Chat with Ramesh Damani on Good Investments

Ramesh Damani, Member BSE
	What's good investment now?
How are the markets looking?
Chat Transcript
Ramesh Damani: Thanks for joining in, lets start vetri67: Sir can i buy goldiam inter Please sir Ramesh Damani: i would wait to understand the retail foray before buying at this stage mukundmalagi: sir mutual fund have sold hoec to a certain extent in december does it affects the long term prospects of the company specially when drilling to begin in CYOS97/1 property which is a very good prospect whats your view sir Ramesh Damani: i think the boost in energy prices augurs well for HOEC.I would hold on newbieatstock: newbieatstock: Sir have you been tracking alok industries, it seems the management will not be diluting equity anymore, the expansion should start showing some effect after October 06 or so, stock seems reasonable at these prices. Your views Ramesh Damani: i have been put off by the constant dilution, sohave not followed it rtaori: Hi Sir..What is u r view on Shreyas Shippin as a Logistic Player? Ramesh Damani: i am notsure they are a pure logistic player, I could be wrong. Take a look at ABC LTd. Co is at .30 times sales, and recent deals have been done at rich multiples rtaori: Sir can TVS Electronic be another Turnaround Player...u r views. Ramesh Damani: it does have the potentail. co has barely performed tigershark: a co similair to mangalam timber is greenply do yu follow it and would yu add it at 100 Ramesh Damani: yes, but mangalam has a huge timber reserve venu73: sir, any idea about elnet technologies . this is involved in construction . please tell me outlook for this company.pleaseeeeee!!!!! Ramesh Damani: dont follow it sorry rockboymcsdedi: Damani Ji, Can we buy Surya Roshni, Manglam Timber, Hitachi Ramesh Damani: i think they look good, i have positions in all of them tigershark: is the downward risk in HOCL seem to be capped to a certain extent Ramesh Damani: capped by what? sridharmbbb: Sir out of Gai, Balmer lawrie, aegis losistics, which stock you like the most and which is looking undervalued to you. Kindly answer. thks Ramesh Damani: they are not looking undervalued at this point. newbieatstock: Sir ABC India has had flattish sales for the last few years, do u think things will change now ? Ramesh Damani: it should, with othe co\'s booming. THe valuation reflects poor sales, so it is in the price sriram_finance: Sir, The recent increase in cotton prices and the reduction of Denim prices would be BAD news for Arvind Mills. How serious would the impact be? Ramesh Damani: that would be bad news,no question about it Nilen: sir i want to know that how do u value liquor divison in a sugar company, ur inputs are vaueable because u hold many good liqour stocks. Ramesh Damani: maybe one time sales if it has a brand in it newbieatstock: Sir what would be your top sells in this market, not a particular stock but which sector are you skeptic about. Ramesh Damani: retail is too frothy sanju_prof: honey well do you still recommend yto buyat cmp Ramesh Damani: i think they are going to grow well over the next 3 years. i would hold on sanju_prof: sir you are helping investors a lot i got to learn almost everything my outlook has totally changed towards equities. thank you sir Ramesh Damani: that is the idea, to become better investors tigershark: conagra mauritus sold 2% of atfl for strategic reasons are yu unduly worried Ramesh Damani: not really, they dont want to consolidate newbieatstock: Sir what?s your view on balmer lawrie now? The stock has done well; do u think the income from tourism could be the next driver? Ramesh Damani: generally operating business is doing well rockboymcsdedi: Damani Ji, What is your view on coming IPOs [ Raj Rayon, Royal Orchid Hotels, Nitin Spinners]? Ramesh Damani: i dont really track ipos 1kamal1: MARKET : are we going to see corrective phase or severe correction phase before budget and in general where u think market heading for . 12000! or 15000! with 1 yr point of view Ramesh Damani: timin gis not my strength.,Focus on good co\'s hemant26: Sir what do you think are the prospects of Kale Consultants once the mgt. has come out and said that the order book is more than 300crs. Ramesh Damani: the figure seems a bit aggressive tigershark: regarding HOCL i meant the price in other words is the worst in the price Ramesh Damani: i would think so swamik: Dear Sir, What Is HOEC ? is it hindustan oil exploration company or hindustan organic chemical? Ramesh Damani: hoec is hind oil, hocl is hind organics jkbond: Sir, do you trade in Shloka Infotech? Or have you bought it as an investment? Ramesh Damani: it is a trade at this point The making of an American capitalist; Market Wizards and Of Permanent Value; The Story of Warren Buffett. The making of an American capitalist; One up on Wall Street; Ramesh Damani: the above books are good. Add to that Poor charlies ALmanack. (hard to get and expensive, but beg borrow but read it) newbieatstock: Sir there