Tuesday, September 30, 2008

For the price of an air-ticket, you can buy a home in US

CHENNAI: Return tickets for Delhi-New York are priced around Rs 75,000, but with real estate prices crashing in the US, Indians could buy homes t

here for the same amount! Thanks to the bottom falling out of the US housing market and struggling families abandoning homes, unable to keep up with mortgage payments.

A detailed look at US realty websites such as realtor.com, zillow.com and ziprealty.com show that homes with one bathroom and bedroom are being advertised at anywhere between $1,500-3000 (Rs 69,000-1.38 lakh), an incredible fact by itself, in places such as Detroit, Michigan, Jackson, Mississippi, and Cleveland, Ohio.

"The lowered residential property rates in many parts of the US can be attributed to the sub-prime crisis, which has caused a huge surplus of stock in the market, besides reducing liquidity, which slows down absorption," said Raminder Grover, MD, Homebay, a subsidiary of international property consultants Jones Lang LaSalle Meghraj.

As per law, homes can be purchased by US residents, and the low prices could suit students travelling to US and techies sent for on-site operations. As per the RBI cap, an average Indian can invest upto $200,000 (Rs 93 lakh) in US real estate.

"Students live in apartments or as paying guests by shelling out $250-500 per month. If they or their parents can afford to pay money upfront, this might be a good option for students planning to stay for 1-2 years," said Sridevi, US counsellor for Valmiki Group, which processes study visas for US. Over 6% of US home loans are in arrears and around 1.5-2 million Americans have lost their homes to foreclosure in 2007.

As in India, additional costs could be from the cost of borrowing, brokerage payable for the location of suitable property and registration of the purchase. For the likes of Rohan, an IT professional who is soon to be sent to New York for 3-6 months, a home could straightaway save $500-1000. Junior and middle-level techies get $400-600 per month as house allowance, while project managers and higher-ups are said to get even $1,000 per month.

But students or techies going to states such as Nevada or California may not be as lucky. "In California, homes still come at $50,000-200,000. Indian students cannot afford to pay that much. Plus, a group can still rent out an apartment for $2,000-3000 and split the costs," Sudha Kumar, recruitment coordinator at Viterbi School of Engineering (University of Southern California), said.

Bailout defeat sends markets reeling

TIM HARPER AND RITA TRICHUR
TORONTO STAR
A stunning rejection of a $700 billion financial bailout package by the U.S. House of Representatives yesterday sparked a historic North American stock market selloff, and left the United States in a crisis with no end in sight.

During an emotional afternoon in which the House dissolved into partisan finger-pointing, the bill was defeated 228-205 and, even before the voting was complete, the Dow Jones index began a freefall that ended with a loss of 777 points and $1.2 trillion in market value.

Toronto's S&P/TSX composite index collapsed into a sea of red after shedding a whopping 840.93 points to close at 11,285.07. The benchmark index had fallen by more than 900 points at one point during the session, buckling under the weight of tumbling energy and financial shares.

While it managed to recover from that low point, yesterday's 6.93 per cent decline was the index's steepest one-day percentage drop in nearly eight years. With only one trading day left in September, the TSX is poised for its worst monthly performance in about a decade.

The next move in Washington was unclear.

Both sides pledged to go back to work at crafting a package that can pass muster, but Congress now goes dark until Thursday.

More than two-thirds of Republicans, as well as 40 per cent of Democrats voted against the bill.

The vote had reverberations on the campaign trail in both Canada and the United States.

NDP Leader Jack Layton demanded an emergency leaders' meeting as chaos on Bay Street and Wall Street mounted.

Prime Minister Stephen Harper rejected Layton's request and the Conservatives continued to claim their party is the best bet to lead Canada at a time of economic instability.

Liberal Leader Stéphane Dion likened the Conservative approach to the economy to that of the Bush administration.

On the presidential campaign trail, Democrat Barack Obama counselled calm and urged Congress to get back to work.

"Get this done,'' Obama said. "Democrats and Republicans, step up to the plate and get this done.''

Republican John McCain, who dramatically suspended his campaign last week to deal with the crisis, accused Obama of a lack of leadership and said Democrats had torpedoed the effort with a last-minute partisan foray.

