Nighthawk Energy plc (LON:HAWK) report: Investment Case
19 March 2010 | The March interims are a calendar event, not likely a major operational update. The 1,000b/d target in 2010 should be met early and potentially exceeded. Completions and production updates will ideally come periodically through out the year and not as a one-off
Shree Ganesh Jewellery House IPO review and analysis by Keynote Capitals
19 March 2010 | Shree Ganesh Jewellery House Ltd. (SGJHL) is a manufacturer and exporter of jewellery with 4 manufacturing units located at Manikanchan SEZ in West Bengal with a capacity of 29,500 Kgs of gold jewellery as of February 2010. It markets its jewellery in stores branded Gaja and has in all 13 outlets. It intends to open 46 new retail outlets by FY13E. PE investors Credit Suisse PE Asia Investments (Mauritius) Ltd. and Bennett, Coleman & Co Ltd. entered the company in March 2008 and August 2009 respectively, at an effective price of Rs150 per share (discount of 44.4% to the cap price). Credit Suisse PE is partly exiting the company via the offer for sale in the IPO, generating a return of 80% on its investment.
Gulfsands Petroleum (LON:GPX.L) report: Preliminary approach
19 March 2010 | Gulfsands Petroleum which has its primary assets in Syria (Block 26) and producing c. 10,250b/d received a preliminary approach yesterday. The FT reports that the bid values the company at more than 400m and is expected to reject the approach today. Working interest reserves are 1P 22mmBOE; 2P 40mmBOE
Persistent Systems IPO review and analysis by Angel Broking
19 March 2010 | Persistent Systems Limited (PSL) is a Pune-based IT company engaged in niche Offshore software Product Development (OPD) services, employing about 4,639 employees (including over 3,700 software professionals). The company is trading on economical valuations, at a P/E of 10.4x and an EV/Sales of 1.5x on its FY2012E estimates. Hence, we recommend a Subscribe view to the IPO.
Electrosteel Castings review and analysis by Angel Broking
19 March 2010 | Electrosteel Castings (ECL) is a leading player in ductile iron (DI) pipes and is venturing into steel making through its subsidiary Electrosteel Integrated (EIL), which is setting up a 2.2mn tonne steel plant expected to be commissioned by FY2012E. ECL's backward integration initiatives through allocation of coking coal mines are expected to result in expansion of EBITDA Margin by 1,304bp over FY2009-12E. The company is also awaiting final environmental clearance for its iron ore mine, which will further lower costs, but has not been factored in our estimates. Further, listing of EIL in which ECL holds 40% stake could unlock value for ECL. We Initiate Coverage on the stock, with a Buy recommendation and 18-month SOTP Target Price of Rs72, valuing the Core business at 8x FY2012E FDEPS and its investments in the Steel business at 1x Book Value.
Gujarat Gas 4QCY2009 performance highlights and results update
18 March 2010 | Gujarat Gas (GGAS) 4QCY2009 numbers came in line with our expectation on the Bottom-line front, increasing by 43% yoy to Rs46cr (Rs32cr) as against our expectation of Rs47cr. The companys Gross Gas spread touched an all-time high of Rs4/scm during the quarter (which was also achieved in 2QCY2009), as against Rs3.5/scm registered in 3QCY2009. Volume growth came on the back of substantial RLNG volume (20% of total gas sourced) flow during the quarter. At Rs260, the stock is trading at 15.5x CY2010E and 12.7x CY2011E Earnings. On account of the recent run-up in the stock price, we recommend a Neutral on the stock.
Salamander Energy (LON:SMDR) report: 50% Block Acquisition
18 March 2010 | Salamander has agreed to acquire a 50% interest in Block 101-100/04 from Santos Vietnam located in the Hanoi Trough, offshore Vietnam. Government and regulatory approval are still outstanding. As part of the agreement Salamander has offered the field partners a Call option to retain their 50% interest on completion of the first well due in 2011
British Sky Broadcasting (LON:BSY) report: Now Virgin Media may offer free Premier League
18 March 2010 | Virgin Media is reported to be considering offering Premier League coverage within a bundled broadband package, i.e. for free. The package is expected to be priced at some 18/month, compared to BTs 21.99 and a Sky subscription for 26. Sky currently offers wholesale access to its basic sports package at 13.40; the possibility exists that Ofcoms Consultation will force a reduction to as low as 8.00, which would allow the possibility of absorbing this within the current bundled package price range.
