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Friday 29 August 2014

Key Consideration before entering Stock

Key Consideration before entering Stock




  • Fundamentals: Evaluating the Stock Books for consistent Profit, Loss,Debt. Generally if the company is zero Debt Company then its fundamentally good stock, as they don’t have to pay interest for debt and all the money can be used of investments.


  • Market Capitalization:  Current Market value of the company or current stock price.


  • Return on Capital Employed :(ROCE)   Profit before Tax and interest/Liabilities of the company.

 If ROCE is greater than Capital Cost the company is doing good business and likely to give good returns Consistent ROCE increase means that the company is doing good.

  • Debt/Equity Ratio:  Total Liability/Shares. If debt is high or greater than 1, then we must not invest in company.


  • Promoters holdingShares of the owners of the company (generally should be more than 50%)

Pledged Promoters Holding: The shares that owner has placed with bank and got loan against it.

Counters:


  • Average - Exponential - EMA is technical indicator. Generally if EMA crosses SMA from below, u can buy, and sell if it crossed SMA from Above.


  • Average - Simple - SMA is again technical indicator used along with EMA.


  • Bollinger Bands- Again technical indicator where the Movement will be within the Band, when the Share touches the lower band and reverses one can invest If Share touches the upper band an reverses once can go short or sell


  • MACD - Another technical indicator based on EMA and momentum. Usually EMA,12,26 and9 are used .When MACD line crossed the Signal line 9, one can buy and if crosses from top

One can sell or go short

  • Money flow index- Same as RSI indicator it will move from 0 to 100, BUY at 20 and sell at 80.


  • Moving Average Envelope- Similar to BOLLINGER BANK, this is bank based on Simple Moving average (SMA).Values 20,2,2.5 when 2.5% is the band. Not much of use. Ignore it


  • Price Median - (Price High + Price Low)/2


  • Price ROC -price Rate of Change, if it crosses '0' and less than '0' SELL



  • RSI- Buy if it crossed 20 and sell if it crosses 80

Saturday 23 August 2014

Whats the news in Timken India?.Zoomed 25 % in 1 week

Whats the news in Timken India?.Zoomed 25 % in 1 week





































  • Timken India ,the bearing company which operates both in auto and infraspace saw  a huge movement last week.It has moved more than 100 RS in past 1 week or 25%

  • So what the news that is moving this stock with Huge volume.It started after AGM on Aug 13 was complete.

  • The Parent company Timken, headquaters in US is holding close to 75 %. On July the management said there is no plan of Delisting the company.
  • Some say that the results are really good for this quarter which will be announced on Sep 30.
  • Whatever is happening it not known,but huge volumes indicates that there is further updside for this stock till 500 to 600 Rs.
  • Lets wait and see when the news comes out. 

Heineken International increase stake in UBL to 40.51%

Heineken International increase stake in UBL to 40.51% 



  • King of Goodtimes is coming to an end it seems. Yes Heineken International has bought another 1.51 % of UBL Share from Open Market.It looks like these where sale of Pledge share which Heineken took at Rs 726 a Piece.



  • This bring the Stake of Heineken to more than 40 % in the group. As per filing with NSE by McDowell there was 4.05 % of shares which the Holding company had .now it has reduced to 3.96 % on account of invocation of pledge created in favor of lender.Which i believe the pledge share by McDowell has been sold of.



  • Total of 250,000 Shares changed hands at Rs 726.




  • As more pledge shares come to sale Heineken is for sure to buy it.Last year in Dec 2013 it bought 1.39 % from open market to increase it stake to 39%

Thursday 21 August 2014

MULTIBAGGER V2 Retail Ltd - Trgt 90 Rs 2yrs time Frame Medium Term

MULTIBAGGER V2 Retail Ltd - Trgt 90 Rs 2yrs time Frame Medium Term





  • V2 stands for Value and Variety which forms the V2 retail chain. This company was earlier known as Vishal Retail Ltd. yes the same Vishal retail which was in 800 Rs range, they have change the name to V2 retail after selling there bad debts and core business. Now they are focus on retail front
  • The company sells ready-made ,apparels ,household merchandise and other consumer goods like footwear ,toys ,games ,handbags, fragrance , cosmetics ,home furnishing, décor product ,sports items crockery, novelties and gifts.
  • There business works just like bigbazaar now they do bulk purchases and pass on the discount they get to the customer. This model is very sucessful in India.
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  • They also have susidiaries company VRL Movers Ltd, VRL Infrastructure Ltd. and VRL Retail Ventures Ltd. Which all fall under V2 retail.
  • Currenty they have their showroom at 8 locations in India and mainly focus on Midleclass.
  • In recent quarter the the company posted a profit of 5.5 crores compared to previous quarter of 2.09 crores.
  • We expect this retail store to grow or great acquisition candidate in future hence expecting a minimum return of 90 in 2 yrs time frame.
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Aurobindo Pharma recommended Multibagger Trgt Achived


  • Aurobindo Pharma recommended at Rs 268 on 10/11/2013 has turned into a Super Multibagger. CMP IS Rs 639.It has triples in 6 months time frame.

