BUY : MAITHAN ALLOYS

CMP=94.35

Support=85,71

EPS=62.77 (only last 3 Qtrs considered)

PE=1.50

52 WEEK HIGH=2230

52 WEEK LOW=90

TIME FRAME=1-2 yrs

BOOK VALUE=94.32

Targets=240,324

INVESTMENT RATIONALE--->

1) METALS ARE A BADLY BEATEN LOT. WITH SUCH CHEAP VALUATIONS THEY OFFER A GOOD PLACE TO PARK YOUR MONEY.

2) 74.66 % SHARE IS WITH THE PROMOTERS. ONLY 6 LAKH SHARES WITH THE PUBLIC

3) Maithan Alloys setting up Rs 275cr plant in Andhra !

Kolkata-based Maithan Alloys Limited is setting up a 120,000-tonnes per annum (tpa) capacity ferro alloys unit in the Andhra Pradesh Special Economic Zone (APSEZ) at Achutapuram in Visakhapatnam district at a cost of Rs 275 crore.

The AP Industrial Infrastructure Corporation (APIIC) has allotted 60 acres of land for the Maithan unit at a cost of Rs 40 lakh an acre. “The construction of the plant will be started next month and is expected to be completed in two years,” company’s managing director, Subhas Chandra Agarwalla, told mediapersons here on Wednesday.
Agarwalla said the project would be funded through debt and internal accruals. It had acquired a manganese ore mine in Orissa recently to meet the raw material requirement of the proposed unit. The company was also looking for acquisition of some more mines in India and abroad.

At present, Maithan has a 94,600 tpa ferro alloys plant in West Bengal. It is also setting up a 28,000-tpa plant in Meghalaya, which is expected to commence commercial production during the fourth quarter of the current financial year. The Meghalaya unit also has a 15-Mw captive power plant.

According to Maithan president Sudhanshu Agarwalla, the company is expected to post a revenue of Rs 800 crore this year as against Rs 385 crore last year. Its revenue stood at Rs 414 crore during the first six months of the current financial year. Its exports has grown from 54 per cent of the total turnover in 2007-08 to 75 per cent at present.

APIIC chairman and managing director BP Acharya said 11 projects, involving a combined investment of about Rs 54,000 crore, were coming up in the multi-product APSEZ. The projects included the proposed Rs 38,000-crore refinery by HPCL and Rs 14,000 crore solar fab unit by the Vellanki group. The projects were expected to provide employment to 25,000 people.

4) DIVIDEND PAYING COMPANY. HAS PAID 20 % DIVIDEND IN 08.

ADVISE : BUY IN PARTS ON DECLINES AS THIS PROMISES TO BOUNCE HARD OVER THE COMING 1-2 yrs.

BUY : PUNJAB CHEMICALS & CROP PROTECTION

CMP=128.35
Support=109,96
EPS=65.37
PE=1.96
52 WEEK HIGH=309.80
52 WEEK LOW=107
TIME FRAME=1 yr

BOOK VALUE=156.90

Targets=242,300

INVESTMENT RATIONALE--->

1) PLACED IN A VERY PROMISING SECTOR "AGRICULTURE" THAT WOULD RECEIVE ENORMOUS GOVT. PROMINENCE IN ALL THE COMING ANNUAL BUDGETS AND FIVE YEAR PLANS
2) A VERY HIGH EPS OF RS 65
3) FIIs ALL OF A SUDDEN HAVE PICKED UP STAKE ; THEY SEEM TO HAVE SPOTTED A REAL VALUE BUY !! NO WONDER
4) GOOD DIVIDEND OF 40 % IN 2008, HAS BEEN A REGULAR DIVIDEND PAYING CO SINCE 1997 !!

ADVISE : ACCUMULATE IN PARTS GRADUALLY ON DIPS. BEAR IN MIND THE SUPPORTS TO MAXIMIZE GAINS.

ACCUMULATE : ANKUR DRUGS & PHARMA

CMP=92.75
Support=81,73
EPS=52.76
PE=1.75
52 WEEK HIGH=438
52 WEEK LOW=90.10
TIME FRAME=2yrs

BOOK VALUE=123.97

Targets=256,380 ,450

INVESTMENT RATIONALE --->

1) ONE OF THE MOST UNDERVALUED PHARMA STOCK WITH EXCELLENT FUNDAMENTALS
2) FII INTEREST HAS BEEN INCREASING
3) DECENT DIVIDEND TRACK RECORD SINCE 2004, LAST ONE BEING 22.50 % IN 2008
4) IN A BEAR MARKET A VERY DEFENSIVE STOCK FROM A DEFENSIVE SECTOR THAT CAN STEM RECESSION WITHOUT MUCH FUSS

ADVISE : ADD IN PARTS ON DIPS. USE SUPPORTS TO MAKE THE BUYS IDEALLY. THIS ENHANCES SAFETY. GREAT LONG TERM PROSPECTS WITH A HIGH LEVEL OF SAFETY

INTRODUCTION TO MY BLOG : ART OF INVESTMENTS - HOW TO DO THE BUFFET !!

