Saturday, February 12, 2011

What will you do now?

Market ended positive on Friday.Scores of stocks has come down drastically at abysmal level.Now the trick is one don't need to buy stocks which have high P/E.
Find stocks which have strong management, strong fundamentals and the productline is excellent.The future of the product is excellent.In that one needs to include the inflation,commodities prices , or raw material prices going up and still Co can make excellent profit.The demand of the product should be such that they can easily pass on the increase in price to consumer.

I like one of the sentence of Warren Buffet very much and that is:

"Even if stockmarket get closed for 10 yrs , you need not have any problem"

That is absolutely correct for anyone who wants to think in investing in stock market.One should have no problem holding stocks for 10 yrs and still able to run the house or daily routine.
Make sure you have enough money coming to you even though these money invested in stocks gets jammed for 10 yrs.
I still say, making money in stock market is not easy.
Then the other trait comes from Warren Buffet is buy at right price.Buy so cheap that even small profit makes huge difference.
Selection of stock is very important and it is a learnig process as we have seen even Warren Buffet has made mistake and Rakesh Jhunjhunwala has made mistakes.
Don't get disheartened if you have chose a wrong stock.Rectify the mistake.That is what is needed to be done.Know how to cut losses.Be vigil.Be constant in touch with market.After all it is your hard earned money.Don't buy on TIPS and perticularly when one is seeing nothing there and is a penny stock , don't buy it.Only 1 out of 1000 outperform the market and gives huge return and one needs to be very LUCKY to have that one.If one is investing in penny stock then be ready to lose all the amount.If you are not ready for that then please don't buy penny stocks.Not all stories gets successful.

Create your own level of competency.Try to make decision on your own and try to invest that way.If you find you made a mistake, sell it and buy something else.Mistakes are bound to happen.
One of my call, PSL Ltd has underperformed in a big way.
That is bound to happen.No one is GOD here.We are all humanbeing and therefore mistake is going to happen.But as Rakesh says, make mistake but it shouldn't be so big that you start hating stock market and you are out of it.
Coming to market, I wrote last time that market if breaks 18500, it can go down to 17k and may go to 16k.Even after friday upmove market can still go down and break 17k level.
But I don't see the repeat of 2008 Oct as according to me we haven't seen any euphoria , people becoming mad to buy stock in market.Market should stabilize in due course and may happen that after Budget market may start consolidation and then upwarsd movement.
Lots of stocks that I have discussed have been down by 50% or even more.Find those shares and find out which is most fundamentally strong, have excellent management and have excellent product line and then start buying.......


  1. Hi rajeev,
    Could you comment on the results of Garg Furnace? I'm not able to get what it means


  2. Dear Rajeev,

    Definately PSL has been proabably the only stock recommended by you that has not performed.

    What do you feel now. At 70 odd levels I am sure you would find it a value buy ?? Or has anything that has happened in the last one year dampened your view on the same ??

    Looking forward to your kind opinion.

  3. Ramki,
    Garg Furnace has not declared the result.It was a review that was on notice.

  4. Mitzzz,
    I donno what u r doing.See, I am not tracking qr to qr but as you have big interest u should have trcaked it very well.
    Well what I am seeing in PSL is again for Dec qr the result have come excellent but the Eq is expanding as well and hence the bottomline is remaining stagnant.
    That is the reason why it is not going up.
    The fundamenbtals are still intact but the problem here is Co is expanding the Eq time and again.....

  5. Hi Rajeev,

    If Punj loyd is not performing it is difficult for PSL as well. I think now seri infra equity is also expanding and it is already 50% down from its high ... . I am holding it for more than one and half year ... i had profit in it but i had'nt booked it, now i am in loss. As its equity is expanding I think it take more time to go up.
    Now govt agrees for JPC is it a positive trigger for companies in telecom.

  6. Dear Rajeev

    please advice on Uflex Ltd.A company which is growing in a huge way and is expanding heavily.

    Please advice.

    Vishnu R Nair

  7. Dear Rajeev

    Your view on UFLEX Lld. I believe you are busy.

    thank you

    Vishnu R Nair

  8. Vishnu,
    UFlex is fundamentally a good Co