Sell, Hedge Or Lose Everything…Martin D Weiss

The stock market is falling swiftly, and you don’t have the luxury of time. So I’ll get straight to the point:
 
If you haven’t done so already in response to our many earlier warnings, you’d better sell or hedge your vulnerable investments now. If you don’t, be prepared to suffer far deeper losses in the bear market of 2008 and beyond.
 
But beware: Most brokers will try to talk you out of it. They have a hidden agenda. They want to keep you as a customer; and they know that, once customers sell their stocks, they often close their brokerage accounts.
 
With this in mind, many brokers have been trained with up to seven sales pitches designed to keep you in the market come hell or high water.
 
Broker Pitch #1: “Buy more.” Their argument goes something like this: “Your stock is now selling at bargain prices. So if you didn’t already own 100 shares, you’d probably be thinking about buying — not selling. Instead, why not double down and take advantage of dollar-cost averaging?”
 
The more likely result in a bear market: Every time your stock falls by another $1 per share, instead of losing just $100, you’ll be losing $200.
 
Broker Pitch #2: “Hold for a recovery!” They argue that the “market will inevitably recover,” that the “recovery is always bigger and better than any near-term decline,” and that you should therefore “always invest for the long term.”
 
The reality: Bear markets can last for years. It could take still longer for the averages to recover to current levels. During all those years, your money is dead in the water. And don’t forget: If the company goes out of business, your stock will be worthless and will never recover.
 
Broker Pitch #3: “You can’t afford to take a loss.” If you insist on selling, brokers often come back with this approach: “Your losses are just on paper right now. So if you sell, all you’ll be doing is locking them in. You can’t afford to do that.”
 
What they don’t tell you is that there’s no fundamental difference between a paper loss and a realized loss. Nor do they reveal that the Securities & Exchange Commission (SEC) requires brokers themselves to value the securities they hold in their own portfolio at the current market price — to recognize the losses as real whether they’ve sold the securities or not.
 
Broker Pitch #4: “You can’t afford to take a profit and pay the taxes.” If you’ve got a profit in a stock, they say: “All you’ll be doing is writing a fat check to Uncle Sam. You can’t afford to do that.”
 
The reality: Although it’s not shown on your brokerage statement, the true value of your portfolio is NET of taxes. So whether you or your heirs pay those taxes now or in the future is mostly a difference of timing. And if our next president approves legislation to raise capital gains taxes next year, it could actually cost you more. Besides, which would you prefer — paying some taxes on profits or paying no taxes on losses?
 
Broker Pitch #5: The “don’t-be-a-fool” argument. “Stocks look very cheap now and we’re very close to rock bottom,” goes the script. “We may even be right at the bottom. If you sell now, three months from now, you’ll be kicking yourself. Don’t be a fool.”
 
The truth: Brokers don’t have the faintest idea where the bottom is. Nor does anyone at their firm. And they know darn well that stocks do not hit bottom just because they look cheap. Worse, for their own accounts, brokers and their affiliates have been — and are likely to continue — liquidating shares, often targeting precisely the same shares they pitch to their customers.
 
Broker Pitch #6: “The market is turning.” If the market enjoys an intermediate bounce, which it certainly will at some point soon, this pitch is invoked. “Look at this big rally!” they say. “Your shares are finally starting to come back. After waiting all this time, are you sure you want to run away now — just when things are starting to turn around in your favor?”
 
The truth: In a bear market, intermediate rallies actually give you the best opportunity to sell.
 
Broker Pitch #7: The last ace-in-the hole in the broker’s arsenal of pitches is the patriotic approach. “Do you realize,” they’ll say, “what could happen if everyone does what you’re talking about doing? That’s when the market would really nosedive. But if you and millions of other investors would just have a bit more faith in our economy — in our country — then the market will recover and everyone will come out ahead.”
 
The truth: Locking up precious capital in sinking enterprises is not exactly good for our country. Better to safeguard the funds and reinvest them in better opportunities at a better time.
 

SREI STAKE IN TATA TOWER

Quippo Infrastructure Equipment Ltd of the SREI group is set to complete the purchase of a 49 per cent stake in the cellular tower arm of Tata Teleservices by the end of the month.

“We are very close to wrapping up the deal and hopefully all the loose ends will be tied up soon. The valuation has not been altered because of rising steel prices,” said Sunil Kanoria, vice-chairman and managing director, Quippo.

