Stocks for the long and short term portfolio

[jamit_05]

So, finally, in the Banking Sector we have three banks at good value

1) Axis (795)
2) SBI (already bought at 1800, next level 950)
3) Union (Entry Price 80, 50)

FED meeting may make the prices go back up. So the wait may be extended.

If I should be so fortunate and FED even utters the first few syllables of the word "Tapering" these levels will reach within weeks. Will buy and hold till PE becomes very high.

 

[jshah9]

So, finally, in the Banking Sector we have three banks at good value

1) Axis (795)
2) SBI (already bought at 1800, next level 950)
3) Union (Entry Price 80, 50)

FED meeting may make the prices go back up. So the wait may be extended.

If I should be so fortunate and FED even utters the first few syllables of the word "Tapering" these levels will reach within weeks. Will buy and hold till PE becomes very high.

How about ICICI ?

 

[jamit_05]

How about ICICI ?

Its accounts look a little odd.

HDFC:
Interest Income is 350
other income is 71

Icici:
Interest Income is 450
other income is 294


Axis:
Interest Income is 272
other income is 68

ICICI's has a 50% income from "Other" sources... that is non-core operations. As per what I have found out... these are mainly speculative incomes from Currency and Bond trading. Which are not permanent. GOI has squeezed out excess liquidity. This will affect profit and then share price.

When this income disappears, how is ICICI going to assemble employees, branches and teams to increase core operations in such tough times?

So, for now ICICI is expensive. Besides, it appears shady (on principle) to have 50% income from non-core operations!

Other than that, there isn't major difference in its stats than Axis's. Only that, Axis looks poised to grow.

 

[oilman5]

Today I find one battered stock-Educom. It has come to its lifetime [email protected] who have seen past , ............
Now u see, do indian middle giveup education? Do studying by dvd/video method shall increase? Do IIT loss its craze?
Answer is known- ex-bse president considers it - a golden investment oppurtunity.
Now its upto u.

 

[victory]

Thanks Oilman.

Amit, your take on Educomp

 

[jamit_05]

Thanks Oilman.

Amit, your take on Educomp

If Oilman had given his personal interest in EduComp, then I would value his advise. But, he has left us in a lurch to decide for ourselves...

So here goes:

Educomp is showing promise, but is no where near fulfilling it.

It has not shown consistent profits. Its last 5 Qs have been of degrowth: falling profits and even a major dip in Qo Mar'13.

I do not expect any major turnaround for any company in the tough times ahead for one simple reason... Cost of Money and Cost of Operations are increasing. And most companies, which are not established rely on debt.

All in all, Educomp has shown a steady growth in Long term debt for the past five years and a sharp fall in profits last year.

One could speculate that: "These facts are priced in and any turnaround in its fortunes will reward the investor very handsomely."

But, I for one, do not suggest or personally like to invest in stocks that show such major deviations: from PE of 85 to a negative PE! It suggests that it is an operator driven stock.

If you are indeed interested, then wait for a year (4 Qs) of consistent performance.

 

[jamit_05]

On a positive note:



I would suggests stocks like Gujrat Gas, which I am working on:

GUJRAT GAS​

It has:

• Consistent and stable income each year PLUS growth!
• No debt.. a big plus in such times.
• Little or no competition
• Is in Gujrat, a industrially buzzing and a well managed state.
• Price has corrected well. Although more downside is on the cards.
• Debtors days is attractive... less than 30! This gives us a vantage point to judge any future signs of deterioration in the moat.
• Handome ROE >25%
• GPM > 15%

And most importantly...

1) The company has a very simple, non-capital intensive, less inventory storing and a recursive business model... just like Petronet LNG, which is very expensive right now.

2) The management treats its investors with respect by giving consistent Dividends!

I am a little unsure about the price. Will keep you posted.

 

[victory]

Hi Amit,

Will be preparing a spread sheet with all your reco's with all time high/low/2009 low.

Let me know whether need to add anything else.

So that we can filter the scripts for investing.

thanks

 

[Mr.G]

I did a detailed study on gujarat gas. I have mixed feeling about the company. Even I was made aware of its existence due to consistent dividends. But its payout ratio is too freaking high. Any dividend "investor" will shy away. Speculators can enjoy though.

 

[jamit_05]

Hi Amit,

Will be preparing a spread sheet with all your reco's with all time high/low/2009 low.

Let me know whether need to add anything else.

So that we can filter the scripts for investing.

thanks

Do include;

1) the levels of purchase.... that is most crucial. These are the levels where action will be required.

2) the reasons for purchase. We need to follow the company to see if these reasons change in any significant manner.

To make sure we are always diversified:

3) Sector
4) GOI/Private

Will add more as they come to mind.