Persistent Systems IPO review and analysis by Nirmal Bang
18 March 2010 | Persistent Systems Limited (PSL) was incorporated in 1990 in Pune as a private limited company. Currently PSL is one of the market leaders in outsourced software product development space. PSL design, develop and maintain software systems and solutions, create new applications and enhance the functionality of the customers existing software products. As an Outsourced Software Product Development (OPD) specialty company, PSL provide its customers the benefit of offshore delivery. The company delivers services across all stages of the product life-cycle, works with a wide-range of customers and develops, enhances and deploys the customers software products. Persistent Systems outsourced software product development services allow its customers to release management bandwidth, to reduce time-to-market, improve the quality of their products, reduce risk of failure during the engineering development process, and improve predictability and reliability of the engineering process. The company has compet ency centers in Telecommunications and Wireless, Life Sciences and Healthcare and Infrastructure and Systems. Their customers range from numerous global software companies to early-stage companies. As of 31 December 2009, the company has over 37 customers that have annual revenue of more than US$1 bn. PSL has a presence in three continents across the globe. It has nine development centers in Europe, America and Asia. In India, along with three development facilities in Pune, which is the companys hub; PSL has development centers in Nagpur, Goa and Hyderabad. As of January 31, 2010, the company had 4,639 employees of which over 3,700 are software professionals. PSL believes that the ability to maintain growth depends on attracting, training, motivating and retaining skilled employees. The attrition rate for the company was 8.56% and 13.75% for the nine months ended Dec. 31, 2009 and fiscal 2009 respectively.
NMDC FPO review and analysis by Angel Broking
17 March 2010 | National Mineral Development Corporation (NMDC) is India's leading iron ore producer and enjoys the benefits of huge iron ore reserves, high grade ore and lower costs. Nonetheless, we recommend an Avoid on the FPO, as at the lower price band the stock will trade at EV/EBITDA of 12.6x and 9.6x FY2011E and FY2012E, which is at a significant premium to its peers.
Federal Bank review and analysis by Angel Broking
17 March 2010 | Federal Bank is an old, private sector bank with a large network of 669 branches, concentrated in semi-urban areas in the southern states. The Bank's strong Capital Adequacy, Operating Efficiency and technologically up-to-date network represent an attractive standalone franchise. The Bank's deposit base includes a niche, low-cost NRI deposit base that contributes a meaningful 16.5% of total deposits and gives it a distinguishing cost advantage over several of its peers. At the CMP, the stock is trading at attractive valuations of 0.8x FY2012E Adjusted Book Value (ABV) - similar to South Indian Bank, its closest peer, compared to a 5-year average premium of 15%. While lower leverage is leading to low RoEs at present, at the core RoA level, the bank's earnings quality is one of the best among peers. We recommend a Buy, assigning a multiple of 1.0x FY2012E ABV to arrive at a 12-month Target Price of Rs342.
Persistent Systems IPO review and analysis by Keynote Capitals
17 March 2010 | Persistent Systems Ltd. (PSL) was promoted by technocrats Dr. Anand Deshpande and Mr. S. P. Deshpande in 1990 as an outsourcing software product development company. The company provides product development services across the entire value chain of the product development to independent software vendors and telecom industry. The company has around 220 customers, of which top 10 account for around 41% of its revenues. Outsourced software product development (OPD) is an emerging segment in the outsourced software industry. OPD companies build software products for their customers. The US is a major market for OPD companies.
Spirent Communications (LON:SPT) report: Target price raised to 121p; rating Hold
17 March 2010 | Post FY09 results (Mar 4th) we have reviewed prospects for telecom capex in 2010-12 and expect a moderate upturn, +6%YoY this year. The drivers are a balance of next-generation mobile smartphone demand and expansion of backhaul, as highlighted by Cisco Systems CRS-3 100Gb/s router announcement last week. We expect strength in Spirents Performance Analysis division, +17%YoY in FY10, triggering operational gearing. Resulting EBITDA margin improvement (E) is; FY10 26.6% (from 24.3%); FY11 29.2%.
Seeing Machines (LON:SEE) report: Contract with BHP Billiton Subsidiaries
17 March 2010 | Seeing Machines announces it has signed a contract for the supply of its DSS product suite with two BHP Billiton subsidiaries, BHP Navajo Coal Company and San Juan Coal Company, part of BHP Billiton's Energy Coal business unit, its largest DSS installation in the mining sector. The contract covers the entire haul truck fleet, a number of ancillary vehicles and ongoing support services at the Navajo mine in New Mexico, USA. Seeing Machines report that installation will be completed next month.