The company is expected to pick up a 49 per cent stake in Tata tower arm Wireless Tata Telecom Infrastructure Ltd as it has a tower business and therefore, cannot compete with the Tatas.

With close to 5,000 towers in its portfolio, Quippo is valued at Rs 3,000 crore.

According to Kanoria, Quippo plans to increase the number of towers to 10,000 by 2009.

Wireless Tata, which has over 10,000 towers under its belt, has an enterprise valuation of over $3.5 billion. The merged entity will command a valuation of around $4.5 billion, according to analysts.

Quippo has earmarked $3 billion for growth both through new facilities and acquisitions this year. Earlier in the year, it acquired the 875 towers of Spice Telecommunications across Punjab and Karnataka for Rs 600 crore.

An investment of $1.5 billion is required to buy a 49 per cent stake in Wireless Tata.

Kanoria had earlier hinted that rising steel prices might lead Quippo to reconsider valuations but has dispelled such notions now.

Rising steel prices not only push up the rent of towers but also make the towers more valuable.

Structural steel angles and plates contribute to around 60 per cent of the cost of a tower, with the investment per tower ranging from Rs 25 to Rs 40 lakh. Companies are now sharing around 25-30 per cent of their networks, which is expected to go up.

Cases of dubious media reports, policy bloomers and other curious trends

Sucheta Dalal

Not So Nifty
 
The market share of the Bombay Stock Exchange (BSE) is declining but its 30-share sensitive index, the Sensex, has remained extraordinarily popular and is considered the market benchmark. However, Pune-based technical analyst, Deepak Mohoni, has staked copyright claim on the word ‘Sensex’ which he claims is his coinage. One assumes that the coinage may lose its relevance if it is de-linked from the 30-share index; in fact, its popularity is more dependent on BSE’s ability to launch and popularise Sensex-based derivatives. Since Mohoni has moved court, this is now a legal issue.
 
The National Stock Exchange (NSE), on the other hand, has a monopoly in the equity derivatives space, and is racing to capture leadership in the currency futures and the proposed SME market as well. Yet, its index, the Nifty, isn’t half as popular as the Sensex — even after splurging loads of money on an advertising campaign to promote it as a brand. That makes it all the more ironical that an Internet-based tip-sheeter has swiped the name SNPNIFTY, way back in May 2000 and even hosts a website at www.snpnifty.com offering stock tips on multiple platforms including phone, SMS and live chats. It calls itself a ‘market leader’ in stock market consultancy services, but has no information whatsoever about its promoters, although the name ‘Maheshwari’ turns up in an email ID under ‘Contact Us’.
 
The NSE owns and conceives its indices through a joint venture with Crisil (Credit Rating and Information Services of India Limited) called India Index Services & Products Limited (IISL). So we asked NSE and Crisil for their reaction to SNPNIFTY. IISL’s CEO, Suresh Narayan, wrote to thank us for drawing their attention to the ‘misuse’ of trademarks and said that they had “initiated appropriate legal measures against the concerned parties to protect our interests.” The lesson is that one may launch an advertising blitzkrieg to popularise a brand but one needs market intelligence and open communication channels to protect it. Here is a tip for those who subscribe to tip-sheets: avoid websites and blogs that do not have proper ownership details under the ‘About Us’ tag.
 
Insider Action?
 
The biggest corporate story in recent times was the sudden sale of Ranbaxy on 11th June to Daiichi Sankyo of Japan. The stock hardly reacted at all to this bombshell and closed at Rs561. Apparently, there was no more value left to extract, even though the Sensex was up nearly 300 points that day. Now, recollect 10th June when the Sensex fell 500 points. On that day, Ranbaxy was one of a handful of stocks to buck the trend and rise by Rs35 to Rs561. In fact, the stock has been moving up steadily from 1st February, when it was at Rs359, to the current level of Rs561.
 
The Securities and Exchange Board of India’s (SEBI) expensive Inter Market Surveillance System (IMSS) ought to be taking a close look at the interesting trajectory of the Ranbaxy scrip. The question is: has SEBI mothballed the IMSS system? It is over a month since two stocks — KGN Industries and Sylph Technologies had grabbed media headlines with their sizzling rise on very thin trading, but we still don’t know who was responsible. On asking, we find that SEBI is waiting for the BSE to submit a report on price manipulation. Does this mean that the IMSS, launched with big claims by M Damodaran, has been quietly mothballed?
 
