Sugar Incentives - A positive move in the short term

Recently I received a research report from Indiainfoline about sugar industry. Excerpts from that insightful report.

Government support for the sector positive in the short term

Government has reportedly announced a series of measures to provide short term support to the sugar industry. These measures include:

ü A subsidy of Rs1.35/kg for coastal states like Maharashtra, Tamil Nadu, Ka rnataka and Gujarat while a subsidy of Rs1.45/kg for north based mills.

ü Creation of a buffer stock of about 2mn tons

ü With an estimated sugar inventory of about 8mn tons by September 2007, the buffer stock would lower the cost of holding for the companies which would be borne by the government.

Beneficiary Companies

Companies with sizable re-export obligations are expected to take advantage subsidy schemes to partially liquidate their inventories accumulated as a result of bumper cane crop in the current seasons.

For instance, Sakthi Sugars, one of the largest exporters, has an obligation under the Advance License Scheme (ALS) of about 200,000MT to be exported by December 2007. The a verage import price of raw sugar was about US$200/ton while the company expects export realizations of about US$310/ton which would translate into domestic price of Rs13.2/kg which, coupled with the export subsidy of about Rs1.35/kg, would lead to net export realization of about Rs14.5/kg

No Impact On Larger Players

Larger sugar companies like Bajaj Hindustan, Balrampur Chini Mills and Triveni Engineering and Industries do no t have any obligation under ALS hence would remain unaffected by any such scheme. These companies may, however, look at fresh exports if domestic prices tumble further since this would help them liquidate mounting stocks albeit at lower international realizations.


Dear Friends,
Good Evening to all of you ... t
ake out few minutes from ur busyschedule....
very meaningful story....
A man came home from work late, tired & irritated, to find his 5-year- old son waiting for him at the door.
Son: "Daddy, May I ask you a question"
Daddy: "Yeah sure, what it is?"
Son: "Dad, how much do you earn in an hour"
Daddy: "That's none of your business. Why do you ask such a thing? "That man said angrily
Son: "I just want to know. Please tell me, how muchdo you earn in an hour? "
Daddy: "I make Rs. 500 an hour"Oh", the little boy replied, with his head down. Looking up, he said, Dad, may I please borrow Rs.300?"
His father was furious, "if the only reason you askedthat is so you can borrow some money to buy a sillytoy or other nonsense, then march yourself to your room and go to bed.The little boy quietly went to his room and shut thedoor.The man sat down and started to get even angrierabout the little boy's questions.How dare he ask such questions only to get some money?After about an hour or so, the man had calmeddown, and started to think: May be there was somethinghe really needed to buy with that Rs. 300 and hereally didn't ask for money very often!" The man went to the door of little boy's room and opened the door."Are you asleep, son?" He asked.
No daddy, I'm awake," replied the boy.
I've been thinking, may be I was too hard on you earlier", said the man,It's been a long day and I took out my aggravation onyou. Here's the Rs.300 you asked for
"The little boy sat straight up, smiling "oh! Thankyou dad!" He yelled. Then, reaching under his pillow he pulled somecrippled up notes.The man, seeing that the boy already had money,started to get angry again.The little! Boy slowly counted out his money, and then looked up at his father.
Why do you want money if youalready had some?" the father grumbled.
Because I didn't have enough, but now I do," thelittle boy replied.
"Daddy I have Rs. 500 now.
Can I buy an hour of your time? Please come home earlytomorrow. I would like to have dinner with you"
The moral of this story:It's just a short reminder to all of you working sohard in life. We should not let time slip through our fingerswithout having spent some time with those who reallymatter to us, those close to our hearts.If we die tomorrow, the company that we are workingfor could easily replace us in a matter of days. But the family & friends we leave behind will feel theloss for the rest of their lives. And come to thinkof it, we pour ourselves more into work than to our family and friends

Doubling Period - How long it will take to double my money?

Hi, Is there any simple way of knowing the answer of this simple question?

How long would it take to double the invested amount
at a given rate of interest?

Ya. At least two simple methods are available, it seems.
Rule of 72
This rule says doubling period is obtained by dividing 72 by the interest rate.
If the interest rate is 10%, then your money will double in 7.2 years. It is a crude and approximate way of finding doubling period.
Rule of 69
Doubling period = 0.35 +( 69 / interest rate )
If the interest rate is 10%, then according to rule of 69
Doubling period = 0.35 + (69/10)
= 0.35+6.9
= 7.25 years
It is more accurate.

Alexander Elder’s “Come into My Trading Room”

Indian Share Market as usual swinging one extreme to another . Famous analysts are seen in TV, giving confident reasons both for rise and fall of the market with out any shame. As I couldn’t figure out any trading strategy, I started to read Alexander Elder’s “Come into My Trading Room”. Excerpts from that book.

There are two main approaches to profiting from crowd behavior. The first is momentum trading—buy when a ripple starts running through the crowd, sending the market higher, and sell when that ripple starts losing speed. It is a challenge to identify a new trend while it’s still young. As the trend speeds up and the crowd becomes exuberant, amateurs fall in love with their positions. Professionals remain calm and monitor the trend’s speed. As soon as they find that the crowd is returning to its normal sleepiness, they take profits without waiting for a reversal.

The other method is the countertrend strategy. It involves betting against the deviations and for a return to normalcy. Countertrend traders sell short when an upside breakout starts running out of speed and cover when a downtrend starts petering out. Beginners love to trade against trends (“let’s buy, this market can’t go any lower!”), but most get impaled on a price spike that fails to reverse. A man who likes peeing against the wind has no right to complain about his cleaning bills. Professionals can trade against trends only because they are ready to run at the first sign of trouble. Before you bet on a reversal, be sure your exit strategy and money management are fine-tuned.

Momentum traders and countertrend traders capitalize on two opposite aspects of crowd behavior. Before you put on a trade, be sure to know whether you’re investing, momentum trading, or countertrend trading. Once you’ve entered a trade, manage it as planned! Don’t change your tactics in the midst of a trade because then you’ll contribute to the winners’ welfare fund.

Amateurs keep thinking what trades to get into, while professionals spend just as much time figuring out their exits. They also focus on money management, calculating what size positions they can afford under current market conditions, whether to pyramid, when to take partial profits, and so on. They also spend a great deal of time keeping good records of their trades.




Dear Friends and Public,

A few weeks ago, in a movie theatre, a person felt something poking from
her seat. When she got up to see what it was, she found a needle sticking
out of the seat with a note attached saying "You have just been infected
by HIV". The Disease
Control Center (in Paris) reports many similar events in many other
cities recently. All tested needles were HIV Positive.

The Center also reports that needles have been found in cash
dispensers at public banking machines. We ask everyone to use extreme
caution when faced with this kind of situation. All public chairs/seats
should be inspected with vigilance and caution before use. A careful
visual inspection should be
enough. In addition, they ask that each of you pass this message along
to all members of your family and your friends of the potential danger.

Recently, one doctor has narrated a somewhat similar instance that
happened to one of his patients at the Priya Cinema in Delhi. A young
girl, engaged and about to be married in a couple of months, was pricked
while the movie
was going on. The tag with the needle had the message welcome to the
World of HIV family". Though the doctors told her family that it takes
about 6 months before the virus grows strong enough to start damaging
the system and a healthy victim could survive about 5-6 years, the girl
died in 4 months, perhaps more because of the "Shock thought".

We all have to be careful at public places, rest God help! Just think
about saving a life by forwarding this message. Please, take a few
seconds of your time to pass along.

With Regards,

Rather than forwarding irrelevant mails, kindly pass this to every one.
Probably ur mail can help some save his/her life

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