Essar Oil declares 470 cr Net Profit............cmp Rs 127......

Friends,
I am very very happy to see Essar Oil coming out with an excellent Net Profit of Rs 470 cr from a Loss of Rs 70 cr last year same time.
I gave a call for Essar Oil way back and my confidence has been turn out good.Even after one see that management is not reliable the Co has come out with great result.I am very glad to see that happening which again vindicates my view that there is nothing like good manegement or bad management.
If Co starts doing right things management becomes good and market gives thumbs up to such stock.
Essar Oil will get rerated and I have no doubt about it in my mind.
At Rs 127, Essar Oil is going cheap and one is able to get it so cheap because of the lack of confidence in market.No one is ready to stick out the neck and buy such stocks but actually these are the times when one should buy such stocks.Best time to buy stocks is when the chips are down.When market is hesitant to go up.When there are no positive trigger, when no one giving call to buy it, when no one wants to buy but actually wants to sell on every rise.
Selling on every rise period is already over.That was the period from Nov 2010 to May 2011.After May 2011 the period has started to buy stocks and market has given us a wonderful chance to buy stocks which are battered down badly.
I wrote recently I am seeing the prices which one can compare it with 2008 and early 2009 stage.I feel that valuations has gone down way much and if commodities are going to correct and is already correcting then I think we will be able to see good bottomline in next 2 quaters results and one needs to remember that market is always ahead 2-3 qr from investors.
Coming back to Essar Oil, I have observed that the Np has gone up consistantly qr to qr for last 4 qrs.Just have a look at last 4 qrs from Sep 2010.The Np has been constantly increasing qr to qr and I think that is an excellent situation for any Co.
I still say, Essar Oil will be a wealth accumalator if hold for LT and here LT will be for 3 to 5 yrs and more.Just buy and forget.Well, I can be proved wrong as I am not a God and I can't see what bad can happen to Essar Oil, a mishap or suddenly world finds out alternative for Oil and people start stop using Petrol/Gas.
I recomended IFB Ind @90  in Apr 2010 and it doubled by Nov 2010 and has come back to 130 and I feel that it is also time to have a look at it again.Brand product and Co coming out from BIFR and making profit as well  and a MNC Co.The promoters hold 71.56% and that is a big positive for me.Try to understand the movement.The price of 90 from which I recomended has not come and I don't feel it will come.There are scores of other stocks which has not come down recently like Lumax Ind , Loyal Tex, Super Sales,Epc Ind, Sujana Towers,Apar Ind and many more .I can't remember all but one can find many and according to me these are excellent stocks to hold on to as they are winners.
Let me tell you one more thing.When you see that in your portfolio some stocks goes up as soon as market goes up then that is a good thing as it shows that the counter is getting attention and buyers comes as soon as market goes up .It may even happen that even after market goes up the stock underperform then it says that it will take time to move up as it is in accumalation mode.The counter has not become dry which is very necessary for any stock to move up.
So the botttomline is if stocks moves up with market , then one can easily assume that the current is there and it can out perform the market as well.
DD is a must before taking a plunge in any of my call.I can go horribly wrong.
What I am trying to do here is pointing stocks which small investors may miss having a look at.