'Our future is in tech'
Ramesh S Damani thinks Infosys and Satyam are over-owned and over-researched and the market is not willing to pay a multiple higher than 75. But he adds that if infotech doesn't work, nothing will.
Mr Ramesh Damani (Wed Oct 11 19100 5:58 IST)
Hello guys thanks for joining in. Let's start
yogesh (Wed Oct 11 19100 5:44 IST)
What do you all feel about the Bombay Dyeing takeover attempt by Bajoria
Mr Ramesh Damani (Wed Oct 11 19100 6:0 IST)
yogesh - three cheers for Bajoria. Someone needs to make the mgmt responsible.
yogesh (Wed Oct 11 19100 6:0 IST)
Mr Damani, Mr Bajoria's attempt to takeover B Dyeing... Is it a positive development for the Indian market in general ? What is the message for promoters like Wadia...
Mr Ramesh Damani (Wed Oct 11 19100 6:0 IST)
yogesh - it is great. Look out Tatas, Wadia etc.
bala (Wed Oct 11 19100 5:44 IST)
Lot of negative news now. When do you think a trend reversal occurring
Mr Ramesh Damani (Wed Oct 11 19100 6:2 IST)
bala - the market will give us a clue. It is falling every day
yogesh (Wed Oct 11 19100 6:3 IST)
Can you suggest some stocks like Bombay Dyeing which are undervalued.. and where there is a similar possibility
Mr Ramesh Damani (Wed Oct 11 19100 6:4 IST)
yogesh - acc, tata chemicals, kesoram - however it is going to be tricky. Is India ready for the hostile takeover!!
RadhaKrishna (Wed Oct 11 19100 6:3 IST)
Is the market expected to go down and if so when is the right time to buy and what stocks -- Information tech or FMCG or pharma
Mr Ramesh Damani (Wed Oct 11 19100 6:5 IST)
Radhakrishna - our (India's) future is in tech. Also look at IT enabled services. Great Indian opportunity.
alok (Wed Oct 11 19100 6:4 IST)
what do you think of infosys and satyam results. if it is good, why are stocks falling?
Mr Ramesh Damani (Wed Oct 11 19100 6:5 IST)
alok- overowned over researched. Market is not willing to give it a PE that is over 75.
sudip chatterjee (Wed Oct 11 19100 6:4 IST)
what about Gv Films
Mr Ramesh Damani (Wed Oct 11 19100 6:5 IST)
sudip - no view on GV
bala (Wed Oct 11 19100 6:6 IST)
Is it time for value buying in Infy, Hughes Software etc
Mr Ramesh Damani (Wed Oct 11 19100 6:7 IST)
bala - i have been saying it since 4500. However i still believe if IT does not work nothing will.
alok (Wed Oct 11 19100 6:7 IST)
what will be the fate of 2nd rung cos like bfl, leading edge and 3rd rung like cybermate, vans, odyssey?
Mr Ramesh Damani (Wed Oct 11 19100 6:7 IST)
alok - god help them.
sudip chatterjee (Wed Oct 11 19100 6:7 IST)
What about MTNL
Mr Ramesh Damani (Wed Oct 11 19100 6:9 IST)
sudip - technically MTNL is very strong. It is holding. Some buyer has emerged.
yogesh (Wed Oct 11 19100 6:8 IST)
Why not... if investors like Bajoria make a cartel and force these sloppy management to take investor-friendly decisions just the way Buffet did in US.
Mr Ramesh Damani (Wed Oct 11 19100 6:10 IST)
yogesh - that's the way to do it. When was the last time Ratan Tata apologised for the miserable performance of the Tata Group including TATA INFOTECH. Some one must take responsibility.
