Market is down by 2000 points but stocks are down by over 40-50% and even more .There is a cautious atmosphere in market.Market pundits are advising caution, some are sure about trend reversal as well, means starting of a bear phase.
Perticularly the midcaps has been battered down very badly but then these are the times when one gets great fundamentals stocks cheap.
I like such type of correction which gives chance for investors to lapup good stocks.
Always remember one thing, whatever the market is ,buy the Value.If one finds a stock cheap, disregarding what market is doing one needs to go ahead and buy it.Fundamentals has always given great returns.
I have written many times, making money in market is not easy.Don't borrow money to buy stocks.Don't play in F&O.Don't trade daily in stocks.Don't buy for a week or a month.Market never fulfill our such wish.Market has a very very bad tendency to prove everyone wrong and that it does consistantly without fail.
Never make projection for ST.Never make projection which are abnormal.Market do give abnormal returns but one never knows in which stock one will get that.
For example, if we take Parekh Aluminex,which I recomended here at Rs 105, went on to touch 600.Many readers who follows me wrote me that they have already sold 50% and had made the rest holding free of cost.That is excellent thing to do but when any stock gives abnormal return within a year or year and a half, then readers needs to book profit as well.Like in Parekh Aluminex the return was 600% in a year or year and a half.That is the key here.Booking profit when a stock is giving enormous return is the order of the day as well.Those who bought Sujana Towers at Rs 32 when I recomended and sold 50% at 64 should book profit at 180-200 as well.Sujana Towers ran like a mad bull and in a very short time of last couple of months went from 52 to 230 .Now these type of return is just out of world.Only one is lucky then only one can have stock with them.
Yes, selling 50% at double is my first choice as the holding becomes FREE and one has no investment left.But market is not just taking out money but also making money and if one do not book profit at times one may feel letdown.
Both Parekh Alu and Sujana Towers are excellent cos and will do well in future as well but if one has sold 10-20% he would have been able to buy them again at cheaper rate.
I just read that Serial
These opearors when they try to move some stocks , not all are without fundamentals.Maybe couple of them are such but 70-80% do have excellent fundamentals otherwise if they try to operate all poor fundamentals stocks then no one would buy it or there can't be huge buying that can come to lift the stock up.So when operators picks up stocks they also pick stocks which have excellent fundamentals.
So don't be afraid of buying stocks which are under operators list which have been manupalated, if you see the fundamentals are good , one need to go ahead and buy it.
Sucheta Dala one of the journalist has come out with news that KP is still active and she has wrote some 20 stocks where KP is active and she now says they are K20 stocks instead of K10 in year 2000 which he ran.
So it means that when KP bullrun was on in 1999-2000 of IT sector, he ran only 10 stocks which were then known as K10 and now when KP is debarred by SEBI uptill 2017 he is running 20 stocks!Isn't that looks more surprising?KP in debarred state is more dangerous then without it.......
The list of stock she has given are as under:
7.India Bulls Real Estate
11.Hindustan Oil Exploration Company
13.Crew Bos Products
15.East India Hotels
16.State Bank of India
19.Tatia Global Ventures
And so that is how it is K20.....wow! Excellent finding.Now out of these 20 stocks Orchid Chemical, Punj Llyod,Hind Oil Explo are Rakesh Jhunjhunwala's stocks where he has invested big.
Now take Cairns, Ril Ind,State Bank,East India Hotel ,GVR Infra are very very big.Big in the sense they have HUGE Mcap and rigging those shares is just out of world.
She also wrote that KP wanted to buy 60 mn shares of Amtek Auto.
That means that eq is40 cr means, 4 cr shares and is 2 paidup so there will be 20 cr shares and out of that 60mn shares means KP wanted to buy 30% of the eq to rig up the price.
Now Amtek Auto has come down from 200 to 140 and even if we think that promoters and KP were hand in gloves with each other and they gave 6 cr shares to KP they should have got 917 cr from KP even at CMP of Rs 140! Wow! So for a small Co like Amtek Auto ,if KP wants to rig the price , first he needs to have shares and for acquiring it he will have to have Rs.917 cr to buy 60 mn , means 6 cr shares.....now imagine how much he has to put money to run stocks like SBI, RIL Ind where the Mcap is huge?
Is it possible for a person like Ketan Parekh to have 917 cr to buy stake in Amtek Auto and then rig the prices?I don't believe that is possible.
Now just imagine if KP has to run all 20 stocks how much money he will need to corner floating stocks of that shares to rig up the price.
I have written recently, barring A gr stocks there needs to be an operator to move the stock above 50% in a year .The reason I wrote barring A gr is they are having HUGE eq and hence HUGE Mcap and DII's,FII's , HNI's all have taken stake in it and hence it is difficult to rig prices of A gr stocks.
Now coming back again to rigging prices of stocks, 3-4 stocks belongs to where Rakesh Jhunjhunwala has taken stake , and hence it again vindicates my belief that even operators are there that doesn't mean fundamentals are weak.
And according to me it is impossible for anyone to rig up the prices of SBI,Ril Ind, Cairns India which has huge eq and is distributed among many DII's and FII's and promoters.