Wednesday, September 9, 2009

About Market and some old recomendation.....

Market was exhibiting weakness last week and everyone was sure that the correction has sets in.And actually from there market turned around to cross previous high and making a new 52week high crossing 16k and 4750 which many chartist were not ready to believe.
Untill bears are confident of market going below 4k , it will keep rising.
I have earlier stated in past when market was even was not over 10k that we will see a new high this year , by dec 09 or next year and we should probably see 31k by Dec 2010.I still stick with my view.Ofcourse, I reserve my right to be wrong but what I am seeing is what I am writing.
US economy is slowly stabilizing.Whatever the experts says , US cannot go down.It is a huge country , 3 times bigger then India and it is the largest consumer of Oil and consumer product worldover.
Chinese market will also do good.Don't worry on that front.
Moreover , I suggest all my readers not to go by figures from CMIE, ASSCOM etc.They are good for nothing.Have your own vision.Be rationale.Try to justify yourself asking yorself that the report saying is correct or not.One of the reader wrote me that CMIE has come out with report that Alumnium product will take a beating and in 48 hrs the report was revised the otherway.There was no way , this was going to happen.When India needs so much of Power,how come Aluminium product can see downward spiral?
Read everything but take decision of yourself.That goes with me as well.After all I can also err.Before investing in my picks ask your self as well.Double check from various other source.Then invest.It is afterall your own money.
Market is at 16k and still loads of cash gr stocks are way below their 52 week high.They have to buckup the trend.B gr should outperform A gr from hereon.It doesn't mean that A gr will not move atall but the return will be more in B gr.
I last recomended Lesha Energy and Telecanor Global.Both gave chances to buy them after I gave a call.Now they have started upper circuits.
India is on upper curve of growth and hence market should do well.Money are to be made here and nowhere else.FII's flow will continue.
Market experts says , 2003 to 2008 was a liquidity driven market.But that phenomenon is world over.If liquidity is quezzed then any economy or market can tank.Liquidity brings cash and uplift in economy.Without money no economy can survive.It is another side of the coin.


    Hi rajeev, Would appreciate if you could share your view on this article....

    Warren E. Buffett has two cardinal rules of investing. Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.

    Well, a lot of old rules got trashed when the financial crisis struck--even for the Oracle of Omaha.

    At 79, Buffett is coming off the worst year of his long, storied career. On paper, he personally lost an estimated $25 billion (around Rs1.22 trillion) in the financial panic of 2008, enough to cost him his title as the world's richest man. (His friend and sometime bridge partner, Bill Gates, holds that honour, according to Forbes.) And yet few people on or off Wall Street have capitalized on this crisis as deftly as Buffett. After counselling Washington to rescue the nation's financial industry and publicly urging Americans to buy stocks as the markets reeled, in he swooped.
    Buffett positioned himself to profit from the market mayhem--as well as all those taxpayer-financed bailouts--and thus secure his legacy as one of the greatest investors of all time.

    When so many others were running scared last autumn, Buffett invested billions in Goldman Sachs--and got a far better deal than Washington. He then staked billions more on General Electric Co. While taxpayers never bailed out Buffett, they did bail out some of his stock picks.
    Goldman, American Express, Bank of America, Wells Fargo, US Bancorp--all of them got public bailouts that ultimately benefited private shareholders such as Buffett.

    If Buffett picked well--and, so far, it looks as if he did--his payoff could be enormous. But now, only a year after the crisis struck, he seems to be worrying that the broader stock market might falter again. After boldly buying when so many were selling assets, his conglomerate, Berkshire Hathaway Inc., is pulling back, buying fewer stocks while investing in corporate and government debt. And Buffett is warning that the economy, though on the mend, remains deeply troubled.

    "We are not out of problems yet," Buffett said last week in an interview, in which he reflected on the lessons of the last 12 months. "We have got to get the sputtering economy back so it is functioning as it should be."

    see complete article here

  2. I donno why there is a DASH in the filed of name....
    But let me tell u, what WB has said is true.Even if he is losing now, he has made such a big fortune that Berkshire Hathaway is still giving multiple returns.
    That is what one needs to do.In 10-20-30 yrs the returns should be so big that any loss becomes peanuts for oneself....
    Wrong decision is bound to be made.No one is above par and that includes WB, PL, RJ, RD etc....but the catch is how u deal with it...

