Presentation on "Best 5 Mid-Cap Stocks for Lifetime" from Mid-Cap Mela will be sent in place of "20 Micron" report.

Dear Subscribers,

As per the schedule sent earlier, today we were supposed to dispatch IPO Coverage Report on "20 Micron". But during last 1 month Indian stock market has fallen more than 10-15% which has thrown an opportunity where we see many mid-caps has now become small cap after falling 60-80% and now available at mouth watering price.

Under these situation/scenarios we don't suggest investment in "20 Micron" which is expected to get listed on Oct 6th at browsers. PLEASE DO NOT INVEST IN 20 MICRON AS OF NOW.

Basic concern we have with its valuation & past growth rate, this is a niche player but when we look at other fallen mid-caps we see better opportunity there….In the Mid-Cap Mela event stocks selected has minimum criterion of Sales/Profit/Earning growth of 40-60% which is very high compare to past growth rate shown by 20 Micron. Hence we have decided not to send report on 20 Micron.

Concerns:-

1. Net sales increased at a CAGR of 19.98% to Rs 107.41 crores in FY 08 from Rs 51.83 crores in FY 04.
2. PAT increased from Rs 1.80 crores in FY 06 to Rs 4.59 crores in FY 08. The company was in loss during FY 04 and FY 05.
3. ROCE increased from 8% in FY 06 to 15.90% in FY 08.

Instead of this we will be sending a research report/presentation on "Best 5 Mid-Cap Stocks" from Mid-Cap Mela event. These are the stocks most suitable for anyone expecting outstanding return with minimum risk. These 5 best mid-caps will be picked from a list of 50 stocks which will be discussed during our Mid-Cap Mela event.

Caution:-
We would like to encourage you to be careful while picking the stocks which are beaten down 60-80% because now all the stocks good or bad will look alike. Prices are becoming selection criterion & it is most talked or visible to all and hence it would be really difficult to know which stock will re-gain their glory in the next Bull Run or which will never see their peak. For e.g.: Dish TV has fallen 70-80% so as Pantaloon; Asian Electronic has fallen 80-90% so as Indiabulls financials?

During 2001-02, NIIT has fallen from 2500 to 250 in just 1 year; Zee TV has fallen from 2000+ to 150 also Infosys has fallen from Rs 13000 to Rs 6000 (Pre-Split) but except Infy other two NIIT & Zee has not even seen half of their value in next 8 years....hmm!!!

You can expect this report during 3rd/4th week of Oct'08 once our research team finalizes on this. We are extremely sorry to cause in-convenience and change in schedule.

Regards,
HBJ Team