Stk Calls from Aman

Actionable ideas

Lanco Infratech (SELL, CMP Rs525, Target Rs442)
The stock has been on a steady downtrend from second week of January 2008, trading well below its shot term moving averages. The daily chart indicates that the current downward trend is likely to continue in the near term and eventually the stock may find support around its 200-day moving average. The daily RSI is well below its neutral area of 50 and MACD is showing a negative divergence. We recommend traders to sell the stock with a price target of Rs442.

Colgate-Palmolive (BUY, CMP Rs415, Target Rs480)
Colgate matched our revenue expectations by recording 14% yoy at Rs370cr during Q3 FY08 driven by ~8% volume growth in the core toothpaste segment. Colgate has acquired 75% stake in three toothpaste manufacturing companies (which used to manufacture and supply toothpastes to Colgate) - Advanced Oral Health, Professional Oral Care Products,
and SS Oral Hygiene Products in November 2007. With the successful new launches and re-launches, coupled with fiscal benefits from the Baddi pla nt, we expect Colgate to register revenue and profit CAGR of 12.8% and 13.4% respectively over the next two years. We recommend a buy on the stock with a price target of Rs480.

Satyam Computers (SELL, CMP Rs438, Target Rs396)
Over the last couple of weeks IT stocks have rebounded from their 52-week lows advancing in the range of 10-15%, despite depressed market conditions. Satyam Computer has bounced back from a low of Rs305 to the current levels. However, it has failed to give a close above its crucial resistance level of Rs450. The daily RSI is in an overbought position indicating that the stock is nearing to its recent uptrend. We recommend a sell on the stock with a price target of Rs396.