HAPPY DIWALI

This DIWALI, may the SCRIP called life pay you DIVIDENDS of joy, issue a liberal BONUS of good fortune, you get all the RIGHTS to enjoy Life. Your Success reaches ALL TIME HIGHS, let there be no CORRECTION in your happiness & let the SUPPORT of our good wishes, help you cross the RESISTANCE of prosperity.

DIWALI PICKS
You can buy some or buy all of them, but be assured that this shopping will only make you richer. So go on, keep a target of atleast 12 months and take your pick. Brighten your Diwali with these new jewels in your portfolio. Happy shopping!

POWERGRID (Rs.150.)

A PSU, it is the country’s principal electric power transmission company, owning inter-state and inter-regional electric power transmission system. The company owns and operates 61,875 circuit kilometers of electrical transmission lines and 106 electrical sub-stations. In FY 07, the company transmitted about 29,800 crore units of electricity, which represents 45% of power generated in the country.

The company is now eyeing up to 20% stake in Philippines' transmission company, estimated to cost $800 million, whose total valuation is being estimated at $4 billion. If the company gets this stake, it will be able to get 18% returns per annum, against 14-15 per cent in the country. The company is also setting up an office for consultancy services in Dubai, which is expected to cater to the needs of the entire Middle Eastern region.

Power is one of the biggest necessities of India and given the current pace of growth in the country, it would be no exaggeration to say that India is a “power starved” country. Power Grid is thus poised to cash-in on this huge market. A rock solid company, it is one power stock which once should surely have in the portfolio.

LAKSHMI ELECTRICAL CONTROL (Rs.480.)

A part of the LMW group, the company is engaged in the manufacture of all types of switchgears and currently has a capacity of 4 lakh switchgears, 5,000 Control Panels and 400 Tonnes of Plastic Components per annum. The company also has captive power by way of Wind Mill of 2.90 MW.

Financial performance for H1 ending September 07 has also been exemplary. FY08 is likely to have net sales of Rs.95 crore, PBT of Rs.20 crore and PAT of Rs.12.30 crore, resulting in an EPS of Rs.50 on tiny equity of Rs.2.46 crore. The biggest positive factor in favour of the company is that, on a standalone basis, the company is virtually debt free, as debt of Rs.20 crore has net current assets of Rs.26 crore.

The share is now ruling at a PE ratio of less than 10 times, based on FY 08 EPS. Share has potential to touch four digit mark in the next 12 months. So don’t forget to include this stock in your portfolio when you do the Lakshmi pooja for Diwali.

DLF (Rs.915.)

The real estate company which, through its IPO, trailblazed itself into the big league and earned the promoter, K.P Singh a place amongst the richest men in India, is today a great stock in the portfolio. Maybe, it could turn your fortunes around also, like how it did for Mr.Singh!

After the mega IPO of DLF, the company is now truly into the big league. In real estate, the most important thing today is the brand name, a reputation. And that is what probably the biggest asset and a huge plus which DLF has. The sheer money and the brand power which the company has today will take it way ahead from there.

The company has posted very good results for the first half of the current year and with the kind of orders which the company currently has under its belt, the going will only get better. Its biggest project is undoubtedly development of the ‘New Bangalore’ in Bidadi, which has a potential value creation of approx. Rs. 50,000 crore. It acquired 38 acre land in Central Delhi for an integrated development, with a potential value creation in excess of Rs 10,000 crore. It also launched two IT SEZs in Gandhinagar and Nagpur; and second IT Park in Kolkatta. It is getting into hospitality business in a big way and for the hotels, acquired 39 sites, of which, 19 projects are under various phases of development.

Irrespective of whether or not you buy a DLF property, do buy this stock. It could prove to be your great asset for the future.

LARSEN & TOUBRO (Rs.4150)

Now what do you say an evergreen blue chip like L&T? A stock which has earned profits spread over generations, even today, in this ever changing world, this is one stock which continues to remain sound.

Again, in terms of growth rate of India, the capital goods sector is also one such sector which is doing extremely well. Given the pace of economic growth and building of infrastructure at break neck speed, the capital goods sector is poised to do very well. And when we talk of capital goods, can there be anyone better than L&T? The company caters to the needs of not just India but has also formed various joint ventures, with companies all over the world. For the first half of the current year, customer order inflow was at Rs. 17,428 crore, which is an increase of 30% over the corresponding period of previous year.