was an article about India?s largest starch manufacture Ridhi Sidhi in Business India, did u read it, the company has a turnover of about 300 cr, EV of about 150 and a MCAP of 83 Cr. Would you take a look at it, the company has recently started exporting as well. Ramesh Damani: thx for the idea Ramesh Damani: thx for the idea portici: Sir should one enter the scrips U recommend at the present market levels or should one wait for a correction Ramesh Damani: dont time the market. If you are finding value buy it MithunSoni: Sir, when u invest for long term, do u still trade in them or just sit tight with it Ramesh Damani: generally sit tight krm_tdm: Here are 5 classics : Reminiscences of a stock market operator; One up on Wall Street; The making of an American capitalist; Market Wizards and Of Permanent Value; The Story of Warren Buffett. MYJAFZA: Sir Is Foursoft still a Hold with Logistics business booming globally Ramesh Damani: it is, but co has not got its act together yet kavitabist: Nucleus software: Good Evening Sir, Growth projection is 30%, current price earning ratio is around 23. Do you think this company is still cheap? Ramesh Damani: not cheap but high quality. THat has a premium MithunSoni: Do you read financial magazines a lot of just newspapers and Annual Reports Ramesh Damani: pretty much everything vignesh_20000: what is the fyo6 estimated eps of honeywell Ramesh Damani: they shoudl grow at 30% plus swamik: Dear sir, Your advice please, to make your investment to grow, is it a good idea to swap your current position or hold on? For instance i hold nucleus, Balmer, gati, aegis, most of your recommendation in little qty, like swaping nucleus with HOCL etc Ramesh Damani: i dont recommend portfolios. As a rule dont sell your winners so easily madanjitsingh: Sir, What is your iopinion on Mohan Meakins. Is it a turnaround story ? Ramesh Damani: they are going to be sold soon Prateek_Shukla: Sir going by the logic you are applying for ABC, dont you think TCI is still undervalued...M Cap of 300 Crs and Sales would cross 1000 Crs this FY?? Ramesh Damani: you are right it is kavitabist: Return on net worth (ROE): Sir, Please name a few companies in your view, were ROE is low but likely to go up in future? Ramesh Damani: that would be startups. No names crop up immediately vipinbhandari: Sir, Pls suggest value picks for 2006. Which sector u feel can outperform going forward. Ramesh Damani: i occasionally come up with basket. Here is four stocks around fifty. Co\'s have poor b/s but some assets that may trigger a turnaround. Ramesh Damani: the list is 1)Mangalam TImber (43)- huge real estate (2) Hind Org CHemicals (41) Last of the psu bargains (3) Encore SOftware 38) ipod technoligies for the masses (4) ABC Ltd - Logistics player makes attractive merger. BE patient and remember they are risky co;s. I own and trade in all these stocks anupraj76: If you can please recommend 1 dark horse in each of the large, mid and small cap Ramesh Damani: teh above 4 are all dark horses valueinvestor42: Shloka Infotech is purely, but at a low price, give it a plug on moneycontrol and dump the stock, huh? Ramesh Damani: that is not the way the market works Ramesh Damani: that is not the way the market works kavitabist: Sir, The Japanese makers have failed to spend enough money to promote its products in India while the Koreans strategy of investing in research, cutting prices and building vast networks have paid off. Do you think Panasocnic Home and Hitachi will be able to compete these Koreans Companies? Ramesh Damani: great questions. THe koreans have left the japs far behind sanuj: sir- GEOJIT FINANCIALS doing well, may report 8-9 cr PAT for q3, might end up with 15-16 RS EPS FOR FY06. DO YOU THINK GEOJIT HAS POTENTIAL TO BECOME COUNTRYS TOP FIVE BOTH COMMODITY Ramesh Damani: i think they do. they are doing a great job. However it is not a business with a moat. krm_tdm: Ramesh, I am sorry for sending that book list so many times (spaming), actually that happend becoz of this chat, this is not user friendly, I am not sure whether my questions are reaching you or not, hence i sent it more than couple of times Ramesh Damani: no problem, thanks for the list newbieatstock: Sir can u arrange for a few copies of the Kingfisher 2006 calendar? Ramesh Damani: email mallya (spam him) sridharmbbb: Sir out of UBHolding and mcdowel which one you will prefer? Ramesh Damani: over time mcdowell, next few months maybe UB Holding anupraj76: would you recommend buying Mohan Meakins at these levels Ramesh Damani: it hardly trades krm_tdm: Moderator: Evry time I have to logout and log in to see the questions and answers, I mean the Refresh is not working unless I logout and login again Ramesh Damani: moderator please note kavitabist: Marc Faber: Sir Marc Faber is very bullish on the Gold. What Company will get benifit with the rising price of gold? Ramesh Damani: cant thinks of a lsited co Ramesh Damani: my sense is it would apply to nucleus. Aegis will require capex