Tippler Tips
 
While on tip-sheets, a reader has sent this interesting case pertaining to the liquor company Khoday India which produces brands such as Peter Scott. The company had a net loss of Rs5.2 crore in FY06 and a net profit of Rs11.5 crore in FY07. In late April, a report by the Atherstone Institute of Research (copy available with us) was reproduced by several web-based investor forums and Internet groups. The report projected a big turnaround in Khoday’s business prospects, where increased volumes would lead to higher margins and allow the company to foray into realty development. It projected a net profit of Rs17.42 crore for FY08 and a significantly bigger jump in FY09 and FY10. It also projected a target price of Rs482 against a 52-week high-low of Rs425-Rs46.
 
The report apparently lured several investors to jump into the stock. When the results were finally published, the actual net profit was 50% lower — at just Rs7.94 crore. An agitated investor writes to say that the Atherstone group deliberately misled investors. Well, we sympathise with Atherstone’s clients who acted on the report, but not those who read it on the Net. After all, it was not meant for public circulation and carries a bunch of disclaimers. Those who reproduced it on investor forums and others who acted on its claims are fully responsible for the consequences. The price, while writing, was a mere Rs103.
 
State of the Media
 
In early June, an investor event conducted by www.myiris.com, held a discussion titled “How Much of the News Can You Trust” which saw a heated debate among participants from CNBC India, NDTV Profit, UTV Business and MoneyLIFE. Although most participants denied there was ‘any’ editorial interference in their work, public perception is that news is, indeed, compromised by management interference and corporate pressure. Things are the same in the world’s leading democracy. At a National Conference for Media Reform in June, Dan Rather, former anchor of the hugely popular CBS 60 Minutes, “delivered a blistering critique” of the media. The event was hosted by Free Press.
 
Rather made the point that a series of mergers and acquisitions had ensured that most large news organisations were owned by a “shocking few” for whom “news is but a miniscule part of their overall business interests.” It is the same in India. Apart from the owner’s business interest and lack of guts, the media is also silenced (especially by government agencies), by threatening to ‘block access’ to important people. This is, indeed, the fastest way to silence the best journalists and is successfully used by the Indian government, regulators and large corporate houses. Once ‘access’ is blocked, a journalist has to work much harder to get news and face the harassment of being kept out of official events. As Rather says, “It is rare, now, to find a major news organization owned by an individual, someone who can say, in effect, ‘The buck stops here’. The more likely motto now is: ‘The news stops… with making bucks’.”
 
The emphasis on the bottomline is enhanced by the need to deliver higher profits quarter-on-quarter. That is why, he says, “Political analysis (is) reduced to in-studio shouting matches between partisans armed with little more than the day’s talking points. Precious time and resources wasted on so-called human-interest stories, celebrity fluff, sensationalist trials, and gossip. A proliferation of ‘news you can use’ that amounts to thinly-disguised press releases for the latest consumer products.” If this sounds disturbingly familiar, it is because India has caught up with global trends.
 
Sundry Denials
 
·        On 2nd June, Blue Dart Express told the exchanges that it is “unaware” of any move by DHL Express to make an open offer to Blue Dart shareholders. The language of the denial indicates that the report is not necessarily incorrect.
·        On 5th June, Deepak Fertilisers reacted to a report that it plans to “foray into contract mining as a part of a strategic growth initiative” by claiming that it had “not reported the information to the media” and the news appears “speculative”. Not a particularly convincing denial, once again.
·        On 29th May, Indiabulls Financial Services re-emphasised to the bourses that it had no plans to acquire a strategic stake in Blue Bird (India) and the media report included the denial but was still published

BCA: Energy In The Throes Of Capitulation

BCA: Energy Downgraded, Capitulation Evident
 
Energy is the fourth commodity sector to see a capitulation blowoff. The other sectors have since entered volatile trading ranges above the previous “breakout” level. This is our baseline scenario for energy.
 
Ironically, a moderate oil correction could be the catalyst for an upward rerating in energy stock earnings multiples, as was the case for miners in 2006. Alternative energy and nuclear stocks should weather the
storm.
 
ENERGY: Downgrade to underweight. U.S. gasoline demand destruction could be imminent based on car-buying patterns.
 
BASE METALS: Upgrade to overweight. An energy correction could stabilize global growth expectations. The latest downdraft in nickel prices does not appear sustainable judging from the outlook for stainless steel demand.
 
PRECIOUS METALS: Downgrade to neutral. Correction in gold and silver prices, as well as related equities, should give way to a trading range.
 