The fundamentals in the economy continue to support the strong growth trajectory of the capital

goods sector with robust investments in infrastructure, power, hydrocarbon and minerals & metal

sectors. On the back of strong oil prices, the Middle East region is expected to further ramp up investment in oil & gas production and distribution facilities. Given the favourable investment climate, L&T is expected to benefit immensely from the order flows from these sectors. With a healthy order book and a huge brand presence, L&T is a stock one must surely have in the portfolio. That way, you too will feel that you have been a part of the growth story of India!

NOIDA TOLL BRIDGE (Rs.48.)

This is one of the best low priced stocks available in the market today. The potential of the stock has not been recognized by the market, which is probably why it continues to remain low. For all those who wanted to be the “early bird”, Noida is one such stock.

The biggest plus in favour of the company is that the company has about 240 acres of surplus land, of which, about 200 acres is on Delhi side while 40 acres is on Noida side. This land is likely to get developed, for which permission has been sought. This land was valued at about Rs.350 crore in 2002 which is presently valued at close to Rs.1,500 crore. Also company’s toll bridge across Yamuna, a 553 meter bridge, linking Noida with Delhi, where present traffic is close to 1 lakh vehicles per day, is currently one way. Once the route fully becomes two-way, the prospects of the company get even better.

So given the growth prospects of its real estate foray and once the Mayur Vihar-Noida link becomes two-way, Noida Toll is expected to show an even better growth rate. At the current rate of Rs.46, surely there is nothing else you can buy so cheap for Diwali and that too a buy, which is expected to fetch you more money.

BHEL (Rs.2800.)

One of the largest PSU’s amongst the “navratna’s” of India, it could also become the jewel of your crown. An engineering conglomerate, BHEL is in the most advantageous position to take advantage of the current boom in the power sector and the economic growth rate of the country.

BHEL offers, over a wide spectrum of products and services for core sectors including power generation, transmission and distribution; transportation; and oil and gas. as well as the supply of non-conventional energy systems. Over 65 percent of power generated in India comes from BHEL-supplied equipment. Overall, it has installed power equipment with a total capacity of over 90,000 MW.

The company is currently in a virtual monopolistic situation with the Govt’s insistence of awarding all power equipment orders to BHEL. The orders are so much and coming in so fast that BHEL is unable to keep pace with the growing demand for turbines, boilers and spare parts. To cope up with the demand, the company is working three shifts, is trying its level best to step up production and is also trying to outsource low-technology parts. The company had an outstanding order book position of about Rs. 72,600 crore at the end of Q2 FY08.

BHEL is like the cushion in your portfolio, its growth will shield from all the other upheavals. Buy BHEL and see the way in which your portfolio grows.

GMR INFRASTRUCTURE (Rs.195.)

Now this is indeed one of our favourite stocks and how can any shopping list be complete without the inclusion of GMR Infra? Getting to be recognized as an “airport” company, indeed the biggest strength of GMR today is its ability to develop world class airports. The fact that it won the contract in Turkey to build its international airport.

But it is more than a, “airport” company. The Company has three power projects aggregating 790 MW of which 420 MW is Naptha/LSHS based and 370 MW is natural gas based. It has 6 road projects for about 421 KM of which 3 are annuity and 3 are BOOT projects. And it is the only company having interests in two leading airports of the country - 50.1% in Delhi Airport while 62% is held in Hyderabad Airport.

The biggest plus, over and above all this, is the huge land bank owned by the company in the vicinity of the Delhi and Hyderabad airport. In Delhi airport, company has about 245 acres available for development and that could translate to about 2 crore sq feet or 20 million sq feet and its valuation is pegged at Rs 20,000 crore. In Hyderabad, GMR has totally 5,500 acre, of which 2,500 acres is the airport and the balance is being developed by the company. The two SEZs are being developed by the company in the vicinity of Hyderabad as they have the entire land in and around that. Taking the Hyderabad developable land at 3000 acres, its valuation is expected to be around Rs 25,000 crore.

In the next 3-5 years, GMR Infra will be a much bigger company than what it is today. Be a part of its superlative growth. Buy this stock and just forget all about it for 12 months or so, see the way your money would have multiplied after a year.

RELIANCE INDUSTRIES (Rs.2730.)

Now, why are we recommending Reliance Industries (RIL)? Well, it’s the largest private sector company of India and its fundamentals are the best that you can come across. Also it is the darling of the bourses and a stock which holds market fancy will never fail you. Ask anybody on the street and the most commonly heard dialogue, “you will never loose money on Reliance”, such has been the faith and over a period of time, it has indeed managed to live to its reputation. With 3 million shareholders, it is one of the world's most widely held stock, did you know that trivia?

