Omkar Speciality Chemicals Ltd IPO Message Board (Page 3)

@ Durai Raj,Tirupur

Hi Durai I didn't take it serious my dear just changing of opinions between the board members. You are saying ur opinions and i am my opinions thats all. Here no one is extremely expert but having good amount of knowledge including u 2 and I up to some extent. Just am feeling u as my fellow board member or unknown friend not a rival.

I have completed B.Com and MBA(Finanace)n did Project work in Security Analysis and Portfolio Management. But not fluent in English language because I studied up to graduation in my mother tongue.

@Handsome,

I think you had just taken my message about Omkar as analysis or something...
That's just for fun or creativity don't take it serious...

@ Handsome,

As KK mentioned, my message about Omkar is just to read...

I just compared SCI, just to state that ready cash is available more than the market capital but ready cash available in SCI is less than it's market value...
I was just mentioning about their cash or bank balance and fixed assets
for the above point...

And to your information i am not at all aware of securities market at times of Satyam scam...
So experience wise i will be lacking behind everyone in this forum, but due to my commerce knowledge i am surviving in the market...

And coming to you point, share might go up and down from its book value due to several reasons, such as economy slow down, industrial trend, market sentiments, lack of visionary by the management, growth slow down, decrease in profit margins, lack in future prospectus of the business, etc, moreover a decrease in profit or market sentiments can take the share price down to its book value, but it's not the only qualifications to buy a stock...

@ Durai Raj,Tirupur

Your Explanation for my message no: 662 is as follows

1)      And i had posted that message to state how innocent investors are being punished or unknown about the valuation of the company...

My ans: I 2 worry for the investors who lost money in Omkar n feel happy if the price come back to 100 level. And in the starting of my message itself I told that the price may come back.

2)      Me too having a big list of stocks trading below it's bookvalue my friend, but what's the use..?

My ans: That is the same I am also saying so many companies r trading below their book values.

(3) The management should be active and transparent, i have seen some companies, in which the management or board will arrange their meeting only for the appointment,fixing remuneration for themselves...

My ans: So how can u say that the Omkar’s Management is transparent , trustworthy and good. SCI is quoting below its book value. So as per your meaning is the SCI management is not good. In 2009 March TATA STEEL N TATA MOTORS traded below their book values. Is it mean the management of TATA’s not good. Some management is good and some are not good. But some companies r trading below their book value even though their management is good. Hindalco is the another example in March 2009 quoting below their book value owned by Birlas

(4) And regards your data on SCI or other company don't have all their reserves in the form of cash or deposits, so how can you get 794.41 cr.
In SCI, they have i cash/bank balance of 197.55 cr. and fixed deposits of 2208.91 cr. So how can you get 790+ cr by buying that in case of omkar, i was talking about hot cash...

My ans: Fixed deposit means it is nothing but cash n we can convert into cash in a single day by closing the FD if we want. Reserves are nothing but the accumulated profits/incomes of every year and it may be transformed in to different forms and we can convert easily into cash in short span of time.

We all know the Satyam Computers fraud. They transferred the Reserves of the Satyam to Maytas. When reserves r not hot cash, reserves is useless how they have transferred crores of Reserves to Maytas. After satyam fraud why Narayana murthy of Infosys gave a paper statement regarding their Reserves. He informed that they deposited money in few PSU banks.

If your calculations r correct in Omkar then y the following companies which collected money from the IPO’s r trading below their IPO price n the Market cap of the companies r below the amount they collected from the IPO. So as per you assumptions if any one buys the entire stake from the secondary market then they will get more benefit/profit as follows. So y any one didn’t buy 100% stake of the following companies even they r having HOT CASH collected from the IPO when the benefit of profit is more than OMkar.


COLLECTED FROM IPO PRESENT MARKET CAP PROFIT
RAVIKUMAR DISTI 73 69 4
GYSCOAL ALLOYS 54 25 29
SEA TV NETWORK 50 28 22
CANTABIL RETAIL 105 60 45
MICROSEC FINANCIAL 147 127 20
TIRUPATI INKS 51 15 36
ASTER SILICATES 53 39 14
TARAPUR TRANSFORMERS 63 43 20
EURO MULTI VISION 66 35 31

If I am not correct in all forms then y Mr KK Natarajan also contradict with your opinion in his message no: 665.

