Expect gap up opening :-)
Thursday, November 29, 2007
Wednesday, November 28, 2007
New Entrants in Derivatives
Following stocks were added into F&O market
- Info Edge
- NIIT Limited
- Jindal Saw
- KPIT Cummins
- DCB
- Hindustan Zinc
- Hindustan Oil Exploration
- MICO
- Network18
- WWIL
- Redington
- Great Offshore
- GBN
- Ispat Industries
- Gitanjali Gems
Moser Baer - Another stock from my stable
Moser Baer - लम्बी रेस का घोडा
This is an aggressive company going to be a big player in media/entertainment market.
It has become world's 2nd largest optical media manufacturer [CDs/DVDs/BRDs etc]
It has acquired 81% stake in Philips R&D unit.
It has entered retail movie business and home entertained and is selling original DVDs and CDs at very cheap prices. It already has 2000 strong retail store presence.
I think with country growing and people having high disposable income, slowly people will move into buying original one. Though very slow change will have big impact on company's bottom line.
Moser Baer is early starter and will have a first mover advantage in its foray into PhotoVoltaic Business.
It will make their entry into clean,renewable solar energy. Renewable Energy will be favorite pick in future with Oil prices trading higher and higher
This business is at a very budding stage in India. They will be at leadership position in future.
Long term position can be initiated in the stock.
Current Market Price : 250.
Penny Saved is Penny Earned :-)
Todays Pick - UB Holdings
Today's Pick
United Breweries (Holding) Limited.
This company is listed in BSE.
This is again a story where you get a pie in multiple companies across various industries.
If you are maverick like Vijay Mallaya and want a share in his company UB(Holding) can be looked at.
To quote Vijay Mallay "The primary role of United Breweries [Holdings] Limited is to promote and incubate companies to which we bring both financial and management resources, so as to grow these investments as quickly as possible, to profitable leadership in their respective lines of business. "
This holding company has following under its portfolio.
1. Beer [United Breweries]
2. Spirits [United Spirits]
3. Real Estate. [Ub City]
4. Fertilizer [Mangalore Fertilizer]
and the latest entry.
5. Kingfisher Airlines and a stake in Air Deccan.
6. Pharma [Aventis]
7. Exports [UB Global ]
8. Some stake in Bayer India.
All the business are in high growth sector and though the stock has run up a lot. It can continue giving steady return.
Don't get scared by the sharp moves on this counter...
Happy investing.
Tuesday, November 27, 2007
Lucky 7
1. Be greedy when everyone is fearful, Be fearful when everyone is greedy.
2.Sell the stock at a price where you are not ready to buy.
3. Don't invest only through tips, do you homework too.
4. Keep stop trigger and book losses.
5. Regularly invest in quality IPOs [Easiest way to make money with current goverment regulation]
6. Correct time to buy stock is -- right now.
7. Sell stock when the reason why you bought no longer holds.
Few Questions
Before you decide on buying a stock, you can ask yourself few questions.
Why I am buying this stock
What is your time limit/profit limit
Why the price will go up.?
Who is buying/selling ?
Whose tip it is?
When do I reevaluate?
Satisfied....Go ahead and buy it!!
Delayed Gratification
Delayed Gratification
~~~~~~~~~~~~~~~~~
This is a concept which I think is never taught as a subject but we Indians grow up learning it unknowingly.
This ability shows control and perseverance on once part to achieve something the yen for and then relish the journey and destination in doing so.
Delayed gratification is the ability to wait in order to obtain something that one wants. This ability is usually considered to be a personality trait which is important for life success. [source : Wiki]
Our society demands Instant gratification but exactly opposite is required for success.
When in childhood I wanted something expensive thing, there was always a condition attached. Nothing in the world is free lunch, I had to earn it be it by the way of good score, good habits/manners etc. Most of you would have similar experiences, even someone born with silver spoon I guess.
This is a good thing which has happened to us because it teaches lot of things.
You would be wondering why I am writing this in a financial blog.
For financial success too delayed gratification is necessary.
Its about restraining your urges to own something which you cannot own and get into a debt trap.
Instead of spending money now on your wants instead of your needs you may be jeopardizing your future
needs unless you have gauranteed steady flow of increasing income without any jerks.
You can delay buying expensive plasma tv, luxury car etc to name a few.
Lets take an example . You want to buy a plasma tv for 1 lac. Instead of buying now impulsively. You can invest that money for 2-3 years. Going through current market scenario you can double your money in that time frame.
After 3 years you can buy your plasma TV for free you will still left with 1 lac and with prices coming down money saved will be bonus :-)
This is just one example to illustrate the fact. You can think of small things in your personal realm.
Hope I was able to make the point I wanted to, and more so hope you appreciate and enjoy reading it.
Ref :-
Self Control .
Delayed Gratification
Monday, November 26, 2007
Punj Lloyd- Value pic
Punj Lloyd : A must in everyones portfolio.
Punj lloyd is one of the India's large engineering construction company with strong local and international presence. It has a proven track record of managing huge projects.
