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Home > Business > Stock Chat > Transcript
'Stocks are not undervalued. . .'
December 21, 2004
mks : sir, I am a raw hand....could you pls. advise what should be the basic guidelines & targets for the small investors like us ? ?
Ramesh S Damani : Hello everyone thanks for joining lets start. Start reading and develop a conviction in what you buy
Hari : Rameshbhai, with Polystyrene prices at a high, do you think Supreme petrochem is a good pick at 24? They're from the Supreme group and very well managed. They're also expanding capacity.
Ramesh S Damani : it could be, but i don't follow it
kartik : Venky's market cap is Rs.94 crores and sales is Rs.300 crores. Dividend 35% and promoters 'stack is 52%.What are the prospects?
Ramesh S Damani : i think the prospects are good at this time. I own it
nanpal : Sir, What are ur views on TISCO? Is it a hold at this Price.
Ramesh S Damani : I am bullish on it
nanpal : Sir, Is UB Holdings a buy at this price, with One year perspective
Ramesh S Damani : i think so. It is becoming the flagship co with rich asset base. i own it
anand : One pick from kale, tata elxsi, opto, nucleus at current rates please!!
Ramesh S Damani : if i were to pick one i would pick nucleus
vkb : Hello Damaniji, Neyveli lignite- can we hold this or sell at cmp. Pls. suggest.
Ramesh S Damani : i would hold
mastan : Dear Sir why swaraj engines volume is very less?
Ramesh S Damani : i wouldn't know
pawanddrpk : the market is at its top level. every one is targeting nifty at 2100 & above . what's your view sir on nifty ?
Ramesh S Damani : i remain bullish
William : Mr Damani, Have been following ur chat for ages but this is the first time, I have been able to log on. Is the current prices of vst and GPI a buy for a period of two or three years till value gets unlocked.
Ramesh S Damani : thx for lgging on. I think these stocks are ready to move. i own them
mks : sir, do you have any idea that biggest garment exporter Gokaldas is coming up with IPO ? ?
Ramesh S Damani : that would be nice
nanpal : Sundaram Finance. How long we need to hold this Sir. Last year on New Year day u recommended this and said it could well reach up to its parent company price i.e, Sundaram Fasteners, not it is Rs. 100. What shall we do. Hold, Buy further or Sell
Ramesh S Damani : i dont know the time frame. it is a good co doing well
pawanddrpk : sir next week is christmas & new year. fii will be absent on account of holiday. Don't you think that mkt might close down next week ? also due to f&o settlement
Ramesh S Damani : it will be slow
rkjod : Following your chats from last 8 Months. I have a conceptual question hops u will reply it. There are few large scrips (millions of shares listed) but it is traded only in thousands (Blr Also). Does this indicate something ?
Ramesh S Damani : probably means it is undervalued?
: shall we expect a couple of hundred rupees in sundaram finance in a years time or is it better to shift to elixsi at cmp
Ramesh S Damani : no price targets.
vikas1 : UB L : Your views on S&N stake at 575 / share. Is it fair valuation . if yes, how should be Mcdowell placed now
Ramesh S Damani : it is a decent value. Investors should tender. Now unlokcing value in Mcdowell and UB Holdings will begin
RRD : Dear Sir, Your views on gas companies like Gujarat Gas, GAIL, IGL etc
Ramesh S Damani : bullish
JOEGRANVILLEa : ramesh, ur fav. jim rogers new book hot commodities will be out in last week of Dec. he seems that commodity will be place to be for next 1-15 yrs?? how can a small investor benefit from commodity boom? buy eqities of commidities company or directly trade on commodity market?? thanks
Ramesh S Damani : yes, i think they should
vikas1 : UB H : With stakes in group companies 200 cr. for UBL , 300 cr. for Mcdowell , 250 cr. for aventis i.e 750 cr. i.e 360 / share only for thse companies plus expecting 20 cr. annually from UB city. Looks like great value pick even at current price
Ramesh S Damani : and an airline coming into this co
Newbiesatstock : sir things getting euphoric ?
Ramesh S Damani : still a way to go
KRR : Good Afternoon Sir... nice to see you again here :-) Regarding UB ROCPS... looks like UB wouldn't not convert them into equity shares considering the 37.5% holding cap and that promoter group didn't subscribe to preference shares... what do you think? :-)
Ramesh S Damani : money is likely to be returned
RRD : Dear Sir,In present scenario at high Sensex your views on earlier recommendations TCS, Balmer Lawrie, Godrej Inds, Goldiam Arvind Products.
Ramesh S Damani : they look okay. i sold TCS
McDowel : Hell Mr Damani..I got into McDowells but at its peak at 151..since then it has moved down in the last 2 days to 138. Do u feel the conversion price for UB Shares at 575/- was correcta s its affects McDowell..I am just a bit worried here n looking for some reasurances from a expert like u tht McDowells will go up in the near future..I do not mind holding on tot he company for the long term..Or do u suggest i shud book losses?..Pls do answer
Ramesh S Damani : your risk you decide. I can't help there. My sense is that value unlocking in Mcdowell will now begin but will take 1 year to fructify
vdatar1 : Sir, Do you think Shaw wallace will follow the path of UB?
