What’s buzzing in these stocks right now

JM Financial: Despite the company's denials, market talk around this stock refuses to abate. The belief is that there will be a majority stake in JM's asset management company. The market also believes that Spandana Sphoorty Financial (the microfinance company in which JM is said to hold a stake) will soon go public. JM Financial is a financial services group with interests in investment banking, institutional equity sales, trading, research and broking, private and corporate wealth management, equity broking, portfolio management, asset management, commodity broking, NBFC activities, private equity and asset reconstruction.
 

In the June quarter, the company earned Rs1.1 billion from its investment banking and securities business (versus Rs772 million y-o-y), Rs651 million from its securities funding and fund-based activities (versus Rs254 million), Rs176 million from alternative asset management (versus Rs101 million) and Rs91 million from asset management (versus
Rs77 million). Nimesh Kampani, chairman & managing director, is an accused in the Rs1 billion Nagarjuna Finance deposits scam.
 

IDBI Bank, South Indian Bank: There are rumours floating around that IDBI Bank will take over South Indian Bank. IDBI Bank earned a net profit of Rs2.5 billion in its June quarter while South Indian Bank earned Rs583 million.
 

Brushman India: Rumours are floating around of Asian Paints taking over. There is also some buzz that the promoter is being questioned by the CBI for his involvement in the Koda scam. The company makes paintbrushes. The stock has risen from Rs7 levels to Rs10+ levels. The activity looks suspiciously operator-driven. Retail investors should be careful. This is an 'S' group company which earned a revenue of Rs33 million in its June quarter and a loss of Rs15.3 million. Kapil Kumar is the MD of the company.
 

Shree Ashtavinayak Cine Vision: After the stock took off after the success of Dabangg (reported by Moneylife in this section), there are now rumours of Anil Ambani's interest in acquiring a stake in the company. The stock has risen from Rs11 in July to Rs30+ currently.
 

Development Credit Bank: Rumours of a merger with HDFC Bank. Market players are even talking about a due diligence by HDFC Bank. DCB has been looking at merging with a larger bank for the last couple of years. In the June quarter, HDFC Bank earned a net profit of Rs8 billion while DCB made a loss of Rs29 million (FY10 loss at Rs785 million).
 

(This article is based on secondary research. The report is for information only. None of the stock information, data and company information presented herein constitutes a recommendation or solicitation of any offer to buy or sell any securities. Investors must do their own research and due diligence before acting on any security. Some of the opinions expressed in this article are the author's own and may not necessarily represent those of Moneylife).