Mr Ramesh Damani (Wed Oct 11 19100 6:12 IST)
Also look at the BK Birla Group. Century, Enka and Kesoram are all in the dog house. What has he done?
sudip chatterjee (Wed Oct 11 19100 6:10 IST)
Is it worth holding for disinvestment of MTNL
Mr Ramesh Damani (Wed Oct 11 19100 6:11 IST)
sudip - don't hold your breath. India does not want to disinvest.
vishal (Wed Oct 11 19100 6:12 IST)
Mr Damani --- what is your take on HFCL at present levels
Mr Ramesh Damani (Wed Oct 11 19100 6:12 IST)
vishal - avoid HFCL
sudip chatterjee (Wed Oct 11 19100 6:12 IST)
your advice about TATA TELE
Mr Ramesh Damani (Wed Oct 11 19100 6:13 IST)
sudip - The Tata Group does not inspire confidence anymore. What have they done for shareholders?
bala (Wed Oct 11 19100 6:13 IST)
Is Satyam hit due to Satyam Infy's loss
Mr Ramesh Damani (Wed Oct 11 19100 6:14 IST)
bala = sure. It looks bad.
Mr Ramesh Damani (Wed Oct 11 19100 6:14 IST)
bala - also Satyam's ADS looks in great doubt.
rohit (Wed Oct 11 19100 6:13 IST)
nasdaq is falling 100 points everyday. how long will this continue? if nasdaq goes to 2500, what will happen to indian tech stocks?
Mr Ramesh Damani (Wed Oct 11 19100 6:15 IST)
rohit- they will delink since they are not tech companies but service companies. Values will emerge.
vishal (Wed Oct 11 19100 6:14 IST)
i think u have lost your charm on TMT sector
Mr Ramesh Damani (Wed Oct 11 19100 6:15 IST)
vishal - not true. Though valuations had beens streched.
alok (Wed Oct 11 19100 6:15 IST)
u said about satyam ads what about wipro
Mr Ramesh Damani (Wed Oct 11 19100 6:16 IST)
alok - satyam may have to delay. Wipro at a lower rate. Both may be postponed.
sudip chatterjee (Wed Oct 11 19100 6:16 IST)
Why SRG INFOTECH showing such a huge volume? Any prospects?
Mr Ramesh Damani (Wed Oct 11 19100 6:17 IST)
sudip - forget it. SRG
basant maheshw (Wed Oct 11 19100 6:16 IST)
how does infy look yo u?
Mr Ramesh Damani (Wed Oct 11 19100 6:17 IST)
basant - as goes infy so will the market. It's hard to see it go beyond 7800 without an accquisition
yogesh (Wed Oct 11 19100 6:17 IST)
What is the possibility of Reliance coming into the picture in Bombay Dyeing...
Mr Ramesh Damani (Wed Oct 11 19100 6:18 IST)
yogesh - far-fetched. Reliance is smarter than that.
Umesh (Wed Oct 11 19100 6:18 IST)
Hi Ramesh! What A Day! Will Index touch 3500 sooner then later!
Mr Ramesh Damani (Wed Oct 11 19100 6:19 IST)
Umesh- I hope not. The market will hold at some point. I think at 3600 a strong fight will be put up.
vishal (Wed Oct 11 19100 6:19 IST)
Mr Damani --- what is your take on media stocks
Mr Ramesh Damani (Wed Oct 11 19100 6:20 IST)
vishal - watch them carefully. They will be important businesses.
Arun Krishna (Wed Oct 11 19100 6:20 IST)
Ramesh .. Do U think the market will go as low as 3600
Mr Ramesh Damani (Wed Oct 11 19100 6:20 IST)
Arun - it is 200 points away. NASDAQ is threatening to open 100 points lower.
sandeep (Wed Oct 11 19100 6:20 IST)
Do u feel at 188-190 HLL is a good buy?
Mr Ramesh Damani (Wed Oct 11 19100 6:21 IST)
sandeep - i would wait on HLL
Umesh (Wed Oct 11 19100 6:21 IST)
Do you think Satyam is a good buy at 400? Rumour says it will touch 300 level!
Mr Ramesh Damani (Wed Oct 11 19100 6:21 IST)
umesh - rumours may be right.
Arun Krishna (Wed Oct 11 19100 6:21 IST)
Do U think it is good time to Zee
Mr Ramesh Damani (Wed Oct 11 19100 6:21 IST)
Arun - no. Prime Time revenue will get hit due to KBC
yogesh (Wed Oct 11 19100 6:21 IST)
Huh... When the going in the market is good P/E of 200 looks great... When the market is jittery, P/E of 135 looks overpriced... strange isn't it..