The various superlatives affixed to the company, by Indian and international media is not without reason. Apart from doing exceedingly well in its core business – petrochemicals and petroleum products, the company’s foray into retailing – Reliance Retail and Reliance Fresh, giving a fresh impetus to its dormant garment business by relaunching the brand “Vimal”, the company can go only one way – up.

Mukesh Ambani is being touted as the richest man on earth and the company’s ranking in Forbes is expected to only go up further when its time to make the report card in December.

As a stock RIL has a lot of momentum. For a long term investor, RIL can prove to be a goldmine and frankly, what’s the point of trading on Dalal Street and not owning the favourite stock of the street?

RELIANCE COMMUNICATION (Rs.750.)

If bade bhaiyya is doing so well, can chhote do any less? Really, this is one split of brothers, which has created immense wealth for the country and the shareholders. The brothers might have split, but for the man on the street, all that matters is the name tag of “Reliance” and the fact that it is run by the sons of the illustrious Dhirubhai Ambani.

Rcom is undoubtedly one of the best companies in the fold of Anil Ambani. The telecom sector is booming and those in the know say that the best for the sector is yet to come. So keeping the industry prospects and the position of Rcom in the sector, the company is all set for a very fast paced growth, Anil Ambani ishtyle!

With over 35 million subscribers, Rcom is a perfect “new generation” stock to own, to make your profits into wealth. Ring-in to this stock for long term wealth.

Though these Navaratnas have been given as Diwali Shopping List, they can be bought over a period of time, during Samvat 2064, which would definitely be market outperformer and are stocks which can be comfortably held even for a period of 3 – 5 years to have consistent and decent returns.

Stocks for next two three Years

Welcome Moneycontrol Users

Below are the stocks which can give decent returns with a very limited risks.

1) Power

a) Power grid ** Target 250 in two years
b) Power Finance ** Target 600 in two years
c) Cable corp(mix of power & real estate) ** Target 150 two years
d) Siemens ** Target 5000 in two years
e) Havells ** Target 1500 in two years
f) Jindal steel & power ** Target 25000 in two years

2) Telecom

a) Idea cellular ** Target 350 in two years
b) Reliance communications ** Target 2000 in two years
c) Bharti airtel ** Target 2500 in two years

3) Infrastructure

a) Action construction ** target 600 two years
b) GMR infrastructure ** Target 350 in two years
c) Sadbhav engineering ** Target 2000 in two years

4) Real estate

a) Indiabulls realestate ** Target 2000 two years
b) Unitech ** Target 700 two years
c) Parsvnath ** Target 1000 two years

5) Fertilisers

a) Zuari Industries ** Target 1000 in two years
b) Nagurjuna fertilisers ** Target 200 in two years
c) RCF ** Target 100 in two years

6) Steel

a) SAIL ** Target 500 in two years
b) Jindal stainless ** Target 500 in two years
c) JSW ** Target 2500 in two years

Just do your study on these stocks & buy them & seem them moving northwards in next two years!!

For the companies who are diversified in the booming sectors Just visit
www.0955AM.blogspot.com

!!!!HAPPY INVESTING!!!!!

Five stocks to multiply your money in one year

You can easily multiply your money

The below mentioned stocks are well researched & can multiply your money easily in one year.

1) Prakash Industries
2) Unitech
3) GMR Infra
4) Hindustan Zinc
5) Jindal stainless

Just divide your money in these five stocks & see awesome return by next diwali

Happy Diwali & Happy Investing.

Domestic themes may help investors ride out the global volatility

What view should you, as investor, take on the intense volatility in Indian stocks? Well, there are two equally convincing answers.

Strong fundamentals

On one hand, the recent rout in Indian stocks has little do with the fundamentals of the economy or companies, triggered as it is by global factors (mainly fears relating to the US housing market). India Inc. continued to deliver strong earnings growth even in the just-concluded June quarter and growth drivers such as consumption and infrastructure spending appear to be strongly poised.

Companies in the Indian investment universe, except technology majors, also do not have a significant exposure to the US economy or its consumption trends and thus, their earnings may not be directly vulnerable to any US-related slowdown. This view suggests that the recent corrective phase could be a temporary one triggered by panic and that India's strong fundamentals will eventually win over investors (both local and global). If this is indeed the case, any further declines in the coming weeks should actually be used to ferret out buying opportunities in Indian stocks.

