Building Up A Portfolio At A 7000 Level

[ssnkumar]

Thanks Narendra, for the post. Thanks a lot!!
Hi Shan,
I still recommend a hold on RPG Cables. It is a good counter and I am expecting a 100% return from these levels. There are some grossly undervalued counters which markets seem to never notice. I try to identify such counters. Its a matter of time when the markets start identifying such scripts.
If you look back into our portfolio, I have recommended 21st century Management Services when it was at 27 odd levels. The counter has started yielding profits and is trading at a 52 weeks' high. You might find a recommendation coming now on this.
You can visit this link and check the company's performance and you can yourself make what a big target can be made for this script. Please visit this link
http://www.moneycontrol.com/stocks/company_info/yearly_results.php?sc_did=21C
Similar was the case with Valecha Engg....it has put me in panic when it dropped from 250-275 odd levels to 140. I was dumbfounded but if you see now, it is trading at 270 odd - this is after issuance of bonus shares.
Another example I would like to give is for Surya Pharma, which I have recommended at 80 levels. This has been a holding for almost 1.5 year and after the recommendation was posted, it had fallen to the 50s. It was only after that Sharekhan has come out with a 1 year target price of 200 that the script zoomed up from 50 to 130 and now trading at 100 level.

The basic reason of giving these examples is that in a bullish market, scripts get overbought and in a bearish market, the scripts are oversold. However the fundamentals do not change overnight.

My suggestion is to hold the script. But as I have always mentioned, do not put all your eggs in one basket and the second theme - do not buy in a single slot, pick the counter at intervals and in 2-3 slots - always keeping track of its performance.

Hi All,
Our call on Welspun Gujarat fired up. The counter has been recommended at 221. Hold and be patient.
BL Kasyap has already yielded 100% in 6 months - I suggest you continue to hold.

Thanks and Regards
Supratik

The problem is, we don't know how long we have to wait to get good profit or atleast come out of loss.
I had bought Valecha in March 06 at Rs.343. I waited for a considerable amount of time and finally exited in December 06 at Rs.205!
Some counters do extremely well immediately after we entered. I have seen counters that doubled within a weeks time after I entered!
So, everything depends on our patience and the amount of time we can wait.
I am still holding RPG Cables and today it came back to profit (I had bought it in July 2007).
I have entered many scrips suggested by Supratik and most of them have done extremely well and I have profited from that.
I wanted to enter Welspun Gujrat and I didn't have money at that time!
Now I am waiting for the next tip.

-Narendra

 

[sudoku1]

Supratik,
I entered it at Rs.113 and exited at Rs.178. I have talked to many people about RNRL and everybody is of the opinion that its very costly. So, I don't want to buy that again in the near future.
-Narendra

HOW DO U COME ON CONCLUSIONS ???just if someone has told u it is xpensive ,it is xpensive????

when sensex rose from just 3000 to 6200 in 2004....many thought its xpensive.....at 10000.....it looked xpensive......15 k & so on.....recently many invstrs missed the great bull train from 14k to 20k.....
scientifically speaking......the fear of loosing money make things xpensive or cheap.....its here where funda & technical analysis come fore to guide .....nothing is cheap or xpensive.....its only the sentiments that make it xpensive.......now take ur case......u bought at 113 & sold at 178....so ur mind has prepared u that abv 150 it should be sold & its cheap at around 100...if suppose rnrl stays abv 200 for some period...naturally ur mind will be prepared to buy it around 150......upping ur minds average from 100/- to 150/-......THIS IS WHAT MAKES A BULL OR BEAR MKTS.............!!!!!!!!!

 

[ssnkumar]

HOW DO U COME ON CONCLUSIONS ???just if someone has told u it is xpensive ,it is xpensive????

when sensex rose from just 3000 to 6200 in 2004....many thought its xpensive.....at 10000.....it looked xpensive......15 k & so on.....recently many invstrs missed the great bull train from 14k to 20k.....
scientifically speaking......the fear of loosing money make things xpensive or cheap.....its here where funda & technical analysis come fore to guide .....nothing is cheap or xpensive.....its only the sentiments that make it xpensive.......now take ur case......u bought at 113 & sold at 178....so ur mind has prepared u that abv 150 it should be sold & its cheap at around 100...if suppose rnrl stays abv 200 for some period...naturally ur mind will be prepared to buy it around 150......upping ur minds average from 100/- to 150/-......THIS IS WHAT MAKES A BULL OR BEAR MKTS.............!!!!!!!!!

