Stocks Rocket-Construction in focus

Today morning while writing to my clients, I had written the following and looks like we were very lucky to have some bets in the sector.Hope you guys are also riding the moves.

From: [mailto:sagecapital@gmail.com]
Sent: Thursday, 11 October 2007 9:41 AM
Subject: Playing the “construction” theme

Hi all,
The markets are surging ahead as a result of strong FII flows. Again- be careful with your RISK. Do not use LEVERAGE/MARGIN while holding positions.
Although the risks remain high, I am giving you some stock ideas in the “construction space”. Clearly, I am seeing a lot of buying in the sector. Couple of reasons could be(although they don’t matter!):
-Oversubscription of Maytas Infrastructure by 70 times (expected to list soon)
-Possibility of Interest rate cuts
– Huge order books

Here are some of the stocks you can consider( go with the known names):

• Nagarjuna Construction- This is one of the best construction stocks to have in your portfolio from a longer term perspective. The stock has been trending up nicely and might take a shot at 300+ levels soon. 240-250 remain good supports for the stock.
• BL Kashyap- The stock was mentioned sometime back by me around 1750-1800 levels. Thes tock is currently trading around 2350-2400 levels and looks very decent. The stock is slightly illiquid but a stock split should enhance the liquidity soon.
• Punj LLoyd- The stock is breaking new highs and is currently trading at 335-340 range. The stock has been a relatively underperformer and might outperform in the medium term.
• IVRCL- The stock has broken out of 450 levels and is looking strong. This stock has also been an underperformer and might outperform in the short term.
• HCC- The stock looks good once it crosses the 170-180 hurdle. So keep it on your scan list.

And here is a happy response from the client:

On 10/11/07, K.S> wrote:

Rocking day for the stocks man.

NAG CON up by more than 8% and IVRCL by 11%. Morning everyone could have added it as they gave ample time before moving up.

So sitting on 8% profit now and then NAG CON.

Hope so they do not become paper profits.

Thanks buddy