It has interests in Onshore and Offshore pipelines, Infrastructure, Offshore platforms, Telecom,Engineering ,Power and Broadband services.
It has lot of group Companies sunder its fold
SEC,Simon Carves , KAEFER Punj Lloyd , PLN Construction , Spectra Punj Lloyd.
It has acquired stake in pipapav shipyard for enhancing its E&P and offshore business.
It has entered into real estate with Ramprastha Group.
Lot more to write but all I can say is that this stock has enhanced the share value a lot. It has given phenomenal returns in the past.
I foresee this company as a future L&T with lot of growth potential.
It has huge order book position and is on a right trajectory of growth.
No fixed targets as of now but can start buying at current market price and accumulate if market falls.
I am avoiding giving financials,P/E and other technical terms to keep the investment rationale simple and understandable to everyone.
More Info : Company's Website
Pick of the week- Network 18
Here is my latest pick from the Media sector. I think this sector has a lot of potential to grow in the coming times.
This is a particular stock which I think is a pure gem.
Network 18 FinCap is the holding company of the Television Eighteen Group and has become one of the strongest media houses in our country. The company owns some of the best media properties such as CNBC TV18, CNN IBN, Awaaz, IBN 7 ,Internet portals under Web18, film production business under Studio 18, a recent joint venture with Viacom and home shopping business.
You would have seen its current makeover and rebranding of the conglomerate as Network18.
Underlying principles :-
1. Strong foothold in the business news space.
2. Gaining market share in general news space. Ad revenues to grow.
3. Web 18 is in a strong investment phase and returns are going to be huge after the gestation period. Returns through advertising and subscription fees.
- moneycontrol.com
- easymf.com
- poweryourtrade.com
- commoditiescontrol.com
- Indiwo.com
- CompareIndia.com
- NewsWire 18
- IndiaEarnings.com
- CricketNext.com
- Buzz18.com
- Josh18.com
- IBNLive.com
5. It has a joint venture with Viacom for various channels like VH1, MTV and Nickelodeon.
This is a rising star in its category with appriciation expected through growth and value unlocking.
Though TV18 and GBN are also listed. This stock gives you a pie in each of Network 18 business
Recommended at Rs 350 few weeks back.
Current Market Price : Rs 400
Can expect 50% appriciation in 6-8 months.
Disclaimer : I have holdings in TV18 and Network18.
Earlier Recommendations
As promised here are the past recommendations.
I have not elaborated here why these stocks were buy but will do so in future recommendations.
These were mostly word - of - mouth :-)
| Stock | Recommended Price | Current Price |
| Jindal Saw : | 580 | 780 |
| Deccan Aviation | 140 | 190 |
| Punj lloyd | 280 | 480 |
| Tata Power | 680 | 1177 |
| BHEL | 1300 | 2500 |
| Larsen | 2500 | 4200 |
| Network 18 | 350 | 400 |
| United Spirits | 1200 | 1900 |
| HPCL | 230 | 300 |
Not adding Reliance pack because everyone new about it and if I too said that nothing special in it. :-)
Note : I have holdings in all the above mentioned stocks.
Sunday, November 25, 2007
Stock Tips
Will sure keep you posted on this. Today is the first day and I am tired of writing posts.
Don't want you to overdose in a day. Keep watching this space and be assured to get some tips.
I will start with my past recommendation post to bolster my upcoming tips ;-)
Kaun banega crorepati!!
How? Using power of compounding. This is again a cliche...Everyone knows the power of compounding and how things can grow in time. The point I am going to make here is not the power of compounding but how easy it is to utilize this power without any effort when u invest in long term stocks.
Initially I used to think whats the use of dividend when the stock prices appreciation is enough to make money and the dividend payout is paltry.
Now look at this chart.
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||
| 200000 | 250000 | 312500 | 390625 | 488281.3 | 610351.6 | 762939.5 | 953674.3 | 1192093 | 1490116 | 1862645 | 2328306 |
| 200000 | 250000 | 312500 | 390625 | 488281.3 | 610351.6 | 762939.5 | 953674.3 | 1192093 | 1490116 | 1862645 | |
| 200000 | 250000 | 312500 | 390625 | 488281.3 | 610351.6 | 762939.5 | 953674.3 | 1192093 | 1490116 | ||
| 200000 | 250000 | 312500 | 390625 | 488281.3 | 610351.6 | 762939.5 | 953674.3 | 1192093 | |||
| 200000 | 250000 | 312500 | 390625 | 488281.3 | 610351.6 | 762939.5 | 953674.3 | ||||
| 200000 | 250000 | 312500 | 390625 | 488281.3 | 610351.6 | 762939.5 | |||||
| 200000 | 250000 | 312500 | 390625 | 488281.3 | 610351.6 | ||||||
| 200000 | 250000 | 312500 | 390625 | 488281.3 | |||||||
| 200000 | 250000 | 312500 | 390625 | ||||||||
| 200000 | 250000 | 312500 | |||||||||
| 200000 | 250000 | ||||||||||
| Total | 10641532 |
This chart shows what will be the value of your investment if you keep investing 2 lac per year with expected return of 25%.