  3. thanks for reply. My name is Atul and i have been reading ur blog for last >2 years..since the time it was launched..i missed to write name..But my question was is it a sign of big correction in offing

  4. Dear Atul,
    I don't think there can be a big correction here.10-15% will always be there but am not seeing more ethen that.I may prove wromg.I write what I think.
    Even Dow shouldn't go back to the previous low level.

  5. Dear nakul-rajeev,


    I wish to thank you for pointing out Gujrat Alkali, I studied it and picked up a first small lot recently.
    So, I now have three Gujarats,
    GSPL, GMDC and GUJ Alkali. )-

    After staying put for over a year and a half I did add quite a bit of Gremach, I hope it works out well...

    rajeev, I have wished to ask your view on Karturi for a long time.
    Kindly do let me know what you think of it....

    Warm regards as always




  7. Sandeep,
    I think they are still hold.Innocorp is making a comeback as can be seen price wise.

  8. CNBC-TV18's Anumeet Kaur reports that Quippo Telecom, the telecom tower subsidiary of Srei Infrastructure, may look at listing by the end of FY10 or early FY11, subject to market conditions and profit levels, quoting sources.

    The company may raise USD 250-500 million via an initial public offer (IPO), sources informed.

    "It has a capex of Rs 9,000 crore in next two years and will set up 16,000 towers by the end of this fiscal year," sources added. The company currently has between 23,000-24,000 telecom towers.

    Quippo Telecom has merged with Tata’s Wireless-TT Info-Services Limited in August and post the merger Quippo telecom has a 49% stake in the company while Tatas have a 51%.


    Sorry to put this post here. but i think you favour both SRF and Gujarat Fluorochem. both are good fundamentally strong companies. but i want to buy only one of them. which one is your pick?

  10. Vikas,
    That is very hard to tell.
    Guj Flou is already selling CC while SRF has still to go with it.
    Guj Fluo is already splitted while SRF is still 10 paidup.
    Take your call..

  11. rajeevji im trying to find some info regarding Country club but im unable to find ur comments so can u help me by posting it. Sir i have bought 100 KALYANI @ 106 , 100 APAR @ 145 & ur last superb call which is ROCKING since last few days LUMAX IND 100 @ 125. now at 196 after touching a 52 week high of 204. Sir can u post a list of all stocks which according to u still can be multibaggers.

  12. Dear K,Well,Lumax Ind at 195,means, 1 is added in front of 95 from where I recomended .There will be 2 added then 3 then 4.....
    See, that is what I write here.Buy even 100 shares.If it is going to be a multibagger then 100 shares will also give u big return.
    And above all u don't miss the multibagger....

  13. Dear Rajiv,

    hope ur getting my mails.

    Just have look on this script 526843. Promoters had increased there holding from 10 to 60 %. Do u c some thing in that.

    Best regards,
    Shashikant M

  14. thanks Rajiv sir,
    I am satisfied by reading your current and past blogs.I am new in stock market, suggested by one friend came here.
    To start with can you pls suggest 4-5 stocks which can become multibagger , with their appropriate entry levels and price targets? It would be of great help, since I have certain family loan liabilities and goals to meet in near future 1-2 years.. And being normal office goer ,it is not possible for me to do intraday and monitor my stocks every day. I just want to enter into fundamentally strong stocks, and at least for 1-2 years..thanks a lot sir, God bless you.

  15. Dear Shashi,
    Seems the management has sold some stake and new management has taken over.
    They have merged one co with it and the Capital has been reduced by 30% and with the merging of the new co the eq has gone up.
    Not able to find any details what the new co is doing.
    But yes, due to merger ratio, the new promoters stake has increased from 10% to 60%.
    But I can't say anything about the future of the co untill I see some story coming up.But as it is takenover by other management something should be there.But then the stock is also not cheap at Rs 45...seems to me

  16. Sri Rajiv Sir,
    I am waiting for your answer.
    Please try to respond before monday, hence , I can do enough study on your picks and enter into them , next week, when market will correct.
    thank you very much for helping us.

  17. Dear Rajeevji,

    pls also mention your comments on scripts which u think can still give multibagger returns.


  18. Josh and K,
    You have written that u have gone through my each post.If u have not gone through please do that .
    Try to find which stocks are still available cheap.Means in 20's,30's,40's......
    I use to write long list and I am sure there are still stocks remained which has not runup....