Nagarjuna Oil is part of the Nagarjuna group and has set up a 6 Million Tonne Refinery in Tamil Nadu.
This refinery was supposed to be commissioned in March 2012 but has been delayed.
Now, the funny thing is that the financials of this company are not available on the NSE website nor on the BSE web site nor on the company’s own website.
The only thing we know is that around 42.81 Crores shares are outstanding which gives it a market cap of around 325 Crores.
Despite the lack of details or perhaps because of the lack of details, this stock is up around 37% today.
In many ways, the stock reminds me of RNRL. It has all the ingredients for being- in Dalal Street terms-a “satta” (aka punting/gambling) stock:
1.A low price (around 7.55) allowing even the smallest of punters a chance to speculate
2.Potential of huge profits for the company
3.Impending news (In this case, the commissioning of the refinery)
4.Well known and politically connected promoters
Off to the races then !
In this quarter, FIIs are doing all the disco (buying) and DIIs are doing all the khisco (selling)
Hot links of the day:
India is closed for business (Firstpost)
Can the Tatas hold on to their Taj property in Delhi ?(ET)
Record FII flows in 2012 ?( Business Standard)
RBI Watch:Study of State Finances 2011-12 (RBI)
Insight is not advice (The Reformed Broker)
Whitney Tilson’s March 2012 Letter to Investors (InvestingNotebook)
Is US the new Middle East ? (Bloomberg)
The most expensive real estate in the world (WSJ)
In an earlier post, had discussed the consequences of Israel attacking Iran.
In most wars, the biggest beneficiary is the one who has not taken part in the war
For example, the biggest winner in the Korean War and the Vietnam War was Japan as the US military used it as a base for their operations
In the US-Afghanistan war, the biggest monetary winner was Pakistan as the NATO supply lines went thru its territory.
In the Iraq war, the biggest winner was Dubai.No wonder it saw a huge boom during that period.
So if the Iran-Israel war breaks out, the country not taking part in the war will be the biggest beneficiary.In my opinion, that country will be…Saudi Arabia.It will benefit by a weakened Iran and/or a weakened Israel and the best part will be that oil prices will remain elevated.
So its probably time to stock up on some Saudi Arabian Riyals !
Today J&K Bank hit its 52 week high intraday.
I confess I have a soft corner for this company and its stock.
Why is that?Because over the years it has proved to be a tremendous compounding machine.
On Jan 1 , 2001 its closing price was 34.3.Today it closed at 895 after hitting an intraday high of 929.8.
If an investor had held onto this stock thru thick and thin, over all these years he would have had a compounded return of close to 35% per annum.
Of course the ride would not have been easy (see chart below)
But it well would have been worth it.