Beyond Basics

Islamic Search Engine : Sharia Complaint

2009-09-08T12:23:00.000+05:30

There are so many areas in day-to-day sphere where Islamic law applies to people of muslim community. So many restaurants,banks, funds, etc caters to this specific need.

Here is a small list

Islamic Restaurants which serves halal meat.

Islamic Banks-system of banking or banking activity that is consistent with the principles of Islamic law (Sharia)

Islamic Mutual Funds- Funds which invest in companies that operate according to Islamic Sharia principle.

Islamic Index. - Index of stocks of companies compliance with Sharia law.

Screening removes companies involved in such products alcohol, pork-related products, conventional financial services (e.g. banks and insurance companies), entertainment (e.g. hotels, casinos, gambling etc.), tobacco, and weapons and defense. A second level of DJIM(Dow Jones Islamic) screening based on financial ratios, is intended to remove companies based on debt and interest income levels in their balance sheets.

Islamic law is now the most widely used religious law, and one of the three most common legal systems of the world alongside common law and civil law

Now comes Islamic Search Engine -ImHalal.com The world's first search engine which will help muslims safely surf the web without embarrasment of viewing explicit or sexual content.
This is really a unique idea and can be used by people of other faith and by childrens.

Moser Baer Updates

2009-09-08T11:30:00.000+05:30

Moser Baer will be soon reaching around Rs100. Its fair value is much higher and this stock has not participated during current rally. So even if market looks streched now and when we are confused which stock to buy now or where to invest. Moser baer is a good fruit in your investment basket.

Couple of things which are needed to be highlighted for reaching it`s hidden value.

1. Entertaiment bussiness is growing very rapidly. Movies,DVD, Super DVD

2. New product range launched in storage devices. Blue Ray, CDs and DVDs

3. Consumer electronics range is set to provide a good topline. Monitor,Music Players, Headphones, LCD TVs etc.

4. Photovoltaic is expected to come in limelight again since crude is expected to go higher. Solar plants coming across india by them.

5. Govt projects and green energy revolution will help alternate energy.

Stock is infact in the eyes of FIIs and DIIs. It is just waiting at the sidelines now.

OIL India IPO : Invest or Avoid

2009-09-04T17:55:00.000+05:30

OIL India is country's second largest oil producer after ONGC. Crisil has graded the IPO 4/5 which is above average. Please note that Adani and NHPC were 3/5.

Issue Opens --September 07, 2009
Issue Closes --September 10, 2009
Issue Type --100% Book Building
Issue Size --26,449,982 equity shares
Price Band --Rs. 950- Rs 1050
Face Value --Rs. 10.00
Lot Size --6 shares

On the BID Closing Date i.e. September 10, 2009 the BIDs would be accepted till 03:00 p.m. Only.

OIL India IPO is not aggresively priced and is available at PE of around 10-11.

So we can expect some initial gains from the IPO but over the long term OIL India doesn't look promising.

Some of the key risks to its business are :-

1. Since it is PSU it is sharing the burden of subsidies. If the OIL prices increases a lot then share of burden will also increase and profits will always depends on the vagaries of the crude prices and govt policies.

2. 95% of the oil and gas comes from North East states which is sensitive zones based on environment and conflicts in the region.

3. Most of the wells are old so the output in the future will steadily decrease from these basins.

4. It doesn't have any significant acreage to increase its production capacity beyond North-East and hence profits.

5. It is fighting lot of court cases on environmental issues.

6. Apart from ONGC now it faces still competition from lot of other private players who have entered Exploration and extraction business like RIL,Cairn, British Petroleum, Niko resource etc.

So I think that though from IPO perspective this stock might be good, for long term probably it can given steady return in terms of dividend(being PSU) and small increase in stock price. This can't be termed as multibaggar or high growth stock.

Moser Baer : Good Long term Bet

2009-09-04T13:26:00.000+05:30

Moser Baer is going to develop 1 Mega Watt solar farm project in Maharashtra.

Got awarded EPC contract to develop one of India's largest indigenous solar power projects.

The solar farm in Chandrapur will be one of the largest in the world using thin film solar modules.

Moser Baer is also going to set up India's largest grid connected Solar farm in Rajasthan

It is heartening that solar energy is being seen as an affordable source of energy in India and Moser Baer has been instrumental in bringing about this change.

Other similar post

NHPC listing Date on Stock Exchange

2009-08-28T09:44:00.000+05:30

UPA govt first public sector offering NHPC will list on 1st September on the Indian Stock Exchanges.

NHPC IPO Allotment Status & NHPC Grey Market premium

2009-08-26T17:16:00.000+05:30

NHPC IPO Allotment Status now available at

Check Status Now

Current Grey Market premium is around Rs 4-5 .
713 shares have been allocated if you have applied for complete lot at upper band.