Liquidity matters

However, the opposite view can also be argued with equal conviction. Yes, corporate India's fundamentals are quite strong and may even be more resilient than those of other emerging economies. But a deluge of foreign investment in Indian stocks over the past four years has meant this fact is already well-known and is reflected in current stock prices. The recent correction notwithstanding, the stock market continues to trade at a premium valuation to other emerging markets.

What is more, while India's companies do not depend heavily on the rest of the world for growth, its stock market certainly does. With a relatively low domestic participation in equities, it is the steadily increasing FII investments that have contributed in a major way to steadily spiralling stock prices over the past four years. For Indian stocks to resume their upward journey a continued flow of liquidity will be a pre-requisite. And recent global events definitely do have the potential to interrupt these liquidity flows.

In the past week, several non-US banks, financial firms and hedge funds have reported troubles from indirect exposures to mortgages/mortgage securities in the US markets. While debt funded M&A may be the first casualty, a ripple effect could draw in players such as hedge funds, international investment funds, global investment banks and private equity players, all active participants in the equity markets; this is bound to have liquidity implications for equities, especially in emerging markets such as India. This suggests that despite their fundamental attractions, Indian stocks could settle into a prolonged phase of listless or even downward moves.

Caution warranted

These factors suggest that, even if corporate fundamentals do seem positive, caution may be warranted in making fresh equity investments at this juncture. To start with, the decision on whether to indulge in a buying spree, or to simply remain on the sidelines now, should probably be based on the shape of the individual's portfolio.

An investor who has a small or negligible equity exposure, but an appetite for risk, can use the corrective phase as a buying opportunity to peg up this exposure. But one who already has a significant equity allocation in his portfolio (relative to his preferred debt-equity mix) should probably consider staying on the sidelines. Replacing some poor portfolio choices with fundamentally sound stock ideas would also be a good move at this juncture, as it could help reduce the downside risk you carry.

Greater selectivity in stock and sector choices may also be called for while rejigging your portfolio. For instance, despite signs of recovery in this sector last week, it appears wise to limit exposures to technology stocks at present. Though the cap on external borrowings by Indian companies is widely expected to support the rupee, the jury is still out on whether this will be offset, over the medium term, by a falling US dollar or stronger domestic portfolio flows.

The significant exposure that large IT companies have to the global banking and financial services space, by way of clients/business, also suggests that it may be better to wait to gauge the impact of unfolding global events on IT company earnings. On the other hand, the earnings outlook for the domestic banking sector has certainly improved in recent times as the RBI cap on external borrowings last week may lead to stronger credit offtake for domestic banks, lending strength to earnings. However, bank stocks may still be vulnerable to a decline in valuations, arising from any global meltdown in financial stocks.

Given the uncertainties relating to the external environment, investment opportunities in companies with a strong domestic focus may deliver superior risk-adjusted returns for investors.

Domestic themes may pay

Companies focused on lifestyle or consumption driven sectors such as FMCGs, consumer goods or media offer one set of options.

For investors with a higher risk appetite, frontline stocks from the infrastructure and capital goods space (consensus is building that interest costs will not materially impede growth in these sectors), may present good investment opportunities. Phasing out any stock purchases over the next few weeks/months, to take advantage of stock price volatility, may be the best course to follow.

Defensive portfolio: Marico Industries, Glaxo Smithkline Consumer Healthcare, Indian Hotels, Monsanto India and 3M India — stocks that combine a low beta (tendency to move with the markets) with strong earnings growth prospec ts appear good options for conservative investors with a long investment horizon.

Aggressive portfolio: Bharat Electronics, L&T, Maruti Udyog, Idea Cellular and Sun TV — stocks which combine strong growth prospects with a high beta may be candidates for investors with a high risk appetite looking to build a long-term portfolio.

Easun Reyrl Ltd.

You can buy Easun Reyrl Ltd at current price of 230.
The stock will touch Rs. 700 in two-three year time frame.

The 8 reasons to buy this stock :
1) 100 % growth in profit in last quarter (QOQ)
2) Small Equity of just 3.3 crores
3) Sound Management (Management declined open offer of 20% stake by Siemens because the Mgmt was confident of delivering better value to the shareholders of the company)
4) Available at the PE of 13.5 FY09E (FY08 EPS Rs.53)
5) 50 % Appreciation in the stock price in last one month.
6) The stock is trading at all time high.
7) Positive outlook in Engineering sector.
8) the Company is expected to grow by 100% in next three years.