Mr Ramesh Damani (Wed Oct 11 19100 6:22 IST)
yogesh - strange is right. INFY PE at Rs 100 earning for FY 2001 is now 68.
basant maheshw (Wed Oct 11 19100 6:22 IST)
How does Infy look to u from current levels?
Mr Ramesh Damani (Wed Oct 11 19100 6:23 IST)
basant - it would have to lead any market upswing.
bala (Wed Oct 11 19100 6:22 IST)
Pharma stocks are better now any call on them
Mr Ramesh Damani (Wed Oct 11 19100 6:23 IST)
bala - I like Abbott.
kamal (Wed Oct 11 19100 5:48 IST)
S&P has come out with india's rating...
Mr Ramesh Damani (Wed Oct 11 19100 6:24 IST)
kamal - in a bear market look only at bad news.
Arun Krishna (Wed Oct 11 19100 6:23 IST)
Ramesh...What about Pentamedia and Pentasoft aren't they under priced right now how about buying
Mr Ramesh Damani (Wed Oct 11 19100 6:24 IST)
Arun - the logic doesn't work. Market will always fret about quality of earnings.
yogesh (Wed Oct 11 19100 6:16 IST)
I am sure you must be having many clients like Bajoria... Why haven't you advised them similarly.
Mr Ramesh Damani (Wed Oct 11 19100 6:23 IST)
yogesh - bajoria is not my client!
yogesh (Wed Oct 11 19100 6:24 IST)
I meant clients with similar profile and apetite as Bajoria
Mr Ramesh Damani (Wed Oct 11 19100 6:25 IST)
yogesh - who bells the cat. You need an "adventurer." A Carl Icahn. May be Bajoria is the guy.
vishal (Wed Oct 11 19100 6:25 IST)
i think -- What do you feel the future of mutual fund who have invested fund in IT specific
Mr Ramesh Damani (Wed Oct 11 19100 6:26 IST)
vishal - look for the ones that have invested in mainline stocks and not too much in unlisted.
basant maheshw (Wed Oct 11 19100 6:24 IST)
What are the best bets for going long in a market like this? Mind u the losses have to be minimised as well
Mr Ramesh Damani (Wed Oct 11 19100 6:26 IST)
basant - it's no longer a four-letter word -- CASH
Arun Krishna (Wed Oct 11 19100 6:26 IST)
Ramesh... What is your advice on Silverline and Sterlite stocks to buy ?
Mr Ramesh Damani (Wed Oct 11 19100 6:27 IST)
Arun - I would avoid Silverline. Sterlite Comm let's look at the listing price.
yogesh (Wed Oct 11 19100 6:27 IST)
Do you think there is any company listed providing network security solutions... that's a great sector to stay invested
Mr Ramesh Damani (Wed Oct 11 19100 6:27 IST)
yogesh - something like Odyssey.
Umesh (Wed Oct 11 19100 6:28 IST)
Does BOI offer a good value at 9?
Mr Ramesh Damani (Wed Oct 11 19100 6:28 IST)
Umesh - No.
bala (Wed Oct 11 19100 6:28 IST)
Is digital a good buy at this level
Mr Ramesh Damani (Wed Oct 11 19100 6:29 IST)
bala - not particularly.
vishal (Wed Oct 11 19100 6:29 IST)
nasdaq --- near century as usual DOWN
Mr Ramesh Damani (Wed Oct 11 19100 6:29 IST)
vishal - ditto.
basant maheshw (Wed Oct 11 19100 6:28 IST)
Thanks. But don't u think that we shall be making a double bottom at 3800 and then one can see an index of 4700 to 4800
Mr Ramesh Damani (Wed Oct 11 19100 6:29 IST)
basant - let's hope we can hold.
Mr Ramesh Damani (Wed Oct 11 19100 6:30 IST)
thanks for joining in. See you all next week. Try to have a prosperous week.
Money
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