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Rakesh Jhunjhunwala is considered to be the greatest investor in Indian Market. He is supposed to have made Rs 5000 crores by just investing Rs 5000 in Indian Stock Market. Rakesh Jhunjhunwala guru mantra to be successful in stock market is as enumerated below:

(a) He advises people to become interested in a stock when none is interested in the same stock. As per him BUY RIGHT & HOLD TIGHT for years to come. He has been holding few stocks for last 10 years and he is still minting money from those stocks.

(b) He further advises that one should not follow big investors blindly as their risk profile and long term goals with time frame may be difficult to be followed by retail investor.

(c) Market is supreme and every thing is reflected in the price and thus their is no point in fighting the trend as market is always right.

(d) One should be able to create a balance between the fear and greed.

(e) As per his words one has to learn the stock market trading as none can teach the market as stock market experience is the best teacher.

Thus follow Rakesh Jhunjhunwala advice in stock market, BE PATIENT and grow big like Warren Buffet or this iconic man from Dalaal Street.

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Monday, March 29, 2010

See avg newsprint prices at $615-620/t for FY11: Mid Day

In an interview with CNBC-TV18, Manajit Ghosal, Managing Director of Mid Day spoke about the latest happenings in his company and sector.

Below is a verbatim transcript of the interview.

Q: Could you confirm to us the quantum of funds that you would like to raise and when would you be raising these funds and what would they be used for?

A: It is a market buzz and we have not put out any word in the market. According to us the stock should be buzzing purely on back of business performance that the company has been able to deliver. We plan to deliver Rs 30 crore swing in profit from Rs 18 crore loss, to almost a Rs 12-13 crore profit this year. So that in itself should be able to make the stock buzz and it is not just about fund raising exercises.

Q: So are you planning to raise any funds in the due course of time for any of your initiatives?

A: That is true. We have been looking at funds, but I hope the market doesn’t respond to only fund raising rumours in that sense. It also responds to good business performance. We have been looking at raising around USD 10 million. It is primarily for deployment in new projects that we have launched.

We have launched our Delhi, Bangalore and Pune editions over the last couple of years where obviously there is a gestation period till they breakeven. There have been debts that have been taken and we plan to replace some of this debt with equity.

Q: What does your debt level stand at as of now?

A: In our operating company we would be in the range of around Rs 35 crore.

Q: You talked about launches in three new cities. We understand that it is actually 10 cities that you are looking at. Could you give us a ballpark figure of how many editions you are currently planning to target and what are the number of editions that you currently run?

A: We currently run around four editions, which is Bombay, Delhi, Bangalore and Pune. At one point of time, we were looking at the beginning of last year at launching in six new cities but the entire global economy tanked, the marketing budgets were slashed. So we are looking at an appropriate time when we can launch new editions. But right now we are looking at stabilizing these four editions—that is critical for us.

Q: You have already shelved plans of new launches, so how do you hope to achieve this target of Rs 30 crore that you have given us in terms of profitability? Have ad rates gone up?

A: There has been increase in ad volumes in the second half of the current financial year. That definitely has happened, the economy has revived. Ad rates are going up. There is slight depreciation in the newsprint prices, so we are getting benefit of that. Also, there is some adjustment in terms of fixed cost that most companies have taken. We have also undertaken some fixed cost realignment which will give some long-term benefits to the company. So to that extent profits have improved dramatically and shareholders should be pleased.

Q: How much by way of equity dilution are you looking at for this USD 10-12 million?

A: At this juncture I will not get into that.

Q: When can we expect this fundraising to be completed?

A: We should have something done before the festive season which is October; we should be able to announce something positive.

Q: Where have the newsprint prices stabilized as of now?

A: Current year average is around USD 525. Next year, we believe, they will keep rising and next year’s average price should be in the range of USD 615, they will settle at around USD 650 at the end of the year. But it will average out to somewhere around USD 615-620.

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2 comments:

The Green Man said...

Hi..
Great job with the blog...
I recently read that mr JhunJhunwala has sold his position in this stock..
So I am wondering Why are you still following the news related to this stock?

Inventory POS System said...

I appreciate your post, thanks for sharing the post, i would like to hear more about this in future

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