I recommend you to buy this stock at current price and hold it for two years.

14 commandments for investors

Benjamin Graham is regarded as the father of value investing and his

books are investment classics. Securities Analysis (first published in

1934) and The Intelligent Investor (first published in 1949) continue

to sell steadily. In addition to this legacy, he has permanently

influenced many successful investors, including Warren Buffett, the

wealthiest man in America; William Ruane, founder of the

super-successful Sequoia Fund; and well-known investor Walter Schloss.

Ben was a prophet in a very specialised but important realm of life.

He preached commandments that any investor can use as stars when

navigating the vast and mysterious seas of the investment world. An

individual investor, who is not under pressure to shoot comets across

the heavens but would like to earn a smart and substantial return,

especially can benefit from Ben's guidance. In greatly simplified

terms, here are the 14 points Graham most consistently delivered in

his writing and speaking. Some of the counsel is technical, but much

of it is aimed at adopting the right attitude:

1. Be an investor, not a speculator

"Let us define the speculator as one who seeks to profit from market

movements, without primary regard to intrinsic values; the prudent

stock investor is one who (a) buys only at prices amply supported by

underlying value and (b) determinedly reduces his stock holdings when

the market enters the speculative phase of a sustained advance."

Speculation, Ben insisted, had its place in the securities markets,

but a speculator must do more research and tracking of investments and

be prepared for losses if they come.

2. Know the asking price

Multiply the company's share price by the number of company total

shares (undiluted) outstanding. Ask yourself, if I bought the whole

company would it be worth this much money?

3. Rake the market for bargains

Graham is best known for using his "net current asset value" (NCAV)

rule to decide if the company was worth its market price.

To get the NCAV of a company, subtract all liabilities, including

short-term debt and preferred stock, from current assets. By

purchasing stocks below the NCAV, the investor buys a bargain because

nothing at all is paid for the fixed assets of the company. The 1988

research of Professor Joseph D. Vu shows that buying stocks

immediately after their price drop below the NCAV per share and

selling two years afterward provides an excess return of more than 24

per cent.

Yet even Ben recognized that NCAV stocks are increasingly difficult to

find, and when one is located, this measure is only a starting point

in the evaluation. "If the investor has occasion to be fearful of the

future of such a company," he explained, "it is perfectly logical for

him to obey his fears and pass on from that enterprise to some other

security about which he is not so fearful."

Modern disciples of Graham look for hidden value in additional ways,

but still probe the question, "What is this company actually worth?"

Buffett modifies the Graham formula by looking at the quality of the

business itself. Other apostles use the amount of cash flow generated

by the company, the reliability and quality of dividends and other

factors.

4. Buy the formula

Ben devised another simple formula to tell if a stock is underpriced.

The concept has been tested in many different markets and still works.

It takes into account the company's earnings per share (E), its

expected earnings growth rate (R) and the current yield on AAA rated

corporate bonds (Y).

The intrinsic value of a stock equals:

E(2R + 8.5) x Y/4

The number 8.5, Ben believed, was the appropriate price-to-earnings

multiple for a company with static growth. P/E ratios have risen, but

a conservative investor still will use a low multiplier. At the time

this formula was printed, 4.4 per cent was the average bond yield, or

the Y factor.

5. Regard corporate figures with suspicion

It is a company's future earnings that will drive its share price

higher, but estimates are based on current numbers, of which an

investor must be wary. Even with more stringent rules, current

earnings can be manipulated by creative accountancy. An investor is

urged to pay special attention to reserves, accounting changes and

footnotes when reading company documents. As for estimates of future

earnings, anything from false expectations to unexpected world events

can repaint the picture. Nevertheless, an investor has to do the best

evaluation possible and then go with the results.

6. Don't stress out

Realise that you are unlikely to hit the precise "intrinsic value" of

a stock or a stock market right on the mark. A margin of safety

provides peace of mind. "Use an old Graham and Dodd guideline that you

can't be that precise about a simple value," suggested Professor Roger

Murray. "Give yourself a band of 20 per cent above or below, and say,

"that is the range of fair value."

7. Don't sweat the math

Ben, who loved mathematics, said so himself: "In 44 years of Wall

Street experience and study, I have never seen dependable calculations

made about common stock values, or related investment policies, that

went beyond simple arithmetic or the most elementary algebra. Whenever

calculus is brought in, or higher algebra, you could take it as a

warning signal that the operator was trying to substitute theory for

experience, and usually also to give speculation the deceptive guise

of investment."

