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THE CHAT ROOMS
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'Keep an eye on IT''It is the most dynamic sector in our economy, as oil is in the middle east, says Ramesh Shrichand Damani. Ramesh S Damani : I am not very enthusiastic about the petrochemical industry. investor : Mr. Damani, I have invested in Indogulf fert. at around 40 rs.What you see for the company and will I be able to make some profit? Ramesh S Damani : I think it has a good dividend yield. The price should eventually cross Rs 40. Pranab : With the stock markets down and a war on, do you think it would be a good idea to buy into refining, biotech or infotech stocks? Ramesh S Damani : Biotech infotech are okay at current levels. investor : Rameshji what are your view on BEL and VSNL.When Should I sell them Ramesh S Damani : I hold both these shares.I would keep them for now. yudi : bharti tele is goin for ur ipo. is this a good time? wats ur take on teh company? Ramesh S Damani : I find Bharti to be shareholder unfriendly. investor : SIrji I have Tata Tea purchased around 240 rs.Prise have then come down to around 140 level what should I do? Ramesh S Damani : I would hold on. Tea is doing badly. However its market cap is only Rs 6 billion or so. chela : why is mtnl share priced so low in the indian markets? y does the market not like mtnl? Ramesh S Damani : Market does not like PSU shares. Also, telecom is not a favoured sector worldwide. investor : MR. Damani what you feel where markets are headed?? DO you think sept. 11 panic effect is over now?IF I have to invest in small quantities when should I start and upto when should I be fully invested Ramesh S Damani : I feel the worst in terms of prices is over. I think you could start at current prices. chela : thanks ramesh bhai ..i am a big fan of urs.. i alwys log in for the chat :) Ramesh S Damani : Thanks. vishakha : Shri Damani-ji, I do not understand the stock market very well, but after my husband's death I plan to invest some of the money he left me... Is buying IT stocks a good time...? Ramesh S Damani : It is a very serious question. If that is your savings left please be careful with it. You need to strech the money. No easy answers as to the right time. I would ask a trusted friend/financial advisor. Be careful. investor : DO you see the possibility of Tata tea going pass 250 rs. mark?if yes then how long do you think it will take atleast... Ramesh S Damani : It may take a while, but it will. If inflation comes back all commodities including tea and cement prices will rise. bulldozer : hey ramesh..why are u so anti ssi...u always prefer niit to ssi..why is that? I hold ssi at 500/ share and niit at 400/ share. Ramesh S Damani : NIIT has never diluted its equity. SSI has done that 3-4 times. They raised Rs 4.5 billion one year back. I would like an accounting of the money. investor : Rameshji, What you feel about Hindalco as prise for the stock is around 540. In your list of investable stock with good potential in terms of trading opportunities as well as safety also. or It isn't a good stock to buy for the time being Ramesh S Damani : Safety yes. However keep a look at commodity prices before turning too bullish. wert : any there any insurance companies listed on the stock exchange? Ramesh S Damani : Indirectly. Max India and Birla Global. Abhishek : Hello! damani ji, I am Indian National Working In Germany, can you recommend me best online trading practice? Ramesh S Damani : Try icicidirect.com owned by ICICI. sriraman : What is your take on container corpporation,engineer's india,moser bear Ramesh S Damani : I just bought some Container Corp. The rest I am lukewarm too. bijay : What is the future of infotech stocks ? Ramesh S Damani : I think it is okay. Buy good management with good plans. Desperate : Sir, this may seem old to you, but I lost some money in an NBFC some time ago... How can people like me can recover teh money? Ramesh S Damani : Sorry no easy way. elusive : what is your take on HFCL? Should I ever consider buying it since it is at a low Ramesh S Damani : I am not bullish on its prospects. 123 : does falling interest rates really help equity markets? Ramesh S Damani : It does. People are fed up with low returns move to equity. Also interest cost as an expense comes down, hence profit increases. Abhishek : Do you think rediff.com will be good investment in dotcom busting environment? Ramesh S Damani : Can't answer. Conflict of interest. elusive : And what do you think of Zee crossing the Rs 100 limit and staying above that limit. Ramesh S Damani : If they find a strategic investor. 123 : what sector(s) will outperform the next bull market? Ramesh S Damani : I hope IT enabled, PSU and restructuring stories. arahaman : What's about L&T at the present level? Would it be down further due to cement division? Ramesh S Damani : I own some. But management keeps disappointing. sriraman : what is your cement industryis it grasim,acc or gujarat ambuja Ramesh S Damani : They will do well. ACC and Ambuja. 123 : how do you see sept. 11 events impacting "globalization" process? Ramesh S Damani : It will cause a rethink. guest : Rameshji - what do you think of Geometric software? Ramesh S Damani : It is a good and well managed company. I own some. However it is still too small. sriraman : have you ever had any multi baggers in life please reveal. Ramesh S Damani : Sure maybe 8-12. It is a great feeling. deen : Good day Mr Damani, Have you heard anything about the iflexsolutions IPO? Ramesh S Damani : It should be coming soon. Nothing more. 123 : what is your opinion on cos. delisting their shares through 100% buy-back. Ramesh S Damani : Indian shareholders will be poorer. Abhishek : Every Where In indian Market you see TATA? Don't u think this monopoly can effect intrest of other groups? Ramesh S Damani : As a group, all shares have underperformed dramatically. Only shares doing well is TCS, which is not listed. The group has lost its promise. elusive : sorry Crest Communications. Would it ever recover?? Ramesh S Damani : No easy answer. Currently it looks dull. Abhishek : How will TATA Power do if they take share of dieing Enron at dabhol? Ramesh S Damani : I am not in favour of it. FinancialAnalyst : One more question on