The defeated bill would have allowed the government to buy bad mortgages and other toxic assets from banks and financial institutions, relieving pressure so they would be in a position to free up credit. Until that happens, credit continues to be choked off by the troubled financial institutions, further slowing an already sputtering economy.

As it became clear the House bill was going to die, some members started shouting that the Dow was down more than 600 points and television screens around the world offered a jolting split screen of the market diving with every vote in the "nay" column.

In the end, House Republicans, faced with the pleadings of President George W. Bush and the anger of their constituents, turned their backs on the president.

They then attempted to blame Democratic House Speaker Nancy Pelosi, saying a speech she delivered on the floor blasting Bush economic policies had injected partisan politics into the effort to craft a bipartisan solution.

Bush and Treasury Secretary Henry Paulson expressed disappointment and pledged to go back to work, but Paulson looked particularly grim as he spoke to reporters at the White House.

"Markets around the world are under stress, and that reduces the availability of credit that businesses across America depend on to meet payroll and to purchase inventories,'' Paulson said.

"Families, too, feel the credit crunch, as it becomes more difficult to get car loans or a student loan.''

Bush, who last week used his prime-time television bully pulpit to warn Americans of dire consequences, spoke only briefly, pledging to redouble efforts with congressional leaders.

"We put forth a plan that was big because we got a big problem,'' Bush said.

Global banks have already taken some $590.8 billion in write downs and credit losses since the implosion of America's subprime mortgage market triggered the credit crunch last year.

With the IMF predicting losses could eventually top $1 trillion, banks are increasingly skittish about lending to each other.

"Nobody wants to lend money to anybody right now. The cost of funds is very high," said Andrew Martyn, a portfolio manager at Davis-Rea Ltd.

That crisis of confidence also has an impact on Canadian banks, even though they have relatively little exposure to America's subprime market or the troubled mortgage-backed securities that have brought down larger rivals.

Also weighing on market sentiment was Citigroup Inc.'s hastily-arranged takeover of Wachovia Corp. and the partial nationalization of a few European lenders.

Republican House leader John Boehner said he thought he had the votes until the last minute.

"Americans are angry and so are my colleagues. They don't want to have to vote for a bill like this, and I understand that,'' he said.

Republicans say they lost about a dozen votes at the last minute.

"The speaker had to give a partisan (speech) that poisoned our conference, caused a number of members we thought we could get to go south," Boehner said.

Pelosi countered that Democrats had held up their end of the bargain.

Vodafone appoints emerging mkt bosses from within

odafone Group (VOD.L: Quote, Profile, Research, Stock Buzz) announced the appointment of two new bosses to run its emerging markets division on Monday in the latest move by new Chief Executive Vittorio Colao.

Vodafone, the world's largest mobile phone group by revenue, announced earlier this month that it would split its emerging markets division into two and appoint two new bosses because the unit was becoming too large.

Vodafone appointed Nick Read, currently chief executive of the UK, to run Asia Pacific and the Middle East, and Morten Lundal, currently chief executive of Middle East & Africa within the emerging markets unit, to run Central Europe and Africa.

Guy Laurence, currently chief executive of Vodafone Netherlands, will replace Read to become chief executive of Vodafone UK.

The original emerging-markets unit covered eastern Europe, the Middle East and Africa, Asia Pacific and Affiliates and was known as EMAPA.

Under the new system, Read will be responsible for Australia, China, Egypt, Fiji, India, New Zealand and Qatar. Lundal will cover the Czech Republic, Ghana, Hungary, Kenya, Poland, Romania, Turkey and Vodacom Group in South Africa.

Vodafone is currently in negotiations to increase its share in Vodacom to 62.5 percent from 50 percent in what is an important market for the company. (Reporting by Kate Holton; Editing by Quentin Bryar)

Above Rs 110, Moser Baer has target of Rs 137: Mathew

Technical Analyst, E Mathew is of the view that above Rs 110, Moser Baer has target of Rs 137. It is also good for trading bet or even a very short-term investment call, he further said.

