Review of Suzlon Energy prediction

One day after Suzlon energy was listed on Oct 19,2005 we predicted
"Shares of Suzlon energy company listed at arond Rs 510 and closed at around Rs 690(?) yesterday, How will the share perform from now on?1. Next two weeks: After further rise, profit booking will kick in next week and price could see a significant fall.2. Over next 3 months ( till mid jan 2006): After falling over next 10 days or so the prices are likely to recover over the next 3 months though (mid Nov to mid (red- edited)December could be volatile in this respect. TIP: If you buy or accumulate further as prices fall next week, in another month's time there could be significant gain" : Link to Original prediction
Review: On the second day after listing the sscrip went up to 707 rupeess and then fell over next days to a low of 637 rupess over october 20-31,2005 . From there the scrip rose to all time high of 792 rupees inthe first two weeks of november. Hence as per our recommendatation if scrip was accumulated in the last ten days of october ( say at avergae price of 660 rupees) it would have given an average return of nearly 20% beating the sensex and perhaps one of the best scrip for this period.
1 Comments:
The demand for wind energy is INFINITE !!!
Very soon there is going to be some sort of a global legislation calling for a ban on thermal coal based and also gas based power plants. Thereby implying that a substantial capatalization currently deployed in companies like NTPC, Reliance Power, TATA Power, Adani power etc will shift to wind energies like Suzlon and Indowind Energy.
Have you ever wondered why Adani Power got a thums down on listinf and that Rel Power is not moving up ... ANSWER: Because smart money is slowly moving out of thermal based power generation plants.
Today even Azim Premji of Wipro is talking of diversifying into Wind Energy ... Why ? Because he is an intelligent man and that he knows Wind Energy is the absolute future.
After a very vast review of literature I come to the conclusion that today 20 August 2009, irrespective of its Rs 1300 crore debt the Rs 2 paid up share of Suzlon needs to be valued at a price of over Rs 500. So why is Suzlon moving near price of Rs 40 per share ... because the people are fools ... and they do not understand that WIND ENERGY is the priorty of the world today.
I am a scientest and I have made a rough mathematical analysis that for every 1 mm rise in the height of sea water there is going to be a one foot rise in the high tide. About a 20 days back, that is in the month July 2009 people had gathered in a picnic mood at India Gate Mumbai to witness the highest tide of the century the said tide being 4.25 meters high, and at that time the sea water was only 2.5 inch below the parapet of india gate. By next year July with the polar ice melting fast due to global warming the sea water would rise by at least 3 mm, thereby implying that during the high tide in July 2010 the lobby of Taj Mahal and Oberoi Hotel in Mumbai would be at least 3 feet under water intermittently for 7 to 8 hours.
CONCLUSION: Sell all your shares, Gold and property and invest the proceeds as follows:
80% in Suzlon
20% in Suzlon
... Why? The value of the technical know how in winf energy which has been acquired by the engineers of Suzlon and Indowing is much more than the total extisting capatilazation of these companies.
One more thing, time will show that Tulsi Tanti of Suzlon will never sell his holding in Hansen ... that is why he is looking towards divesting in SeForge.
ULTIMATE CONCLUSION: If Suzlon is able to divest ib SeForge and show a Q2 net profit of even Rs 50 crore (after accounting the servicing of the rest of the existing debt) its share value will cross Rs 500. And I firmly believe that in Q2 2009 just wait till Sep 2009 and you shall see a Q2 net profit of about 150 crore.
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