Newsletter dated 4th May,2007

Today Sensex may open up but we might witness some profit booking during later half of the trading session.So it is advisable to short at higher levels.

SELL CALLS.....
1. Sell RELIANCE INDUSTRIES around 1646-1648 levels. Target 1632 and 1626 for today....

2. Gujarat Mineral Development (GMDC) may open gap up but it is likely to retrace 5-7% from its intraday high.It might open around 704-710 levels.Target 676 and 662 for today..So short it accordingly.

3. JSW Steel may see profit booking at higher levels. Short around 636-640 levels. Target 626 and 618 for today....

4. Great Eastern Shipping may also correct from its high. Short around 268-272. Target 262 and 258 for today...

5. Short IFCI around 48.00-48.50. Target 46.50 and 45.35 for today....

6. Short Tata Teleservices around 30.80-31.00. Target 29.80 and 29.30 for today....

THREE INVESTMENT CALLS WILL BE GIVEN TO OUR PAID CLIENTS TODAY WITH A POTENTIAL TO REWARD 20-30% RETURN WITHIN 2-3 MONTHS.

Note:-
1. All the above mentioned prices are according to cash market levels.
2. Place Stop loss 2-3% below your cost price.
3. Above prices are indicative prices.Do your own homework before trading.
4. Book profits if you get 1-3% return.

ANURAG DUJARI
Mobile - 09831909904, 09433988791, 09330911514, 09883059291
Messenger ID - anurag130
E-Mail - anurag130@yahoo.com

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Newsletter dated 3rd May,2007

U.S. stocks rallied on Wednesday, as robust profits and a flurry of buyout offers powered the Dow Jones industrials to a record high and the S&P 500 to its highest level in over six years.What's driving the market is the same thing that's been driving the market for a while -- good global growth and the shrinking supply of equities, either from corporate buybacks or from companies going from public to private.
The Dow Jones industrial average <.DJI> was up 75.74 points, or 0.58 percent, at 13,211.88. The Standard & Poor's 500 Index <.SPX> was up 9.62 points, or 0.65 percent, at 1,495.92. The Nasdaq Composite Index <.IXIC> was up 26.31 points, or 1.04 percent, at 2,557.84.

European shares ended higher on Wednesday, boosted by stronger bank and resource stocks, amid a a batch of hefty corporate earnings and ongoing merger and acquisition speculation.FTSE was up 65 points at 6485, DAX was up 47 points at 7456. CAC was up 30 points at 5990.

Asian markets have also followed up the trend of European and American markets. Nikkei is up 120 points, Hang Sang is up 205 points.Other Asian markets are also trading higher.

Today Sensex is likely to open around 100-120 points.

Todays trading calls will be given through sms only....

ANURAG DUJARI
Mobile - 09831909904

MIC Electronics IPO - Apply

Promoted by technocrat Dr M V Ramana Rao in 1988, MIC Electronics' business is broadly divided into media, information technology (IT), and communications and electronics.

The media group is primarily responsible for the development, production and sales of video displays, text, graphic animation displays and display services including lease/rental of LED (light emitting diodes), and video walls. The IT group provides telecom software solutions for telecom network management, telecom switch access and computer telephony domains. The communications and electronics group has diversified products including the digital loop carrier (DLC) on optical fibre on synchronous digital hierarchy (SDH) ring, broadband DLC for triple play (voice/video/ data) applications, code division multiple access (CDMA)/global system for mobile communication (GSM)-based wireless in local loop (WLL) terminals and phones, hand-held computers (HHC) with in-built GSM/CDMA modems.

MIC Electronics has lined up a public issue to raise Rs 65.79 crore at the lower band (Rs 129) and Rs 76.50 crore at the upper band (Rs 150). The net proceeds from the issue are intended to set up an additional facility to manufacture LED boards, invest in LED video display systems used for rental/leasing, upgrade products, beef up R&D of LED/LCD/plasma/ 3D stereoscopic displays, augment the sales network across the country and overseas, and acquire the remaining 45% stake in Infostep Inc, US, expand operations, explore overseas opportunities, and meet working capital requirements and public issue expenses.
Strengths
The LED business has excellent growth potential. The management says the 30.8% earning before interest, depreciation, taxes and amortisation (EBIDTA) margin of the segment in FY ended June 2006 has improved to about 40% in the six months ended December 2006 on reduction in R & D cost. The current global LED display market size is around US$ 3.55 billion and is expected to reach US$ 3.9 billion by 2007. The LED market has shown a CAGR of 15.98% from FY 2004 to FY 2007. Internationally, LED display renting is one of the fastest growing segments in the live entertainment industry, with a size of around US$ 210 million and is expected to grow by 12.5% year on year.

The order book of the three divisions stood at Rs 167.86 crore end January 2007, which is 2.5 times the revenue for six months ended December 2006. Of this, 33.92% of the orders are for LED video display systems, 3.57% for the IT division and the balance 62.49% bagged by the communications segment.


Weaknesses
The operating cash flow has been negative to the extent of Rs 14.36 crore in the year ended June 2006.

Nearly 90% of its entire LED requirement for outdoor LED display systems is sourced from one supplier: Nichia Corporation, Japan.

There is competition in the LED display business from other internationally reputed companies with significant financial and other resources.


Valuation
Going ahead, MIC Electronics expects the media division to be the key growth driver. In a span of two years, company has been able to ramp up the revenue from this business, from Rs 88 lakh in FY 2004 to almost 32 crore in FY 2006.
EPS for FY 2006 on post-issue equity works out to Rs 7.7 and PE 16.8 – 19.5 at the price band of Rs 129– Rs 150. The annualised EPS for the half-year ended December 2006 on post-issue equity works out to Rs 10.8. At the price band of Rs 129–150, P/E works out to 11.9 to 13.9. There is no comparable listed company. However, being in diversified segments we might give it fair valuation of P/E 18-20 which translates to Rs194 and Rs216.Investors may apply for the issue for both listing gains and long term investment.

reference:- www.capitalmarket. com

ANURAG DUJARI
Mobile - 09831909904, 09883059291, 09330911514.
Messenger ID - anurag130