Current news & Rumours in the mkt

[praveen taneja]

Economic and Political Headline
• Food inflation went up by a notch, to 16.49%, for the week ended May 8. Annual food inflation in the previous reporting week was 16.44%. Fuel prices remained flat over the week. During the week, prices of non-food articles declined by 0.35%, as raw rubber prices sank 7% and linseed fell 2%. On an annual basis, pulses turned costlier by 33.65% and fruits by 17%. (BS)
• More Americans unexpectedly filed applications for unemployment benefits last week, showing firings remain elevated even as employment climbs. Initial jobless claims rose by 25,000 to 471,000 in the week ended May 15, Labor Department figures showed in Washington. (Bloomberg)
• UK retail sales rose for a third month in April as the economic recovery encouraged consumers to spend more at clothing shops and department stores. Sales climbed 0.3% from March, when they increased 0.5%, the Office for National Statistics said in London. Excluding fuel, sales rose 0.1%. (Bloomberg)

 

[praveen taneja]

3G Auction Outcome – Event Update



The 3G Spectrum auction concluded on Day 34, raising about Rs68,000cr for the Government, 2x of the budgeted estimate. However Bharti, Idea and RCOM managed to corner crucial and scarce spectrum in their required respective circles. Telecom operators will have to pay the spectrum payout in next 10 days and thus we would see increased interest burden from 2QFY2010 onwards. Also, BWA auctions start on 21st May,2010 and with most of the telecom service provider participating the auction (2 slots available and 11 bidders), the competition is likely to be fierce.

 

[praveen taneja]

APM Gas Price De-regulation – Event Update


Not a Pipe Dream Anymore
The Government of India has approved a hike in the APM gas price sold by ONGC and OIL from nomination blocks from Rs3.20/scm to Rs6.82/scm. Prices are now at US $4.2/mmbtu (pre-royalty adjusted) from US $1.9/mmbtu earlier. After the hike, APM prices are now in line with EGoM-determined gas prices for the KG-D6. APM gas prices were last revised in 2005. The move follows the Finance Ministry's suggestion of bringing about pricing parity between APM and KG gas in one swift move, rather than a phased increase in the APM gas prices as was proposed by the petroleum ministry. The prices will be effective until March, 2014 (FY2014). In a related development, the cabinet has also approved the marketing margins of US $0.112/mmbtu (Rs200/scm) for GAIL on APM gas marketing volumes. Previous to this, GAIL did not receive any marketing margin on sales of APM gas.

 

[sudoku1]

whispers say that now banking secter may start drifting down 2day......lets watch !!!

 

[praveen taneja]

Breaking News : GERMAN Parliament (upper & lower house) has approved European Financial Aid Package & will Contribute around 750 Billion Euros ( $940 Billions ) as an Emergency Fund.

COMMENTS : This could Trigger as +ve Sentiments for World Markets along with India.

 

[AW10]

To get this bill passed, Ms Merkal threw the bomb few days back and shaken up the world. She is already facing enough resistence within Germany for supporting Greece bailout.

So job done, damage done, move on to next step now and face the reality.

Happy Trading and have great weekend.

 

[praveen taneja]

Buffett is Selling

Berkshire Hathaway's (NYSE: BRK-A) (NYSE: BRK-B) Warren Buffett has been a seller in the most recent quarter. That's the headline from the quarterly SEC filing revealing Berkshire Hathaway's securities holdings. Buffett reduced his stake in 13 holdings, with four being eliminated from the portfolio altogether.

Sizeable sales
Buffett's most substantial sales were Kraft and Procter & Gamble.



Company
No. Shares Sold Q1 2010
% Share Decrease vs. Q4 2009
Estimated $Sale Proceeds*
Shares Held by Berkshire Hathaway 3/31/10



Kraft Foods
(NYSE: KFT)
31.5 million
23%
$908.3 million
106.7 million

Procter & Gamble (NYSE: PG)
8.4 million
10%
$527.9 million
79.1 million




*Based on average close price for Q1 2010.
Source: Company reports, Yahoo! Finance.

Buffett expressed dismay at Kraft's deal to acquire Cadbury, describing it as "dumb" at the Berkshire annual meeting. The sale points to putting his money where his mouth is, though Berkshire's stake in Kraft remains large. Of course, the Kraft and Procter & Gamble sales may be nothing more than a tax-efficient way to replenish cash coffers following the Burlington Northern acquisition; Berkshire does not have large, unrealized gains in Kraft and Procter & Gamble.

Spring cleaning
In addition to the major sales shown above, Buffett eliminated holdings of health insurers, Wellpoint and UnitedHealth, from the portfolio. The remaining SunTrust Bank shares were sold, as was a small stake in Travelers.

The three buys
Amid all the selling, Buffett added to positions in Becton Dickinson, Iron Mountain, and Republic Services.



Company
No. Shares Bought
in Q1 2010
% Share Increase
vs. Q4 2009
Shares Held by Berkshire
Hathaway 3/31/2010



Becton Dickinson (NYSE: BDX)
244,128
16%
1.7 million

Iron Mountain (NYSE: IRM)
794,800
11%
7.8 million

Republic Services (NYSE: RSG)
2.5 million
31%
10.8 million




Source: Company reports, Yahoo! Finance.



At over $322 million, Berkshire's stake in garbage hauler Republic Services is the largest of the three holdings, and it captured the lion's share of Buffett's reported buying. While modest currently, Berkshire's stake in Republic could become more significant, as it has Buffettesque qualities -- limited competition, and route system driven economies of scale reminiscent of Burlington Northern. Interestingly, Buffett friend and Berkshire board member, Bill Gates has an interest in Republic as well. Gates' charitable foundation and private investment vehicle, Cascade Investments, own about 15% of the company, so Buffett's influence over the company may exceed Berkshire's 2.8% ownership.



A surprise yet to come?


Finally, it is important to note that Berkshire's Q1 2010 cash flow statement suggests more equity securities buying -- $1.6 billion, to be exact -- than the purchases of Becton Dickinson, Iron Mountain, and Republic reflect. The Oracle of Omaha may have a surprise up his sleeve. A foreign equity is one possibility -- the quarterly SEC filing of securities holdings excludes foreign securities not traded as ADRs on a U.S. exchange.

 

[praveen taneja]

Delhi High Court has again granted stay from payment of service tax on renting of immovable property

 

[clint]

Hi - there is some news that the promoters of Educomp are selling their shares. I am not sure what this means. Is this practice legal? Does the stock have any chance of pulling back to higher levels. Also, would request your opinion on Welcorp and its future. Though the fundamentals seem strong, the momentum is not with this stock at all. At the first instance of a downturn, Welcorp seems to burst like a bubble and dips dramatically. Do reply.

 

[praveen taneja]

Bro mostly promotors sell treasury shares
1.when they need money w/o interest
2. when they feel mkt sentiment down and sell on higher level and buy back at lower as you can see in RIL case
3. Yes this is legal but prior information and permission from SEBI is must
For query on stocks here you would find good persons with good knowledge

http://www.traderji.com/equities/29292-stocks-keep-close-eye-chapter-ii-95.html

Hope ur queries are solved