Playtech (LON:PTEC) report: Strong margin, current trading and outlook
17 March 2010 | Playtech has reported FY09A results ahead of our expectations and current trading is stated to be strong. With group margin and current revenue above expectations, we continue to advocate Playtech as the strongest investment exposure to the global online gambling market and retain our Key Buy recommendation. Playtech has reported FY09A gross income of 137.3m (+23%, as previously reported), with EBITDA of 93.7m (+25% YoY), ahead of our top-end 92.8m estimate. Net profit came in at 69.5m (+71% and above our 68.1m forecast), with diluted clean EPS of 36.1c against our 34.1c estimate (6% outperformance).
NEOVIA (LON:NEO) report: New year, new way
17 March 2010 | 2009 represented a year of material investment and improvements in NEOVIAs payments platform, product offering and client base, yet the group still delivered EBITDA of $8.0m. NEOVIA saw a 15% dip in FY09A annual revenue ($64.5m vs $75.9m), predominantly due to a significant reduction in interest income (reported as revenue, down 73% YoY to $1.6m), as well as some softness in both Netbanx and European e-wallet fees (consumer/economy and gambling volume-related).
Afren (LON:AFR) report: Rig Contract
17 March 2010 | Afren and partners Oriental Energy and Amni International have signed a contract for an additional rig from Transocean. GSF High Island VII JU will drill offshore south east Nigeria. The rig is for development, appraisal and exploration drilling around Ebok, Okwok OML 115 and infill drilling at Okoro
WIN (LON:WNN) report: FY09 results EBITDA 2.3m -16%YoY
16 March 2010 | Mobile media enabler WIN reported FY09 revenue of 41.9m +9.8%YoY; EBITDA (adj) of 2.3m -16.3%YoY; PBT (adj.) of 1.5m -19.3%YoY compared to broker estimate of 1.41m (reported basis 0.398m). WIN reported a 2.1p/sh dividend and a year-end net cash balance of 3.1m (2008: 3.4m).
Synchronica (LON:SYNC) report: Trading update: FY09 revenue outlook cut from 5.1m to 3.8m
16 March 2010 | In a trading update Synchronica reports that delays in FY09 contract closure will result in a shortfall to projected earnings. This stems from the customer being involved in acquisition discussions and delays to counter signatures and purchase orders arising.
Resaca Exploration (LON:RSOX) report: Interim Results
16 March 2010 | E&P company focused on the Permian basin in the US. Net production of 620BOE/d with current production 700 BOE/d
Bosch 4QCY2009 performance highlights and results update
15 March 2010 | For 4QCY2009, Bosch India reported 39% yoy growth in Net Sales to Rs1,454.2cr on the back of the 39.8% yoy growth registered by the Auto Segment. However, the companys other businesses recorded de-growth of 7.6% for the quarter. The companys Bottom-line, which increased 67.9% yoy to Rs158.2cr (Rs94.2cr), came marginally below our expectation. OPM at 17.2%, registered an increase of around 39bp yoy, primarily due to rise in other expenditure. Overall for CY2009, Bosch reported 5.1% yoy growth in Top-line, while Operating Margins dipped by 186bp. The company recorded 6.8% yoy decline in Net Profit for CY2009, primarily due to subdued Top-line performance and sub-optimal Operating leverage. We maintain an Accumulate on the stock.
Seeing Machines Technology Hardware & Equipment (LON:SEE) report: Freeport DSS deployment
15 March 2010 | Seeing Machines reports that it received a contract to supply its proprietary DSS driver monitoring equipment to the Grasberg mine in Indonesia, which is owned by PT Freeport Indonesia, a subsidiary of Freeport-McMoRan Copper & Gold. The Grasberg mine is the largest gold mine and the third largest copper mine in the world; the open-cast segment crater has a 1-mile diameter. Mining trucks typically weigh some 250-300 tons each and carry up to 350 tons of material. Costing up to $5m, the loss of a truck would be significant both in capital cost and in terms of reduced output.
