Saturday, February 26, 2011

Follow the fundamentals......

Again I have to write on front page.Looks like readers are not able to understand the basics of stock market.
I write it again here, read each and everyword of my post.Read 2 times, read 3 times ...and even more untill you understand what I am saying.Even after you think you understood what I wrote still have one more read of each post.You may find some other angle to what I am saying.
Well, the reason to write this is, still readers keeps on asking me about stocks which need not be asked.
In last 3-4 days I got queries for stock which I never covered here at my blog.
Lakshmi Energy,Chembond,A.K Capital, Sarla Performance,JSW Energy,FSL Ltd,Piccadily Agro,Visaka Ind etc etc.
I have written recently that buy stocks which have

1)good fundamentals,
2)which have excellent product line
3)the management is good and
4)Co should be able to passon the cost escalation to consumer.

Had anyone followed this parametres?
Those readers who are following me for 3-4 months needs to read my back post as well.On the right side to my blog there is a " Blog Archive" and below that what post I have written every month are shown as title.
Click each and every post and read those post for every month and then after completing for 2011, go for 2010 and read those post.
I am just giving a simple example.I wrote on EPC Ind on 9th Feb, means this month only.Mahindra and Mahindra is taking over this Co and they have bought the stake at Rs 66.I gave the call when it was in 30's or perhaps in 20's.
Now even after that post of mine, EPC Ind has gone up from 66 to 78.EPC Ind is in producing of drip irrigation system parts and they have collobaration with Israel which is pioneer in drip irrigation.
With commodities becoming dearer, farming becoming attractive,India having vast uncultivated land yet to use,management of M&M taking over , what else one need to invest in this stock?
I still can write some more stocks which I have discussed and have come down drastically which have excellent management and excellent fundamentals and product line.....but I haven't seen anyone talking of those stocks.
Instead they keep on asking me some new stocks which I feel are not worth a look as either the price are still high,or is not in good sector.
The 4 parametres that I have written, learn by heart.Write these on a piece of paper.When market is jittery and everyone is selling , try to invest in stocks which have excellent management and excellent earnings with good sector.Understand what is the meaning of each and every point.
One needs to able to forsee where the future of the Co lies.EPS is not everything.P/E is not every thing.
One needs to able to see where the Co can go.
When I work so hard to find stocks and then track them for each and every info to gather, why can't you work hard atleast to go thorugh my all past post and read them.
You get ready dish from where you all can eat but I can't come and put the food in your mouth.
So, read my past post one by one.Try to understand what I have written in each post.
I write no nonsense.Each and every word and sentence has meaning.
Read my reply for any comments or queries asked.Sometimes one can get even a good info when I give a reply.


  1. Hi Rajeev,

    I have analysed Piccadilly Agro thoroughly and it satisfies all your 4 parameters..just wanted ur view on it....


  2. Amit,
    If Piccadilly Agro fits in all parametres then go ahead and buy it.
    Amit and all readers,please don't emphasize me to write for each query.I know you all respect my view and hence wants my nod on it but I am not always free or in good mood or maybe I am sick or maybe I am engaged in something personal and hence maybe not able to write or give reply in proper manner.

  3. Dear All,

    Based on Rajeev Sirs parameters I have found one stock called HGSL (Hinduja Global Sol. Ltd.). If any of you concur to my view please do let me know. I wouldn't want to trouble Rajeev Sir to do it as he is already doing too much or us.

    So do let me know so can buy a few qty and hold on to it dearly

  4. Rajeev Sir,

    Do you expect your following recommendations to drastically come down from the present levels.

    HBL Power - Promoters increasing stake
    First Object

  5. Placement,
    I can't predict that whether they will still comedown more drastically.
    My only concern with Nutek is, the eq is expanding very fast.When I recomended Nutek it was 17 cr eq and now it is 77 cr which is alarmingly going up very high and fast too.
    In such type of situation we need to see how the Co will able to earn that much....

  6. Hi Rajeev,

    You certainly recommended JSW energy and seri infra .they are down by 50% and now you say market can go down to 16000 . what should we do ....hold our losses or wait for long term.I am holding adani enterprises i sold that stock and entertred seri & jsw energy , ennore coke , vishnu , sunil hitech , super spinning . earlier when market go down your recommendation go up but now that trend is reversed.

  7. TT,
    Market going up and down is natural.Either one have to hold on the paper loss or can sell the holding and cut further loss if one feels it will go down again 50% from here.No one is GOD here.I can also go wrong and conviction is very necessary for holding stocks and that I can't infuse to anyone else.
    Remember I am not here for portfolio management advice.I recomend stocks and readers have to decide what they will be doing with their holding.
    If fundamentals are good then one should hold on and add more on declines.All the stocks you mentioned are fundamentally great and hence I see no reason why one should not hold on to them.
    But when you talk about my view of sensex coming to 16k and asking me what to do it means that you are looking at ST scenario and I have written many times that one needs to invest for LT, 2-3 yrs...and maybe more......
    The best way to get away with any loss is, sell as soon as stock is down by 10-15% whether it is a loss or profit.That way one can avoid huge loss like 50% but then it may also happen that after 10-15% correction stock can make a turnaround and can become a huge be ready to lose that chance as well.....

  8. Thanks for your reply,

    Rajeev ji it is your words that history never repeat .Yes when we see in history some stocks give multibagger is sometime true or sometime false. In todays world everything is changing so fast we never time it.
    Earlier when somebody go out of india he certainly earns more but now no country like expacts.They hate expacts they think they are job snatchers. It starts from america, europe now middle east. Whats happening in middle east
    is true example their soft target are expacts. If one see the middle east people they are far better than indian ,but they are not comfortable. Here in india everybody says it is the biggest democracy ... i dont know what is the defination of democracy those who are in power doing full misuse of that power doing scams openly .And this thing is growing day by day. Earlier when stocks give mulitibagger return that time currency , commodity market is not so active.Earlier with the news of egypt market tanked but this time when it spreads to whole of middle east , america shows different attitude. What happens to those people who are coming out from libya , what about their investments. now their money is going out of middle east.
    I am confused what to do if market go up or down , if it is going up then I should average it if going down then to cut losses. Looking the long term secenario this middle east situation arises new problems for long term.

  9. TT,
    Remmeber America is still world super power.They will first look at their advantage.Hosni Mubarak was US pawn and hence he was able to stay for 30 yrs.
    To act as America , any country needs to be as developed and as powerful as America.
    That is the bottomline.Try to understand the equation of world politics.
    The corruption and scams we are seeing in India are also there in USA like we saw in 2008 but still the average life in USA is far far better then anyone in the world.
    WB recently said that even after the subprime debalce ,America is still the best place to live in.
    I have once wrote a whole post on Walmart etc..and how things are there and how consumer right is protected.Read that post again.....
    According to me, market should stabilize and should go up again.
    We still rely upon the world best techonology from GE or IBM or Microsoft.We still have to depend on enrichmenet of Uranium from USA, Aistralia, France, Russia or Germany.....
    Untill we get fully on our own we can't dictate the terms to the world.
    The thing people need to understand is that it makes no sense blaming America that it did this which is wrong and they are supporting some countries wrongly etc etc.....
    USA is looking what is good for their people and what is good for their country......It is very simple.....there is nothing more to get puzzeled for anyone....