3rd Pick - Power Grid Corporation of India Ltd

Friends,

The next long term pick is ** Power Grid Corporation of India (PGCIL) **.

WHY?

1. First ever IPO offer being made to the public from 10 Sep - 13 Sep.

2. It is a Mini-Ratna Category- I public sector undertaking.

3. The Ministry of Power will continue to hold 86.36% after the IPO.

4. PGCIL owns and operates most of India’s interstate and inter-regional electric power transmission system.

5. PGCIL has over 19,000 kilometers long fiber-optic cable network connecting over 60 Indian cities, including all major metropolitan areas (Broadband, NLD).

6. Profit last year was Rs. 920 Crores

IPO Details
Dates : 10 Sep 2007 - 13 Sep 2007
Price Range : 44 – 5 2

Recommendation
The IPO will certainly be highly oversubscribed (> 10 times) so try and apply at cut-off price for 75% of your liquid money (say 35000) and keep 15000 aside to buy it on listing if the price is attractive (markets being choppy).

Happy investing.

Cheers,

TG

(Next pick - will be an infrastructure company, next week)

ISPAT & MERCATOR Update.

Friends,

Here you go.

1. As recommended ISPAT has touched a high of 19.40 today (that's 30% return against the recommended price of 15).

2. MERCATOR has touched a high of 59.40 (which is a 10% return in under 3 days).

Anyway the key is to keep both of them for a LONG TERM, so do not be bothered where they go. When it is time to SELL I will advise all of you (after all I have my own holdings in these).

Cheers,
TG

ISPAT Flares ... :)

Friends,

Those of you who took my suggestion and invested in ISPAT must be happy that the stock has already given a return of 23% from the INR15 levels where I suggested a buy.

Isn't that a decent return in under 2 weeks? Can anyone beat this return?

Sorry no high talk, lets get back to investing :)

Happy investing.

Cheers,
TG

New Pick - Mercator Lines

Friends,

Here comes the next compelling buy - MERCATOR LINES.

Investing rationale

1. Fastest growing Indian shipping company

2. The group posted net sales at EUR 1.1bn in the first 6 months of this year, up 19.4% Y-o-Y.

3. Net profit rose by 26% to EUR 21.3m

4. Listed on Singapore exchange

5. Shipping company shares overseas get traded at 9-10 times Price to Earning (PE) ratio while MERCATOR is trading at a PE of 4.8, all reason why it will go up.

6. Mercator Lines (MLL) is raising around $250 million in the largest-ever Indian offering in Singapore.

7. Recently bought four dry bulk vessels for an investment of around Rs 1,000 crore - indications of where the business is heading.

8. Mercator Lines has forayed into offshore oil exploration and some of their rigs will be ready by Mar 2009 (Thanks to Deepen for highlighting this).

HORIZON - Keep until 2009.

BUY LEVEL - Buy at current levels (around INR55)

DISCLOSURES - MERCATOR constitutes 5% of my current portfolio (picking on declines)


Happy investing,

TG

(** The above points are my investment rationale, please analyse before you invest)

ISPAT Details

Hi All,

Here are the details that I forgot to include earlier.

1. The CMP (Current market price) is INR14.60. You can enter the stock anytime now (INR13.50 to INR14.50 range).

2. While the market fell 1000 points in the last three sessions ISPAT is rock steady and in fact has moved up from INR14 to INR14.50.

3. It has been announced that the company will invest INR10000 Cr into expanding their current business. With infrastructure on the cover page of the policy makers and corporates alike you can tell where this company is headed for.

In 2003 I bought 1000 SAIL @ INR7/- and sold 900 @ INR11 thinking I had made a good profit in 4 months, only to repent that the only 100 that I retained is worth INR14000 against my cost of INR700.

HORIZON - Keep until 2009/2010 and book at least 300% profits then.

DISCLOSURES - ISPAT constitutes 17% of my current portfolio.

Happy investing.

TG


(** The above points are my investment rationale, please analyse before you invest)

Why buy ISPAT.

As per my analysis ISPAT INDUSTRIES is a VERY GOOD long term buy for reasons mentioned below.

1. It staged a turnaround by posting a net profit of Rs 8.37 crore for the first quarter.

2. The BoA board gave in-principle approvals to two SEZs in Maharashtra — a multi-product SEZ by Ispat Industries and a biotech zone by Veritas Infrastructure.

3. It will invest around Rs 2,100 crore till 2009 to ensure sustained profitability and growth.

4. Ispat had entered into an MoU with the Maharashtra government for expansion of steel capacity at Dolvi plant to five million tons.

5. MoUs signed with Jharkhand for a steel plant and with Chhattisgarh for a coal-based 1,200 MW power plant. The measures would help the company to reduce costs and ensure greater productivity.

For more perform a google NEWS search for ISPAT INDUSTRIES.

Cheers,
TG