Analytics News Round Up

• IFCI stake sale called off, alongside this IFCI to issue 123.7 m shares on Debt conversion. Thus what we feel is that the stock's prices will be under pressure going forward. Also the investor and speculator frenzy for the stock will subside going forward.

• Suven Life Sciences to launch CNS drug Suven-502 in 2008, the company is also going for raising money through the QIP route upto Rs. 50 million USD. The stock has had a run up during last fortnight. It is trading at around Rs. 50 per share and i see the stock going above Rs. 60 in the short term. It is a value stock with a good future, a clear long term story. Its debt/equity is .25 which is quite low compared to a 2.1 of Glenmark. Just to site one example. Its BV is Rs. 38.34 compared to Rs. 35.99 of a larger player Glenmark Pharma. (I am tracking the stock since a year but missed the buying opportunity during the consolidation phase at around Rs. 38 this year)

• GBN -Global Broadcast News board approves stock split from FV Of Rs 10 To Rs 2. This is a CNBC TV 18 group company.

• Government Panel is going to meet on fuel price revision next week (a news channel)

• Morgan Stanley, the second-largest U.S. securities firm - run by CEO John Mack reported a steeper- than-forecast loss of $3.56 billion in the fourth-quarter after $9.4 billion of writedowns on mortgage- related holdings and received a $5 billion cash infusion from state-controlled China Investment Corp. (China's Sovereign Wealth Fund which acquired 9.9% of Morgan Stanley)

• Gujarat Fluorochemicals Ltd (GFL) on Wednesday said it will enter into a joint venture with China-based Ying Peng Chemical Company for manufacturing a strategic raw material.

Thanks for reading, read disclaimer on the website for sources.

A MAJOR AIRLINE INVESTMENT

Jet Blue the struggling discount carier sold 19% stake in its business to Lufthansa of Germany for $300 million.it is the major investment by a foreign airline.

This transaction is also the latest example of the weak dollar to invest in a prominent American company.

The stake sale may help shore up the lagging finances of JetBlue which has $433 million in current debt obligations and has already substantially curtailed its growth plans and sold some assets like older planes. While Lufthansa's investment is strictly financial and doesn't include any strategic partnership for now.

Industry watchers speculated that the deal could lead to further cooperation and give Lufthansa an important foothold in the United States.

source: bbc news