>Cash Rich Companies

Analysts at Société Générale are anticipating an increase in corporate mergers and acquisitions activity even amid the turmoil in the global markets, with companies using funds on their balance sheets to take advantage of targets’ low share prices.These firms have low share prices but plenty of cash on their books
Below table shows companies with low market cap than cash on books.



Companies with a strong net-cash position are in a position to benefit from greater visibility on the global economic situation and attractive valuations.

The Société Générale research said: “For those prepared to look through the haze, interesting opportunities may present themselves. Indeed, as access to capital tightens, competition for assets from competitors should dissipate and prices may fall.”

Regards
Rish

>Ranbaxy The Japanese MNC!!!

Ranbaxy Laboratories board of directors Monday approved a preferential allotment of shares warrants to Daiichi Sankyo Co. Ltd, leading to the Japanese drug firm acquiring a controlling 52.5% equity stake in the Indian drug maker.

Ranbaxy said it received INR35.85 billion ($736 million) from Daiichi Sankyo through the preferential allotment of shares and warrants. Daiichi Sankyo had offered to buy a controlling stake in Ranbaxy June 11, when Ranbaxy founders accepted an offer to sell a 34.8% stake to the Japanese company at INR737 a share.

The deal also involved an open offer to Ranbaxy shareholders at INR737 a share, which Daiichi Sankyo recently completed. Additionally, the deal included a preferential allotment of 46.26 million new shares and 23.83 million shares worth of new warrants to Daiichi Sankyo at INR737 a share. To date, Daiichi has acquired a 52.5% equity stake, comprising 220.69 million Ranbaxy shares - 92.52 million shares from the open offer, 46.26 million shares from the preferential allotment of shares, and 81.91 million shares from the company's founders.

"We (also) moved to transfer a substantial part of the (34.8%) founders' stake in Ranbaxy to Daiichi today. We expect to transfer the remaining 12%-13% stake in the next few days," Ranbaxy Chief Executive & Managing Director Malvinder Singh told Dow Jones Newswires. The deal will close once Ranbaxy's founding Singh family transfers this remaining stake to Daiichi.

Singh said Monday's stake transfer to Daiichi was done via an off-market transaction. Ranbaxy's founding family had to take the off-market route after it didn't get Indian regulatory approval for transferring the stake to Daiichi via block deals through the stock exchanges. "The substantial cash being infused by Daiichi Sankyo at this stage will be used to expand our business aggressively through the organic and inorganic routes," Singh said.

"We are delighted to announce the realization of the global alliance with Ranbaxy. Two strong presences in innovation and the fast growing business of nonproprietary pharmaceuticals united, this hybrid business model will boost Daiichi Sankyo to achieve our goal to become a world-class pharmaceutical innovator, a global pharma innovator," Daiichi Sankyo President & Chief Executive Takashi Shoda said in a joint statement.

"Ranbaxy will continue to operate as an independent and autonomous company and will closely cooperate with Daiichi Sankyo to explore and optimize the growth opportunities across the pharmaceutical value chain," the statement said.

Malvinder Singh will be appointed chairman of the board of directors in addition to his existing responsibilities as chief executive and managing director of Ranbaxy, the statement said, adding Singh will also become a member of the senior global management of Daiichi Sankyo.

>Nifty analysis

What do all of the following items have in common?
a) A needle in a haystack
b) A diamond in the rough
c) A confident investor in the INDIAN stock market.

Answer: They’re all next to impossible to find.

This October month is by far worst month since 2003 where 1st wave started on monthly chart.
We have already lost 22% in NIFTY this month with still 7,8 trading days pending.
Stocks are falling like cards,No support looks solid enough to hold this avalanche.
The biggest stock RELIANCE which holds 12% weightage in Nifty fell 5-9% consistently for the last 2 weeks,Which ensured that any relief rally which came got fizzled out in few days.
A positive point here Bluechip falling signals bad days are numbered.

On chart RELIANCE looks like should give a corrective bounce within next 100-120 points fall.