E Mathew told CNBC-TV18, "Moser-Baer’s chart is certainly looking better than that of Gujarat NRE Coke. They seem to be having some sort of bargain hunting and the stock seems to have passed into stronger hands somewhere around that Rs 98 and Rs 100 zone."

He further added, "If the stock is able to build a base around this Rs 98-100 zone, it could be an interesting play and once the stock is able to move above that Rs 110 convincingly which it has done today, the initial target would be around Rs 137. So if I were to take a trading bet or even a very short-term investment call, my bets would be on Moser-Baer."

Disclosure: It is safe to assume that analyst & his clients may have an investment interest in the stocks/sectors discussed.

HCL Technologies an underperformer: Karvy

Karvy Stock Broking has downgraded its rating on HCL Technologies from outperformer to underperformer with a target of Rs 160 in its September 30, 2008 research report. "HCL Technologies announced that it would make a “cash offer” for acquiring Axon Group plc (UK based SAP consulting company). Under the terms of the offer, existing Axon shareholders would receive 650pence in cash for each Axon share, thus valuing the entire issued and to be issued share capital of Axon at approximately UKP441.1mn, which in US$ terms works out to 794 million (translating into Rs 36.5 billion). We downgrade the stock to Underperformer from a outperformer rating, with a price target of Rs 160," says Karvy Stock Broking's research report

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.

Buy ICICI Bank at Rs 500: Vijay

Vijay told CNBC-TV18, "I will buy ICICI Bank at Rs 500. I think its been driven by humongous set of room among us for last 20 days; first, insider selling and then questioning the provisions made and repeatedly the management has been saying, this is rubbish. I respect the ICICI Bank management, I think they do not tell lies, they are professionally run bank and if I believe what they said I think at Rs 500 it’s a screaming buy.”

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.

Buy Pidilite Industries, target of Rs 195: SKP Securities

KP Securities has recommended a buy rating on Pidilite Industries with 18 months price target of Rs 195 in its September 27, 2008 research report. "At the current level of Rs 135, Pidilite is trading at the P/E of 15.48x, 12.02x and 10.14x of FY09E, FY10E and FY11E earnings of Rs 9, Rs 11 and Rs 13 respectively. Considering the strong brand value and steady growth we initiate coverage on Pidilite with 18 months price target of Rs 195 (44% upside) which discounts FY11E earnings by 15x, Buy," says SKP Securities' research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.

BSE 150 stocks hit one-year low

Markets have opened lower in line with Asian markets as they are reading bailout plan negatively. Due to this weakness in markets almost 150 BSE stocks have touched their 52-week low in early trade. This include ‘A’ Group stocks like Bajaj Hind, Bharat Forge, Bombay Dyeing, Deccan Chronicle, Financial Tech, Gammon India, HDIL, Hindalco, Omaxe, Opto Circuits, Patni Computer, Shipping Corp, Sun TV Network, TCS, Unitech and Welspun Guj.

 

On the Global front, US law makers agreed on $700 billion draft proposal and proposed 3 phases of financial rescue plan. US Congress is set to vote today. However, total $700 billion will not be released at one go; $ 350 billion is dependent on Congress approval.

 

While on the Indian front, US House of Representatives approved nuclear deal. US Senate is expected to take up the bill next week.

 