COMMODITY CURRENCIES: Canadian dollar and Norwegian krone should fare well even if energy prices correct. Bullish on Aussie dollar. NZ dollar should lag, perhaps significantly.

Citibank Smith Barney: The Second Exodus From India

India Equity Strategy -Owning India Inc - Foreigners Flee?

Foreign ownership has single-largest quarterly fall-Latest data show foreign institutional ownership of the Indian corporate universe dipped sharply in the first quarter of the year.
 
FII (FI+ADR+GDR) share of the BSE500 now stands at 17.8%, down nearly 2ppt from Dec2007, and almost back to June 2005 levels.

Promoters pick up the slack-Promoter share of the BSE500 picked up ~2.9ppt, rising to 58.2% in the quarter - the highest level in 32 quarters, suggesting continued promoter confidence even in a weakening market.
 
Public shareholding continues to dip (9% now vs. 9.4% earlier), and domestic institutions continue to maintain share at 8%.

Foreigners top sellers-FIIs have been the top sellers in the correction, bucking the trend of rising foreign ownership leading to market performance. Even as the drop in public shareholding was a continuation of the downward trend since March 2001, the fall in FII ownership was the sharpest over the same period.
 
Financials out of favour with domestic players, Telecoms liked by all - From a  sector perspective, domestic institutions were strong sellers of Financials in the quarter, moving from an overweight to an underweight. Telecom companies were strongly in demand overall, while the consensus outlook on Industrials and IT Services was neutral.
 
FIIs had contrarian positioning vis-à-vis domestic institutions on Materials and Utilities. In our model portfolio, we are overweight Financials, Telecoms, IT Services and Pharma. We are neutral on Energy, Consumer and Industrials, and negative on Materials and Utilities.

Govt planning to deregulate the petrol, like in foreign countries, causing it to shoot by almost Rs 17 per ltr

The government is believed to be considering decontrolling petrol prices, a move that may see rates being hiked by Rs 16-17 a litre, but diesel will continue to be sold at a subsidised price.
The relentless rise in international oil prices that last week touched an all time high of $135 a barrel has forced the government to mull options to save state-run firms, which expect a revenue loss of Rs 200,000 crore (Rs 2000 billion) this fiscal on sale of petrol, diesel, domestic LPG and kerosene.
“One of the options being considered is deregulating petrol prices,” an official said. “The country’s preferred auto fuel diesel will, however, continue to be subsidised even though a marginal Rs 2-3 a litre hike in prices may be announced.”

Petrol is currently being sold at a loss of Rs 16.34 a litre and diesel at Rs 23.49 per litre. Deregulating petrol price would mean that its prices would move in tandem with international prices.

He said the move is being considered after Finance Ministry declined Petroleum Ministry’s request for lowering customs duty on crude oil to zero from 5 per cent and that on petrol and diesel to 2.5 per cent from current 7.5 per cent.
The oil ministry had also asked for lowering of excise duty on the two fuels but Finance Ministry is not obliging.
Petrol has negligible impact on inflation and so even if it is deregulated it would not contribute the 3-and-half year high inflation rate of over 8 per cent, he said.

Diesel on the other hand is used by transport industry and replicating the same for the fuel would have cascading effect on inflation.
However, deregulating petrol would lower the revenue losses by just Rs 20,000 crore (Rs 200 billion). Half of the current estimates are on account of diesel rates.

India has become the second largest exporter to the UAE for the first time

India has become the second largest exporter to the UAE for the first time and is rapidly narrowing the gap with China, the largest exporter to the Gulf country, at the current growth.
The rate at which India’s export to the UAE is growing, figures showed that it could be a serious threat to Beijing’s bid to maintain top position.
Official figures showed China was the top exporter to the UAE in 2007, while India became the second largest supplier of goods to the Gulf country for the first time after its exports to the UAE rocketed by nearly seven times in five years.
From only Dh 9.2 billion in 2002, the UAE’s imports from India shot up to around Dh 67 billion in 2007, Emirates Industrial Bank (EIB) UAE said in a report.
India’s exports last year accounted for nearly 16 per cent of the UAE’s total imports of around Dh 418.7 billion.
“It was the first time that India reached the second position in the list of international exporters to the UAE,” it said.
“India’s exports have steadily and rapidly grown over the past years. There are several factors for this increase, mainly the decline in dirham against other currencies, mainly the UK pound and euro and because of the sharp fall in the US dollar, to which the dirham is pegged.
“This made imports from other countries, mainly Asian, more competitive,” it said.
The report said another reason was that the EU has been reluctant to sign a free trade pact with the UAE and other Gulf Cooperation Council members.
However, there has been substantial progress in negotiations for such an agreement between the GCC, and India and China, Emirates Business 24×7 said in a report.