Other News :-
GMR Infra saw some good rally after long time.
Aban Offshore saw huge rally with stock increasing about 26% in a day.

Other Grey market premium
Oil India 950 to 1050
155 to 160
Jindal Cotex 70 to 75
3 to 4
Globus Spirits Ltd. 90 to 100
5 to 6

SREI INFRA Rally

2009-08-26T13:00:00.000+05:30

Srei Infra was at 63 before the last post on 23rd August. Today it has touched high of 72 (an increase of 14-15% in 2 trading days)

Current book value of Srei is probably around Rs 97 and is available cheaper than its book value.

Short term looks good.

SREI Infra News

2009-08-23T00:00:00.000+05:30

Srei Infra is planning to build Auto Component SEZ in Bengal. So far 33 hectares have been acquired out of 100 hectare. This project is of great significance for bengal after tata nano project has been pulled out of the state
Srei Infra Telecom Arm Quippo which handles tower business and also owns 49% in Tata Towers is bidding for Aircel Towers. Malaysia Maxis holds 74% in Aircel Telecom.
Srei Infra is also planning to enter into Jail Constuction business in PPP model. Srei will build Jails outside the city and manage it for a fee. I will also get the prime land from the previous jail site for development.
Srei Infra also wants to upgrade the rural infrastructure by rebuild village market place or Haats.
Srei Finance wants to start financing medical and IT equipment projects soon.

Other new

Srei Infra to participate in Light Rail Project in Kolkata

Srei Infra Post

Primary Market and Secondary Market

2009-08-22T22:52:00.002+05:30

In Primary Market securities are offered to public for raising capital also called IPO(Initial Public offering). The proceeds from the issue goes to the issuer of the paper.

In Secondary Market securities already offered are traded in the market. Most of the trades happen in secondary market.

2 years back Primary Market was a good place for small investor to make handsome profits. Just the luck of getting allotment confirmed the profits you are going to make.
Some people use to take loans to apply for an IPO also probably through multiple accounts.
20-100% return in short period of time and relatively risk free was a good proposition.

Things have turned now. After nearly dead primary market for 1-1.5 years, they are back and people had high hopes with them. Adani Power, NHPC , Oil India,Mahindra Holidays raised hopes that IPO option will be available again to make money. Adani Power dashed off all the hopes with listing almost around the upper band and no margin left for the investor to make money. Those you have bought money to apply (basically HNIs) would have burnt fingers because even getting back interest money would have been difficult.

Looking at the market condition Grey market premium for NHPC is also down to 4-5 Rs from Rs 10-12. If market is in bad shape on the day of list, you wont see any premium on that day. BRLM suggested Rs24-30 as price band but govt became greedy looking at the rise in the market and fixed Rs30-36 not leaving anything for the investor.

I guess applying to an IPO locking the money for it(even if it is ASBA) doesn't make sense if it gives return of 2-4%( if you are investing 1 lac) there will be many more opportunity in the secondary market to make more than that.

If you really want to invest in the company for long term you can buy the share on the listing day. Only drawback would be that you have to pay the brokerage which you don't have to pay if you apply through IPO, but who knows you might get cheaper than the price band :-)

New Direct Tax Code : Government Putting money in citizens Pocket

2009-08-12T21:36:00.002+05:30

Pay only 10% tax on 10 lac salary :O. This is kind of good news. More money will trigger more spending and stimulate the economy.

Savings limit is also going to be increased from 1 lac to 3 lacs.

For traders and Investors STT will be abolished.

Govertment Securities Interest tax free and business loss can be carry forwarded indefinitely.

Some good news in otherwise dull market in absence of monsoon.

Check IPO allotment Status

2009-08-12T21:30:00.003+05:30

Check your IPO allotment status

&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;lt;br&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;gt;&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;lt;br&amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;amp;gt;

Adani IPO allotment subscription

2009-08-12T21:25:00.002+05:30

Adani IPO allotment has come out after NHPC IPO closes for subscription.

Check your IPO allotment status in the next post.

NHPC Oversubscribed 23.73 Times : IPO Closes

2009-08-12T21:24:00.001+05:30

Here is the final status of the NHPC IPO

Total Issue Size	1677374015
Total Bids Received	39811363550
Total Bids Received at Cut-off Price	1792735000
No. of times issue is subscribed	23.73

Mutual Funds : Acronym Funds

2009-08-11T23:49:00.001+05:30

Mutual Funds are now a days coming up with catchy names. These can be expanded to see elaborate names of these funds.

Here are few.

