RAKESH JHUNJHUNWALA SAYS .........

RAKESH JHUNJHUNWALA on marketsThe Seminar was titled "Sensational Sensex - Retrospect & Prospect"

The Room was packed to full house and pin drop silence ensued while his speech was on. Some interesting insights from RJ followed.He gave a PowerPoint Presentation on India's GDP, India's Potential Savings rate etc..and his talk had comparisons & similarities between markets and wine/women.POTENTIAL CATALYSTS for INDIA 's GROWTHRJ - Personal FACTS1) I love Hyderabad and its Biryani. If my wife agrees,

1)I wish to settle down in Hyderabad .

2) RJ said that his father expired 3-4 weeks ago, so the tonsured head. His father never asked him about his wealth, the only thing he always asked was about his charity.

3) RJ does a lot of charity and contributes to educational NGOs, but said he doesn't want to share or disclose it in the public.

4) His MOM always asks him to buy a flat or land, but RJ said he is 100% invested into equity.

Synopsis of the seminar

1) Worst Times are the BEST Times to buy.2) Every Crisis presents an Opportunity3) At 21 PE and with no scam, this market looks ripe for a Boom...when he cannot SAY.4) The only thing India has and what Russia and China do not have is DEMOCRACY. He gave the example of Yukos oil Company in Russia which was taken back by their Govt from the promoter.5) RJ -"I LOVE WHISKY and WOMEN"6) I am bearish on US markets and for them to SURVIVE, they have no CHOICE but to Invest in the EMERGING MARKETS7) RJ - BULLISH ON OIL, GAS and IT. FERTILISER IS A BIG "NO" from RJRJ On OIL, GAS1) India imports 72% of itys total consumption of oil.2) Oil imports constitute 10% of GDP3) GAS supply to DOUBLE from 104 mmscmd to 260 mmscmd.4) New GAS finds could BRING savings of about $148 Billion by FY 2012. Here he quoted about Cairn finds and KG basin finds.5) Gas could replace ~51 mmtpa (million metric tonnes per annum) which is ~ 35% of the OIL consumption of India by FY 2012POTENTIAL CATALYSTS for INDIA 's GROWTH1) Agriculture:a) Large wastage needs to be prevented and logistic challenges (Crisis or opportunity)b) An agricultural Revolution is not only IMPERATIVE, it is INEVITABLE.c) Seed companies continue to do well2) INFRASTRUCTURERJ on Warren Buffet & USA1) WB gave a compounded yield of 23%.2) Indians get scared if anything bad happens in USA . In my View, I wouldn't give that much importance to USA . Their inflation is higher than ours and they live in debt. Here he quotes"I wouldn't believe if someone said S**T doesn't SMELL."3) Last October (Oct '07) I had stressed very clearly the problems facing US Economy. I also told that markets are peaking out and one has to be very careful as correction was anticipated. I repeated the same thing after this year's BUDGET also that buying now is dangerous.RJ On Corporate Governance/ Managment1) Corp governance is ZERO/junk in China . In comparison, India is far better.2) People did not invest in STERLITE saying this and that about the mgmt, but the share moved from Rs. 40. Markets mostly focus on RESULTS.RJ - WHEN DO I SELLWhen to sell a share depends upon one's need, the opportunity at hand and experience. I sell ONLY when...a) I need money for major expense.b) when I find there is a BIGGER opportunity somewhere elsec) when I feel that in future, a company I invested in, has no higher profit earnings potential or when the profits have peaked out.RJ ON Markets/ Individual Scrips1) Please do not ask me about Individual scrips. My lips are sealed and SEBI's guidelines apply.2) This is the FIRST significant TIME-WISE and PRICE-WISE correction3) Believes India 's a) economic growth to continue and b) the vast underexposure to equity investments will correct over time.4) Worried about rising Inflation, Housing and auto sector to bear the BRUNT.5) RNRL and RIL Gas issue, if settled, could act as a Positive ...