IT'S BUYING TIME : 8 PICKS FOR YOU

IT'S BUYING TIME : 8 PICKS FOR YOU

The markets are passing through a highly volatile phase with drops and gains & uncertainity,the reasons being a combination of the following :

Commodities markets on LME crashing ,Global stock markets dipping,FII's withdrawing after circular on CBDT announcement ,New Taxation announcement affecting profits of trading houses .On top of it loose words from the FM stating that " All falls in the markets do not require a clarification" etc....Plus some Fund houses like CLSA and JP Morgan saying that Indian Markets are Overvalued and fair value exists at 9600 blah blah ....

I would say that the Long Term Fundamentals are intact and bullish.Selling by FII's and Financial Institutions causing panic selling among retail investors being the main cause of this market fall...I would say that Buying in small quantities is the best to get the best stocks at this time .We calll it Bottom Fishing ....Fishing when the water is low..

As usual ,my focus point being the Small Investor -I am recommending a Portfolio of 7 stocks for the short term .

1.ALLAHABAD BANK (Rs 81.3)

Allahabad Bank has posted an encouraging Q4FY06 result with a jump of 90% in
its net profit from Rs. 793 mn to Rs. 1.50bn. Such a significant performance has
been observed on the back of strong business growth with nearly 36% advances
growth. However, a drag on the performance is higher than expected provisioning,which is up from Rs. 1.21 bn to Rs. 1.70 bn during the quarter.

2.PETRONET LNG (Rs 49.4)

Petronet LNG Ltd (PLL) on Thursday reported a net profit of Rs 661.4 mn
in the fourth quarter ended March 31, 2006 against a profit of Rs 76.1 mn
reported during same period last year.

3.CRANES SOFTWARE INTERNATIONAL (105.5): Keep Stop loss of 99.5

Holding very strong even in the weakest market with minimum fluctuation & quick recovery.

4.TRIVENI ENGINEERING (Rs 90.95)

Splitting of Sugar and Engineering into separate entities would unlock value.Turbine Orders in hand currently at 510 Crore Rupees.

5.NTPC (118.5)- Can buy it from 90-100 levels if market falls again .


6.GUJARAT STATE PETRONET (Rs 36.2)

Holding very strong even in the weakest market with minimum fluctuation & quick recovery.Also fundamentally strong and having maximum lengths of Transporation lines for LNG Transportation

7.ASSAM COMPANY (26.1) –Can buy now at Rs 25 levels

Anil Ambani Group has taken a 105 stake in this company last week.

8.CIPLA

Investors with Surplus money can invest in India's Best and Cheapest Stock -RELIANCE INDUSTRIES at Rs.850 levels and small quantities (to take care of any unexpected market falls) and averaging at every fall.

You can probably make about Rs35000/- in a month's time ,if you buy Reliance (100 nos) at 850 levels now.

SOUTH INDIAN BANK

THE SOUTH INDIAN BANK LTD

Recommendation :BUY
CMP:Rs.67
NSECODE:SOUTHBANK
Timeframe :3 months -6 months

HIGHLIGHTS

1. The FIRST among the private sector banks in Kerala to become a scheduled bank in 1946 under the RBI Act.
2. The FIRST bank in the private sector in India to open a Currency Chest on behalf of the RBI in April 1992.
3. The FIRST private sector bank to open a NRI branch in November 1992. The FIRST among the Kerala based banks to offer a Credit Card to customers in November 1992.
4. The FIRST bank in the private sector to start an Industrial Finance Branch in March 1993.
5. The FIRST among the private sector banks in Kerala to open an "Overseas Branch" to cater exclusively to the export and import business in June 1993.
6. Second largest network of branches amongst the old private sector banks - 450 branches and 45 Extension Counters spread over 19 States/UT .
7. The FIRST bank in Kerala to develop an in-house, a fully integrated branch automation software in addition to the in-house partial automation solution operational since 1992.

FINANCIAL HIGHLIGHTS :

Net Profit for Quarter Ended 31st March 2005 :-137 lakhs

Net Profit for Quarter Ended 31st March 2006 : 1631 lakhs

Net Profit for YEAR Ended 31st March 2006 : 5090 lakhs

Dividend declared :18 % (First time in several years)

SHARE HOLDING PATTERN :

Foreign Institutional Investors :18.48 % (including Goldman Sachs)

Banks /Govt Inst./Non Govt InstMutual Funds & UTI :12.07 %

Non Resident Indians :4.7 %

Indian Public :57.70 %

THE RETURNS CALCULATOR

THE 6 MONTH RETURNS CALCULATOR :Following Fundamental Analysis

Reference :My post titled "PORTFOLIO OF 10 STOCKS" dt. Nov 07 ,2005

See the Returns a small investor would have got on his investment if he had invested in November 2005 in my recommended time frame of 6 months .

1.ITC

Price as on Nov 07 : Approx: Rs 125
CMP (as on 06 May 2006) : Rs 210

2.NTPC

Price as on Nov 07 : Approx: Rs 90
CMP (as on 06 May 2006) : Rs 135

3.BALRAMPUR CHINI MILLS

Price as on Nov 07 : Approx: Rs 88
CMP (as on 06 May 2006) : Rs 185 (after going to Rs.203)

4.GATEWAY DISTRIPARKS LTD

Price as on Nov 07 : Approx: Rs 190
CMP (as on 06 May 2006) : Rs 250(after going to 310)

5.PETRONET LNG

Price as on Nov 07 : Approx: Rs 51
CMP (as on 06 May 2006) : Rs 59

6.RAJESH EXPORTS

Price as on Nov 07 : Approx: Rs 145
CMP (as on 06 May 2006) : Rs 335

7.DCM SHRIRAM CONSOLIDATED

Price as on Nov 07 : Approx: Rs 84
CMP (as on 06 May 2006) : Rs 124

8.WIPRO

Price as on Nov 07 : Approx: Rs 396
CMP (as on 06 May 2006) : Rs 530 (after going to 560)

9.ALOK TEXTILES

Price as on Nov 07 : Approx: Rs 70
CMP (as on 06 May 2006) : Rs 86

10.TAMIL NADU NEWSPRINT

Price as on Nov 07 : Approx: Rs 95
CMP (as on 06 May 2006) : Rs 125 (after going to 135)