8. Diversify, rule #1

"My basic rule," Graham said, "is that the investor should always have

a minimum of 25 per cent in bonds or bond equivalents, and another

minimum of 25 per cent in common stocks. He can divide the other 50

per cent between the two, according to the varying stock and bond

prices." This is ho-hum advice to anyone in a hurry to get rich, but

it helps preserve capital. Remember, earnings cannot compound on money

that has evaporated.

Using this rule, an investor would sell stocks when stock prices are

high and buy bonds. When the stock market declines, the investor would

sell bonds and buy bargain stocks. At all times, however, he or she

would hold the minimum 25 per cent of the assets either in stocks or

bonds — retaining particularly those that offer some contrarian

advantage.

As a rule of thumb, an investor should back away from the stock market

when the earnings per share on leading indices (such as the Dow Jones

Industrial Average or the Standard & Poor's composite index) is less

than the yield on high-quality bonds. When the reverse is true, lean

toward bonds.

9. Diversify, rule #2

An investor should have a large number of securities in his or her

portfolio, if necessary, with a relatively small number of shares of

each stock. While investors such as Buffett may have fewer than a

dozen or so carefully chosen companies, Graham usually held 75 or more

stocks at any given time. Ben suggested that individual investors try

to have at least 30 different holdings.

10. When in doubt, stick to quality

Companies with good earnings, solid dividend histories, low debts and

reasonable price/to/earnings ratios serve best. "Investors do not make

mistakes, or bad mistakes, in buying good stocks at fair prices," Ben

said. "They make their serious mistakes by buying poor stocks,

particularly the ones that are pushed for various reasons. And

sometimes — in fact, very frequently — they make mistakes by buying

good stocks in the upper reaches of bull markets."

11. Dividends as a clue

A long record of paying dividends, as long as 20 years, shows that a

company has substance and is a limited risk. Chancy growth stocks

seldom pay dividends. Furthermore, Ben contended that no dividends or

a niggardly dividend policy harms investors in two ways. Not only are

shareholders deprived of income from their investment, but when

comparable companies are studied, the one with the lower dividend

consistently sells for a lower share price. "I believe that Wall

Street experience shows clearly that the best treatment for

stockholders," Ben said, "is the payment to them of fair and

reasonable dividends in relation to the company's earnings and in

relation to the true value of the security, as measured by any

ordinary tests based on earning power or assets."

12. Defend your shareholder rights

"I want to say a word about disgruntled shareholders," Ben said. "In

my humble opinion, not enough of them are disgruntled. And one of the

great troubles with Wall Street is that it cannot distinguish between

a mere troublemaker or "strike suitor" in corporate affairs and a

stockholder with a legitimate complaint that deserves attention from

his management and from his fellow stockholders." If you object to a

dividend policy, executive compensation package or golden parachutes,

organize a sharcholder' s offensive.

13. Be Patient

". . . every investor should be prepared financially and

psychologically for the possibility of poor short-term results. For

example, in the 1973-1974 decline the investor would have lost money

on paper, but if he'd held on and stuck with the approach, he would

have recouped in 1975-1976 and gotten his 15 per cent average return

for the five-year period."

14. Think for yourself

Don't follow the crowd. "There are two requirements for success in

Wall Street," Ben once said. "One, you have to think correctly; and

secondly, you have to think independently."

Finally, continue to search for better ways to ensure safety and

maximise growth. Do not ever stop thinking.

Pantaloon-A sure shot multibagger from here.

The Pantaloon retail can safely multiply your money by atleast 5-10 times in 3-4 years.

Pantaloon Retail

a)It aims to clock a turnover of Rs 30,000 crore by 2010 (Current Sales 3,000 crore only)
b)It will get into Sensex and Nifty very soon (There is no retail stock in Sensex or Nifty).
c)The company that has 100 stores in 25 cities across the country, plans to open additional
3,000 outlets in four years
d) Pantaloon Retail remains a high risk high return stocks.Price wise if sales and profit grow
multifold the stock price has to follow.
e)Pantaloon has the first mover advantage.

I recommend to buy Pantaloon at CMP@540.