I totally agree with you.
But, I am not looking at Sensex to buy or sell.
I look at individual companies and take a decision.
With RNRL, it had raised very fast. So, those are the times when risk is high. It might have gone higher from here......but, I decided that the profit that I got now is good and should come out and hence exited.
We cannot just look at the fundamentals and take decision. Take for example Infosys - even today its fundamentals are very good. But, it has gone down from 2300 to 1600! I am holding INfosys share for a very long time now. I still continue to hold. I feel that, it has enough strength to bounce back.
I do study fundamentals of a company before entering and take conscious decisions before exiting. But, to make sure that the conclusion that I have arrived is correct by checking with others who are in the market for a long time.
Everything is OK till you keep on making profit. The only question that everybody needs to answer to himself/herself is, how much profit is ok for me?

-Narendra

 

[hiteshsjoshi]

Thanks Narendra, for the post. Thanks a lot!!
The basic reason of giving these examples is that in a bullish market, scripts get overbought and in a bearish market, the scripts are oversold. However the fundamentals do not change overnight.
Thanks and Regards
Supratik

Supratik,
Long time back, you gave a call on Lok Housing. Now, its price is almost half of that price. Please post your views on this counter.
I am holding this scrip at avg price of 311 and am still willing to hold on. I believe there is nothing wrong with the fundamentals of the company but poor management is what going against the scrip.
What I am looking-for now, is to re-buy at lower levels. So, any suggestions from your side with respect to possible lower levels to re-enter and the next trigger point in this scrip.
[PS: I have already missed out its recent run from 140 levels to 210 levels on news of possible stake selling]

Thanks,
Hitesh

 

[ssnkumar]

This is "Heard On the Streets" call. I haven't done any fundamental/technical study on this.
Buy DCW at CMP(Rs.20) - Target Rs.1800 in 3 years.

Please make your own research, get convinced about your study and then take a decision.
If anybody decides to buy, my suggestion is to buy in small quantities.

-Narendra

 

[supratik]

Hitesh,

I am sorry for your loss on Lok Housing. I also had bought the same counter and am running in loss. I agree with your view that there is nothing wrong with the fundamentals of the company but my suggestion would be to move to the next tip that I am posting. You may also take fresh position keeping your long on Lok , but this will surely cover your loss on Lok. Apologise again!!

 

[hiteshsjoshi]

Hitesh,

I am sorry for your loss on Lok Housing. I also had bought the same counter and am running in loss. I agree with your view that there is nothing wrong with the fundamentals of the company but my suggestion would be to move to the next tip that I am posting. You may also take fresh position keeping your long on Lok , but this will surely cover your loss on Lok. Apologise again!!

Supratik,
Please do not apologize. You and Narendra have been doing great work. Please do keep on going.
In regards with Lok call, I do not regret buying into this counter as its loss has made me learn a new thing (never buy scrips purely on basis of recommendations; do some research and then only buy it).

Meantime, I have been tracking BL Kashyap for a while now. Would you still recommend fresh positions in this counter ?

- Hitesh

 

[MaxBombay]

Hi I got this tip from my broker

Tip: Buy Andhra Bank at 92 Target 110 in next 30 days Stop loss 81

What do you suggest?

 

[supratik]

max - I am not too much into banking although I believe that this will the biggest sector for the next 3 years.
However, as Narendra has mentioned earlier, Yes Bank will be the one to watch out for and I completely with him.

Hitesh - BLK was recommended in the forum at 1100(presplit). I am very bullish on this counter and the performance has been outstanding.
I suggest you to wait before you take a position in this. We can look into the next quarter results before commiting.

Hi All,
The next tip is on HEG. The counter is on a momemtum upswing. Buy at CMP 330 and accumulate heavily below 295 region. My short term target on the script is 450. This company looks fundamentally strong. We have initiated a buy coverage on this at 170 and booked profit at 240. I suggest you to buy again at 330 with a short term momentum upswing to 450. Long term investors can look to a lofty 850 in a 12 months time frame.

Narendra - DCW - is there a prob with the '0' (20 or 1800) - otherwise we can take a chance..what do you say

Thanks and Regards
Supratik

 

[sudoku1]

max - Narendra - DCW - is there a prob with the '0' (20 or 1800) - otherwise we can take a chance..what do you say

Thanks and Regards
Supratik

yes..i also think so...is it 0018 ???