Ramesh S Damani : i am not sure
JesseLivermore : Turnaround case: Skumars Nationwide, Exim bank just approved a secured debt of 700 cr. Current Mkt cap is 170 cr.(HOw?).Its brand Reid and Taylor is 2nd biggest in the country after Raymond. Using raymonds valuation, just this brand is worth 250 cr.the rest comes for free. Huge loss carry forward.Your take?
Ramesh S Damani : have not looked at it recently
KRR : Sir... regarding UB... if shares are tendered at open offer... it would attract capital gain@ maximum slab... but if sold in the market, cap gain could be either NIL or 10% depending on the holding period... I feel one should book profit in the market and then re-enter again immdediately so that he has to pay tax only on the differential amount i.e 575-current market price... tricky isnt it? :-)
Ramesh S Damani : no just sell to another member in your house and he pays the tax. Your gains are tax free.
Amit : Why don't you start a Ramesh Damani mutual fund, It should get a good response :)
Ramesh S Damani : no interest
vikas1 : U had indicated to invest in GAS companies in case we have missed Liquor rally. Which one would u bet on, is Gujrat Gas and IGL fall int his
Ramesh S Damani : look at the entire sector
vdatar12 : Do you think one can enter in Shaw Walace at the present level for long term?
Ramesh S Damani : i am not so hot at these levels in shaw wallace
milind : Good evening Rameshji, there is scrip named Fast capital growth (FCGL) bse code 511744. The company has some 40 lakh shares of Gujarat NRE coke aquired at Rs.9.5, out of which they have sold 6.75 lakh in November. Do u have any idea about it & your views on it. Thanks.
Ramesh S Damani : no ill try and take a look at it
JOEGRANVILLEa : ramesh,i am software engineer by profession,but intrested in FINANCE/vc/PRIVATE EQUITY industry?do u think mba finance or CFA can help me in shifting career? thanks
Ramesh S Damani : it would help
baracuda : please advice me on this should i sell united breweries in the open market or should i tender for open offer if so SN will not buy all our shares,then after the open offer do yu see the price correcting drastically
Ramesh S Damani : it will go down but not drastically. scottish firm adds value to the deal
Newbiesatstock : i read jim rogers interview. Don't u find it fascinating about the lead mines, tin and nickel.
Ramesh S Damani : which interview? tell me the link
optimist : Why are volumes so low in VST?
Ramesh S Damani : lack of flating stock. Shares are in strong hands
Amit : Tata investment has investments in stocks worth 350 crores as on March 31, 2004, this has increased to 1200 crores as per an article in business india when sense was at 6000, even more now. book value said to be about 500. It seems like a no brainer, it's a good buy but I'd like your opinion.
Ramesh S Damani : yes, but be patient in it
KRR : OH SIR... again.... if i sell to another memeber in the house, that would be off market transaction and would attarct tax at the maximum rate... thats what i understand... am i mistaken?!? :-)
Ramesh S Damani : sell it through your broker. One guy sells, one guy buys
baracuda : please do see the movie OCEAN12. its all about how to make money a different way than we do and Catherine Zeta Jones simply looks breathtaking. I wonder why poeple rate Ash so highly
Ramesh S Damani : good point
pawanddrpk : sir balaji telefilm once moved to 110 & back at 101. what is the story in it sir ? do you hold it sir
Ramesh S Damani : i am holding on. it seems good value to me
BrijNiralay : Buffet Business tenet: Simple and understandable business: Considering Auto Ancillaries as catering to the auto industry boom and maybe a manufacturing out-sourcing candidate in the near future to Foreign car manufacturers (i.e if the $ stays stable) : Can we consider Forgings business to be lucrative with Cos like Kalyani Forgings, Kalyani Brakesslated to do very well with a good P/E ratio, ROE, Consistent Operating history, Good cash flow etc; Your take pls - Your Value fan
Ramesh S Damani : yes, but they have had a good run, so not exactly cheap
Kalluvathukal : US has a VERY BAD DEFICIT.. and at this rate with industires and services sector moving out of US they are going to collapse like Russia or south america.. how is going to impact Indian share markets..
Ramesh S Damani : collapse is a strong word at this time
optimist : Why was there such a huge spurt in TV 18 yesterday? I could not find any trigger except reading somewhere about a rumour that its going to sell content in US and Europe.
Ramesh S Damani : strong earnings momentum
RameshDamaniFan : Good evening Rameshji. As you had mentioned last time, the bull run really looks solid. Sensex and nifty have touched all time highs!! Any stock you think is still undervalued and can be bought now with markets at its all time high? What are your views on Cummins India? Is it a good buy at the present level?