Happy Investing

Tips for this week(16 July-20 July)

The following stocks may outperform in the markets this week:

1)Tanla solutions
CMP@475
Target@520

2)Jaiprakash Associates
CMP @870
Target@925

3)Nitin fire protection
CMP @ 452
Target@490

4)Panacea Biotech
CMP@402
Target@450

5)Arihant Foundations
CMP@430
Target@475


These are achievable targets in this week. Gujrat NRE Coke is also a good pick.
We will continue to provide you weekly tips from now onwards.
If you are regular visitor of this blog you can win the markets.Thanks

Rules of Investment Success

# Invest – don’t trade or speculate.
The stock market is not a casino, but if you move in or out of stocks every time they move a point or two, the market will be your casino. And you may loose eventually or frequently.

# Buy value, not market trends or economic outlook.
Ultimately, it is the individual stocks that determine the market, not vice versa. Individual stocks can rise in a bear market and fall in a bull market. So buy individual stocks not the market trend or economic outlook.

# Buy low. So simple in concept. So difficult in execution.
When prices are high, a lot of investors are buying a lot of stocks. Prices are low when demand is low. Investors have pulled back, people are discouraged and pessimisistic. But if you buy the same securities everyone else is buying, you will have the same results as everyone else.

# There’s no free lunch. Never invest on the sentiment. Never solely on tip.
You would be surprised how many investors do exactly this. Unfortunately there is something compelling about a tip. Its very nature suggests inside information, a way to turn a fast profit.

# Learn from mistakes.
The only way to avoid mistakes is not to invest which is the biggest of all. So forgive yourself for your errors and certainly don’t try to recoup your losses by taking bigger risks. Instead turn into a learning experience.

# Aggressively monitor your investment. Remember, no investment is forever.
Expect and react to change. And there are no stocks that you can buy and forget. Being relaxed does not mean being complacent.

# Never follow the crowd.
If you buy the same securities as other people you will have the same results as other people. It is impossible to produce superior performance unless you do something different from the majority. To buy when others are despondently seeking and to sell when others are greedily buying requires the greatest fortitude and pays the greatest reward.

# Buy during the times of pessimism.
Bull markets are born on pessimism; grow on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy. And the time of maximum optimism is the beset time to sell. In almost every activity of normal life people try to go where the outlook is best. You look for a job in an industry with a good future, or build a factory where the prospects are best. But if you are selecting public traded investments youhave to do the opposite. You are trying to buy a share at the lowest possible price in relation to what the corporation is really worth. And there is only one reason a share goes to bargain price: because other people are selling. There is no other reason. To get a bargain price, you have to look where the public is most frightened and pessimistic. The time to buy is when everyone is scared and you are a bit scared yourself.

The five stocks to multiply your money

The bull run of mid caps and small caps is just started.The below five stocks are in high growth trajectory and will give you superior returns from one year perspective.These are unidentified stocks in the market and only FIIs and stocks researchers are buying them.The Analysis of these stocks can be viewed in previous posts in this blog.

1)Ankur Drugs
2)South East Asia Marine Ltd.
3)HOCL
4)Yashraj Containers
5)Bartronics

BONUS Tips:
1)Vas Animations
2)Jaypee Hotels
3)Great Offshore
4)Arihant foundations
5)Action COnstructions

HAPPY INVESTING!!
शुभ लाभ

GOLDEN Opportunities for one year

Following are the golden opportunities for one year :-)

1)Ankur Drugs
CMP:-355
One year Target :-1200
Reason :-1) Excellent business opportunities in contract research and manufacturing
2)The Company has signed the Technology Agreement with Labtec GmbH,
Germany and Applied Pharma Research, S.A., Switzerland for manufacturing and marketing of "Rapid Film" formulations
3)The FY09 EPS could be around Rs.100 So it is available at the PE of 3.5 FYO9 EPS


2)HOCL
CMP :- 51
One Year Target:- Above 200
Reason :- 1) A turnaround Story
2) Rehabilitation package of 250 crores from Central Govt.
3) March ended quarter EPS Rs.5

HAPPY INVESTING

All about SEZs

To acquire complete information on SEZs development.
Please refer to following Ebook of K R Choksey

DOWNLOAD

Honey Well Automation

Buy this Stock to double your money in one year.

CMP : 2110

One year target : 3800


Download the detailed report and analysis of this company

Vas Animation(Infrastructure) Ltd.

Vas Infrastructure ltd.

The stock is recommended by Mathew Easow on moneycontrol.com

Click here for recommendation

The company earlier known as Vas Animation Ltd. was set up in 1997.The company was not doing any business over the last few years. In April’06 the company has announced the change in name to Vas Infrastructure Ltd. In line with the change in name the company is now pursuing business in development of real estate. It is already doing housing projects in Borivali and Goregaon in western suburbs of Mumbai and also commercial property development in Malad.

