Recommendations From Various Sources

[supratik]

Re: Recommendtaions From Various Sources

NDTV

STOCK VIEWS
LIC HOUSING FINANCE : The counter can touch Rs 240 going forward.:Anil Manghnani, Director, Modern Shares & Stock Brokers (2/7/2006 12:29 PM)

INFOSYS TECHNOLOGIES LTD : Going forward, outsourcing business will increase. I suggest a hold in the counter and expect 25 per cent return (y-o-y) for the next two years.:Ashish Kapur, CEO, Invest Shoppe (2/7/2006 12:53 PM)

CESC LIMITED : Power generation and distribution companies should do well. I suggest a hold in the counter.:Ashish Kapur, CEO, Invest Shoppe (2/7/2006 12:16 PM)

MCLEOD RUSSEL LTD : The stock can move up higher. There is still steam left in the counter.:Anil Manghnani, Director, Modern Shares & Stock Brokers (2/7/2006 12:13 PM)

CUMMINS INDIA LTD : I advocate a buy in the counter at current levels.:T S Harihar, Head of Derivatives, Karvy Stock Broking (2/7/2006 10:23 AM)

IVRCL INFRASTRUCTURES & PROJ : The stock is looking good on technical charts.:Hardik Jain, Technical Analyst, ISJ Securities (2/7/2006 10:22 AM)

MASTEK LIMITED : I suggest buying the stock on declines.:Anil Manghnani, Director, Modern Shares & Stock Brokers (2/7/2006 12:29 PM)

EIH ASSOCIATED HOTELS : The stock looks good from a medium-term perspective.:Anil Manghnani, Director, Modern Shares & Stock Brokers (2/7/2006 12:28 PM)

RELIANCE INDUSTRIES LIMITED : It is a good bet for the long term. I suggest holding on to the stock for now.:Ashish Kapur, CEO, Invest Shoppe (2/7/2006 12:23 PM)

OIL & NATURAL GAS CORP LTD : There is support at lower levels. It can touch Rs 1400 in the medium-term.:Anil Manghnani, Director, Modern Shares & Stock Brokers (2/7/2006 12:13 PM)

MARICO INDUSTRIES LTD : I recommend accumulating the stock on dips.:Anil Manghnani, Director, Modern Shares & Stock Brokers (2/7/2006 12:28 PM)

TATA STEEL LTD : The steel sector will remain under pressure in the short-term. The results were also not encouraging.:Ashish Kapur, CEO, Invest Shoppe (2/7/2006 12:53 PM)

TATA TEA LIMITED : The results were not too encouraging. I suggest buying on declines.:Anil Manghnani, Director, Modern Shares & Stock Brokers (2/7/2006 12:14 PM)

ASHOK LEYLAND LIMITED : Rs 33.80 is the support level for the counter. It is looking strong on the technical charts.:Hemen Kapadia, Technical Analyst (2/7/2006 10:52 AM)

ICICI BANK LTD : It is a good buy at current levels.:Ashish Kapur, CEO, Invest Shoppe (2/7/2006 12:14 PM)

PRICOL LTD : All bad news has been factored into the current price. The stock should do well in the times to come.:Ashish Kapur, CEO, Invest Shoppe (2/7/2006 12:15 PM)

 

[supratik]

Re: Recommendtaions From Various Sources

Nice article



The golden rules of investing

rediff Business Desk | February 08, 2006


The Sensex is on fire, notwithstanding Wednesday's dip. It's a bull run like no other witnessed by Indian investors. And investment gurus -- like Marc Faber -- say this bull run could last for a decade or more!

While it is time to rejoice at the booming Indian economy and the historical journey of the Sensex, the foremost question in the minds of all small investors -- like us -- is whether it is the right time to buy or sell stocks now.

So what does the layman do in times of a roaring bull market? Are there any rules for you and me to follow while dealing in the stock market? What should you avoid doing? And, more importantly, what should you do?

Of course, there are some golden rules that you must follow. And these have been culled from a variety of sources: writings by investment gurus, articles in newspapers like Business Standard and Web sites like Equitymaster.com, opinions of brokers and analysts and a whole lot of others who have learnt the art of investing the hard way.

So here are some golden rules of investing to follow, especially in a bull market:

1. Don't be greedy: Do keep in mind that it is not always that you would be able to buy a stock when it is as its lowest price and sell it when it is at its highest. Do not be greedy. Invest smartly, with some professional help and some study on your own.

2. Avoid 'hot tips': Stay away from 'experts'. There are a large number of so-called experts floating all around. Stay away from them. Your broker, neighbour, cousin or business journalist friend may suggest surefire picks. Success may not come as fast, as we are in unchartered territory. Use your own judgement.

3. Avoid trading/timing the market: Like in the previous point, don't try to time the market by betting on when the stock price will be highest or lowest. In most cases, such 'timing' leads to huge monetary losses and mental tension.

4. Avoid actions based on sentiments: Don't be emotionally attached to stocks: Some people -- for sentimental reasons -- tend to stick with certain stocks even though they might not bring them good value. Sentiment can be for a variety of reasons: your late father had bought the scrip and you wish to keep it; you had yourself betted on a company's stock thinking it will do good but are now too egotistic to accept your mistake can retreat, etc.