to keep the growth rate up PRABHAT57: RESPECTED DAMANIJI,ON YOUR RECOMENDATION I AM HOLDING SHARES OF GAIL.RECENTLY THERE WERE TWO NEWS FOR GAIL-1)GAIL ANNOUNCED THAT ITS SHARE OF SUBSIDY WAS 44% LOWER .DURING QRTR.ENDED DEC05 AGAINST DURING THE SAME QURTR LAST YEAR. 2)AN AGREEMENT IS GOING TO BE SIGNED BETWEEN ONGC AND GAIL FOR THE PURCHASE PRICE OF ONGC GAS.BY THIS GAIL WILL HAVE TO PAY INTERNATIONAL PRICE TO ONGC FOR SOME KIND OF GASES.THIS WILL IMPACT GAIL\"S PROFIT BY 200CR.SO WHAT,S YOUR VIEW. Ramesh Damani: i have not worked the numbes, but your logic is right. Gas is the fuel of the future and GAIL control its gates. I remain bullish on it sanju_prof: Sir how can one associate with you in remotest possible way also inform when your lecture wl be so that i can atleast once see you Ramesh Damani: bse will be holding my class in Feb. You can check the web site bseindia 1kamal1: SHLOKA : It looks good i a sense that i think they are merging all its subs whicha re into TRAVEL , ANIMATION . all sunrise sector. Low market cap makes good sense specially when its BIRLA CO. Ramesh Damani: and they are raising money, always time when they pay attention to value kavitabist: Margin of Safety: Sir please tell us how do you calculate \"margin of safety\". Do you also use rate of return of bonds as benchmark, If bonds what kind or type? Ramesh Damani: it is an art form not taught in a chat session tigershark: regarding poor charlies almanac you said beg , borrow but you did not say steal it goes to show that you really are a great person i would have said beg borrow or steal but yu did stop short definately with a purpose Ramesh Damani: my point was read it. celary we must respect soem ones property Ramesh Damani: its not my favourite stocks, I understand they are doing well from friends lookforprashant: Sir Tata technologies is internally alloting shares to its employees at 100Rs. They are planning an IPO in 2006. They may give 1 share of TCS for 5 of TTIL. Do u think its worth to invest at 100 for 2yrs?Please comment. Ramesh Damani: it seems to make sense venu73: SIR DO U HAVE ANY IDEA ABOUT SPICE LTD(FORMERLY MODI OLIVETTI).THEIR MOBILE INSTRUMENTS BUSINESS IS DOING WELL .PLEASE GIVE ME VALUABLE ADVICE Ramesh Damani: no idea Prateek_Shukla: Sir Surya roshni has almost Rs 42 per share in the form of cash reserves and post pref alloment that would increase to 46.. A company with 1200 Crs sales available at valuations most of which is reserves... damn cheap isnt it? Ramesh Damani: it looks attractive at the current time, Op bus should do well sanuj: SIR- what kind of equity dilution you expecting in HITACHI after merging its other biz. What are the outcome of synergies after merger. Ramesh Damani: i dont have the details, but it seems a positive step sanuj: sir- did you ask anything to MR. FABER on UB holding, his company winstar holds 1.5%. whats his view on indian real estate mkt. Ramesh Damani: he is bullish, krm_tdm: Moderator:I am wondering that this is the problem only for me or to all users here in this chat. It is not refresing and every time I have to logout and login again to get new messages Ramesh Damani: MODERATOR PLS NOTE sanuj: sir- after the initial blip, GODREJ want to modenise their retail stores, do you think it offers both value and growth at current level. sanuj: sir- after the initial blip, GODREJ want to modenise their retail stores, do you think it offers both value and growth at current level. Ramesh Damani: the plans are exciting newbieatstock: Sir am reading beating the house ? ben mezrich, have you read it, if not get it, what are you reading these days. Ramesh Damani: i have reaD it. Just got a offbeat book on former PM Lal Bahadur shastri krm_tdm: My dream is to meet to once , take your autograph and have lunch/dinner. It is my dream Ramesh Damani: respectfully, you should have bigger dreams than that. Thanks though for a good compliment portici: Sir U did not include Surya Roshni and Hitachi in the list U gave? Ramesh Damani: those are tegular recommendations lookforprashant: Everybody. When u login and come on chat window press Ctrl N. It opens new chat window. In this window everything refreshes automatically. Ramesh Damani: netizens please note JOEGRANVILLE: ramesh, barton biggs just released book hedge hogging???r u planing to read it..i got it from amazon today nd it looks good???thanks Ramesh Damani: i would love to read it sridharmbbb: Marc faber is bullish on real estate. He is bullish on Metro cities or non metro cities? Ramesh Damani: nonmetro lookforprashant: Sir once u had recommended panasonic appl after that we never discussed it. Stock is also still on 38. Is it worth a look? Ramesh Damani: it will take time. be p[atient Ramesh Damani: thanks all for joining. see you nxt week. bye moderator: Thanks, Mr Damani. This chat has now ended. Thank you everyone for participating. Thank you Mr Damani for giving us your expert views on the markets, we hope to see you more often with us at moneycontrol.com.