>Tricks that promoters play...... (NOBLE RESEARCH)

The tricks that promoters play at the expense of shareholders

In the wake of the Satyam-Maytas debacle, we highlight the three most common tricks that Indian promoters employ to enrich themselves at the expense of shareholders. In the currently depressed market conditions, the divergence between promoters’ goals (around boosting personal wealth) and shareholders’ objectives (around growing the value of the firm) has become sharper.Moreover, contrary to conventional wisdom, such shenanigans are not confined to small cap stocks; some of the largest companies in India have a penchant for such tricks. These tricks create the need for investors to use unconventional means,such as primary data and forensic accounting, to assess promoters’ probity.

I feel this would be a valuable reading for All the Investors

Read the full Report from Noble Research: here

Alternative link to see this report : Noble Research

DLF (DLF.BO):The road less travelled; maintain Sell(GS)

What's changed :



DLF’s below consensus 3QFY2009 results (announced on January 31) confirmed a significant slowdown in property sales and construction activity in India. As a result, we push back our medium-term development pipeline projections and lower our property price assumptions. We lower our FY2009E-FY2011E EPS by 29%-62% and cut our 12-month target price to Rs124 from Rs203. We believe the recent strength in the share price, up about 20% from its recent trough post weak 3Q numbers, presents a profit taking opportunity. We maintain Sell on DLF and our cautious stance on the India real estate sector.




Implications



DLF registered four years of strong profit growth since 2004. However, we believe the company may need to realign its offerings to navigate through the current property downturn. DLF has stated that it will look to launch middle-income housing projects at lower ticket sizes. With interest rates also trending lower, we believe this strategy could revive volumes.However, we expect to see few signs of a recovery till 2HCY2009 and believe the stock would be on the sidelines in the interim


Read Full report here (DLF:Goldman)

Corporate India:Handbook on qualitative factors(CS)

■ It is clear after the Satyam incident that investors should focus on corporate governance issues, particularly because of losses incurred in the past 12 months that have failed to rise to the fore. As a result, we believe qualitative factors on management competence, honesty, a focus on core competency and internal processes will be as important as reported earnings and valuations in the next few quarters.
■ We provide one-page details on companies under our coverage to look at the softer, qualitative aspects of their make-up. While we have worked on a questionnaire-based framework, our objective has been to focus more on the spirit of the exercise rather than the letter
■ Our framework analyses corporate governance on: 1) structural risks, 2) accounting risks, 3) transactional risks and 4) events/issues that raise investor concern. Through these we cover issues such as the extent of intra-group transactions, departures from conservative accounting and provide a summary of events that may have caused concerns in the past. Most of what we report as concerns is not wrong from a legal viewpoint but flags for investors what they should know.
■ We resist needlessly quantifying the qualitative parameters and creating a contrived scorecard. The purpose of the report is to provide the first snapshot of corporate governance details, rather than arrive at any comparative list of winners and losers.

Read the full report Here(Corporate India Handbook)

The tricks that promoters play at the expense of shareholders

In the wake of the Satyam-Maytas debacle, we highlight the three most common tricks that Indian promoters employ to enrich themselves at the expense of shareholders. In the currently depressed market conditions, the divergence between promoters’ goals (around boosting personal wealth) and shareholders’ objectives (around growing the value of the firm) has become sharper.Moreover, contrary to conventional wisdom, such shenanigans are not confined to small cap stocks; some of the largest companies in India have a penchant for such tricks. These tricks create the need for investors to use unconventional means,such as primary data and forensic accounting, to assess promoters’ probity.

I feel this would be a valuable reading for All the Investors


Read the full Report from Noble Research here

>Daily Market Preview (MARWADI FINANCIAL)

MARKET PREVIEW

# The global economy gloom is taking heavy toll on equities, as they
tumbled 3-4% yesterday. Sell off in Indian markets continued after
Monday debacle on recession worries. We believe that Indian
economy has inherent strength to bounce back faster than other
economies. However, there are concerns in the short term.

# We suggest to avoid trading as markets have broken key support
levels. We reiterate that markets are at accumulation level for long
term investment. Watch for crucial support level of 2700 on Nifty.

To see full report: Market Preview 18-02-2009

>Daily F&O Report (MARWADI FINANCIAL)

To see full report: F&O 18-02-2009

>Daily Technical Report (MARWADI FINANCIAL)

Market fall around the world. All most all the global market perform in negative zone due to recessionary impact deepen. Since last two days we experience the massive sell-off in the Indian equity market. Effects of budget and global recessionary pressure come together and market comes in to bearish zone. Again today also looks same kind of situation, so we recommend to hedge the position with appropriate price put. Againcounter commodity Gold market are at a life time high rate due to safe heaven of investment.

One expectation from the central bank is that they may cut key policy rate to enhance the liquidity in the system and boost up the sentiments, so keep watch on that counters.

On technical note market looks open with gap-down and through the day will remain in the negative territory. In morning session Gap-down opening but after Gap-down recovery is possible. In morning session it is to be wait and watch strategy and stay with key support. After taking a key support short covering is possible, and conformation of that event makes fresh position.

Today sensex trade in the range of 9125-8905 And Nifty in the range of 2810-2715

To see full report: Technical Report 18-02-2009

Top Buys (Religare)

TOP BUYS (FEBRUARY 2009)

• Cipla
• Dishman Pharmaceuticals
• Hindustan Zinc
• IVRCL Infrastructure
• Onmobile Global
• Orient Paper & Industries
• PSL
• Punjab National Bank
• Zee News

To see full report: TOP BUYS

>What's In What's Out (RELIGARE)

WHAT'S IN WHAT'S OUT (FEBRUARY 2009) In January 09 AUM rose by 9.4% to Rs.461698 Cr. Top 3 gainers are LIC, IDFC and Deutsche Mutual Fund with increase in corpus of 30%, 28% & 18% respectively. On the other side Edelweiss MF AUM fell highest by around 58% followed by Bharti AXA 24% & Benchmark 16%. Religare MF also came under top 10 fund houses with higher monthly increase in AUMs
MFs have sold shares of Satyam Computer Services Ltd, Infrastructurs Development Finance Company and GVK Power & Infrastructure Ltd. Shares of Satyam were held by 17 AMC's where as Infrastructure Development Finance Company by 3 AMC's and GVK Power by 2 AMC's.
MF looked bullish on Balrampur Chini Mills Ltd as it has attracted investments by 5 AMC's. MFs also invested heavily in Corporation Bank which is held by 5 AMC's. 3 MF's have also purchased more number of shares of Power Grid Corporationof India Ltd.
MF's continued to hold earlier popular largecap stocks like Reliance Industries Ltd, ICICI Bank Ltd, State Bank of India, Bharti Airtel Ltd, Larsen & Toubro Ltd. 108 MF schemes hold more than 5% of scheme corpus in Reliance Industries Ltd. To see full report: What's In....