You can increase the amount or return to achieve the goal faster.
Now to get 2 lac investible amount is not difficult. What is difficult to continuously getting high returns year on year.
Here comes the fun part... to get this kind of return you don't have to keep scratching ur head, your long term investment will come to rescue since they will keep giving u good returns.
Now googly. We have so many stocks & mutual funds which were invested long time back and now giving 100-400% dividend.
Lets say you invested in a stock for 10 rupee. after few years it has become 100 rupee and has given dividend of 50% this year.
Fow someone who is investing now will think 50% dividend is 5 rupees on 100 rupee .very less.
But someone who invested long time back is getting 50% return on his investment every year. Appriciation in the stock value is just an added advantage you can say.
Quite amazing right? according to chart we just need 25% to become crorepati..Here I have shown how your goal will be achieved automatically literally "tension free".
So now Imagine keeping your money invested for 15-20 or more years....and getting 25-50-100% percent returns on your original investment. Add that to power of compounding and you can see how easy it is to make huge many.
paisa paise ko keechega...money will work for money.......what you will do then?????
You will enjoy the beautiful things in this world god has created for you :-)
KEEP THE FAITH.
Investment Tips
Few months back I started looking at stocks which would grow with Indian consumption and growth story.
I personally don't like stock which are cyclic in nature. You have to continuously keep track of their movement. Examples would be Sugar, Oil marketing companies and ferrous and non ferrous stocks to name few.
But I must point that these stocks give huge return in small time and then they fall the similar way when the cycle turns around.
So basically to build a long term portfolio in which you keep buying and stay invested without looking back and these stocks keep growing like your baby or well watered tree. [ Leave apart the short term blips which are beyond anyones control.]
Depending on your age and time you can invest [Note I am not talking about money but time]
you can have a perfect mix in your portfolio.
Portfolio = Long term + medium term + short term stocks+ risky multi baggers
Long term stocks : These are the stocks you don't sell atleast for few years [5-10 years]. Take my words returns are mind boggling. I would tell u the importance of holding in a separate post.
Examples would be : L&T, Reliance , ICICI to name a few.
Medium term stocks :- You keep them for 1-2 years and then you know that they won't give you the kind of return they have give in the past and have stabilized. So you shed them and move on.
Examples here would be ITC, HLL [These stocks gave amazing returns when they were in expansion and growth phase. They made consumer goods available to huge population[in villages] of this country by innovative products like sachet and their topline and bottom line grew]. Now if you look at ITC it was at 180 when stock market was 800 and still at that level when stock market is 20000.
Stort term stocks :- Sugar stocks , Oil marketing companies etc....
Look at HPCL this stock moves between 200-300 range atleast 6-8 times in a year. Its movement is dependent upon government oil bonds, crude price etc...
If crude rises this stock moves down.....and viceversa...
Goverment is not rising the price of petroleum..stocks goes down and vice versa...
Government bails out by issuing oil bonds ....stock goes up...
Sugar....when sugar supply is less price rises hence the stock....farmers grow more looking at high prises and next year we have glut and price falls and hence the stock.
You can buy these stocks and sell after some months when you have got handsome returns. If you keep longer you will be back to square one.......
Multibagger :- These are currently penny stocks with good management to give huge returns.
You can invest in small amount in these . Lets say 2-3 thousand in 10 of these stocks.
Even if 6-7 fails and 3-4 really turns out to be multibagger you willbe looking at good profits.
Happy investing...
Indian Story
You would be hearing about this all the time, I mean all the time ..In newspapers, television , people keep talking about it that it has become cliche.
But that doesn't change the theme and Indian juggernaut has started to roll few year back and will continue to do so.
What does that mean? It has opened quite a lot of opportunities for people of this country to align themselves to this growth story and grow with it.
Have you missed the gravy train? You would probably think so if you were not in the current stock market boom which is already 4 years old now.
But let me tell you its never too late to start. Opportunities keep knocking what you need is commitment and discipline to sail through.
Ok...enough of fundaes.. Lets start with my first tip on sundae [:)] Can't help typing Orkut smili. Got too used to it.
I have learnt it hard way and I am twice bitten thrice shy......
--->Never do Intraday!! There are lot more avenues to make money faster and safely than Intraday.
You cannot always beat the market because u r the market.
You may make money sometime but you will lose all in 1- 2 trade all because of deep greed inside you.
If you are ready to lose 20-30K in a day, better way is to invest in options. That way you have capped u r losses and upside is huge beyond your imagination if you have placed your cards properly.
More to it in coming posts.
Let's get started!!
Its been long time I was thinking of starting this blog. Its basic purpose will be discuss about achieving financial independence through various known methods in a smart way.
Here you will find articles related to investments, insurance, loans etc.
Investment tips will be mostly in Indian Equities at present.
In the end, rather start I would like to pray Lord Ganesh before starting this venture and also mata durga,mahalaxmi & saraswati for strengh,courage, prosperity and learning.
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