FINANCE & STOCK ADVICE: My View On BASF

About The Company

The company is a part of the giant conglomerate which manufactures pesticides and other chemicals.The performance recently has been disappointing as such the second half of the fiscal is not very good. As look at the past figures that this is the cyclical nature of the business – the agriculture sector especially, typically there is a slowdown in the second half as the crop is harvested. The products are used in the first half when crops are planted. The cyclical nature plus the overall global slowdown has pulled down the bottomline to a new low.

News In the Counter

Sometime ago there was news that its parent company had made an open offer to acquire to acquire Ciba Holding AG, Basel, Switzerland, [CIBN], and was to soon make a public takeover offer to Ciba’s shareholders. BASF was to pay CHF 50.00 in cash for each nominal share in Ciba. Wel, no development on that front till now but with Pfizer to now buy out Wyeth, once again hopes have revived that we could see more consolidation in this sector.

About The Results

The company has posted results for the third quarter ended 31^st Dec 2008. This is probably one the worst performances ever of the company.YoY, right from the beginning, i.e: the topline, there has been a decline, coupled with a rise in the operating expenses thus aggravating the already bad situation. Net sales was down 7.3% at Rs.206.39 crore. Operating expenses which is usually over 90% of the revenue , in current Q3 ate away 97% of the net sales, which in Q3FY08 ate away 91%. EBIDTA was down 70% at Rs.6.65 crore but after depreciation and taxation, PAT was down to a paltry Rs.41 lakhs as against Rs.11 crore in previous fiscal’s third quarter.

The shareholding pattern as on 31/12/08 indicates that promoters hold 71.18% of the shares, institutions hold 10.02% and floating stock is 18.80%. Of this again, 15.83% shares are held by individuals holding nominal share capital upto Rs.1 lakh.

About The Stock

The stock has now been a bad choice for any sort of investment including short to medium to long term horizon.

Disclaimer: I do not have any holding in this stock.

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 BASF