Option stock trading
Option stock trading can be considered as one of the most financially rewarding strategies one can become involved in. Sometimes, this becomes a destructive investment plan, though. Stock option is the ‘right’ to purchase a stock at a given price within a specified time. Stock option trading is largely dependent on certain factors, such as name of the associated stock, strike price, expiration date, and the premium paid for the option, plus the stock broker’s commission.
Option trading involves trading standardized options contracts, which are listed by a variety of futures and options exchanges. In the United States, there are presently six exchanges where stock options are traded, including four open-outcry marketplaces and two electronic marketplaces. The open-outcry marketplaces are Philadelphia Stock Exchange (PHLX), American Stock Exchange (AMEX) in New York City, the Pacific Exchange (PCX) in San Francisco, and the Chicago Board Options Exchange (CBOE). The International Securities Exchange (ISE) and Boston Options Exchange (BOX) are included in the electronic marketplaces. In Europe, the main futures and options exchanges are Euronext.liffe and Eurex.
Another option to trade a stock is the ‘over-the-counter’ (OTC) trading, which is the opposite of exchange trading occurring in option exchanges or futures exchanges. The OTCs are traded not in exchanges, but between two independent groups; hence these transfers are the bi-lateral contracts. In this contract, at least one group is typically a large financial organization with a balance sheet big enough to guarantee such a contract. OTCs are administrated by an International Swaps and Derivatives Association agreement.
Stock option trading, with no intent to ever exercise the option, may be considered as a form of ‘leverage’. The ‘grant’ price (the price of an option) on a security might increase over the price of the security itself. For this reason, the entire value of trading in options has at times exceeded the total value of trading in stocks themselves.
It’s hard to find quality information about options trading. OEX Options provides valuable advices, trading strategies and methods for investors.
Sita Shree Food Products Ltd. IPO Note
Sita Shree Food Products Ltd. IPO details:
Price Band: Rs. 27 - 30 per share
Issue open between: March 11 - March 14, 2008
Book Running Lead Managers: Keynote Corporate Services Ltd.
To List on: NSE and BSE
Market Cap post-listing: Rs. 66 Cr. or $16.3 million (based on the cap price)
Executive Summary
Sita Shree Food Products Ltd. (SSFPL), is a Indore based wheat and pulses processor for over 3 decades serving primarily western and southern markets.
It markets packaged products under its own brands ‘Sita Shree Regular’ and ‘Sita Shree Gold’, and also supplies food products to organized retail players like Pantaloon Retail and Reliance Retail. Recently, it has commenced exporting to the Gulf countries.
Ministry of Food Processing Industries (GOI) estimates size of Processed Food Industry at Rs1440bn.
Top line and bottom line girew @ CAGR of 48.8% and 77.5% respectively, during FY04-07.
The expansion plan involves capex of Rs48Cr to be funded through a mix of equity, debt and internal accruals for setting up solvent extraction plant, Lecithin plant and additional flour mill to cater to the increasing demand.
Extraction of soya oil and manufacturing by-products of Soya have higher EBITDA margins.
IPO is priced at 18.8x based on pre-issue weighted EPS and 22.0x based on pre-issue FY07 EPS.
Download full version of Sita Shree Food Products IPO Note (Keynote Capitals) (pdf)
Sita Shree Food Products Ltd. IPO Note
Gammon Infrastructure Projects Ltd. IPO Analysis
Keynote Capitals set “Subscribe with a long term view” recommendation on Gammon Infrastructure Projects Ltd. IPO.
Gammon Infrastructure Projects Ltd. IPO details:
Price Band: Rs. 167 - 200 per share
Issue open between: March 10 - March 13, 2008
Book Running Lead Managers: IDFC-SSKI, Macquaire
To List on: NSE and BSE
Market Cap post-listing: Rs. 28.91 billion or $711 million (based on the cap price)
Synopsis
Gammon Infrastructure Projects Ltd. (GIPL), part of the Gammon Group is in the business of investing, developing, operating and maintaining infrastructure projects on PPP basis. Currently, GIPL has 14 projects in its portfolio, of which 4 are in the operational phase; 7 are in the development phase and the rest in the pre-development phase.
In our view, the diversity in its asset portfolio is a major strength. Its projects are into diverse segments, viz., roads, bridges, ports, hydro power and biomass power. Of these, six are based on annuity basis, three on annuity & toll basis and the balance five on toll basis.
An excellent play on the growth of infrastructure in the Indian economy.
Given the diversified portfolio of assets, the mix of toll-based and annuity-based revenue streams, the synergies it can draw from the Gammon brand and its execution capabilities, we believe GIPL will be well positioned to leverage its capabilities for bidding and securing larger size projects, going forward.
