dividend , .also the big cashflows will help it in expanding capacity without taking much debt.dont u think Sir its an attractive bet among frontline stocks. or is there any catch?
Ramesh S Damani : Your analysis is correct.

anuaga : It appears mallaya is actively involved in kingfisher airline.He is concentrating even the smallest aspects. under this condition will the airline become No. 1 in India soon?
Ramesh S Damani : It is a difficult business, can't say that. But Wilcox (CEO) is a experienced man.

SingaporeJB : How do you rate the management of Viriachi?
Ramesh S Damani : Nice people, but small company.

vdatar : sir Patel on Board has postd excelent results EPS Rs.4 ,pe 10,sales Rs.136 Cr.B.V.Rs.48 in logisticks & courier services.Your take on this co?
Ramesh S Damani : I like all the logistics company.

sanujkadavll : sirlast week economictimes says tatas ,godrej and mahindras looking for tieup with walmart. did you got anything on it
Ramesh S Damani : Maybe that accounts for Godrej movement, however it seems speculative to me.

yashomohta : good afternoon sir,there is a small co.tera soft with an equity of 7.7cr.eps rs.4,sales 17 cr.for march 05, it has recently received order worth 50 cr.from govt.of kerala for e-governance,and today it has got order of 150cr from govt.of maharashtra.i would request u to look into this co.
Ramesh S Damani : I will look at it.

WisdomMan : Hello Ramesh, BOMBAY BURMAH, Would request your comments for the benefit of the readers, It is in the midst of re-structuring.
Ramesh S Damani : Also unlocking value and starting a new airline.

baracuda : do yu read the-THE ECONOMIST regularly does it help yu to increase your business knowledge
Ramesh S Damani : I used to think, now I read the Economist.

dedhhosiyar : sir,hows VST TILLER looking at 90.counter is showing tremendous STRENGTH.... Any idea.????is mkts expecting very good results.?? i m holding since last one year. should i add more at these levels.????
Ramesh S Damani : Look okay to me, hold on..

Believer : Damaniji - VOIP - The future - Dont you think VSNL and Tattel are very synergistically placed to race ahead once the revolution comes into force (atleast in corporates) - Your value fan
Ramesh S Damani : Yes, and companies like Krone also may be. All of which I own.

sanujkadavll : sirdid you got any news on mr .ramesh vangals stake buy in kerala ayurveda pharmacy ltd. whats your call on the company
Ramesh S Damani : No news at my end.

shekar : sir, you say you hold stocks as trading bets. trading means how many months or do you set some targets to stocks
Ramesh S Damani : For gains, not necessarily core holdings. No time frame. Sometinmes trading becomes investment and very occasionally visa versa.

ritesh : Sir, Transport corp now down from 165 to 148/- I missed this co in its runup. Can It be a good buy now??
Ramesh S Damani : Sure, but wait for q4 results.

blazing : Ramesh, Please explain what do you mean by dilution of equity??? I tried looking up but couldnt come up with a meaningful explanation. PLZZZZZZZZZZZzzz
Ramesh S Damani : When equity keeps expanding due to right, preferance allotment or the like.

KRR : I agree fully with you sir... but I still have something to say... I know so many who are making few bucks aside from their main earning source by way of playing in markets... and what i have learned in last few years is that if someone follows you with blind conviction, he would not loose... to tell you the truth, I have been following you since the days you were recommending Bharat Electrnoic at 60..... but I have started acting on your advices since last two years only.... (i have made huge fortune by doing that) .... So, I wanted to tell you that if you reommend a few for those who cant study, they would benefit hugely ... thanks :-)
Ramesh S Damani : You have to learn how to fish, that is what I am trying to do.

wahwahji : do you sometimes follow Rakesh Jhunjhunwalla in scripts?
Ramesh S Damani : Yes, I do. I got to leave early. See you all next week. Bye.

JesseLivermore : The number of scrips you own, almost above 50, seeems to suggest to me excessive diversification. This must severly constrain the long term return on your portfolio to mid 20s. Don't you think you need to outgrow this diversification. Your next stage of wealth creation?
Ramesh S Damani : Maybe 60% of portfolio is in 5 scripts. The rest are in differnet counters. They may or may not be meaningful positions.