Tata Motor in trouble — SC notice to Tatas on Nano car project land

The Supreme Court on Tuesday decided to examine the validity of the acquisition of land in Singur, West Bengal, by the state government for the Tata Nano car plant.
A bench comprising Chief Justice K G Balakrishnan, Justices R V Raveendran and M K Sharma also issued notices to the Tatas, the West Bengal Industrial Development Corporation and the West Bengal government on the petitions filed by some of farmers whose fertile land had been forcibly acquired by the government to set up the Special Economic Zone (SEZ) by the Tatas on 1,000 acres of land.
The farmers had challenged the acquisition of the land by the state government under chapter two of SEZ in which government can acquire a land for public purpose even without the consent of the land owner.
According to the petitioners, the SEZ could not be called in public interest and it was purely a commercial venture. They said under chapter seven, the purchaser must negotiate with the owner directly and the land to be acquired should not be fertile and price should also to be settled with the farmer.
Notification for the acquisition of 1,000 acres of fertile land at Singur was issued by the government in August 2006. Farmers challenged the government notification in the Calcutta High Court. The high court dismissed their petitions on January 18 this year.
The apex court, however, refused to stay the operation of the impugned judgement of the high court.

Get ready for real estate mutual funds

How often have you stared at a gleaming skyscraper in a tony address in your town and wished you could afford to buy a house there? If you have ended up sighing wistfully and walking away, here’s some good news. Now, you may easily be able to own a small portion of a very swanky address.

After years of deliberation and planning, the Securities and Exchange Board of India has approved the launch of real estate mutual funds and issued a detailed set of guidelines on 16 April. All you may now need to shell out is a sum as low as Rs 5,000 to Rs 10,000 to invest in real estate.

How will it work?

An REMF is a scheme much like any other closed-end MF scheme (that invests in shares and bonds) except for the fact that the new entity will invest in real estate. There are two conditions of investment set by Sebi.

First, it is mandatory for an REMF to invest at least 35 per cent of its corpus in completed real estate assets (read flats, row houses, bungalows, shops). These could be either residential or commercial properties, but must be finished and ready-to-use and not under construction.

The REMF will get title deeds and will be the owners of these premises - it’s like you are buying a second home or a small office. Simply stated, instead of reading a moniker like ‘Ms Shirin Batliwala’ on the name-plate against, say, a first floor flat number at your building’s entrance, you could now have a neighbour called ‘HDFC Real Estate Fund’.

Your REMF will then rent out these properties and earn rental income that it will pass on to you - the unitholder. When your REMF’s tenure ends, it will sell these properties and generate capital appreciation and eventually pass on these earnings to you. With as low as Rs 5,000, you can now own a part of this flat through your REMF.

Let us assume your REMF collects Rs 500 crore (Rs 5 billion) and invests Rs 200 crore (Rs 2 billion) out of it (40 per cent of the collections) in 40 flats costing Rs 5 crore (Rs 50 million) each. If you have invested Rs 10,000 in this fund, then your share out of the appreciation and rental income of these flats would be 0.0002 per cent.

The second investment condition of Sebi mandates that at least 75 per cent of the corpus should be invested in real estate or related securities. These can be debentures of real estate companies and mortgage-backed securities and equity shares of real estate companies listed on the stock exchange.

Under this, your REMF can also invest in ‘under-development’ properties. But it can neither buy barren land, nor can it undertake construction activities. What then?

It will partner with a real estate developer and then take a stake in a special purpose vehicle that the developer will have set up for constructing a particular project. Note that your REMF will take a stake in that project and not in the developer company or its other projects across the country.

Your REMF will buy unlisted shares in that SPV, not more than 15 per cent of its own corpus. Once the project is completed, the gains arising out of it are yours to the extent of your REMF’s stake in the SPV. An REMF will be closed-end (this means limited tenure and no ongoing sales of units) and units will be listed on the stock exchanges. You will be able to trade units on the exchanges very much like shares.

