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'United Breweries is a good stock'Mumbai, October 7, 2003: 'McDowell is also cheap but restructuring needs to be done,' says Ramesh Shrichand Damani.rakshesh : I am a contrarian ragini-- when nobody wanted PSUs and banks, I picked them up. Now nobody wants IT and media-- I am bullish-- stocks like polaris and mastek are available at dirt cheap rate. But there will be sharp down ward correction in coming days. TCS IPO should act as adrenaline for IT. As Damani tells, I will stick to my conviction Ramesh S Damani : Hello everyone thanks for joining. Let's start. My apologies for being absent last week. I agree conviction is very important for making big money in the market. SINGARAJU : I assume that you are building up big in SPANCO.How is the future prospects looks like?.PLEASE PLEASE answer sir. Ramesh S Damani : I am still tracking it and not buying it. anaamika : Sir,I am still holding 2000 sh of Bharat Electronics(avg purchase price Rs 122/sh)I have alredy sold 100 sh @ Rs 520/(today),should I hold the rest? & shift to......what? Ramesh S Damani : I think full year results will be good. Since your price is so attractive, hold on. I own it. ragini : anamika though BEL is a good stock for a greater return switch over to BEML expecting a 5000 cr order from DMRTC Ramesh S Damani : BEML is on a sweet spot. Should post could results this year. ragini : Damaniji, is SBI a anytime pick Ramesh S Damani : I remain very optimistic about it. rakshesh : damaniji-- thanks for your reccomondations on e-serve-- I made good profits in that-- I would name you as Da-money !!- Hope you are not offended Ramesh S Damani : You are welcome. vikas : In your recent interview to CNBC , You recommended Goodyear , Neyveli , Balaji plese share some view on this chat and also why there was no mention of your favorite especially Mcdowell , Macmillan and E-Serve Ramesh S Damani : Just recommending new stocks. I spoke of the liquor industry as a whole. Goodyear has a market capo around Rs 100 crs and the parent is pumping in Rs 120 cr. They must know something. Neyveli is a cheap PSU stock with a good balance sheet. Balaji dominates the entertainment business but is still cheap. I own all of them. ragini : which is best in Mcdowell, UB and Kingfisher, i mean the stock not the products damaniji Ramesh S Damani : United Breweries. The restructuring is done so may be it is the cleanest bet. McDowell is also cheap but restructuring needs to be done. vikas : Do u think 10th Oct will create Panic in IT / ITES shares. WHat announcement could make them market favorite Ramesh S Damani : I doubt we will see panic. However we should see how tech firms are handling pressure on margins. anaamika : Sir,You are recommending SBI. But I am accumalating State Bank of Bikaner,becuase it is in physical & institutions can not afford to paper work,eventually it will be merged with SBI.Once it will be demated they will all start buying. It is a damn cheap stock.& I am ready to wait. Is my logic correct? Please advise. Ramesh S Damani : Your logic is correct. However, liquidity is limited. vikas : Among new which looks really attractive as itis not possible to buy all shares. Ramesh S Damani : Take a look at Godrej Industries. It seems good value. I own it. divya : sir ur call on Wockhardt Ltd and gsk pharama abd can i buy cipla and aurbindo pharama at this priceplease sir give ur advice please Ramesh S Damani : Wockhard and GSK Pharma seem okay. I am not sure about Aurbindo at this rate. vikas : MCDOWELL : All liquor shares started rallying slowly expect Mcdowell . Look at Shaw Wallace two 20% upper circuit. Is unlocking Mcdowell only trigger. No strength of its own on performance basis. Ramesh S Damani : It's hard to say when a stock catches fancy. Maybe some news is coming in Shaw Wallace. anaamika : Sir, So was liqudity in so many scripts bafore it starts moving.Some institutions ,banks,etc will sell when it starts movong.Is it not so? Ramesh S Damani : That may be true also. baracuda : would yu recomend to buy radico khaitan at a price of 40and how is this co different from mcdowellsatleast the valuations are far attractive Ramesh S Damani : The company is smaller than Mcdowell, however, it seems to be better run. When the liquor stocks move all of them will move. hsb : Sir,how long one should hold mcdowell? Any stop loss(time wise)? Ramesh S Damani : I am going to try and stick to it till the deregulation of the industry happens. Raj Sailor : Dear Sir, This is the fifth time I am asking you. Can I know the future of SAIL Ramesh S Damani : I prefer Tisco. Sail is not the best run PSU. baracuda : what exactly does scottish and newcastle want to do in indiahave yu met any of their