List of all stocks that have touched their 52-week low during the day

Company

Group

Today’s High

Today’s Low

CMP 10.04 am

Bajaj Hind

A

121

117.4

117.6

Bharat Forge

A

203

195.4

196.55

Bombay Dyeing

A

400

386.5

394

DeccanChronicle

A

92.6

85.55

88.5

Financial Tech

A

1230

1195.05

1195.05

Gammon India

A

155.5

153

153

Guj State Petro

A

47.5

45

45.1

GVK Power

A

29.5

27.7

27.9

HDIL

A

195

179

179.9

Hindalco

A

100

98.05

99.05

IRB Infra

A

116.2

114

114

Omaxe

A

101.4

99

100

Opto Circuits

A

258.45

251.6

251.6

Oracle Financ

A

785

754.1

767

Patni Computer

A

187

181

183.85

Shipping Corp

A

159.85

132

156.9

Sun TV Network

A

200

190.2

190.2

TCS

A

680

663

664.1

Unitech

A

113

107.2

107.7

Welspun Guj

A

247

240

243

3i Infotech

B2

75.6

70

70.9

Abhishek Ind

B2

12.61

12.61

12.61

Adhunik Metalik

B2

59.9

57.8

57.8

Aishwarya Tele

B2

20

18.5

19.2

Ambalal Sarabha

B2

11.85

11.8

11.8

Amforge

B2

6.05

6.05

6.05

Andhra Petro

B2

15.1

14.8

14.8

Ashapura Mine

B2

83.5

79.2

79.3

Asian Oilfield

B2

75.8

72.1

75.8

Avaya GlobalCon

B2

113.25

112

112.4

Baffin Engg

B2

0.58

0.56

0.56

Binani Ind

B2

58

58

58

Bisleri Gujarat

B2

2.06

2.02

2.06

Brahmanand Him

B2

11.4

10.4

10.55

Burnpur Cement

B2

13.7

13.05

13.25

Chemplast Sanm

B2

6.2

5.73

5.75

Cholamandalam

B2

66.5

66.5

66.5

CIL Securities

B2

13.65

13.65

13.65

Digjam

B2

7.6

7.6

7.6

Dollex Ind

B2

10.6

10.6

10.6

eClerx Services

B2

139

132

132

Essel Propack

B2

23.5

22.3

23

Everonn System

B2

360.1

348.05

352

Evinix

B2

6.85

6.5

6.5

Finolex Cables

B2

41.7

41.25

41.65

Finolex Ind

B2

48

46.15

47.2

Foseco India

B2

356.1

344.7

344.7

Gallantt Metal

B2

18.6

18.6

18.6

Gammon Infra

B2

73.75

66.05

66.05

Ganesh Poly

B2

8.25

8.25

8.25

Gitanjali Gems

B2

190.5

188.55

190

GTL

B2

174

172.05

172.05

GV Films

B2

2.4

2.29

2.29

Harig Crankshaf

B2

1.39

1.3

1.3

Hb Stockhol

B2

20.5

20.5

20.5

Hexaware Tech

B2

30.5

29

29

HFCL

B2

12

11.65

11.7

Hinafil India

B2

0.4

0.4

0.4

Indiabulls Ret

B2

44.6

43.9

43.9

Indraprastha

B2

24.4

24.3

24.3

IVR Prime

B2

112

106.25

106.25

Jagson Airlines

B2

10.1

10.1

10.1

Jai Balaji Ind

B2

144.65

120

140

Jayaswal Neco

B2

26.3

25.4

25.45

JK Bank

B2

416.25

416.25

416.25

JK Cement

B2

102

100.55

102

JK LakshmiCem

B2

64

62

64

Kamdhenu Ispat

B2

20.3

20.3

20.3

Kirloskar Ferro

B2

20.75

20.4

20.4

KLG Systel

B2

270.5

262

262

Kopran

B2

14

12.3

12.3

KPIT Cummins

B2

39

37.25

38.05

Lanco Industrie

B2

28.15

26.8

26.8

Liberty Shoes

B2

60

60

60

Lincoln Pharma

B2

4.9

4.5

4.5

Lotus Eye Care

B2

35.2

28.25

33.6

Madhav Marbles

B2

29

24

29

Madras Cements

B2

2344.95

2251

2251

Mahindra Ugine

B2

40.5

40.1

40.1

Manali Petro

B2

9.4

9.1

9.1

Mcnally Bh Engg

B2

96.5

96.5

96.5

Meghmani Organi

B2

15.4

14.9

15.4

Midday Multi

B2

21.05

19.8

19.8

Mindteck

B2

21.05

21.05

21.05

MindTree

B2

305

305

305

Moving Picture

B2

14.55

11.25

14.55

Mysore Cement

B2

26.5

24

24.05

Nicco Uco Fin

B2

1.53

1.53

1.53

Niraj Cement

B2

34.95

34.5

34.5

Nirma

B2

122

118.85

122

Octav Invest

B2

26

24

24

Orbit Corporati

B2

182

175.3

176.4

Parekh Platinum

B2

4.1

4.1

4.1

Pasari Spinning

B2

3.21

3.21

3.21

Peninsula Land

B2

47.5

45.3

46

PVR

B2

159.8

130

152

Radha Madhav

B2

21.55

21

21.35

Rajesh Exports

B2

33.75

31

31.75

Rap Media

B2

54.9

54.9

54.9

Raymond

B2

150.9

148.3

148.3

Rel Ind Infra

B2

675

645

645.2

Resurgere Mines

B2

141.4

134.35

134.35

Rubfila Int