Gulf Keystone Petroleum (LON:GKP.L) report: Share placing
15 March 2010 | The company has placed 20.9m shares at 76.5p to raise c. 16m. The company says that further funding will be required through out the course of 2010 and it is considering its best funding strategy
British Sky Broadcasting (LON:BSY) report: BT might offer free Premiership
15 March 2010 | Following rumours on Friday that News Corp might bid up to 800p/share for BSkyB, there are press reports today that BT could launch a direct attack on Skys pay TV position by offering Premier League football for free, based on the expected Ofcom ruling this month that could force Sky to resell premium content at reduced wholesale rates to its rivals.
IL&FS Transportation Networks IPO review and analysis by Angel Broking
13 March 2010 | IL&FS Transportation Network's (ITNL) IPO, we believe, is reasonably priced considering the emerging growth opportunities, its strong portfolio of assets and sound parentage. Further, on comparative valuations, ITNL (based on the limited information provided in the RHP, refer Exhibit1) scores over IRB Infra and would trade at 33% discount to IRB Infra on FY2010E P/BV. Hence, owing to attractive relative valuations, we recommend a Subscribe view on the IPO. On account of having strong backing from IL&FS, we believe that going ahead ITNL will enjoy an edge over competition while bidding for new projects or approaching lenders for financing its projects. ITNL is particularly well-placed due to its affiliation with IL&FS in light of the new National Highway Authority of India (NHAI) norms which specifies that a developer/asset owner cannot bid for new projects if 3 or more of its projects are awaiting financial closure.
IL&FS Transportation Networks IPO review and analysis by Nirmal Bang
12 March 2010 | IL&FS Transportation Networks Limited (ITNL) is an established surface transportation infrastructure company and one of the largest private sector BOT road operators in India. ITNL was incorporated in the year 2000 by IL&FS to consolidate their existing road infrastructure projects and to pursue various new project initiatives in the area of surface transportation infrastructure. ITNL is involved right from the conceptualization of projects to the commissioning of operations and maintenance. The company went global in March 2008 by acquiring Elsamex S.A. (Elsamex) a provider of maintenance services primarily for highways and roads in Spain and other countries. ITNL has a pan]India presence in the BOT road sector with a diverse project portfolio consisting of 17 road projects, comprising approximately 9,397 Lane kms, which includes 4,086 Lane kms under operation and maintenance and 5,311 Lane kms under development (of which 1244 Lane kms under construction). ITNL has presence in state highways, roads, flyovers and brides in the states of Andhra Pradesh, Delhi, Gujarat, Maharashtra, Karnataka, Uttar Pradesh, Kerala, Jharkhand and Rajasthan.
Planet Payment (LON:PPT) report: Strong strategic development
12 March 2010 | Planet Payment has announced that it has received certification from its core existing client, TSYS (TSS.N), the $3bn market cap US-based global electronic payments processor. Planet Payment currently provides TSYS with its market-leading Multi- Currency Pricing (MCP) service. However, Planet Payment is now fully certified also for its iPay payment gateway to be offered into the TSYS acquirer and ISO customer base that will allow merchants to utilise the Planet Payment iPay payment gateway.
H&T Group (LON:HAT) report: Sell-off unwarranted, buy ahead of finals
12 March 2010 | H&T has sold-off by 17% since its trading update on 22/1. This seems unwarranted given the statement guided that FY09 results would be towards the top end of market expectations (implying 2-3% upside to our own earnings forecasts). The early caution shown with respect to 2010 guidance was only to be expected given there can be little certainty on gold purchasing volumes so early in the year
Dragon Oil (LON:DGO) report: Successfully Test at Dzheitune
12 March 2010 | Dzheitune A/142 produced at 2,103b/d in tests. Dzheitune 13/143 well produced at a rate of 2,168 b/d
Carphone Warehouse (LON:CPW) report: BT Group launches its broadband Spring sale
12 March 2010 | BT Group has announced the launch of cut-price broadband bundles, for example at an initial 7.49/month (a 20Mb/s Option 1 package is on offer at 7.99/month for 3 months, reverting to 15.99 in an 18-month contract), following Ofcoms Sep09 removal of pricing restrictions. BT states; the new package is available online for the first half of March for new customers buying through the bt.com web site.
NMDC FPO review and analysis by Keynote Capitals
11 March 2010 | NMDC Ltd., a Nava-ratna public sector undertaking (PSU), was incorporated in 1958 as National Mineral Development Corporation Private Ltd. with the objective of exploring and exploiting minerals and manufacturing and selling products obtained therefrom. First disinvestment in 1993 to institutional and retail investors @ Rs83.52 per share of face value Rs10 (or Rs8.35 for face value of Re1 per share). It is a pioneer in the Indian mining industry with reserves and resources of 1.36bn tonnes of iron ore and is the largest producer in India during the last three financial years. NMDC also operates one of the largest diamond mines in Asia with the authorisation to produce 100,000 carats of gem and industrial diamonds per annum.
