Newsletter Update on Stock which moved up on Friday

Disclaimer - The below comments are from a Newsletter. Just sharing. I do not recommend buying at this time except for accumulating Reliance Industries slowly.

WHICH SHARES TRIED TO RISE WHEN THE MARKETS CRASHED ON FIRDAY?

Ankur Drugs: (BSE: 531683. Rs.239.90) It has been gradually moving up in the last few weeks. From a recent low of Rs 159.45 on 14 February 2007, it surged to Rs 218.70 by 1 March 2007. At the current market price of Rs 239, Ankur Drugs trades at 8.20 times its Q3 December 2006 annualized EPS of Rs 29.01.

The net profit has risen by a whopping 200.90% to Rs 6.89 crore (Rs 2.29 crore) in Q3 December 2006. Net sales during the December 2006 quarter rose 91.10% to Rs 66.69 crore from Rs 34.89 crore in the year ago quarter.

Ankur Drugs has signed a term sheet jointly with Labtech, Germany, and Applied Pharma Research over intellectual property rights for a novel technology.

Ankur Drugs has also associated with Optimage, Germany, for requisite machines and equipment, and with Siebler, Germany, for various chemicals to manufacture Rapid film. The exclusive manufacturing right for ‘Rapid film’ in India and other territories (Bangladesh, Sri Lanka, Pakistan & Afghanistan), has been awarded to the company for 15 years.

Recently Reliance mutual fund has hiked its stake in the co to 6%. In normal market conditions this scrip can go up further.

TELEDATA INFORMATICS: (NSE/BSE: 532358) It has moved up from a low of Rs.39.90 to 47 and closed around Rs.45. Recently the management of the co. is holding share holders meetings in the major cities. It has also posted brochures to share holders. The projections of the co. are mind boggling.

For the year ended in March 05 it reported a turnover of Rs.1050 Cr and a net profit of Rs.149 Cr. In the current year from the results announced for the last three quarters it is expected the turnover to be around Rs.3500 to 4000 Cr and the net profit to be over Rs.350 to 450 Cr. Yielding an EPS of around Rs.30. The dividend expected is around 25 to 30%. What is exciting is the turnover for 2008-09 is projected at Rs.16, 000 Cr and the net profit Rs.1250 Cr. The co is planning a turnover of Rs.33750 Cr by 1010 Another Infosys in the making?

Alstom Projects (NSE/BSE:532309 )India gained 2.31% to Rs 467.25, after Reliance Vision Fund, a scheme of Reliance Mutual Fund, hiked stake in the company. The Fund purchased 48,000 (0.07%) stakes in Alstom Projects India (APIL) on 23 February 2007, through open market purchases, raising its stake in APIL to 33.89 lakh shares (5.06% stake). As many as 39,417 shares were traded in the counter on BSE. When the markets fell the share settled at Rs.450.85

Recently, Alstom Projects India bagged three hydro projects worth Rs 750 crore. These orders were for hydro projects at Uri Stage-II, Chamera Stage-III and Chuzachen. While the orders for 4 x 60 Mw URI Stage-II and 3 x 77 Mw Chamera Stage-III have been awarded to Alstom Projects India (APIL) by the National Hydroelectric Power Corporation, India's leading hydroelectric utility, that for the 2 x 55 Mw Chuzachen project is from Gati infrastructure, a unit of Gati Group

Alstom of France hold 66% stake in the company, while public-holding stands at 13% .APIL reported 304% surge in net profit for Q3 December 2006 to Rs 30.30 crore from Rs 7.50 crore in Q3 December 2005. Net sales for the December 2006 quarter rose 2.70% to Rs 297.70 crore (Rs 290 crore).

When all shares were falling there were buying orders of 2.78 lakh shares of Temptation Food (BSE: 519228 Rs.1.59) but no sellers at all.

SUMEET INDUSTRIES: (BSE: 514211.) With the news that the co is offering its shares to Bennet Coleman of Times of India group at Rs.30 on preferential basis there were buying orders of 3.57 lakh but no sellers at the upper circuit price of Rs.30.35.

Silverline technologies: (BSE:500 389) is holding a EGM to consider allotment of 5 Cr shares on preferential basis to promoters at Rs.25.51 and 3.87 Cr shares to a foreign party at the same price whereas the market price is jusRs.15.65. It should catch up to this good news.

Reliance Industries: Market analysts feel that the co. is affected the most by several negative budget proposals. Hence the share sharply declined by Rs.50 on Friday. We all know that the co being highly efficient will be able to over come the hurdles in due course. Further the promoters are also hiking their stake in the co. by allotting shares to them almost around the current market price.

WHY THE CONSTRUCTION COS ARE DOWN AND OUT? : A HIGHLY CONTROVERSIAL AND DRACONIAN LAW THAT WILL GO INTO LITIGATION IS INTRODUCED IN THE NEW BUDGET. With retrospective effect from 1st April 2000 infrastructure cos. taking on sub construction work will not be entitled to the 10 year tax benefit under section 80-1A of the Income Tax act . This is considered to be a body blow to cos like: L & T, IVRCL, Nagarjuna Constructions, Patel Engineering and HCL. The worst part of the act is they have to cough it up for the past six to seven years. This change has been bought in as only recently Patel Engineering has won its case against any payment of Income Tax even though it is a sub contractor before the IT Tribunal. FM Has tried to plug this loop hole. But can he do it with retrospective effect that too from Year 2000?