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Tuesday, December 25, 2012

5 Ways to Financial Freedom in 2013!

“Whoever said money can’t buy happiness probably didn’t have enough money! “ 

This famous saying reminds us that getting our personal finance in order is probably up there along with career and health as one of the most important resolutions for 2013. It’s important to have financial freedom and flexibility to spend just that little extra amount, in case your daughter wants that new Barbie doll or wife asks for the upgrade for refrigerator. Having your personal finances in order, gives you the space, peace of mind and flexibility to make the most of your personal and family life and creates solid bedrock for your future wellbeing.

Here is a list of 5 Resolutions for your Financial Wellbeing in 2013:

Sunday, December 23, 2012

Finding MultiBagger Stocks!

One valued reader asks this question:

Question: I am in the search of finding multibagger stocks. Can these companies become multibagger : Karuturi Global Ltd., Green Earth Resources & Projects Ltd.(formerly Austral Coke), Moserbaer, Farmax India Ltd., Kwality Dairy Ltd.,Piramal Life Sciences Ltd.
From all these stocks mentioned above ,all are falling downwards except Piramal Life Sciences Ltd..I want to know about the future prospects of all these companies.

Saturday, December 22, 2012

Your question on Amtek Auto!

After my inane musings on TV Songs here, which continues to provide insane amount of Page-views and attention to this blog, I'm back to steady business doing stock analysis and staring at charts!

Question from our valued reader:
Question: Amtek Auto is a mid cap stock and at a 52 week low. It has a good history with good sales and pays regular dividend. This stock owns 61% in Amtek India.

I have done an initial investment at 76 and currently it is quoting around 70. I would like to take more exposure but am not sure why does it keep going down
Any info/analysis from your side would be appreciated.

Sunday, December 16, 2012

Your questions on BEML, Micro technologies and Future Ventures!

Valued readers have sent in these queries on BEML, Micro technologies and Future Ventures:

Question: It will be amazing if you can share your thoughts on BEML. The CMP is too low right now.

Answer: BEML Ltd is a PSU MiniRatna category-I Firm, and operates in three main divisions - Mining and Construction, Defence and Rail and Metro. The firm has a stable topline and bottomline numbers from past five years, and in recent three quarters in running in red due to Mining slowdown and ban. Firm was also embroiled in recent Great Indian scam season - BEML's flavor being Tantra trucks. Both topline and bottomline of BEML is affected because of these issues. 

Friday, December 14, 2012

Bottom Formation in Education Stocks - Educomp, Everonn and Edserv!

Education stocks have received tremendous beating after being toast of investors in previous Bull runs. Sample this, Educomp is languishing at Rs 150 odd, after reaching a high of Rs 1020 in late 2009. Since late 2009, the stock has only seen one side, which is downside. Now the scrip has lost 85% of its valuation since its highs, the charts of three of these Education scrips are giving signs of bottoming down.

Lets look at charts and figure out. Pls look at Educomp chart below:

Kyun darta hai tu yaar mujhpe Daav Laga - i.e. Trading for a Living!

We will try to keep the focus of this blog strictly to Trading and Investing. However, I noticed one song(!) on a recent TV commercial and its lyrics forced me to think, the critical ability of a Trader and inherent skills required in this profession!

We traders are born (or re-born) risk-takers. We assess risk, assess value and where others shun the stock in fear, we embrace it whole-heartedly! Ours is the most difficult skill and profession in the world!

Sample these lyrics, and if possible hear to the full song.

Thursday, December 13, 2012

The Elusive Indian Rupee (INR)!

Recent media reports talk about possibility of the Indian Rupee (INR) touching levels of 60 against USD. 57 is all time low level for INR and 60 is still 5% lower than the all time low levels. Is it really possible, and what are charts saying?

Lets take a quick look at USD/INR charts and figure out the short term and medium term trend, and whether the famous round number of 60 is just a elusive pipe dream for exporters!

Monday, December 10, 2012

What's Next for Nifty?

Nifty is currently facing resistance at technical levels of 5950. The current up move started from the lows of 4800, which was a intermediate bottom in May, 12. Since May of this year 2012, Nifty has traveled in a channel like formation, upto the current resistance levels of 5950 and formed a Doji like candle pattern three days ago.

Pls see the chart below:

Sunday, December 9, 2012

REI Agro: The demons it continues to fight!

A valued reader asks this question about REI Agro:

Question: I invested in REI Agro at around 9 Rs in July.. But its moving very very slow...
It does not participate in matter how much market goes up it sticks to 50 paise up down...

Promoter is constantly buying and delivery is always every day "70%" and around for this stock ... but still it trades in plus minus 1 rupee range daily not moving up at all...