B2

2.51

2.13

2.13

Sahara Housing

B2

109

103.5

109

Saregama India

B2

96

80.15

80.15

Shah Alloys

B2

27

27

27

Shree Precoated

B2

65

63

65

Shukun Cons

B2

0.97

0.9

0.9

Sical Logistics

B2

64.8

62.5

64.8

Silicon Valley

B2

0.75

0.7

0.75

Simplex Project

B2

99.9

92.55

92.55

Sobha Developer

B2

190

185.55

185.55

Sterlite Techno

B2

119.25

116

117.1

Sujana Metal

B2

14.5

14.45

14.45

Sujana Towers

B2

42

40.5

40.7

Suven Life Scie

B2

20

19.55

19.95

Tonira Pharma

B2

14.6

14.55

14.6

TV 18

B2

184.55

182

182

Uniroyal

B2

3.65

3.65

3.65

Victoria Mills

B2

2098

1818.05

1818.05

Vikas WSP

B2

17.1

16.5

16.75

Vinyl Chemicals

B2

4.75

4.75

4.75

Vishal Retail

B2

279.1

279.1

279.1

Wadala

B2

5.55

5.55

5.55

Wire & Wireless

B2

18.3

17.4

17.6

Wockhardt

B2

167.85

161.1

161.1

Yashraj Contain

B2

19

19

19

Ansal Housing

S

80.7

80.65

80.7

Arihant Found

S

77.5

77.5

77.5

Ashco Ind

S

9.8

9.75

9.8

Ashiana Housing

S

40.1

38.05

38.05

Asil Industries

S

9.95

8.6

9.95

Banswara Synte

S

22.7

21.35

21.35

Birla Power Sol

S

14.5

13.75

13.75

Camlin

S

14.85

13.75

13.75

Camson Bio Tec

S

55

50.05

52

Conart Engineer

S

14.25

14.25

14.25

Hind Aluminium

S

35.5

30.2

35.5

ICSA

S

233

227

227.2

Int Travel Hous

S

76.55

76.55

76.55

Intense Tech

S

12.61

11.94

11.94

Ion Exchange

S

125

120

120

Khoday India

S

59.6

50.55

57.7

Lok Housing

S

37.5

35.75

36.2

Sarda Energy

S

175

175

175

Shree Digvijay

S

10.2

9.1

9.11

Uniflex Cables

S

18.3

18.1

18.1

Sharp India

T

19

19

19

ExplicitFinance

Z

29

24

24.5

Rose Investment

Z

7

6.36

7

 

Disclaimer

Disclaimer : All information given here is for information purpose only. Users are advised to rely on their own judgement or investment advisor when making investment decisions. This blog is not liable and take no responsibility for any loss or profit arising out of such decisions being made by anyone acting on such advice.

Disclaimer && Decalration

This blog is formed for sharing useful information from financial world. This blog aims to increase the awareness among the people so that they are well informed .The blog also shares some details for investor, trader ,newbie friends in stock market on free buy/sell/hold recommendations. Here the recommendations are shared along with information on Stock Splits, Right Issues, Bonus Issues, Latest Stock market updates. This publication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. This publication, its publisher, and its editor do not purport to provide a complete analysis of any company's financial position. The publisher and editor are not, and do not purport to be, registered investment advisors. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Investing in securities is speculative and carries a high degree of risk. Past performance does not guarantee future results. This publication is based exclusively on information generally available to the public and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the publisher cannot guarantee the accuracy or completeness of the information. This publication contains forward-looking statements, including statements regarding expected continual growth of the featured company and/or industry. The publisher notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the company's actual results of operations. Factors that could cause actual results to differ include the size and growth of the market for the company's products and services, the company's ability to fund its capital requirements in the near term and long term, pricing pressures, etc.

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