ICICI Prudential R.I.G.H.T. Fund ( Closed Ended ELSS scheme)
RIGHT -->Rewards of Investing and Generation of Healthy Tax Savings

DSP BlackRock India T.I.G.E.R Fund ( Open Ended diversified scheme)
TIGER --> The infrastructure Growth and Economic Reforms

Canara Robeco F.O.R.C.E Fund (Open Ended sectoral scheme)
FORCE -->Financial. Opportunities, Retail Consumption & Entertainment Fund

Sundaram BNP Paribas S.M.I.L.E Fund ( Open Ended Midcap small cap fund)
SMILE --> Small & Medium Indian Leading Equities

SBI Magnum COMMA fund
COMMA --> Commodities of Oil& Gas, Metals, Materials & Agriculture .

We have to see how catchy their returns are as their names :-)

NHPC IPO SUBSCRIPTION : CLOSES TOMORROW

2009-08-11T22:56:00.002+05:30

NHPC IPO is going to close tomorrow. It is already subscribed 6.16 times.

Retail Investors have over subscribed 1.2 times till now.

Affordable housing in Bangalore

2009-08-01T14:15:00.007+05:30

Recently bangalore newspaper is seeing huge ad war between realty developers and builders. There is sudden spurt in these full page advertisements. Each developer is praising the location and benefits of their property.

There are many homes available sub 30 lacs and sub 20 lacs.

Government is also promoting affordable housing and now have recently announced subsidy of 1% for sub 20 lac homes for a loan of 10 lacs for the first year.

These properties are also good for PSU and other government employees.

Here are few projects which are in affordable range and can give investors substantial return in longer run and also good for people who want to move into their Dream Home.

Ozone Group
Evergreens is located off Sarjapur road near to kormangala and marathalli ring road. Price range is 20lacs to 30lacs for 2 to 3 BHK with size between 900 - 1200 sq.ft
Build on 10 acres of Land.

Orange Group
Orange Township- as you drive just few minutes away from Devnahalli International Airport will leave you fascinated.

Purvankara Group
This group has launched provident housing Welworth city in Yehalanka doddebellapur main road on 40 acres land. Prices are between 14.9 to 20.0 lacs for 845(2BHK) to 1180(3BHK).

Confident Group
Confident Atik is on Sarjapur Road offers 2 and 3 BHK houses. Has flats from 774 ft to 909 ft with prices between 13.5 to 16 lacs.
Location has international schools other housing projects and infosys has also bought 400 acres of land.

Sowparnika Projects
Situated at the most coveted location on Sarjapur Road, 9 km from Wipro corporate office and other MNC’s. Sowparnika Ananda follows Sowparnika’s well trodden path of providing quality that’s now accessible to all. There are 140 2 bed room and 12 3 bedrooom apartments

Golden Gate Properties
The Commune project has 2500 world class living space with prices starting from 19 lacs and is built over 30 acres. It is 3.5 kms from Mysore road near banshankari metro station.

Please share if you have some more properties to add so that readers could benefit.

Adani IPO Subscription 21.59 times

2009-07-31T18:30:00.001+05:30

As of 31st July 2009 6pm

Total Issue Size 248794681

Total Bids Received 5372236220

Total Bids Received at Cut-off Price 232503635

No. of times issue is subscribed 21.59

Primary Market : Adani Power IPO and NHPC IPO

2009-07-31T18:08:00.003+05:30

Primary Market is buzzing again with large IPOs back after a long slumber.

Adani Power IPO closed today with 18.23 times subscribed till yesterday 5:00 pm

IPO price band of 90-100 is hoping to give premium of 10-12 rupees.

QIBs have shown strong interest with 12 times subscription. Retail participation was only .55 times but latest day will be coming after sometime.

NHPC has price band of 30-36 and grey market premium is ging around 10-12 so good money can be made here. Lot size is 175 shares.

Both the IPOs are Grade 3 ratings

Satyam ADR UP!!

2009-04-06T21:17:00.003+05:30

Satyam computers is up around 60% today in the US markets. Tomorrow indian market will be closed on account of Mahavir Jayanti so traders in india wont be able to see this upswing in local market. If the rally continues tomorrow then probably on wednesday Satyam computer could see a big upswing.

Wilbur Ross and Larsen & Toubro (L&T) might be planning to jointly bid for Satyam. Satyam is going to decide stake sale on 13th April.

As the date of stake sale is nearing the stock is showing fresh interest after sagging for last fews days.

Interesting Quote :-)

2009-04-06T00:23:00.000+05:30

Recession is worse than divorce - You loose half your assets but you still have your spouse.

Stock Option Trading Myths Debunked

2009-04-06T00:05:00.002+05:30

I have explained what are derivatives (futures and options) in my previous posts.

My previous posts on derivatives :-

Futures or Options

Derivatives Basics

Y Derivatives?

