Going through the targets it seems most of the targets are valued 10 times their current price. Based on some of the scripps I traded over the months, for example, Reliance Cap was in 600 - 1000 range when the sensex was at 11000 - 14000 range and is around 3000 at approx. 19000 levels of sensex. Based on extremely conservative estimates the targets suggest the sensex must be somewhere 30-35000 in the next one year to reach these targets. With a US recession looming, global weakness all around, FIIs running for cover, nervousness with domestic investors etc. etc. the targets and sensex levels are hard to digest over the suggested time frame.
There are other factors like spectacular earnings from these companies with huge margins, loads of capital to achieve the growth speculated, ten times the productivity and capital gains, stellar per capita returns and much more.
I would be happy with a 25% to 30% returns rather than the 1000% returns targeted.
Happy Trading
I always am surprised,how soon the conviction swagger in such a short period of time....More than ever these are the times when stock picking should Increase in small quantity...as Far as Trgts are concerned..
I very much beg to Differ...not for all the stocks in the Poll ...But for some of them Definite yes.That's why the Poll.
BRIC...From past one year,much before the correction, I have stopped Investing in
only Fundamentally strong stocks...Essential part of my stock picking is having Following three elements:
1) Fundamentals
2) Speculation
3) Resilience Swing Valuation.
If you really want to make money and Justify the Trgts...your pick should have all the three important ingredients.
For e.g.: Take most voted stock till now,
RPL -->
1) Fundamentals are good,with added advantage is Reliance Brand name attached to it. ----My Buy Price will be 150-170...If Lucky during Correction 110-130...If Further correction 70-90..I have kept my Funds allocated for these three zones.If more correction I wait..(You should always invest that amount which you will not need for next 5 year)
2) Speculation....The biggest negative thing that happened to this stock was sell off by Promoters...otherwise this stock would have touched mark of 400+ much earlier.
Along came the Spec that there can be a Merger with RIL in 1:20 or 1:11 ..who cares what Tulsian says or research report by Financial comp say..they all have erred in past,for once start using your own judgement..analyst just predict and never state,,these guys were predicting lot of Trgts and giving Buy reco at 210 level ..unless it's officialy anounced by MDA,I don't care.My reasoning say it's just a spec..there are enough reasons from Tax benefits to SEZ valuation that any such merger not possible till 2010.
If there can be false Spec to led the price go up..there are enough reason to keep Price down...One of them was in this case to keep Operators away from punting these stocks,and not really to scare genuine Investors away,I won't go into details here but do your own research as I do,,talk with RPL employees,MDs and frds.Jamnagar is one of the most buzzing place..huge orders are in pipeline.
3) Swing stocks...I have previously laid emphasis on the importance of Booking Profit and being proactive in the Market...
The idea is to make money...Gone are the days when you invest in stock and forget about it for years.Here you need to keep booking profits.
4) Now comes the last Part...TRGTS.
In the Asian Mrkts ,,there are only one set of Players FII's ..what do you think ,does any of the valuation at today's level are justified
NO.
There strategy is simple...take mrkts to such high level..so that even if Mrkts Fall..the stock price still seems attractive,and people invest.That's what happening today..that's why even the RPL at 160 looks mouth watering as compared to previous 230...
Advice : Mrkts are definetly going to bottom out...but accordingly in long term Mrkts are going to Bounce much higher..yes to 35000.How it's early but
I will try to state the date range once I am clear with some of the events.And that's why the TRGT.I even removed the exact TRGTs..because right now they do not seem justifiable even to me.
But I am in a habit of dreaming Big and 2 years down the line..So I apologise
US recession.. "Unless somebody won't become little Poor - Somebody won't become Rich."..Why do you think Richer won't be us??
For myself: I have started Buying my fav stocks in less quantity,keeping enough funds to average out in case of Global catastrophe.
p.s. 1: Lastly...the Mrkts have not yet bottomed,for some time there will be false sense of calm...but they will sunk further.
p.s.: 2 There is only one rule in Business, and i.e. how much loss you can sustain ? If you can sustain enough loss...eventually you will outsmart your competitors.
And once there is no Competitor you will only end up in Profits.Same philosophy applies to Stock Market as well.When no one is able to Buy and you can still afford to buy some more- So PLAN accordingly!!
p.s.: 3 20% or 30 % return to ek mahine mai mil raha hai ajkal(Aur 50% jata bhi hai ek session mai
)....Start thinking Big.