directors,maharashtra govt has reduced the exsice on beer and made it available in stores now are things slowly changing for the liquor industry Ramesh S Damani : Scottish has taken 26% in UB through pref shares with a further option to convert into equity. Changes are happening slowly. SINGARAJU : Of late MC bigining to get pulse.Are we nearing the "golden moments"?. Ramesh S Damani : I am keeping my fingers crossed. newbieeatstock : sir how difficult is it for you to define the boundary between greed and logicm or is there some principal you follow Ramesh S Damani : It is a fine line and requires you to be intellectually honest. kishore : Trye industry is facing margin pressure. How do u feel Goodyear India will do great despite hughe competition. Ramesh S Damani : At this market cap you take a chance. vikas : Would u recommended Goodyear and Balaji at this rate Ramesh S Damani : Yes divya : sir what about cipla they may announce of bouns in this quater please advice Ramesh S Damani : I have no news about that. baracuda : do yu expect margin pressure also on cos like esrveand iflexevery one percent rise in the rupee will eat away close to 2%of the profits Ramesh S Damani : No tech company can escape it. i-flex being a product company will not face it as much as Infosys, Wipro. It is a serious problem. sanujkadavil : SirUb holdings core business is realestate and key investment in mcdowell and united breweries ,aventis ,bayer etc .Its more on a asset play .these values are locked.But how can mallya unlock the hidden value in ub holding ,what is your expectation on that ,straregic sale or buyback or a big dividend???????.. Ramesh S Damani : In Bangalore an IT city is being built which will give a stream of rental revenues etc. rakshesh : damaniji-- which one is better--UBholding or kingfisher Ramesh S Damani : Kingfisher has become UB Holdings. kishore : Why do u judge the company by market cap. It is not necessary to see the performance of the company. EPS, PE , etc. Ramesh S Damani : They are all important. Market cap gives you an idea of value. kajol : could you advise few tips such as advised earlier like Tata Honey and e-serve etc. Ramesh S Damani : I continue to hold them Tata-Honey has been disappointing. However with capex coming the business prospects should improve. E-serve margins needs to be checked. Aashi : SIr this is the 4th time I am asking you. Any views on Hindustan Motors. They are suppliers for ford and GM. Even Mitsubishi can pick up a atsake. Is that a possiblity???? Ramesh S Damani : I have no knowledge about them. Equity is too large and the company has been run poorly. anaamika : Sir,Since Mark Faber is bullish on comodities I have been accumalating Nat Alum,Hindalco & Tata Sponge,Natinal Mineral Dev Corp(PSU). Any other script you see in this market(other than tea shares)? Ramesh S Damani : May be Tata Coffee. Gopal : This is my first time chatting with you. Pls advise whether we can invest in Canara Bank. Ramesh S Damani : You can of course. I prefer banks like Karur Vyasa, SBI too can bank vikas : Are u holding E-SERVE and Macmillan . Any new edition in ITES . Any new news in Honeywell Ramesh S Damani : Yes I am. No news recently. ragini : sir nth time i am asking ur opinion about balmer lawrie disinvestment price Ramesh S Damani : Don't follow it. anaamika : Sir,All the second rung auto ancilliary stocks are moving since last few days..Laksmi Auto,Wheels India,Hitech Gear,Sona Koya,Rane Engine,and a whole lot of them.You have recommended Laxmi & TVS Autolec. What is cooking in the rest of the pack? Ramesh S Damani : Generally outsourcing story. newbieeatstock : sir once again.... views on stelll tisco, entering at current levels Ramesh S Damani : Looks good. Nagendra : Textile stocks seem to be missing out on the party any views why so? Ramesh S Damani : Markets tend to move in spurts. Keep watching. naRAYAN : SUNDARAM FIN HAS NOT PARTICIPATED IN THIS RALLY R U STILL BULLISH ABOUT IT Ramesh S Damani : Yes. I recently added some more. It looks good. vikas : We want to know only 2 SHARES from you where we can invest at this point of time Ramesh S Damani : Try Godrej Industries (57), Balaji Telefilms (73) Good Year (54). I own all 3. sanujkadavil : sirwhat about govt decision to offload excess cash in psu to shareholders.it will effect their book value and networth.even in sci govt cashing the whole 480 crores. who will buy sci at 4500 crores even noone is bidding for it.so is it time to exit psus like sci ,eil Ramesh S Damani : They do look well priced to me. Hope you got my email. naRAYAN : MY FRIEND TOLD ME THAT E SERVE IS IN W FORMATION IN CHART WHAT DOES IT MEAN Ramesh S Damani : Probably a technical chart pattern, thanks all for joining. See you next week. Bye. |