Over the next two years the company hopes to get aggressive in development of real estate and more so in construction of luxurious flats/commercial property in the suburbs.

Borivali project:

The company has purchased a plot of 125000 sq.ft. land from the promoters for a consideration of Rs190 mln. The plot already has some buildings on it. As per existing development rules the company can construct about 28000 sq ft. However the company has already purchased about 12000 sq ft of TDR and hopes to purchase another 0.5 mln. sq ft of TDR at Rs1400-1500 per sq ft. This together with purchase of about 0.4 mln. sq ft of TDR rights at an average cost of Rs1000/sq ft will entail it to construct about 0.425mln lac sq ft of carpet area in the form of 3 towers over the next 3 years. The company has already contracted with the neighbouring Societies to purchase the TDR rights of 0.5 mln. sq ft at an average rate Rs.500-700per sq ft.

The carpet area of 0.425 mln. sq ft will enable it to sell about 0.720 mln. sq.ft of built up area at an average rate of Rs4500/sq.ft.

The first tower is likely to be completed by Mar’08, the second tower by Mar’09 and the third tower by Mar.’10.

The construction cost will be Rs2300/sq ft and the profit on 0.720 mln. sq ft of saleable area will result in a profit of Rs1600 mln in 3 years time. The profit for ’07 is likely to be Rs110 mln, Rs750 mln in’08 and Rs725 mln in ’09 from this project.

Goregaon

The project in Goregaon entails construction of 4 towers of 20 floors each. The project however necessitates the rehabilitation of the existing slums. This requires rehabilitation and construction of tenements for these dwellers. On completion of this the company would be entitled to use the available 0.860 mln. sq ft. of carpet area or 1.127 mln.sq. ft. of carpet area.

Being a SRA project(Slum Rehabilitation ) the project does not involve any purchase of TDR’s or TDR rights.

At the moment no cost has been finalised for payment to the owners of the land for transferring the development rights. But in our estimate there would be a cost of Rs700-750 mln on this 500,000 sq ft of land to be paid to the owners. The project will start in Sep.’07 and be completed by Mar’10.On a area of 11.27 lac sq ft available for sale we expect a profit of Rs.20 bln to flow to the bottom line from ’08 onwards.

Malad:

The Malad project is a pure commercial property where the company hopes to build a shopping complex of 43000 sq ft of carpet area. Since the commercial properties enjoy a 2 times multiple , the sale will be of 86000sq ft. The project will require purchase of about 22000 sq ft of TDR .

The commercial complex to be built on a land of 43000 sq ft will commence in ’08 and will be completed by ’10. The profits likely to accrue over this period from this project is Rs400 mln. The company has not yet finalised the consideration to be paid for the purchase of land which we estimate will be about Rs.100-150 mln.

Future prospects: The company plans to slowly move into development of real estate and construction of luxury apartments /commercial property in the suburbs .

Financials: (Rs.Mln.)

	Mar'07	Mar'08	Mar'09
	(Projections)	(Projections)	(Projections)
Net sales	80	2125	3069
O.Income	0.2	2	5
Exp	29.50	955	1738
Land cost	----	150	50	(Borivali land cost)
		500	250	Goregaon Land
		80	70	Malad Land
Opt. Profit	50.70	442	966
Int	0.10	20	20
Deprn	0.10	5	5
PBT	50.50	417	941
Tax	0.50	130	300
PAT	50	287	641
Equity	100	100	100
EPS	10	28.7	64.1

# Provision for land costs for Goregaon and Malad property has been made in these projections on an approximate basis.

The share has the potential to touch Rs.250 by June 2008.

General Disclaimer : - Mathew Easow Financial Services, Mathew Easow and their relations, business associates and clients have a vested interest in Vas Infrastructure Ltd. and will benefit if the prices move up or down. Mathew Easow and matheweasow.com gives an unbiased and competent picture of trading opportunities and it does that to the best of its abilities. However, prices can move up as well as down due to number of factors, all of which are impossible for anyone to foresee . THEREFORE, MATHEW EASOW FINANCIAL SERVICES and matheweasow.com and Mathew Easow cannot accept any responsibility for any investment decision or trading decision taken by readers and clients on the basis of information contained herein. Sometimes Mathew Easow Research Securities Ltd, Mathew Easow Fiscal Services Ltd., Mathew Easow and their clients, relations ,Business Associates etc. may hold contrary positions to the above recommendations.