I was going to start writing an article discussing various option strategies soon.I found this cool video which clears all the myths around option trading.
It would be good to watch and understand before going deep into various strategies like straddle, collar, cover put, married put etc.

Various myths covered are Complexities around optioms, assumption that it is hard to learn and master, it is time consuming, losses are huge , its high risk and investor always loses money and so on and on ...

Before you take a dive into options have a look at this video.

India Votes 2009 General Elections.

2009-04-05T23:24:00.001+05:30

World's largest democracy with more than 1 billion people will go into election in few weeks. I am happy to see lot of voter activism this year and hope that people of this country will vote for good people and for a stable goverment.

From jaago re campaign [jaagore.com] helping people to get their voter id registration done to other thousands of NGOs are extensively involved in the awareness campaign.

National Election watch is providing information about right to vote and electoral reforms. It has the facts and figures about all the MPs in the current lok sabha.

LOK SABHA 2004 - FACTS AND FIGURES

Amir Khan is also involved with the association for democratic reforms and has produced videos aired on television urging voters to vote.

To do my own part, I would request all the blog readers to exercise their franchise and spare some time on the election day to vote.

Reliance Natural Gas flows naturally

2009-04-05T22:55:00.000+05:30

Reliance has started pumping gas from its KG basin. It took just 7 years to begin production from the date of discovery from the deap-sea krishna godavari basin block. RIL is expected to have revenue of $42 billion over its life of 11 years.

RIL has started signing gas sale agreement with many fertilizer companies. This will reduce the dependency on the expensive naphtha and gas imports. It will also bring down the subsidy in the fertilizer sector. The gas is already cheaper than panna/mukta and tapti fields.By 2010 field will be running at its full capacity.

India's energy import bill is going to reduce by 10% or around $9 billion annually because of the indigenously produced gas.

Reduced imports will make rupee probably stonger due to less demand for dollar to buy crude/LNG. Mounting trade deficit should also see some relief.
Current account deficit is expect to improve by 0.6% of the GDP. Reduced deficit should support fresh economic growth.

Energy landscape of india is going to change because idle power plant starved of fuel will be able to access this gas and will also help produce cheaper urea for agriculture.

Reliance share rose 5.3 % on account of this news.

IBM - Sun Microsystems Multi Billion Dollar Deal

2009-03-18T21:54:00.000+05:30

WSJ(Wall Street Journal) has reported taht IBM might be eyeing Sun Microsystem buyout. Deal will give significant market share on hardware and software. Hardware as in servers, data storage and other systems and software is Linux and Java Software .

The deal could be in range of $6.5 billion which will translate into 100% premium on the current market price of Sun Micro.

IBM is world's largest server manufacturer while sun is at fourth place.

Sun recently announced $2 billion quarterly loss and planned to cut the workforce.

IBM is trying to position itself as a one-stop shop for all the IT requirements. Cisco's foray into server market could see more consolidation in this space through mergers and acquisitions.

It is being said that though the quoted price is at 100% premium the valuations are still cheap because of the recent meltdown in the stock market.

IBM share lost value in the stock market while Sun Micro soared 63%

Chinese Stimulus Package

2009-03-04T23:53:00.002+05:30

Today's Stimulus Package announced by Chinese Govt has lifted sentiments across the world in stock markets. Stock market were up 2-3% in Europe and around 1% in US. India remained flat. Continuous sell off for past 4-5 days was another reason for the bounce back. Biggest gainer was the chinese market which rose 6%. $585 billion is going to be used in infrastructure spending and also to boost the manufacturing sector.

Other News:-

According to a report US has lost around 700 thousand jobs in Feb in the Private Sector.Data for January was also along the similar lines. HSBC has also announced lay offs in US after bad earnings data.
Oil surged to $45 on inventory concerns.
The Reserve Bank of India has reduced the benchmark REPO rate to 5 percent from earlier 5.5 percent and the reverse REPO rate to 3.5 percent from 4 percent. Economic growth is slowed down to 5 years low

Other Stock News

Reliance Infra and Sail were the big gainers in today's market
Rolta India, Srei Infra continued it slide for yet another day. Good Buy now for risk takers
RCOM(Reliance Communications), Vishal Retail hits new lows.
Punj Lloyd was another gainer today.
Moser Baer is also at 52 week low. It is going to expand in Europe,US for its Photo Voltaic Operations. It is buying back FCCBs and has repurchased bonds worth 1 million dollar.
Suzlon another beaten back stock won order of 100MW which is for about 80 turnbines from China
Satyam Computer plans to invite bids in next few days
ICICI Bank hit new lows on worry about its exposure to Russian assets. Fresh shorts are created on this stock