India - Again

I have just returned from a week long trip to India having visited Delhi, Bangalore, Mumbai, and the major technology schools as well as the major trading houses (Tata, Hinduja, Reliance/Ambani) and venture capital funds and private equity groups to get a flavour of the fast changing universe including what it means for UK Plc and of course by implication UK stocks.

Before I get on to UK stocks. Let's get some things straight :

1. The most talented Indians I spoke to had no wish to locate in the UK or US. They so the best opportunities in India. So much for the presumptuous immigration debate in the UK!
2. US funds are pouring into the country funding innovative technologies. UK funds are not.
3. UK firms are out there, forming alliances, buying capabilities - this is good. But it tends not to be medium and smaller UK companies - so the danger is their competitive advantage will continue to erode
4. It is not about a low cost centre. It is about talent and brain power and the ability to create intellectual property. I had 8 deals pitched to me at the prestigious IIT Mumbai which has produced 17 billionaires in the US (in dollars) of Indian origin. UK is not on the radar. We need to be for the sake of our stock market if nothing else
5. Capital raising on the London Stock Exchange is a unique selling point of UK Plc.
6. Indian from the UK are relocating back to India for the lifestyle plus opportunities - and both are outstanding. Let's hope they remember the UK, the way they did India when they came here in the first place and continue to boost trade.
7. Indian companies do not simply want to flood western markets with cheaper goods. They are looking at joint ventures to create innovative new products. That is value add and capital investment, not simply imports.
8. EU talk about 48 hour weeks and and smaller union sows the seeds of the decline and fall of Western economic power. Really, the French need to get out to India! That talent is coming this way.

So what of stocks? Research in Motion (RIMM) a US stock and makers of Blackberry I love and they just got an India tie up. Vodafone's CEO is Indian - and so I rate them higher for that alone. It might sound superficial, but there is analysis in that. They need to expand out to that retail market more.

I met the guys from Reliance who have JVs with BG Group. Reliance plan to build the world's largest coal power plant. BG Group are good at JVs. HSBC is a major player and been buying up stakes. The demand for planes (probably more Airbus size than Boeing) continues. WalMart is eyeing entry - I need to see Tesco thinking the same way.

Regardless of short-term India angles for UK companies, the ones performing strongly this past month, which is always a good sign of who is managing the present climate include: Man Group (May not too bad for hedge funds), Antofagasta (Commodities demand continues after some profit-taking), BHP Billiton (same story), Johnson Matthey, Xstrata (same story), Capita (doing work with Indian companies).

I am back out to India in five weeks, but this time I will spend a week visiting the dealflow and a weekend for my birthday meditating about it in the Himalayas!

Value-Growth

On my value growth criteria which are based on stocks meeting revenue and profit growth and good value based on criteria such as price earnings growth, the following names come up. Remember they are for a 6 month outlook: BHP Billiton, BAE Systems, Rolls Royce, Spectris, Arla Foods, McAlpine, Hunting, Rensburg Sheppards.

Remember I am targeting about 20-20% with the value growth criteria. Last year it produced 33% return. On my momentum value indicator I have National Grid, GAME Group, Chesnara, Alphameric, British Polythene.

Crazy Small Stock

These are high risk volatile stocks which could move sharply higher or move sharply lower in my view, but will almost certainly not stand still. Names on the radar include: Braime, Bisichi Mining, Kleeneze.

Also, if you would like a free multi-media CDROM on 'Investing Better', which covers spreadbetting, CFD trading and momentum indicators like the MACD, posted to you then drop me an email with your postal address to alpesh@tradermind.com.

Spreadbetters

Spreadbetters and futures traders often look at hard and soft commodities. Here's my quick take on the action for the week ahead:

• Oil: Mixed to higher
• Copper: Mixed
• Gold: mixed to higher
• £/$: Higher
• Dow: Mixed (possibly lower)
• FTSE 100: Mixed
• Soyabean Oil: mixed to higher