5. Don't panic if the market drops: Be patient and hold on to the scrip until some semblance of sanity prevails in the market. Don't rush to sell the stock. Hold onto your winners and sell your losers. Consult a professional and then act accordingly. Don't let a drop in the stock market alter your long-term investment plans.

6. Stay invested, possibly continue to invest more: It is natural to book profits with the markets at higher levels. This should be done, but we suggest people should also stay invested in the equity markets. Indian stocks do not appear overstretched at present, considering that average price/earnings ratios -- a common measure of value -- were around 15-16 times.

7. Buy stocks if there is a 5-8 per cent drop in the market: In this bull market, a 5-8 per cent drop in prices offers you a good opportunity to buy scrips.

8. Avoid checking the price of stocks or mutual funds after you've sold them: The grass on the other side will always seem greener and can rarely bring you happiness.

9. Try to avoid penny stocks: While doing your research, attempt to understand which the company is and what it does. Value picking may score above growth picking at this stage. Do not be tempted to buy penny or mid-sized stocks at this stage, envisaging a huge windfall.

10. Diversify: At these record levels, there will be certain amount of risks. We suggest you diversify a bit, looking at stocks, mutual funds, commodities and gold (for a longer-term). If equities are your favourite, we expect you would be able to pick up some of these stocks again.

11. Don't commit large amounts of money: Even if you have a strong risk-bearing capacity, we suggest you do not commit large sums of money at this stage. A sharper correction would just leave you bleeding more.

12. Don't trade for short-term: In line with the stay-invested mantra, do not be completely target oriented. 8,000 or 9,000 are not sacrosanct levels. It is more important to be stock-specific, keeping an internal value for the stock.

13. Don't expect to be a millionaire overnight. Patience pays, so be realistic. 14. Stick to the desired asset allocation: What's asset allocation? Well, the combination of the types of investments you have made within your portfolio is your portfolio's asset allocation. A diversified portfolio consists of equities, mutual funds, real estate, bonds, etc.

Asset allocation is the key to successful investing, say experts. Even though equities may outperform debt substantially, it will not be wise to put all your investments in equities.

Investors should allocate assets among various asset classes - primarily equities and debt - based on their risk appetite. Being overweight by about 10-20 per cent in equities may be justifiable, say fund managers.

In other words, if you are advised to allocate 20 per cent of your investments into equities based on your risk profile, you could consider a maximum exposure of 40 per cent currently given that equities are poised to surge ahead.

14. Distinguish between stocks for keeps and trading: When you buy a stock, be clear about your objective behind the purchase - whether you have bought the stock as an investment or a trading bet. Trading stocks are not bad as such. But they require you to work harder and act quicker.

Buy with adequate margin of safety: That's where attractive purchase prices can help. As a matter of fact, selling stocks is no different from buying them. Keep a sufficient margin of safety when buying a stock and don't rely on making a good sale ever.

15. Sell when value is realised: Some stocks may rise sooner than you may have anticipated. In a frenzied bull run, investors may see their target prices being met in a matter of days. Here time should not be of any consequence.

If you feel that your investments are adequately valued, you should exit regardless of how long you have held them. There are times when stocks begin to quote at extraordinarily high levels within a short period after you have invested in them.

Although investors are often advised to invest for the long term in equities, if you get extraordinarily high returns within a short span, it is wiser to get out, say experts.

16. Keep a watch on relative valuations: The real cost of a stock is not the price you pay for it, but the opportunity cost of not putting your money in another stock with a greater potential to rise. Let's say you hold a smaller pharma company and find that a larger one is also available at the same multiple. It may make good sense to switch. A larger company, with more liquidity and visibility, will be preferable.

While buying a stock most investors look to buy the cheapest of the lot. Indeed, that is the right approach. However, it may not be a good idea to buy a stock just because it is cheap in relative valuation terms.

When stocks become overvalued there is little logic in holding on to them just because they appear cheaper than others.

17. If you realise a mistake, exit: Even while we are talking about selling stocks in a bull market, experts emphasise that if investors make mistakes, they should exit immediately even at a loss.

If you realise your analysis was flawed or that you got carried away for any reason, it's good to get rid of a stock as soon as possible. Waiting for a better price at such instances may prove to be quite dangerous.

18. Start investing early.

19. Try to invest in things you know .

20. Try to adopt a long-term perspective with regard to investing.

21. Know your risk: It is critical to understand where you stand and where you want to be. What level and amount of investment are you comfortable with, regardless of what market experts tell you? Therefore, take some time to evaluate your risk-bearing capacity. This is a golden rule that should be applied at almost all times.

22. Play safe, invest in a mutual fund: For those who are still not sure about their research, we suggest you invest through a mutual fund. The advantages would be the risks would be minimized and you would stay invested for a longer-term in equities.

23. Encash when stock prices dip: We reiterate it is important to bring some money home, when you have made profits in earlier times. We expect a correction to take place, which could be in the range of 300-500 points. Considering that you would stay invested in equities, we advise that you encash at each dip of the Sensex. The short-term trend will be stock specific.

