FINANCE & STOCK ADVICE: My View On Gammon India

About the Company

The company is Mumbai based and engaged in infrastructure engineering and construction services.The company is now trying to make a name for itself in the realty sector too.Its subsidiary Gammon Infrastructure Projects, the company is consolidating all its real estate projects under Gammon Realty, which it plans to list on the bourses. Gammon Realty plans to develop a range of properties across India in Mumbai, Bangalore, Mysore and Bhopal, and has already acquired sizeable land.It has invested Rs.160 crore in buying new land and plans to launch projects once the realty market picks up. It is planning an IT park on 10 acres in Dombivli, a Mumbai suburb. Also plans to a high-end residential and commercial complex spread over seven acres, near the Andheri Sports Complex in Mumbai. It has acquired some 200 acres in Mysore and another 200 acres near the new Devanahalli airport in Bangalore.The company has acquired a 75% stake in Italian turbine maker Franco Tosi Meccanica for €40 million and a 50% equity stake in power sector services firm Sadelmi for €7.5 million.

About the Financials

Financially, for the first quarter ended 30^th June 2008, but for the ‘other income’, the company would have posted a dismal bottomline. QoQ, net revenue of the company dropped 29% at Rs.585.24 crore and yet, it managed to post a 123% higher net profit at Rs.52.43 crore. How was this feat accomplished? The company made a profit of Rs.38.55 crore on sale of shares and this comprised of its ‘other income’ which changed the entire ending of the story, from sad to happy.

About the Stock

Stock has touched a new 52-week low at Rs.153 on 26^th September 08’ and continues to remain around the same levels.The foray into realty is expected to propel the company back into the positive limelight.The stock remain a sensitive stock in future market but for investment purpose the stock doesn't seems to be promising.

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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My View On Gammon India