Very Imp International News & NFCL

International News which can affect the course of Indian Market too.
The unidentified investor has bought a total of 245,000 put options on the DJ Eurostoxx 50 index of 2,800 strike price of September series.
The trade will be profitable only when the market drops almost 40% before the expiry; else it’s a loss of over $1 billion J
The options expire on Sept. 21.

I would like to thanks some of my friends who have express the gratitude & have called to share the joy of there profit earned through the information on this blog. Specially two calls; Nagarjuna Fertilizer (dated 22 May 07) & GOLD ( dated 16th August)

Nagarjuna has almost doubled in three months & Gold has moved North from 880(16th August) to 930(10 september 07).


In my post of 22 may on Nagarjuna fertilizer(NFCL), I expected it to reach Rs.40 mark in a year. But only in span of three months it has doubled & is trading above the 40 level mark.

Now from this level the question arises whether the price is justified after the Reliance denial of taking a stake in it. So let’s recheck from fresh, discounting the Reliance story.


As stated in previous post, this company is located at strategic place of Kakinda port, which incidentally is the place where Reliance & others have found huge oil & gas supply. Natural Gas is the raw material for NFCL & the proximity to such a gas rich location will definitely boost the bottom line as transportation cost will be reduced significantly.

The land bank they are having at this location can easily fetch them 7000+ crore, this comes out to be almost Rs.155/ per share.

They are effectively using new media & internet be developing a portal for farmer which is getting popular in south.

The company has two loss making subsidiaries Nagarjuna Power Corporation in Mangalore & Nagarjuna Oil Corporation in TN which they are planning to sale the stake.

If Government goes on with the decontrolling of Urea & with international prices of Urea moving southward, we can expect better times for NFCL. Though when this decontrol plan will be implemented is anybody’s guess :-)

Overall the story is strong & the stock deserve quite a good attention.

Please go through Disclaimer on this blog.

Disclosure: I may have position in above said stocks for myself/ family members / friends.