I have posted all my opinions as per my knowledge but I accept that I am not having much knowledge like you.

thanku all board members.i learn most important things of markets from u members .and day to day i get deeply knowledge of market from u guys.i thanku heartly all guys.setubhai, shreedher,gane,chemcho,ajay indian,alibhoy,natrajan, durai raj, narsimhan,ravi banglore and all board members thanku very much for your efforts for us.

Dear Durai,
Your analysis of Omkar valuations makes an interesting reading. Unfortunately, many a times valuations and market price do not relate to each other. The valuation of C Mahendra was the same now when the price is at 170 and a few days back when the price was at 100 and nobody was interested in buying. Midfield was at 400 a few weeks back with people thronging and now it is at 50 with people not showing any interest. Its valuations have not changed then and now! Operators induced confidence drives the price of many counters where the fundamentals are weak and the price is stretched. If C Mahendra has a 20% fall in any of the coming days its days will be over and soon you can get it at 40 or 50 with nobody showing buying interest. Strange are the behaviour of markets and price movements.

@ Handsome,

Me too having a big list of stocks trading below it's bookvalue my friend, but what's the use..?
The management should be active and transparent, i have seen some companies, in which the management or board will arrange their meeting only for the appointment,fixing remuneration for themselves...

And regards your data on SCI or other company don't have all their reserves in the form of cash or deposits, so how can you get 794.41 cr.
In SCI, they have i cash/bank balance of 197.55 cr. and fixed deposits of 2208.91 cr. So how can you get 790+ cr by buying that in case of omkar, i was talking about hot cash...

And i had posted that message to state how innocent investors are being punished or unknown about the valuation of the company...

@ Durai Raj,Tirupur

Few examples
Market cap Reserves Dividend(%)

Sree rayalaseema alkalies & chemicals 61 107 23
Kanoria chemicals 167 217 30
Iol chemicals 97 116
Bhagiradha chemicals 18 42 20
Indo borax &chemicals(debt free co) 27 32 15

@ Durai Raj,Tirupur

I cn ur message no: 660 and ur opinion of OMKAR’s 75cr 79cr , your calculations etc., is ok and may be I think the stock may take u turn and the price may go up because the stock beaten down heavily. But all these calculations r one side of the coin and the other side is also there which u didn’t think about it.

As per yesterday’s closing price of the SHIPPING COPORATION OF INDIA, the market cap of the SCI is 5119.14cr and the reserves of the company are 5913.55cr (as per the website of money.rediff.com). So if any one buys 100% shares from the secondary market then they will get the benefit of 794.41cr (5913.55-5119.14=794.41). SCI is a Govt. owned company, dividend paying company, having good track record and well known company than OMKAR. When you take the low price of the SCI yesterday, then the market cap is lower by around 500cr because low price yesterday is 99 and closing price is 109.90.

In the year 2008 march, the share value of the HINDALCO is around 35 and the book value at the time is 100 so if any one buy entire 100% they will get 3 times benefit from the reserves of the HINDALCO. Same thing with the very good company of TATA MOTORS also. At that time the share price was around 120 and the book value is around 240. Then why people didn’t buy 100% stake from the market then those companies having more cash than the market cap in their balance sheet in terms of book value/reserves.

Even today also so many companies market cap is below their total reserves and more worthy than OMKAR.

So in the share market we can’t calculate like 79cr cash 75cr market cap etc. Some companies will trade higher than book value/reserves and vice versa.

U thinking that OMKAR having 79cr cash in their books but what about the DEBT of the company, u have to subtract the debt from the cash. Now a day so many companies coming for IPO’s to reduce their debt burden.

Dear all,
Please see who endorses the GOLD!!! :- JPM !!!

Ever since gold stopped making new all-time highs a couple of months ago people have been questioning the valuation of the yellow metal. Some think that because gold isn’t used in an industrial capacity, like silver or copper, it is overvalued and is a bubble play. The hypothesis is that gold will soon see “a day of reckoning” and that its price will fall dramatically.

JP Morgan Chase & Co. (JPM) staunchly disagrees with this notion.

JPM is one of the largest banks in the U.S. and is superbly managed by their CEO, Jamie Dimon. Dimon is world renowned as a conservative and strict risk manager who successfully navigated the pitfalls of the sub-prime crisis.

A couple of days ago, JPM announced that it will begin to accept physical gold as collateral for investors that want to make short-term borrowings of cash or securities. Typically, banks accept only Treasury bonds and stocks in such dealings. Therefore, JPM is implying that gold is as solid an investment as triple-A rated Treasuries.

