Stocks for the long and short term portfolio

[jamit_05]

Hi Amit, Einstein,

Very good thread.:thumb:

Can you please list out top 3 stocks to buy in different sectors to create a portfolio for very long term? The person who is investing wants to invest systematically over a period of time. Main intention is to get dividend returns and capital appreciation over a period of time.

You must have done such analysis in this thread before..i went thru few pages. It would be very helpful if you can summarise your list of stocks.

Thanks in advance.

Great request. It is about time I summarized earlier work.

Firstly, let me clear what it really means get dividend returns. Hv mentioned it before.

A Co is able to pay dividends from two sources

1. Free Cash Flow (FCF), which is what remains at year end after paying off every expense and fresh investments

2. Debt.

For a Co, an alternative use for both these sources is expansion of capacity to generate more revenues. Therefore, it is true that the Cos that give-out nice dividends do not have growth plans. Hence, one cannot expect its EPS to grow. Which is a big minus. However, issue of nominal dividend is harmless.

Therefore, do not make dividend-returns a prime criteria in selection of companies.

 

[jamit_05]

Summary Of Stocks to Buy in correction.

Large Cos
---------
1. Bhel
2. IDFC
3. Hind Zinc
4. Acc
5. SBIN
6. HDFC
7. Axis Bank
8. Coal India
9. Petronet LNG
10. Gail

Mid and Small Cos
-----------------
1. Engineers India Limited
2. Cummins India
3. Greaves Cotton
4. Gruh Finance
5. Gujrat Gas

Speculative at super low prices
------------------------------
1. Balrampur
2. Sail
3. Nalco
4. Hind Copper
5. Union Bank
6. Maharashtra Seamless
7. Concor
8. NMDC


Commodities
-------------
1. HDFC Gold
2. SBIN Gold


Pricing is a part which I have left out.

 

[suvrotutul]

thanks for this awesome thread..i have a question regarding Petronet LNG,its a great scrip with strong fundamentals.what do you think will be the right price to go for it? presently it looks to be overpriced to me

thanks

 

[ananths]

Re: Summary Of Stocks to Buy in correction.

Large Cos
---------
1. Bhel
2. IDFC
3. Hind Zinc
4. Acc
5. SBIN
6. HDFC
7. Axis Bank
8. Coal India
9. Petronet LNG
10. Gail

Mid and Small Cos
-----------------
1. Engineers India Limited
2. Cummins India
3. Greaves Cotton
4. Gruh Finance
5. Gujrat Gas

Speculative at super low prices
------------------------------
1. Balrampur
2. Sail
3. Nalco
4. Hind Copper
5. Union Bank
6. Maharashtra Seamless
7. Concor
8. NMDC


Commodities
-------------
1. HDFC Gold
2. SBIN Gold


Pricing is a part which I have left out.

Thanks for the list Amit...highly appreaciated. :thumb:

A very good infromative thread and let us know if there is any addition to the list.

 

[jamit_05]

Sectors with headwinds.

The readers will notice that I have not included stocks from IT, Pharma or FMCG sectors, which have the best of the companies. This is because all these stocks are expensive.

Allow me to revise the two principles a value investor lives by:

1. Buy Good.
2. Buy Cheap.

And hold, hold... and hold. Till the time is right.

The current list contains stocks from sectors of: Energy, Infra, Metals, Cap Goods, Finance. These sectors were once hot with its stocks demanding a PE>20. Now their PEs are <10

Only those investors who have purchased stocks in their bad times have the right to benefit when the stocks start to see good times. Else, one is speculating.

 

[jamit_05]

thanks for this awesome thread..i have a question regarding Petronet LNG,its a great scrip with strong fundamentals.what do you think will be the right price to go for it? presently it looks to be overpriced to me

thanks

I think one will get a 25% discount on Petronet LNG's purchase price in the future; within a year. When Nifty corrects to 5200 level, all the above mentioned stocks will correct 20 to 50% from CMP as the sectors are out of favour. And such pessimism is the right environment to buy stocks.

While I wait, if there is a major crash like that of 2008 (not that I am wishing for it), then I will get a much better base for my portfolio.

Half the victory is in buying stocks at the right price. The other half is in buying the right stocks

 

[saivenkat]

Why Amit's analysis is in Pause mode? who pressed the pause button?

 

[jamit_05]

Why Amit's analysis is in Pause mode? who pressed the pause button?

As soon as there is something new on the horizon, I will post about it. This is likely to happen when the market loses 500 odd points. Correction is an investors good-friend

 

[oilman5]

..........................................................................................
around 155 - i have started accumulation. As oil sector will put under exploration ,the specialist
EIL will be called to arrange bid to restructure to give guidelines for exploration,as well as third party inspection. Since they have monopoly with blessings of Govt of India, their bottomline will improve. So i am picking 5000 to hold - its investment.:clap:
my understanding risk is less. Though it can go down, as well as go easily to target of 220-240

........................................................................
Today EIL given fast move. So it will + , now for target shall be achievable within 6month.

 

[oilman5]

Market will move up Monday- but PRO have planned short at top, DANGEROUS bull trap.
Hint: 5.12.13- its gap up in nifty - but DOWN day- means at opening high most PRO short.
Similar big short plan will be played against nifty 6350-6400.
This time STOCK72- definitely play short to earn 20 lakh in Dec'13