24. Don't blindly follow media reports on corporate developments, as they could be misleading.

25. Don't blindly imitate investment decisions of others who may have profited from their investment decisions.

26. Don't fall prey to promises of guaranteed returns.


--------------------------------------------------------------------------------

With inputs from the Bombay Stock Exchange, the Securities and Exchange Board of India, Business Standard and Equitymaster.com

Thanks and Regards

 

[pkjha30]

Re: Recommendtaions From Various Sources

Hi
Wonderful ideas- excellent thread- sure to catch attention in this uncharted territory of sensex.

Here is my opinion

India is a long term growth story unfolding since 1990 when we were down in the dumps. Economic reforms have unleashed potential energy in to a powerful kinetic energy. Sensex initially startes witha base of 100 and in 20 years time it is at 10000. May be it is overvalued but for next 20 years it will climb many such peaks from now. But, pains will be there. Now and then index will slide.But surely, it will reflect the growing economy.

Investing in stock market is and will always remain an stock specific idea if gains from it are to be different from the index. Otherwise you can by stocks in proportion to their contribution to index and it will show same growth or decline. I feel it will be a safe bet without any risk except in drastic situations.

When investment is stock specific then one must do some bacground check before deciding to enter into such stocks for long term and make wealth and not simply gain or loose some money.

Your thread provides this crucial info. However ifit is reproduced as such it may not be a good idead. Your knowledge and opinion is more valuable to forum members then what other brokers are saying. Do comment and analyse their recomendations and tell us what you think of a perticular stock.

As far as I am concerned I think
Infosys,bharti,NDTV,Sail,Tatasteel,SBI,Reliance(any one in the stable), wipro ,LT are safe bet for long term. These stocks will remain there when sensex crosses other milestones.They will form the growth engines for India
Regards.
Pankaj

 

[vikassethi]

Re: Recommendtaions From Various Sources

Same here

 

[vneil]

Re: Recommendtaions From Various Sources

You can openly discuss public research reports given out by various broking outfits and/or research firms here provided it is not in violation of their copyright rules.

You may discuss research reports, but you cannot copy it verbatim. Highlights can be mentioned, but definitely not the entire report verbatim.

 

[Satya]

Re: Recommendtaions From Various Sources

How about Jet Airways? why did it touch year lows? what is the possibility of bouncing back?? Did anybody analyzed this?

Regards
Satya

 

[harmads]

Re: Recommendtaions From Various Sources

Hi Supratik..

I would appreciate your comment on IDFC. It has been quite static even during this bull run. Generally I know Infrasture sector should do well over long term so how do you view IDFC ??
Can you also suggest some other good companies in Infrastructure sector.

Thanks

 

[srisrini]

Re: Recommendtaions From Various Sources

Sir,
The Shares of Gateway Distiparks (GDL) has declined from 300 level to 220 (currently around 240) after their 3 Q results. I expect the shares would be rerated after the Railways liberalisation move. I request memebers opinion on this development. Below is the copy of the corporate announcement proved to the BSE.
Corporate Announcements

Scrip Code:532622 Company Name:GATEWAY DIST

News Subject: Gateway Distriparks - Updates

News Body:
Gateway Distriparks Ltd has informed BSE that the Company has made a payment of Rs 500 million to FA & CAO / Northern railway, towards registration Fees and submitted application to Executive Director-Traffic Trans. (F), Railway Board, Ministry of railways, New Delhi, requesting permission to move container trains under "All Categories", in terms of the policy dated January 09, 2006, issued by Rail Bhavan, New Delhi.

Regards.
Srisrini

 

[supratik]

Re: Recommendtaions From Various Sources

Hi harmads,

Infrastructre companies to flurry over the next couple of years.
My recent picks have been Sanghvi Movers, Patel Engg, Guj Apo(I think this is an Inf comp).
The second pick would be Power and Electrical - NTPC, Tata Power, and Electrical - Lakshmi Electricals and ofcourse BHEL, BEL, Alstom and ABB.
Third - short term picks - tea and fertilizers

4th - On your doorstep tomorrow - Watch my Thread "Building up a Portfolio"

Srisrini,
Gat Dis has been a good company - also Scandent Sol and Allsec Tech.
However these need to revaluate to and readjust to market scenarios.

My quick question to you would be - would you buy these counters - say Allsec at 233 or prefer Visual at 222?
So is it with everybody?
Would say more on it later.

Thanks and Regards
Supratik

 

[harmads]

Re: Recommendtaions From Various Sources

Hi harmads,

Infrastructre companies to flurry over the next couple of years.
My recent picks have been Sanghvi Movers, Patel Engg, Guj Apo(I think this is an Inf comp).
The second pick would be Power and Electrical - NTPC, Tata Power, and Electrical - Lakshmi Electricals and ofcourse BHEL, BEL, Alstom and ABB.
Third - short term picks - tea and fertilizers

4th - On your doorstep tomorrow - Watch my Thread "Building up a Portfolio"

Thanks Supratik..
For your response.You missed out on my querry about IDFC. I would appreciate if you tell me what you feel about it

Regards