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  • We request our investors to sell 50% of the Sotcks and hold the rest for 2 more years with a Trgt of 900Rs

Tuesday 19 August 2014

Tokyo Plast International Ltd Multibagger 2 year Trgt of 60 Rs and above.

Tokyo Plast International Ltd Multibagger 2 year Trgt o 60 Rs and above.

 
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  • A 28 years old company which has created for itself a place in Indian Consumer industry.



  • The company is in Themoware division and has been rated as the Start and top exporter by Govt of India for 4 years in a row which shows the great show this company is putting on.



  • There products range from Insulated Water Jugs, Cooler boxes, Insulated Casseroles, Food Warmers and Ice Chest. The company has 2 manufacturing plats 1 in Daman and 1 in Kandla.

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  • They are also member of Internation Groups such as Sedex.EPCH,PLEXCONCIL.The company export to 75 counties



  • There primary brand is "Pinnacle" which si widely regonized all over the word.


With strong EPS and growth, and PE of just 5 we see this stock reac 60 Rs in 2 years timeframe.

Thursday 14 August 2014

Suven Life Sciences Multi Bagger 240 1 year Timeframe

Suven Life Sciences Multi Bagger 240 1 year Timeframe 






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  • Suven Life Sciences is in process of design, manufacture and supply of Drugs & Fine Chemicals.

  • The Company has been consistently growing and it sales has doubled in last 1 year and comapny is confident of giving 30 % growth which will doubble it sales.
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  • With sales expected to reach 1000 Crores and EPS of 24 For FY15.With aminimum PE OF 10 we see the stock going to 240 and with some rerating it can go to 360 to 480 easily.

  • The company is strong patent company with lot of revenues comming from patents.Which is only going to increase in coming years.They recently secured 2 patents for Neuro drugs.

  • It said that Big Bull Rakesh Jhunjhuwala has a stke and strong outlook on this company.Infact he expecting this ti be his next big Multibagger in his portfolio.

  • So invest in this stock with 1 to 2 year time fram for 240 to 480 Rs return.It also a good stock for your retirement,if yo invest now as lot of money will come form patents.


Thursday 7 August 2014

Dolly Khanna latest Portfolio August 2014


  • Dolly Khanna is a Ace investor who made Crores of Rupees in investing in Stocks Which have turned Multibaggers in Due course of time. One such stock is Prestige where she entered around 200 Rs range and today is in 3000 Rs range

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  • Below is the latest portofolio of Dolly Khanna which i suggest the new investors to follow. She has a gifted touch of investing in stocks which doesnt get affected by market fluctuations.



  • Most of her investments have become 10 times in 2 years time frame



  • I suggest to invest in these stocks with 2 yrs time frame and exit.
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Company invested:
  • RS Software (India)
  • Liberty Shoes
  • Paper Products
  • Hawkins Cooker
  • Nilkamal
  • Premier Explosives
  • Mold-Tek Packaging
  • Cera Sanitaryware
  • Wim Plast
  • Heritage Foods
  • Manjushree Technopack
  • Avanti Feeds
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Saturday 2 August 2014

How to check if Company has has Paid the TAX collected from you to Income tax department

How to check if Company has has Paid the TAX collected from you to Income tax department


  • Incometax has added lot of transparency to the tax system.Now you can see whether your company has paid the tax to incometax department which was deteducted from your Source (TDS).
  • This form is called Form 26 AS.
  • Go to https://incometaxindiaefiling.gov.in/
  • Login to the Website with your Username (PAN Card ) and password you set.If this is the first time then click register.
  • Now On left Click View Form 26 AS
  • This will show you how much tax has been deducted and paid to IT department

Friday 1 August 2014

Dowjones VS Goldman's sacs comparison 5 years chart

Dowjones VS Goldman's sacs comparison 5 years chart




  • Many people think investing in stocks in long term and in quality stocks will give good returns.This is not true and want to break this myth and give you an example with one of the leading stocks in the world Goldman sacs.
  • As you see in the above chart in 2009 when market started recovering, if some one has invested in Dowjones index would have got 100% profit by now
  • While someone who had invested in a good quality stock like Goldman sacks would have got 0 % returns
  • Why does this happen.Its because Dowjones has a mix of sectors.So in last 5 year financials hasn't done any good,but other sectors like retail,IT would have done good and this has pushed the profits of Dowjones. While Goldman sacs got stuck in financials and and didn't move
So the moral of the stories is Don't put your eggs in same basket.

Invest in index if you want long term gains.