Proven engineering capabilities of the Gammon Group coupled with GIPL???s experience in successful development and timely implementation of projects, provides it with competitive advantage.
GIPL???s projects have long gestation period. Along with the implementation risks, other concerns are related to the recurring capex required for implementing large infrastructure projects
The IPO is priced at a p/e of 116.27x annualised H1-FY08 earnings. Given the group background, execution capabilities and diversified project portfolio, investors may consider investing with a long term view. However, we believe the current issue size may not adequately support GIPL???s growth plans. Going forward, the company may need to explore further fund raising.
Download full version of Gammon Infrastructure Projects IPO analysis (Keynote Capitals) (pdf)
Gammon Infrastructure Projects Ltd. IPO Analysis
Gammon Infrastructure Projects Limited (GIPL) IPO
Incorporated in 2001, Gammon Infrastructure Projects Ltd, is an infrastructure project development company promoted by Gammon India Limited, to participate in the development of infrastructure projects on a public private partnership (”PPP”) basis. GIPL currently undertake and development of infrastructure projects on PPP basis across sectors such as Roads & Expressways, Ports, Hydro Power, Urban infrastructure, Airports, Special Economic Zones, Water and Wastewater management, Railways, Power Transmission lines, and Agricultural Infrastructure.
Public Issue Open: March 10, 2008 to March 13, 2008
Public Issue Price: Rs 167 to Rs 200
Registrar: Intime Spectrum Registry Ltd
Maximum Subscription Amount for Retail Investor: Rs 100,000/-
Listing: BSE, NSE
More information about indian IPOs here:
http://www.stockmarketsreview.com/ipoindia/
Sita Shree Food Products Limited IPO
Incorporated in 1997, Sita Shree Food Products Limited is in the business of wheat and pulse processing. The product portfolio of the company consists of Wheat Flour, Maida, Rawa, Daliya, Suji, Chana Dal etc. These products are marketed under its own brand like “Sita Shree Regular” and “Sita Shree Gold”. Presntly Company is supplying its products to major players in retail industry such as Pantaloon Retail and Reliance Retail.
Public Issue Open: March 10, 2008 to March 14, 2008
Public Issue Price: Rs 27 to Rs 30
Registrar: Ankit Consultancy Pvt Ltd
Maximum Subscription Amount for Retail Investor: Rs 100,000/-
Listing: BSE, NSE
Indian stock market news here:
http://www.stockmarketsreview.com/news_india/
Bang Overseas Limited IPO Listing Date & Info
Bang Overseas Limited IPO Listing Date & Info:
IPO Listing Date: Wednesday, Feb 20, 2008
NSE Symbol: BANG
ISIN: INE863I01016
Issue Price: Rs 207 Per Equity Share
Face Value: Rs 10 Per Equity Share
Manjushree Extrusion Limited FPO Listing Date & Info
Manjushree Extrusion Limited FPO Listing Date: Thursday, February 28, 2008
BSE Script Code: 532950
Listing in: ???B1′ Group of Securities
ISIN: INE435H01015
Issue Price: Rs 45/-
Face Value: Rs 10/- Per Equity Share
More information about indian IPOs here:
http://www.stockmarketsreview.com/ipoindia/
Reliance Power Ltd declared 3 bonus shares for every 5 shares held
The bonus issue will bring the cost of per Reliance Power ltd share for retail investors to Rs 269 (earlier Rs 430) and for others to Rs 281 (earlier Rs 450).
The expected ex-bonus share price would be around Rs 300, if the market situation remains same as current market.
“I have been personally concerned by the notional losses arising to millions of our investors as a result of a dramatic adverse change in sentiment in global and domestic capital market after the pricing of our IPO,” Ambani said. “The board endorsed my concern and approved the bonus issue.”
Company needs approval from its shareholders before sending the bonus issue detail to stock exchanges to fix record date.
Once record date has been declared, all the investors holding shares on that date, would be entitled to receive bonus shares.
More information about indian IPOs here:
http://www.stockmarketsreview.com/ipoindia/
Tulsi Extrusions Limited IPO Listing Info
Tulsi Extrusions Limited IPO Listing Date: Monday, February 25, 2008
BSE Script Code: 532948
NSE Symbol: TULSI
Listing in: B1 Group of securities
ISIN: INE474I01012
Issue Price: Rs 85 Per Equity Share
Face Value: Rs 10 Per Equity Share
More info about Indian IPOs here
IRB Infrastructure Developers IPO Listing Info
IRB Infrastructure Developers IPO Listing Date: Monday, February 25, 2008
BSE Script Code: 532947
NSE Symbol: IRB
ISIN: INE821I01014
Issue Price: Rs. 185
Face Value: Rs 10 Per Equity Share
More info about Indian IPOs here