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| 10in3 Returns - Buy RNRL Call Option. (4) 24-Jul-08 21:45 | Tracked by (0) |
| | Posted by:  10in3 on ( 24-Jul-08 21:45 ) | | | Price : BSE: Rs 98.80 ( 9.47 % ), NSE: Rs. 98.80 ( 9.35 % ) | Posted on July 23rd.....at HBJ Capital....
HBJ Capital Special Report...
It is well proven that greatest returns can be made in stock market only, and best returns are achieved from the small cap companies. Yes, HBJ Capital do agrees with these facts, that is why HBJ Capital does investment only in “Small Cap” companies with potential to give 10 times returns in 3 years.
But there is always exception to any fact, and “Option trading” is the one exception to the above mentioned fact……Jim Roger use to say, 90% of the options expires worthless then why should I buy any option. He never said how much returns the remaining 10% of the options will give. If chosen wisely one can make not only 2-3 times but 10-20 times returns from option within a month time period.
Here, we are talking about similar return – 10 times in 3-6 days, if you want that buy Call Option of RNRL. Before that just read on…..we have facts and plans how/why it is possible. HBJ Capital never believes on short cut or quick money but yes, when opportunity comes in front of us, we are ready to grab it.
[Note: This is not a recommendation or suggestion to buy/sell, there is a risk involve in trading, so do your homework before taking any action, HBJ Capital will not be responsible for any loss incurred]
A Story of two brothers:-
The dispute between the two Ambani companies relate to allotment of gas from the Mukesh Ambani company controlled KG basin to a proposed 7,500 megawatt power plant being built by younger brother Anil.
After the government of India set a higher benchmark price of .2 mmbtu or one million British thermal unit for the gas from KG basin, RIL has refused to sell the gas to Reliance Natural Resources at a lower rate.
RIL, according to a company source, has already completed 90 per cent of its pipelines for evacuation of the gas from the fields. The company is equipped to commence production of about 25 million standard cubic meters per day (mmscmd) in a couple of months. It plans to raise production to 40 mmscmd from March 2009, he added.
In 2006 for one of the deal, Iran demanded a price of US.20 per million British thermal unit of gas against India\\`s offer of US.20 per million British thermal unit. So, in international market Gas is trading at .20 or so.
In short…..
International price of Gas = .2
Indian Govt set price at .20
Anil wants 28 mmscmd gas @ .34 for 17 years. – Just think of RNRL is able to buy at .34 from RIL then it will sell the gas to RPL (its own company) at .2 making 100% profit approx. So, for 28 million unit = 2.8 Crore unit it will be a profit of 2.8Cr * 2.10 = .88Cr = Rs 250Cr profit without doing anything…..Important thing here is for the next 17 years……also who knows if RNRL sells same gas at international price or exports it at .2 then……wow, great business na.
Mukesh’s KG basin capacity is 40 mmscmd by Mar 2009.
Latest News:-
Hearing on the petition of Reliance Natural Resources (RNRL) seeking the Bombay High Court to restrain Reliance Industries (RIL) from selling natural gas from its KG basin gas fields to third parties has been adjourned till Wednesday.
Bombay High Court is going to hear RIL-RNRL KG basin case daily from Thursday. Harish Salve appeared for RIL while RNRL was represented by Ram Jethmalani.
The dispute between the two companies relates to allotment of gas from RIL’s KG basin to a proposed 7,500 megawatt power plant being built by the Anil Ambani firm Reliance Energy. RNRL wants uninterrupted supply of 28 mmscmd (million metric standard cubic meters per day) of gas at a price of .34 mmbtu for 17 years to feed the group’s ambitious 7500 mw power plant at Dadri which RIL refused to oblige.
Anil Ambani-lead Reliance Natural Resources\\` (RNRL) counsel Ram Jethmalani also said that the matter was long and highly complicated and would take at least 15 full working days of the court.
Upcoming Events:-
July 24th – Hearing on case will start.
July 25th – Q1 result announcement, One can expect some good news from Anil.
July 28th onward – It will take min 15 days to complete the hearing of the case. So, I don’t think any selling pressure will come here; probability of winning the case in favor of Anil is more because of UPA winning the vote and SP proximity to Anil.
Now tell me what to do to make 10x in 3 days?
Buy RNRL – July 120 Call @ Rs 2
1 lot = 1788
Cost per lot = Rs 3576
Spot Price for RNRL is Rs 90 today, in case if it moves by 20% in next 3-6 trading session which is very much likely event, then its price will be close to Rs 110, RNRL option will become Rs 10-15 which is 5-8 times returns.
One should try out this, it will be rewarding.
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