Technology industry . There has been lot of talk and people going gaga about the robustness of Indian outsourcing model . However, considering that it reality , only less than 15 percent of the software projects gets offshored and even in that pie, India's share is less than 2 percent. Given this background , why so much of noise being generated by Nasscom ?. Your realistic views please .. Ramesh S Damani : I believe the India Digital story. IT will happen. It is the most dynamic sector of our economy. Like oil is to middle east. Keep an eye on it. 123 : why do you say indian shareholders will be poorer in case of 100% buy-back? anyway it is no use holding insignificant shares if almost all the shares are bought back by the company. Ramesh S Damani : Correct. I am saying it at a philosophical level. Think if Lever was private. What a blow to Indian equity markets. Sanjay : Hello Sir, Whats the future of Global Tele - can it rise to 300 levels anytime in the near future, they have not been involved in KP controversy though their business is not exacly booming but fundamantals seem to be on target - kindl advise Ramesh S Damani : Momentum stocks rarely come back.They are flavour of the month type of thing. Look at new horses. malayhirani : Dear Mr Damani, from Where i can findout about exact amount of The Total Indian Govt. Debt utstanding face value because my friends from USA want to invest in Indian govt securities in extremly large amount. Ramesh S Damani : Go to RBI web site. They should have it. Abhijit : When will BSE sensex again reach 5,000 mark? Ramesh S Damani : It will. It is impossible to tell when. It may take 3-5 years. Abhishek : I am planning at least Rs 100,000 but in new and upcoming IPO, Dilemma is that there is no new IPO from last 2 months, will recommend me any pipelined IPO? Ramesh S Damani : Wait for iflex. It may be good. bullish : It looks like Geometric Software is in a protected niche market with high entry barriers. What do you think of long-term chances (3+ years) of the scrip from a fundamental view? Do you take a fundamental view or a long-term view at all? Ramesh S Damani : I do take a fundamental view. However I don't believe they have high entry barriers. Management should move aggressively. FinancialAnalyst : Thanks for your response on technology industry. Certainly , IT has been the most dynamic sector of our economy. Accepted. Is it not because of the unstinted support of Govt. to the blue-eyed sector in the form of tax-breaks and negligilble intervension. ? Further, how long the Indian IT companies can survive based on low-end projects ( more than 90 percent of revenues ) given the reducing cost-efficiency ? Ramesh S Damani : Some thoughts. First IT should stop asking for sops. Government will strangle them like they strangled textile stocks, steel etc. Government in India cannot promote an industry. Japan started with cheap cars. Today they do Lexus. We will move up. I am confident. osama : wat is future of derivatives on the BSE Ramesh S Damani : It is taking a long time at taking off. Market could gravitate to one contract. jas : Mr Damani..I just bought some E Merck today.. looks grossly undervalued...and has been hammered down recently too...they have a decent mix of pharma + speciality chemicals which shd give them decent margins..any views ? Ramesh S Damani : I generally avoid pharma. I'll take a look at it. akash : what is the story about Infotech Enterprise. Is it having good management? Ramesh S Damani : It is in IT Enabled. I am not yet sure of the quality of management. They are having a good year. vsr1 : Recently there was an announcement by a stock analyst company stating that investing in the the Indian IT sector is very risky. Because of this the India IT stocks plunged further. Why don't SEBI or someone take steps so that such companies don't create negative sentiments on the share holders? Ramesh S Damani : It's a free market. The noise cancels each other out. Good results can stop any negative sentiment. bullworker : Analysts say that Indian IT rates are being discounted at $ 10 - 12 per hour abroad. how long can the biggies like infy and wipro protect their rates in this environment..isnt it a matter of time before they also report losses? Ramesh S Damani : Not very long. However they need to move up the value chain. They all missed a great opportunity to buy CMC. bull : Companies like Zenith have cheated investors by announcing buyback at 35 when they IPO'd at 110. What do you feel? Ramesh S Damani : I agree. It's sad. sriraman : In 92 there was replacement cost theory 2001 we had discounted cash flow what next Ramesh S Damani : Pies in the sky. If India gets10 per cent of the software market what will happen?? alok : Mr. Damani, One year ago you were very bullish on a company VDO India! Since then the stock price has come down by one-third! What is yr current assessment of the stock? Ramesh S Damani : You are right. I still own it. Management keep on changing. Nothing exciting,. osama : Osama says, , there is lot of circular trading in bse doerivatives wat do you say about it Ramesh S Damani : I have no idea. alok : Mr. Damani, What is your assessment of Indian Hotels considering its high quality of assets, brand name and reputed management! Should we buy for long term? Ramesh S Damani : I bought some for the long-term. Current earning will be badly hit. Buy if you like value. coolvirus : sir every boday says it growth is 30% but it stock are being depriciated 30% every month, wat is ur view on this Ramesh S Damani : In a bear market prices fall. Market may have assumed a 50 per cent growth rate. deen : Mr Damani - at what multiples will ilfex be a good buy? Ramesh S Damani : Not seen the IPO prospectus yet. jas : Mr DamaniI can't believe that people are still buying Dr Reddy, Ranbaxy etc at these prices.. Looks like they are going to lead the next fall in the Sensex... Even funds seem to be ignoring that they have more downside than upside ? Ramesh S Damani : Good stocks are expensive. mandar : what do think of Vikas WSP Ramesh S Damani : Avoid. dash : hello sir , what will be the effect on share price of ICICI after its merger with Bank? Ramesh S Damani : Too early too tell. Let's follow this story. Thanks for joining in. See you next week. | ||