Coming back to "NIFTY"

The monthly chart suggests we are in 4th wave
Since wave 2 was small in size and time expect 4th wave to be big in size(which it already is)
as well as time consuming,So thinking that we would be out of this soon would be futile.


This could be a nightmare for INVESTORS but delight for Traders.

INVESTORS would have to adapt to the present conditions,They cannot just buy and sleep.
once you get 20-50% take your profits or Trail them and wait for next opportunity.

New high looks elusive for next 1-2 years at least .

With this slowdown in place ,Companies would have to cut down on many expenditures.
And usually the scissor falls on marketing.
Due to which I feel online marketing + Advertising would be more viable.
Try to find companies which are directly or indirectly get influenced by this
Do let me know too :) write in comments.

Coming back to "NIFTY"

As we witnessed each rally got washed out in few days.
We end up making a new low every time a rally is fizzled.
In this process we are making lower highs and lower lows.
An ideal case for falling wedge.
So keep this in mind and lookout for such pattern.

As for the chart 2000 in NIFTY is the crude sl for this 4th wave as below that the whole assumption of our waves goes for a toss .

Before that 2550-2600 the 2006 june lows is a very good support level.

Even before that 3000-2800 band too looks promising . We will see in coming days how these levels react .

Regards
Rish

>$200 oil: How could have oil experts gotten it so wrong?

Hi Friends,
A nice explanation of greed , fear,optimism and trader psychology,Go through the following Article which explains about the 5 wave structure of OIL with corresponding events unfolding.
Read it and try to recollect what was going through your mind during that phase of oil bull run:).


Three months ago, you couldn't swing a baseball bat in a crowd without hitting someone screaming that the world was running out of oil.

But after reaching a record high of $147 a barrel in July, oil fell as low as $68.57 (on October 16 -- Ed.) – a 50% decline. Before oil slipped below $70, "Goldman Sachs, among those predicting $200 a barrel oil, cut its year-end forecast of oil to $70…" (AP)

How could have "those predicting $200 a barrel oil" gotten it so wrong?

"To be fair, there is always a tendency in parts of the analyst community to look at short-turn trends and assume it’s something that will continue in perpetuity,” commented on the situation an analyst with the International Energy Agency.

Exactly. Isn't projecting short-term trends into infinity the definition of every financial bubble?

Avoiding such predicaments is precisely what Elliott wave analysis helps you accomplish. A study of market psychology, the Wave Principle helps you find psychological extremes in market charts – and then, ideally, forecast a change in trend before it occurs. A priceless advantage, indeed.
Here's how Elliott wave analysis could have helped you navigate around the oil bubble. On June 4, 2008 – still a month before oil's all-time high – Steve Hochberg, editor of Elliott Wave International's Mn-Wd-Fri Short Term Update posted this chart


Later, on August 11, 2008, The Short Term Update wrote:

Oil is down 23% from its July high. [This] chart was published in the June issue of The Elliott Wave Financial Forecast and shows our call for a top. Prices traced out five waves from the December 1998 low and carried to just above the upper line of an unorthodox parallel trend channel. Optimism was at near-record levels and the president of OPEC stated (shortly thereafter) that, “prices won’t come down.” It was a very strong confluence of conditions that indicated a reversal.


Near term, prices have closed lower the past two days, which is interesting in that if there ever was a fundamental “reason” for oil to shoot higher, it is Russia’s invasion of Georgia. I believe that they even shut down a pipeline. When psychology reaches an extreme and the trend turns, all the supposed reasons pundits cited as to why prices were rising matter little. Nearly all were rationalizations to begin with, and the change in psychology exposes their flaws.

And that brings us to today. Here's an update on that oil chart from the June 2008 Elliott Wave Financial Forecast:

Now that oil has dropped 48% from its July peak – into the forecast area of "the previous fourth wave" – we may see market sentiment reach a low extreme. What will that mean for oil going forward?

Regards
Rish

Source :-Elliott wave international