What do you think would be the time frame for this stock to move to 20 levels ?? it is getting frustrating day by day... and i fear if market falls due to FIIs booking profit it would again go down below 10 levels...

I read your posts on REI but requesting you to Please share your views again on Rei ..if positive , it may instill some confidence & faith in me to hold for more time..

Answer: Thanks for your question. We reviewed REI Agro in April here. Pls see the latest updated EoD chart for REI below:

Thursday, December 6, 2012

What to do with PVR and Kingfisher and your questions on Harrisons Malayalam and Usher Agro!

Valued readers have sent these questions in past 2-3 days. Pls see the questions and our responses:

Question: It would be great if you could kindly share your views on PVR, it has risen sharply post Cinemax Deal. almost 44% up in 3-4 days.

Tara Jewels IPO: Closes below Listing price on Debut Day!

We wrote about Tara Jewels IPO here, a fortnight back, as to how the issue is not worth investing for a value investor and some questions that were lingering around the issue.

Tara Jewels made its debut today and although opened with a meager 5% premium to listing price of Rs 230, immediately started tanking without showing any upward momentum. With a volume of about 4.8 Lakh shares, the scrip closed below its IPO price of Rs 230 and closed at Rs 229.9 in first hour itself.

How and When to Book Profits!

A valued reader asks this question, which is on the top of the mind of every investor: How and When to Book Profits, when going is good and stocks are trading in your favor.

What approach do you take while selling stocks ?

A lot of times we find buying easy but selling difficult , we always think that price could go a notch higher and end up keeping that stock for a much longer period or seeing it through its peak as well as through its bottom on the chart and sell it somewhere in between due to frustration of waiting for the right moment.

Wednesday, December 5, 2012

Your Queries on Microcaps!

I have received a few queries regarding analysis on Microcaps. Microcaps are very small firms with Market Cap less than 100 crores or so and some of them even have annual revenues less than 50 crores.

It’s a trend within retail investor community to search and invest in Microcaps with unheard of names. Whereas, if you investigate a Mutual Fund portfolio, most of the names in their portfolio would be large caps, whatever the fund focus might be, and very few large midcaps in addition to large caps.

This is surprising and counter-intuitive behavior! Large funds and institutions have the muscle power, bandwidth and battery of experts to research small and upcoming companies and spot the next Infosys and Reliance. That kind of analysis would bring them super-returns on their portfolio. But they stick to larger, well known names only!

Tuesday, December 4, 2012

Bharti Infratel IPO!

Bharti Infratel is coming out with a Mega IPO on Dec, 10 worth 4500 crores of Stock Sale. This is the largest IPO in past two years and is generating quite a buzz! At StockFundoo, we are always careful about mega IPOs and their associated buzz, because it’s often like a twin edged sword. Some of these Mega IPOs in the past have worked out well for investors whereas vast majority of them have been Mega Flops! It’s rightly said about IPOs: It’s Probably Overpriced. Please see our older post on IPO here.

Bharti Infratel is an tower infrastructure arm of Bharti and there is quite a bit of history attached with this unit. 

Monday, December 3, 2012

Your questions on Sintex and Sterlite!

A valued reader asks this question:

Question: I have a question regarding Sintex and Sterlite.
I am interested in finding out if they are fundamentally strong companies worth holding.
I have been holding the stocks for around 3 months at prices below

Sterlite - Rs 100
Sintex - Rs 61

Sunday, December 2, 2012

Top 5 Online Trading Mistakes - Part II

We covered Top 2 Online Trading Mistakes in Part I of this article series here. Let’s look at the Next 3 Online Trading Mistakes in this closing part of the series. 

Online Mistake #3 - The Lure of Penny Stocks 

Retail investors like to invest in Penny stocks or stocks that trade below Rs 10 per share, based on someone’s recommendation or after receiving hot tips from subscription websites. Most of these Penny stocks remain illiquid round the year, and come into heavy trading volume action only after a synchronous effort on part of cartel of promoters and manipulators to suck in retail investors.

Saturday, December 1, 2012

What to do now with Zylog Systems?

A valued reader asks this question:

Question: Zylog is again drifting downwards towards it wise to buy now....
Fundamentally is it good ? Buyable ? or is it going down with point of no return ??

Top 5 Online Trading Mistakes - Part I

With the advent of Electronic Trading, almost all investors and traders now use Online Stock Trading websites to Invest and Trade in Stocks. Online Stock Trading Websites offer Do-It-Yourself options to Buy and Sell stocks and are very popular among retail investors. Few retail investors actually pick-up the phone to call the broker’s office to request trade on their behalf. It’s much easier to login into Broker’s online website, place the trade yourself, watch it getting executed and feel the excitement!
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