BP PLC (LON:BP..L) report: Series of Transactions
11 March 2010 | BP is going to pay Devon Energy US$7bn for assets in offshore Brazil, the US Gulf of Mexico and Azerbaijan. Devon Energy will buy a 50% stake in BPs Kirby oil sands operations in Canada for US$500m. Devon will commit a further US$150m of capital costs.
Avanti Communications (LON:AVN) report: New contract adds 10% presold; launch delayed to Sep
11 March 2010 | Avanti announces that it has signed a contract for 320Mb of HYLAS 1 capacity serving Eastern Europe, some 10% of HYLAS 1 total. Avanti had (DSCE) previously sold 14% of HYLAS 1 total throughput. Avanti notes that the 320Mb sold (over 5 years) is potentially worth 21.9m in revenues, adding that the same customer has also signed options for further HYLAS 1 bandwidth and also on HYLAS 2. This is Avantis first potential contract on its second satellite.
SQS (LON:SQS) report: FY09 PBT (adj.) -46%YoY
11 March 2010 | Software validation specialist SQS [NR] reported FY09 revenues of 134.3m -6%YoY and adjusted PBT of 7.0m -46%YoY (reported 4.9m - 55%YoY). Net cash stood at 1.6m. Net operating FCF was was -1.2m (FY08 3.2m). CEO Rudolph van Megen noted; we are pleased to report improvements across all of our core markets during the second half of the year, leading to improved utilisation rates and gross margins following a 1H collapse in profitability resulting from frozen orders and projects. Reflecting relative improvement, days billed per consultant improved from a low of 175 in 1H to 181 in 2H (annualised), with gross margin improvement as a result from 29.4% to 33.9%.
IOMART (LON:IOM) report: Cloud computing contract wins
11 March 2010 | Iomart has announced that it is adding some 15-25 contracts per month per existing customer, reflecting rising demand for remote cloud-based solutions. Contracts include; Doctors.net.uk, the largest online medical community in the UK with some 160,000 registered users; Tillate Media, the online nightlife community and guide; SocialGo, the AIM-listed Bright Things social network; learndirects operator Ufi Ltd; and a hosted web-based security service being deployed on some 270,000 laptops to be issued in Governments Universal Home Access (UHA) project. Total reported contract value is 1.6m for services, with over 2.5m users.
IG Group (LON:IGG) report: Solid growth from core and fledgling markets
11 March 2010 | IG Group has reported solid revenue upside in its core markets, with encouraging levels of active customer sign-ups and European/Australian markets growth. IG has seen an 11% YoY growth in group revenue (+10% CC) for the three-months to end-February 2010, with the UK market (54% of revenue) showing upside of 18%. Elsewhere, the emerging European markets (18% of revenue) continue to show strong growth, with revenue up by 52% (+56% CC), with an increase across all regions and the bulk of growth driven by Germany and France.
DQ Entertainment (International) IPO review and analysis by Keynote Capitals
8 March 2010 | DQ Entertainment (International) Ltd. (DQEIL) is an animation producer focused on both global and domestic markets, and carries out production, co-production and global distribution of TV series, direct-to-home videos and feature films. It also creates game art for online, mobile and next-generation consoles, and visual effects, game art and entertainment content. DQEIL has produced / co-produced and distributed titles such as Iron Man (the first 3D animated TV series), Twisted Whiskers, Casper, third season of Mickey Mouse Clubhouse and is now producing properties like Little Prince and Little Nicolas. The core promoter, Mr. Tapaas Chakravarti, has been involved in the animation, media and entertainment industry for over a decade. The original entity viz., DQ Entertainment Ltd. was established in 1987 and moved into animation production in the year 2000. Thus the current entity DQEIL has a track record of around a decade.
DQ Entertainment (International) IPO review and analysis by Nirmal Bang
8 March 2010 | DQ Entertainment was incorporated as gAnimation and Multimedia Pvt. Ltd.h to undertake the production of animation, visual effects, game art and entertainment content for the Indian as well as global media and entertainment industry. Mr. Tapaas Chakravarti, the promoter of the company has an experience of over ten years in the animation, media and entertainment industry. In 2000, the erstwhile DQ Entertainment Ltd established an in]house training centre to train production staff to deliver high quality animation productions to European and North American clients. In 2002, it established traditional 2D animation studio. In 2003]2004, the company established 2D digital pipeline and started securing commissions to produce full animation series.