This is a significant endorsement for gold. If JPM was even somewhat concerned that the yellow metal’s value was in jeopardy, they wouldn’t be offering this to their clients.

In the past, many investors have been hesitant to purchase too much physical gold due its limited use; it sits in a vault rising and falling in value, while failing to generate any income. Through JPM, an investor can now purchase physical gold, hold it as they always have to hedge themselves against inflation and protect against fear in the market place, while reaping the benefits of using it as collateral.

Like JPM, I am bullish on gold. A weaker dollar, food inflation, and geopolitical turmoil are just some of the reasons why I believe gold will break all time highs in 2011. As gold sees gains, so too will silver, palladium, and other precious metals. Over and above If Rupee weaken due to fiscal deficits or any other problem seen during the budget session it will be added blessings for the Gold in Rupee term

I loved the gold since Nifty breaches 6000 after touching 6200 high.

Arti

CREATIVE IDEA:

Omkar speciality chemicals ltd.

A grade 3 company with good track record of growth in business as well as in profits...
Along with the existing business the full company(100 % control) is available for just 75 crores...

Any company who purchase this company from open market will get a hot cash of 79 crores along with their business so if some giants buy the entire CAPITAL for 75 crores means he could own 79 crores by cash itself and the business comes for free of cost (can also be said that they are offering their business free of cost and gives 4 crores extra for you...(79-75 crores))....

It's really funny, why investors were selling the shares even at this levels and even some experts like S.P.Tulsian were giving targets like 35....

Investor friends you had given your money to grade 3 company promoters only not to any of smugglers or politicians....

So those who holds the shares, i request them not to sell at current prices...

It is better to apply in good IPOs with good FII and HNI interest, though return is less rather than speculating and loosing money. It is difficult to make money here, but easy to lose. A single big loss erases profit made over 4-5 ipos. Further, there is not much charm left in IPOs after increased retail limit of 2 Lacs. Good IPOs return < 2K, bad IPO = loosing your capital, operator IPO= 3 to 4 times profit, But not worth the risk.

Friends, the company had collected 79+ crores of funds by this issue and at the closing price of today, the total market CAPITAL of the company is around 75 crores only...

Guys funds of investors worth 98/share is with the company...
So atleast give some value for that, i don't know why some guys were giving the targets like 35, 10, etc....
They don't seemed to be a bogus company or loss making or sleeping compan with no growth or any thing else...
So i expect some bounce back in this script followed after a
Sharp fall in the opening...

Hi Frds...

I started trading from last 6 months.
Primarly Iam concerned only on Primary market ie., IPO/FPO.
ie., COAL India to till now.

Iam observing this website from 5 months.
please find my observations based on my experience from last 6 months.
--------------------------------------------------------------
1)If the Issue size is < 1000 Crore or Issue volume < 1 crore equity shares... dont opt it..bcos it completely operater game issue.
if they hipe...prices goes up and else goes down

2)We can expect small/big profits only in public sector IPO/FPOs(Ex Coal INDIA,powergrid, MOIL, PSB)
but it is fate(not known profit/loss till day of listing) in case of non - public sector issues.(Ex..spyl,gravitha, ravikumar, a2z)

----------------------------------------------------------

my observations may be different in other's view..
keep this in mind.

suggestions on views pls welcome..............

Ali Bhoy,

Thanks for the info about new ipos. All the IPOs are small and can be manuplated by operators. So the risk is higher. Sometime it could be like Omkar or it could be like prakash or ravikumar.

Lets see what Sreedhar says..
Gane.

"Sell Omkar Speciality
at current market price, says S.P
Tulsian, market analyst, on CNBC
Awaaz. The true value of the
stock is Rs 35 and it would come
down to that level soon"


This was the news found in money . Red iff . Com

Chemcho sir,

I am very thankful to you coz I follow your yesterday message & sell

out all my share @ 63.80. Even I also plan to stay hold till tommorow

to wait any bounceback in Omkar but now I fell I am lucky to sell

yesterday as per your advice.

Gavin

Chemcho sir,

You are right. You posted message in this forum with targets. but somehow I missed as I was busy with my work parallel to ONGC trading. Today I traded with Cairn India.

I have managed to adjust omkar losses with the profit that I made from ONGC and Cairn.

Thanks.
Gane.

I am still holding 60 shares @ 98 .......hoping to reduce loses......How much I'll have to wait for breakeven......will it ever go up......???