Stocks for the long and short term portfolio

[jamit_05]

Hi all,
Its very nice thread and good initiative taken by Mr amit, also supported by other members.

My question is regarding "Mirza International",can it become multibagger like bata and relaxo, as its from leather product sector, and it s having huge debt,so what did you suggest?????

If you say that Mirza is having a huge debt, then add to that this fact. The leather industry is highly competitive. Its competition is from Small scale Industry. With that said, if the company revenue dependence is almost entirely on leather products, then I suggest you bail out of this company.

I tried looking for the numbers, but most popular sources do not have the company listed.

 

[jamit_05]

This is for all the Value Investors.

This is for all the Value Investors.

The following sectors have taken a huge beating as Nifty corrected to 5200, from 6200 this year. And when Nifty rose back to 6200 they have marginally gained. Point is, I see a another big downleg as Nifty corrects back to 5200 levels.

This hammering effect will fizz out the steam in some really good stocks. So, be ready to deploy cash.

The sectors to watch for bargain hunting:

1) Energy

It is tied to the national GDP, which is spiraling down. Hence, some really stable and reliable stocks will go at lowest price of the decade. My fav picks are Gail and Petronet LNG. (Yes, they are far better than most others in the sector)

2) Power and Power Equipment manufacturers.

India is a power deficit story. Hence, this sector will see a massive rise. But, surely not within an year. In the year to come, these stocks will be harshly treated. BHEL, Siemens, LT, ABB will see newer lows. When all hope is lost, a true blood value investors walks in.

3) PSU Banking.

With NPAs piling up, PSU Banks are positioned to not earn a single penny for the next few years. The net asset growth will be Nil, if not negative. In this madness, some really good banks will get really cheap. I have my eyes peeled for SBI, BoB and Union.

If you can add to this list, please do so. We want good companies in bad times....

 

[Einstein]

To investors: please note a simple rule, don't invest in penny stocks with less then 3,000 crore market capital or 500million$ market cap. below this level they are not trust worthy..

 

[shreeux]

Re: This is for all the Value Investors.

This is for all the Value Investors.

The following sectors have taken a huge beating as Nifty corrected to 5200, from 6200 this year. And when Nifty rose back to 6200 they have marginally gained. Point is, I see a another big downleg as Nifty corrects back to 5200 levels.

This hammering effect will fizz out the steam in some really good stocks. So, be ready to deploy cash.

The sectors to watch for bargain hunting:

1) Energy

It is tied to the national GDP, which is spiraling down. Hence, some really stable and reliable stocks will go at lowest price of the decade. My fav picks are Gail and Petronet LNG. (Yes, they are far better than most others in the sector)

2) Power and Power Equipment manufacturers.

India is a power deficit story. Hence, this sector will see a massive rise. But, surely not within an year. In the year to come, these stocks will be harshly treated. BHEL, Siemens, LT, ABB will see newer lows. When all hope is lost, a true blood value investors walks in.

3) PSU Banking.

With NPAs piling up, PSU Banks are positioned to not earn a single penny for the next few years. The net asset growth will be Nil, if not negative. In this madness, some really good banks will get really cheap. I have my eyes peeled for SBI, BoB and Union.

If you can add to this list, please do so. We want good companies in bad times....

When this happen....

 

[jamit_05]

To investors: please note a simple rule, don't invest in penny stocks with less then 3,000 crore market capital or 500million$ market cap. below this level they are not trust worthy..

Yes. I second that opinion. And especially the new ones.

These companies have very little at stake, in comparison... in terms of reputation of the promoters, Cash involved, history or lineage. It is basically a high risk and very high reward kind of scenario.

But, investment is all about stability... we want to see our capital grow at a consistent pace... we do not want downward spikes or a decade of quiet.

 

[jamit_05]

No hurry to buy.

When this happen....

Some stocks are already attractive. But, as a thumb rule I like to wait for sharp correction in Nifty. I like to see the tide go out which would thoroughly factor in all the weaknesses and discount their strengths. Then a narrow range of consolidation will give me confidence to buy.

I have been wanting to buy BHEL for almost a year. But, I could see the headwinds in the sector. So, I waited for a crash in the Index. Nifty fell from 6200 to 5200 this year and Bhel fell 50% !!

Then on the rise, nifty regained lost ground but Bhel recovered only one third and did not even touch its EMA 15 on the monthly chart. Now, this is pure weakness in every angle. So, I will watch more. I am expecting it another sharp fall. If I am proved wrong, then I will buy.

Some purist advice against this approach and they are right in principle. But, it is my money and I am 100% responsible for it.

I want to buy SBI. It has mind-boggling penetration and is an absolute leader backed by GOI. But, is posting back to back losing quarters and NPA is rising. It too lost 40% share price in the down-leg! Which I did not expect. So let us see where the Bears take it in the next fall. My preferred price is 2008 Low! It is an absolute sleep-well kind of deal.

 

[jamit_05]

The thread has gained notable popularity. It is approaching One Lakh Views and is the most viewed thread in the Fundamental Analysis section since inception of Traderji.com !!

Keep up the participation Einstein, Shree, Rocket and the viewers should come to the forefront... and undo the suspense

I wish the Moderator would make it Sticky so that folks do not have to search for it.

 

[Smart_trade]

Making this thread sticky. Please carry on the good work.

Smart_trade

 

[Einstein]

Moving forward, after lots of reading on petrochina from many days, when i was not even done. warren buffett bought 3.5 Billion worth stocks in exxon mobile. that the next company in my list..

by the way, petrochina was a hidden gem 2002. as per my valuations it was quoting at 40 cents a dollar. no doubts he invested 450 million dollar into it and made 3.4-4 billion.

as per current valuations the company is trading at 112$ per share, and its slightly over valued with increasing debt, stressed owner's equity and flat earnings in last 2 year (qoq). the prices should come down.

 

[jamit_05]

Moving forward, after lots of reading on petrochina from many days, when i was not even done. warren buffett bought 3.7 Billion worth stocks in exxon mobile. that the next company in my list..

by the way, petrochina was a hidden gem 2002. as per my valuations it was quoting at 40 cents a dollar. no doubts he invested 450 million dollar into it and made 3.4-4 billion.

as per current valuations the company is trading at 112$ per share, and its slightly over valued with increasing debt, stressed owner's equity and flat earnings in last 2 year (qoq). the prices should come down.

Could you elaborate on the above bold line.