Tullett Prebon (LON:TLPR) report: Final results: volume pressure and regulatory uncertainty
8 March 2010 | Performance - results show flat revenue y-on-y at 947.7m (-9% constant currency), adj. PBT +1% to 157.0m and adj. EPS +4% to 49.2p. FY DPS +18% to 15.0p. Strong cash conversion, with operating cash flow of 137.9m. Margins - operating margin was -0.6% to 18.0%, reflecting solid cost control. However, this could be flattered by the defection of 77 brokers between August and December '09. Product trends - reduced risk tolerance and industry leverage has resulted in a shift of capital towards flow products, cash products and first order derivatives. Tullett's relative strength in fx, interest rate swaps and government and corporate bonds (flow products) has served it well. Notwithstanding this, there were still significant declines in certain product revenues, notably interest rate derivatives (-22%) and equities (+32%). Post trade service revenue advanced strongly, +32% to 25.1m, but its contribution is not currently material at just 3% of Group total.
RM Group (LON:RM) report: Hull BSF contract confirmed: RMs total now at 16
8 March 2010 | RM confirms that it been awarded the 16.5m contract to provide managed ICT services to 9 schools in the 400m Hull BSF (Building Schools for the Future) programme. RM is part of the Hull Esteem Consortium of Morgan Sindall Investments, Robertson Capital Projects and Sewell Group. RM had previously announced (5th Nov) that Hull Esteem had been appointed selected bidder. Two subsequent phases of the programme will cover a further 14 schools.
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| Latest Stock Market Reports |
Weekly market update (March 20, 2010)
Equity markets sustained their gradual upward trajectory this week, with the S&P500 and DJIA joining the Nasdaq at new 16-month highs, as traders were transfixed by finance and healthcare legislative dramas in Washington. The fate of the healthcare reform bill hung in the balance all week as the Democrats desperately tried to coral the simple majority they need to pass the final package in the House. The final House vote is expected on Sunday, with a final Senate vote seen early next week. Passage seems likely, although it appears to be far from a sure bet as of Friday evening. Meanwhile, policy meetings at the FOMC and the Bank of Japan left rates alone, most data was comfortably in line with expectations and at its Spring conference OPEC kept its output quotas unchanged for the fifth consecutive time. On Thursday, rumors of a second intra-meeting hike in the Fed discount rate made the rounds, prompting the Fed to issue a "no comment," but ultimately no discount rate action ensued. Among economic reports, the headline February PPI number showed its biggest decline since last July, prompting more deflation jitters. Stocks and commodities traded off somewhat on Friday when India surprised investors with a rate hike just after the US equity market open, driving a sudden wave of risk aversion (volatility in stocks was accentuated on Friday by quadruple witching). A down day on Friday, broke an eight day win streak for the DJIA, but for the week, the DJIA still gained 1.1%, the Nasdaq rose 0.3%, and the S&P500 climbed 0.9%.
Russian stock market daily evening report (March 19, 2010, Friday)
The movement at the market was wavy today. So, the beginning of the trading session was active against the background of total positive. Then at noon against the background of the statement by the head of ECB local correction began, which has been strengthened by the rates upping in India.
US stock market opening report (March 19, 2010, Friday)
European bourses opened in positive territory, led by financials as Lloyds said its trading has been strong in the first 10 weeks of 2010. However, equities came under pressure later in the session following concerns regarding Greece not being able to get financial aid from the EU. Also adding to volatility is the fact that it is quadruple witching day today. German 10-year government bund futures gained strength into the European open on the back of ongoing concern regarding failure of Greece to get aid from the EU that led to widening of Greek/German 10-year government bond yield spread.
