Wednesday, May 20, 2009

Midcap/Smallcap firing.................

I have been writing here that Midcap/smallcap will out perform the sensex.That has started to happen.
See where XL Tele is?after making a recent low of 35.60 it is 49.35 , 10% up today.
See Kirlos Ferro, up 20 % today at 22.70
See Gremach Infra up 5% today at 42.05
Sujana Towers up 20% today at 23.75........
so on and so forth not to talk about midcap like PSLLtd which I first recomended at 69 and again at 80 now it is 117 after making a high of 122 today.
One of my friend was asking me whether PSL is buy at 103 or wait for correction.I said it is buy uptill 150.But he said he will wait for market to come down to 10500 .This he said before election results when market was at 11200.This things is going to happen with lots of investors.With small profit they will sell and the stock will go up and up.
They will feel Left Out.
But when we see the prices of some stocks then they are still way way down from high.Even if we assume the half the high and see at prices now even after this rally they are still down.That is the way investor needs to look it.If with just 20% -30% up one think it has runup and I will buy later then he will definately be left out.
The Midcap and Small cap has to make up with the sensex to catch the near or even half the previous high otherwise even at sensex 21k this time, midcap/smallcap will still be available at throw away price and that is not possible.Hence they needs to outperform sensex in big way.


  1. bhai,

    you forgot srei with is going up with escape velocity as if there is no tomorrow. same is the case with SBTL, i think in this euphoric market SBTL is still available at throwaway price.Promotors bought shares at 30 and now it is at 14. I think you have heard the news that obama is pushing for bio fuels and recently passed some bill just a week back.

    i guess this will also take off like kwality. SBTL started their 3 rd bio diesl plant when big players like reliance and tata are trying to enter into this market.So sbtl will surely have its edge.

    thanks bhai.

  2. Sri,
    There are many stocks that have gone up 2-3 times from where I have recomended.
    I can't write all but if anyone would have taken the price when I recomended it then they can see the difference.
    Kwality is 140.I saw just yesterday making newer highs every day.
    I have always recomended fundamentals shares which I feel can give multibagger return.
    I again write here that if it is no multibagger in making then I never look at that stocks or recomend here.I have made mistakes in giving some couple of calls but they are unintentional.
    My last list of A gr and Cash gr , one need to find it from here and follow them and even try to find at what price they were recomended.

  3. hey u forgot to mention marg ltd.. i hv been following marg ltd, jaihind proj and era infra closely but hv not added it as yet...
    of the three i still believe marg has it to be a multi bagger followed by era and jaihind..
    thay all are a compelling buy..
    i missed it as i wanted to buy at the bottom... but will be adding it in the days to come after these days of exuberance...
    ur views on them..

  4. Hi Special,
    I have written many times that Infra is going to play a major role for our economical growth.
    The reason is India lacks infrastructure and if we need to catch up with China,Malaysia, Koera etc, leave developed countries, then we need much much better infrastructure then what we have.
    Lots of work is still to be done on Water Management, Ports, Roads, Irrigation(my pick is EPC Ltd ) better days ahead for our market.
    Marg,Era, Jaihind comes in same category.
    Don't forget to have a look at JMC Project which is my favourite since I first recomended at MMB long time back.

  5. rajiv bhai
    remember very few days back i asked you personally few stocks and you recomended.
    amazing returns, almost doubled....
    great going.... keep it up n heartly thanks

  6. Dear RajeevJi,

    Do you have any update on your old pick EPIC Energy Ltd.It 52 week low around 23 and CMP is 29.It hasn't moved a lot in this Run....If you have anything to share ,let me know


  7. hello,

    Just now saw that epic energy fell from 167 in jan 2009 to 22-30 levels. I checked if there was a split but it is still 10 rs face value. why so much fall in jan 09?


  8. Hello KPR and Shree,
    Epic Energy has fallen along with the general market trends.Stock at 500 has come down to 27 then what to talk of 167 price?
    I still am bullish on Epic Energy for LT say 2-3 yrs.

  9. dear rajeev,

    lol..nice comment. what i was wondering was if there is any special reason for this mammoth fall in january when every stock was increasing this one bit dust.


  10. What I heard was that some big stake holders sold it.