REMF not the same as REIT

In the 31 January 2008 issue of Outlook Money, we had carried the news about Sebi issuing a draft set of guidelines for Real Estate Investment Trusts or REITs (Blueprint Out For Real Estate Funds). So, what is the difference between a REIT and an REMF, considering they sound a little similar? REITs are also investment vehicles dealing in real estate. Like REMFs, they, too, are closed-end schemes and listed on stock exchanges. But there’s a big technical difference between the two.

First, a REIT is mandated to distribute at least 90 per cent of the gains it makes in a year to those holding its units. Second, a REIT can invest only in finished projects and not those that are under construction.

Hence, it earns its major chunk from rental income. “While REITs help you earn a regular income, REMFs give you capital appreciation too,” says Milind Barve, managing director of HDFC MF and head of the sub-committee appointed by the Association of Mutual Funds of India to recommend norms for REMFs.

Sebi guidelines mandate REMFs to invest at least 35 per cent in completed and ready-to-use properties. They do, in that sense, resemble Reits to an extent and can, in fact, invest this portion in Reits.

REITS and REMFs run simultaneously in many countries across the world, especially in developed markets like that in the US. India is set to follow that path as Sebi has shown enough intent to allow the launch of both the products.

Checks And Balances

For a beginning, the Sebi REMF guidelines cover a lot of ground. They mandate valuing of each real estate property by two valuers, which must be rated by a credit rating agency. The REMF will have to invest in a property at the lower of the two values.

Each property will be valued once in 90 days. So, if your REMF invests in four properties, say, in March, June, September and December, respectively, then each of those four properties will be valued once they complete their respective 90 days.

However, your REMF will have to declare its net asset value daily.

The NAV will change on a day-to-day basis because, apart from real estate assets, the REMF would also have invested in marked-to-market securities such as debentures and mortgage-backed securities.

While your REMF will charge you an expense ratio of up to 2.50 per cent, just like equity funds, the tax status is unclear. Sources say that the tax incidence in the case of REMFs will be akin to that for debt funds - long-term capital gains tax of 11.33 per cent and short-term capital gains tax as per the income tax rates applicable. This compares well with investing in physical real estate directly, where long-term capital gains tax kicks in after three years as against a year in the case of REMFs.

Beware of risks

Although REMFs open up a new asset class to investors that was otherwise restrictive, they come with a set of risks.

The ‘others’. REMFs are free to invest the 25 per cent of the corpus that is left after investing in real estate or related securities in any security, related or unrelated to real estate. This can be either directly in the equity markets and debt instruments, or kept as cash. Sebi has allowed REMFs to take a call on this. But, how an REMF opts to invest this portion can have a bearing on its risk profile.

Flexible asset allocation. That is not the only flexibility that Sebi has allowed for REMFs. Beyond the mandated 35 per cent in finished real estate projects and within 75 per cent of the scheme’s corpus, they have about four different types of securities to choose from.

Here’s where one REMF can significantly look and behave differently from another. An REMF may choose to hold 35 per cent in completed real estate assets and deploy 40 per cent in equity shares of real estate companies and then invest the balance 25 per cent in another set of equity shares.

Asset allocation will be riskier in cases like above as against those that have a healthy dose of mortgage-backed securities and debentures of real estate companies and money market securities that earn a fixed interest income. Do look up the REMF’s asset allocation before you finalise your investing plan.

Mis-selling. The same agent through whom you invest in MFs will now also sell you REMFs. Only time will tell whether agents will be able to differentiate the nuances of one REMF from another.

And although Barve says that the MF industry is gearing up to train agents and spread awareness, it will take some time - and probably some heart-burn too - before investors are able to realise the true worth and potential of REMFs. Your only genuine hope in the current scenario will be your REMF’s offer document.

Apart from Sebi’s nomination of cities in which REMFs can invest their finished projects and the taxation incidences on unitholders, most other things are in place. If all of what we have said has inclined you to sign up, then, hopefully, you will be able to do so in another three months, when India’s first REMF ought to be born.

“Gold, Silver: Expect A Bounce, Then – A Devastating Decline”

It’s been exciting to watch Gold and Silver follow Elliott wave-based forecasts so precisely.

To give you an idea what Mike Drakulich’s subscribers are raving about, watch this video – Mike recorded it on April 23. Watch it now, then compare price action in Gold and Silver since April 23 to Mike’s forecast – and see for yourself how amazingly accurate Elliott wave forecasting can be.

Click the following Link: 

Video: “Gold, Silver: Expect A Bounce, Then – A Devastating Decline”

(Released on April 23 to Metals Specialty Service subscribers.)