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Godrej Properties IPO review and analysis by Angel Broking, 9 December 2009
Godrej Properties Limited (GPL) intends to develop its projects through joint development agreements with land owners. Under this asset-light model, GPL will enter into revenue, profit or area-sharing agreements with land owners, instead of an outright purchase of the land. This model avoids direct land dealings for GPL and the locking-up of extensive capital in land. Around 80% of GPL's existing land bank will be executed through joint developments with partners. The Godrej brand name has been associated with quality and strong corporate governance. Both of its existing listed entities, Godrej Consumer Products and Godrej Industries have given CAGR Returns of 48% and 77%, respectively, to investors since 2001. We believe that GPL could leverage its parentage brand (with respect to access to the land at Vikhroli and a strong customer preference towards it), assuring a timely delivery of execution. More than 50% of GPL's existing land bank is exposed towards township projects and in one location (Ahmedabad), which will be executed over the next ten years. Any delay in this execution or a fall in property prices in Ahmedabad will impact our NAV estimates, as 50% of our NAV is derived from this project.
JSW Energy Ltd IPO review and analysis by Nirmal Bang, 8 December 2009
JSW Energy Ltd. (JSWEL) is a power project development company, which is developing, and will operate and maintain, power projects in India. The company has two thermal power projects under operation, with a combined installed capacity of 860 MW. JSWEL is a part of the JSW Group, a leading business group in India. JSW Group has a presence in high growth sector like Steel, Energy, Aluminium, Cement, Infrastructure and Logistics. Post IPO holding of Promoter and Promoter Group would be 78.12%
JSW Energy IPO review and analysis by Angel Broking, 7 December 2009
JSW Energy (JSWEL) currently has operational capacity of 995MW and is in the process of executing projects with capacity of 2,655MW. In addition, the company has 7,740MW power generation projects at an early stage of development. A major portion (2,145MW) of JSWELs upcoming capacities is expected to be operational by FY2011E thereby providing near-term visibility. Out of the plants under construction, the company expects to commission 570MW by end FY2010E, while another 1,575MW is expected to get operational in FY2011E. Thus, a robust portfolio and near-term Revenue visibility is a major positive for the company.
Surgutneftegas: Currency rates are putting away the dividends..., 26 November 2009
We have revised our model of Surgutneftegas. The reason for that was the output of the 3Q 2009 report, correction of our suppositions of the companys future development, and also the postponing of the target time and evaluation one year forward. Particularly, in our model of Surgutneftegas we have corrected the former forecast of income for the current year towards reduction: on EBIT by 2.2%, on the net profit by 21.5%. Mainly that happened due to the corrections on the operating estimates, and also due to the continuing strengthening of Russian ruble, which, considering significant dollar liquidity of the company, turns into negative currency exchange. Due to the negative currency exchange precisely For the second quarter in a row Surgutneftegas shows low level of the net profit. The fourth quarter, as we see it, will not make an exception and we expect negative currency exchange similar to the ones in the third quarter.
Gazprom: Having passed the bottom, 23 November 2009
We have revised our estimation of Gazproms shares. The reason for up-dating the companys model was the report by IAS for 1H 2009, the budget draft for the next year and corrections of WACC method calculation. The provided financial report of the gas monopoly totally brought no surprises. As it has been expected, the second quarter was worse than the first one and likely was the weakest within the whole year. In 1H 2009 the financial estimates were affected by the decline of the gas sale at all markets by 22.3% average, and by the reduction of the retail price of gas by 9.6% in the state of the far abroad and by 24% in Russia. As a result within the six months of the year 2009 sales slipped by 24.1 bn USD or by 32.8% and formed 49.285 bn USD, operating profit and EBITDA showed reduction by 56.7% and 52.6% respectively and formed 12.98 bn USD and 16.18 bn USD.
Cox and Kings IPO review, analysis and recommendation, 18 November 2009
Cox and Kings proposes to make its IPO in the price band of Rs316-330/share, at a face value of Rs10 each, and to issue 1.85cr shares, of which 30.5lakh shares are offered for sale by Lehman Brothers Opportunity, Deutsche Securities Mauritius and Merrill Lynch Capital Markets Espana. Therefore, the fresh issue by the company will be to the extent of 1.55cr shares. The company plans to use the proceeds for debt repayment (Rs129.6cr), acquisitions and other strategic initiatives (Rs150cr), investment in overseas subsidiaries (Rs62.5cr), and investment in corporate offices and upgrading its existing operations (Rs60cr).
| | News |
Uranium Resources plc (URA: AIM) review and analysis, 20 March 2010
Toledo Mining Corp Plc (TMC: AIM) review and analysis, 20 March 2010
Stratex plc (STI: AIM) review and analysis, 20 March 2010
Strategic Natural Resources Plc (SNRP: AIM) review and analysis, 20 March 2010
Sirius Exploration PLC (SXX: AIM) review and analysis, 20 March 2010
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