FINANCE & STOCK ADVICE: My View On INEOS ABS

About The Stock

Known earlier as ABS Plastics, 83.33% stake is held by Ineos ABS Jersey and it today the holding company of Lanxness AG of

Germany

. The company has a manufacturing plant in Nandesari, Moxi which manufactures acrylonitrile butadiene styrene (ABS) with an annual production of 60,000 TPA was to be increased to 80,000 TPA in FY09 and further to 100,000 TPA in the current fiscal, which was to be funded through internal accruals. There is no news about this expansion in FY09 having gone through, especially given the tough times the company had to go through. The company`s products are used as raw materials in many households, automotive, electronic and telecom sectors, with a clientele list to include names like Samsung, LG, Videocon, BPL, Ford, Hero Honda, Cello, Lexi and Bajaj.

About The Results

For the first quarter ended 31^st March 2009, the company managed to turnaround and that itself was reassuring. From a net loss of Rs.4.35 crore in sequential quarter, it managed to post a net profit of Rs.5.93 crore and this was up 36% on a YoY. And this was despite a 15% fall in net sales on a YoY and a 19% on a QoQ. And this turnaround was thus possible only because the reduction in operating expenses, which on a QoQ was down 30% and 18% on a YoY.Interestingly, it is a zero debt company as it has no interest outgo.

Its strong point is its R&D facility at Moxi, Gujarat. Rated as one of the best in the business, this centre is currently engaged in research and development in areas of engineering thermoplastics for Lanxess’s global operations. The company plans to further upgrade its R&D facilities and its main focus will be on high-grade ABS which is a metal substitute at lower costs.

About The Stock

Its best to take a call on the stock once its results for Q2 is out, till then the outlook on the stock remains cautious.

Disclosure: I do not have any personal 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.


Name *
Email *
Subject *
Message *

Pages

My View On INEOS ABS