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March 8, 2001 Stock Talk

'Speculative bubbles always have bad endings'

srikanth : Mr Damani, why is it that despite the ban on short sales tech stocks are declining?
Ramesh Damani : Water finds its own level

castello : Hello Damani,What is this bloodbath at STOCK MARKET. DOES IT MEAN THAT WE HAD NOT LEARNT FROM HARSHAD MEHTA EXPERIENCE?
Ramesh Damani : Financial markets tend to be risky. Clearly we have not learnt all the lessons

ajay : hello Mr. damani, why are the attractive quarterly results of top indian IT companies not being taken into consideration and they r being beaten mercilessly??
Ramesh Damani : Fear of a warning like NIIT gave

srikanth : How long do u think it will take for tech stocks to recover?
Ramesh Damani : It could take years and only the best would survive

ajay : what is the exact role of the brokers in the blood-bath last week? how was SEBI unable to control the crash in prices??
Ramesh Damani : Prices must find there level. Markets must always be monitored not just when falling. When rising also. Remember even NASDAQ has fallen 55%.

deshpremi : The main problem is that we spend More on arms and less on development. Very recently we ordered fighters from Russia of about US$4 billions and raising 600 million loan on interest from World Bank and IMF. 400 million people live in extreme poverty.
Ramesh Damani : I am all for a peace treaty. Huge plus for us.

castello : Damani,Are we seeing the repeat of Harshad mehta in the days to come? Are the investors going to be taken for a ride?
Ramesh Damani : There is some commonality this time also. However markets are much safer

ajay : what is the exact role of the brokers in the blood-bath last week? how was SEBI unable to control the crash in the prices?? by using control mechanisms like freezing, etc??
Ramesh Damani : Speculative bubbles always have bad endings. Always.

Amit : Hello Mr. Damani, I'll be specific in asking about stocks, Is Zee TV an attractive buy at around 140
Ramesh Damani : I am not excited by it. They need to improve the line up. Let's see how POW does

srikanth : By saying water finds its own level do u mean that the current valuations are correct?..How do u justify Nestle's price of 545 on a EPS of Rs 12 and a growth rate of 20%, while Satyam is quoting at Rs 260 despite a growth of over 100% and a EPS of around Rs 11?
Ramesh Damani : It's called Quality of earnings. See Satyam's earnings on a GAAP basis taking into a/c SIFY losses. It is not pretty.

mast : How involved is KP in the market fall so steep
Ramesh Damani : Some of the shares associated with him have taken a hit.

ravi999 : Mr Damani - which broking firms are involved in short selling?
Ramesh Damani : I would not know. But short selling is not illegal. It is necessary to keep the markets honest

srikanth : Which tech stocks do u think will survive in the long run?
Ramesh Damani : At current times it looks like INFY, WIPRO, NIIT have the best chance

ravi999 : If short selling is not illegal then on what basis SEBI is investigating into this matter?
Ramesh Damani : Short selling is not. Selling on insider info or price hammering is.

ajay : when can we expect the INFY stock to reach the 7,000 - 8,000 level? what is the company's image in US market now??
Ramesh Damani : company has a good image. It may take an accquisition.

u : What about psu stocks ?
Ramesh Damani : I like them I like what Mr Shourie is doing

qasdasd : What is the news on LTITL? When is it going public?
Ramesh Damani : explain LTTTL ?

smoothq : mr damani why don't bse just warn the future small time investors not to trade in the stock market instead of destroying their life by such cheating
Ramesh Damani : Cheating is rampant in our society as is corruption. Pls let us all remember Caveat Emptor. I do hope though SEBI will clean up the malpractices this time

qasdasd : LTITL: L&T's infotech subsidiary
Ramesh Damani : Sorry no news on that

ajay : companies like infy,wipro,tcs are doing well only because of low wages here in India with more and more US companies coming to India which will reduce this advantage. moreover China is also expected to give them a run for money what r their prospects in such a scenario??
Ramesh Damani : The advantage is large. China will take some time to catch up

Vinod : what do you feel about power sector scrips like abb bhel siemens
Ramesh Damani : I like then especially ABB

katu : according to you now investor will think to invest in market?
Ramesh Damani : The confidence is shaken

sarika : Sir, can we know your comments on Himachal Futuristic
Ramesh Damani : Avoidable

mirza : how much of your predictions have come true? give a honest ans, pl?
Ramesh Damani : I don't keep score. Predictions are by nature tricky. Always use your own judgment

ajay : mr. damani, what are the employment opportunities for indian software professionals now? considering the retrenchement policies being adapted by major IT companies like cisco, motorola, etc and how long do u think this will continue??
Ramesh Damani : Op will open up in IT enabled. Tech wages will not rise as fast. Options will become scarce

amitabh : why the bid for vst? how would you add value?
Ramesh Damani : It's not me. It is one Radhakisan Damani

Amit : which particular PSU stocks would you prefer to have in your portfolio
Ramesh Damani : The ones that will get privatised first.

qasdasd : Do you also track mutual funds, Mr Damani? Can we ask questions on mutual funds to you?
Ramesh Damani : I'll try to answer but am no expert

cgjain : tell me why itc has jumped
Ramesh Damani : Index stock!

castello : Dear Damani,I am repeating. IN your assesment ,is the current stock panic the tip of iceberg or end of the trauma for investors.
Ramesh Damani : I think the momentum stocks will still be weak

mirza : compare harshad mehta with ketan parekh?
Ramesh Damani : Both seem to have ended badly

jsebes : What do you think about hughes soft , With Support from GE isnīt it better than infy ?
Ramesh Damani : Small size still

sarika : Sir, any comments on Himachal Futuristic
Ramesh Damani : Avoidable

AG2MDS@REDIFFMAIL.COM : SIR, I AM FOLLOWER OF BENJAMIN GRAHAM. BUT WHAT HAPPEND TO THE STOCK MARKET TODAY IS VERY DISAPPOINTING. MAY I HOLD SHARES FOR LONG TERM? IT IS APPLICABLE TO INDIAN MARKET. PLEASE TELL THE TRUTH.
Ramesh Damani : I think it is. Just be in the great businesses though. That is the key to long run investment

mirza : what dou have to say about the fii which bought zee telefilm at 1000 levels a few months back?
Ramesh Damani : I am sorry for these investors

Arun : After the Balco divestment - what is your take on PSU divestment. Which stocks to focus?
Ramesh Damani : CMC and VSNL are next.

Amit : after vsnl, which psu companies you think would be privatised
Ramesh Damani : CMC

ajay : mr. damani, how is any aquisition going to help infy?? at the present levels do u suggest buy/sell/hold for infy???
Ramesh Damani : I have booked some profit in it. It looks tough for tech

Jay : Mr Damani, can I ask something on BSE?
Ramesh Damani : Sure

Jay : Isnt it obvious that the current structure of BSE is heavily skewed in favor of brokers? Isn't there an obvious conflict of Interest?
Ramesh Damani : Take a look at our society. It's all in reflection

harinath_kumar321 : sir, how shares value goes up and down within a hour
Ramesh Damani : Welcome to electronic trading

srikanth : What do u think will be the growth rate of large software companies over the next three years?
Ramesh Damani : 40%-0% compounded

AD : Mr.Damani..your views on IBP & SCI
Ramesh Damani : I like them. Thanks for joining. See you next week

IUnknown : mr damani are there any biotech firms willing to invest in india please suggest some biotech stocks.
Ramesh Damani : I am still looking. Great op though

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