Ramesh S Damani : stocks are not undervalued, but market looks good to me
BrijNiralay : Engineering Cos: With the engineering sector slated to do extremely well in the next year: With cos such LnT & ABB touching 1000: With strong order book, Alfa Laval, Grindwell Norton look like value picks in the sector going forward for the next year with very consistent dividend stories - Your value fan
Ramesh S Damani : also look at honeywell. i own it
Amit : A Ramesh Damani mutual fund, initial corpus 10 Crs. value s in 3 months to 20 Crores. Second IPO 300 Crores, then 2000 Crores, think of the Power, Mr.Damani :)
Ramesh S Damani : we should not dream during days. thx for the support though
pawanddrpk : sir i beleive that any stock which Mr. damani touches will go to sky. sir i want you to touch me so that i can catch the sky. please give us some good stocks sir. please sir
Ramesh S Damani : you go to the sky when we pass away. stay on earth my friend
RameshDamaniFan : Sir, petronet was up by 20% yesterday. Any idea why?
Ramesh S Damani : gas related plays maybe
KRR : UB: CAP GAIN: I know i am stratching this... but if i sell it today, then tax on gains till date would have to be borne my me... i wouldn't be tax free :-)
Ramesh S Damani : if you sell in the market it will be tax free
baracuda : gail appears to be a stock which warren buffet if investing in india may have studied what do yu say
Ramesh S Damani : i agree
vikas1 : Godrej Ind : With Adi godrej clearly saying Jan profits are going to be very good , u think still lot of steam left in Godrej Ind. though already it is cheap
Ramesh S Damani : i am holding on at this time.
Jughead : Mr.Damani, there's a rumor of bonus from Banco products, true?
Ramesh S Damani : no idea
optimist : Mr. Damani, Any new idea today you can share as no one has asked till now :)
Ramesh S Damani : nothing new
optimist : Yes, you are indeed the man with the Midas touch. if I had half the skills and knowledge what you have I would have quit my job long back
Ramesh S Damani : you would be surprised how much we all have. it is a question of developing and trusting what we have
PKM : Sir, What is your views about IDBI at current level. Please reply.
Ramesh S Damani : look okay but around 120 take another look
vikas1 : Sir, your top stocks for next year . we know we have to be patient
Ramesh S Damani : maybe on the last show of the year
BrijNiralay : Buffet story: Damaniji, Customers always go back to a product: Considering Rice to be a product which should do well in exports, do you have a ny value picks in this sector ? - Yourvalue fan
Ramesh S Damani : i did, they have run up so no new ideas
baracuda : isnt it surprising that the simple business of digging mud can be a highly profitable business and yu realised it when the price was 17 ado yu see bright days ahead for beml
Ramesh S Damani : in fairness they do a lot of other things also
JesseLivermore : Polyplex corporation (EPS 46,Forward EPS 60),CMP=250,CAGR=30%, Thai subsidiary is worth more than its indian parent (70% share).Hows that?
Ramesh S Damani : these things happen. that is the op in the market
buffettomorrow : There was a good idea from someone to start Rameshdamani Mutual fund. I TOO AM TOTALLY FOR IT. I have started reading transcripts from June onwards and invested CAUTIOUSLY but have been rewarded GENEROUSLY. Thank You Mr. Damani
Ramesh S Damani : thx for your kind words
kmaneesh : Sir, I threaten to login by another name !!! you never reply to my query.... is chambal fert worth holding for the next 3 months? pretty stagnant now... sonata software is looking up for now... shd i go for it?
Ramesh S Damani : pls dont. i can't answer all Q.i dont follow CHambal, hence no view. SOnata is up on buzz o stong order
RameshDamaniFan : Sir, you didnt answer about Cummins? Do you think its a good buy at this point. Please answer. Thanks
Ramesh S Damani : havent looked at it recently
optimist : and everyone who is Thanking Mr. Damani, I feel that I have missed the bus :( as I started only last month
Ramesh S Damani : opportunites abound in the market and with all good analysts.
baracuda : everybody is today talking of RD mutual fund i feel if we all follwed his advice carefully for the last 2years and allocated capital accordingly we all would have had a RD mutual fund by now
Ramesh S Damani : you are an old netizen. Markets test us all. I have been lucky last few months
JesseLivermore : After my questions, just one thought. I was there in your Retail investor camp in Grand Hyatt. You are a mighty good presenter with solid conviction backing your thots. Very very impressed sir.
Ramesh S Damani : great. i enjoy such speaking engagements.
BrijNiralay : After ITC the one co which could be considered as a value pick and still at reasonable levels is Godfrey Philips with Dividend history of over 170 % for the last 3 years Your take on the same pls - Your Value fan
Ramesh S Damani : godrej looks good to me. thanks all for joining. see u all next weekbye
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