When you buy a stock buy its business he said. When you buy a stock, buy it as though markets will close for 5 yrs he said. When people get greedy, I get fearful and when people get fearful, I get greedy he said. Yes ! No prizes for guessing he's the master of equity markets WARREN BUFFET !

Depressions, Crises, Crashes, these are truly investors best friends. Why ? Its during these times you get to buy the shares of a company which is lower than the book value, lower than what it deserves, lower than the fair price of the share. And how does that help you ? When markets head for recovery you would see the price of your share quoting at twice or thrice the price you bought it at.

Markets always do the excesses. Excesses in both directions. During correction, the fall always brings price to a value less than what the fair value is, and during the boom, the rally always takes the price to a value greater than what it deserves. As simple as that.

Our aim is simple. EXPLOIT THIS CYCLE OF FORTUNE. BUY LOW. SELL HIGH. As simple as that.

I'll give you a check list of how to create MULTI-BAGGERS :
PICKING UP UNDER-PRICED STOCKS AND PRODUCING MULTI-FOLD RETURNS IS AN ART.ONE NEEDS TO DEVELOP IT.LET ME TELL U THE SAFEST WAY HOW TO SELECT STOCKS THAT CAN GIVE U SUCH TREMENDOUS RETURNS.WHEN U PICK UP A STOCK U NEED TO RESEARCH INTO THE FOLLOWING ASPECTS ---->
1) IS THE COMPANY IN PROFITS?
2) HAVE THE PROFITS BEEN ON THE RISE? IF YES THEN HOW STEEP HAS BEEN THE RISE?
3) WHAT IS THE BUSINESS OF THE COMPANY?
4) DOES THE BUSINESS OF THE COMPANY HOLD GOOD POTENTIAL IN THE FUTURE?
5) HOW ARE ITS PEERS BELONGING TO THE SAME SECTOR DOING?
6) CAN U EXPECT AN INCREASE IN PROFITS OUT OF THE BUSINESS OF THE COMPANY? OR CAN THE PRESENT SET OF NUMBERS BE AT LEAST SUSTAINED GOING AHEAD?
7) WHAT IS THE PE OF THE COMPANY? IT HAS TO BE LOW......IDEALLY LESS THAN 2 !! YES !! MOST STOCKS I PICK UP ARE IN FACT OF THE PE OF LESS THAN 1-1.50
8) AND OF COURSE EPS?.....GOOD EPS FOR A LOW PE IS AN ATTRACTIVE PICK
9) DOES THE COMPANY HAVE AN ALTERNATIVE OR AN ADDITIONAL BUSINESS? IF YES HOW PROFITABLE IS IT?
10) DOES THE COMPANY HAVE ANY BRIGHT STORY SUCH AS LAND BANK, OR TAKE OVER OR DEMERGER OR MERGER?
11) HOW GOOD IS THE PROMOTER HOLDING? ANYTHING IN EXCESS OF 60 % IS SOUND.
12) HAVE THE PROMOTERS BEEN INCREASING THEIR STAKE? IF YES, A GOOD SIGN.
13) DO FIIs HAVE INTEREST IN THE STOCK? IF YES HAVE THEY BEEN INCREASING THEIR STAKE? IF SO A GOOD SIGN. SAME HOLDS GOOD WITH DIIs (MF HOLDING)
14) OTHER MATTERS SUCH AS DIVIDENDS, BONUS, SPLIT AND RIGHT ISSUES.
ANY STOCK YIELDING MORE THAN 10 % DIVIDEND YIELD IS A BRIGHT PICK.
15) NEWS AND RUMOURS. AS THEY SAY BUY ON RUMOURS AND SELL ON NEWS.

AND WHEN I GET A PICK THAT SATIFIES MOST CRITERIAS ITS "BUYING TIME"

"ART OF BUYING & SELLING" ---->

OF COURSE ON DIPS, AND IDEALLY IN PARTS SO AS TO ALLOW YOU THE LUXURY OF AVERAGING OUT.

IN A BEAR MARKET "FRESH LOWS" KEEP HITTING. SO KEEP BUYING NEAR THE 52 WEEK LOW IN SEVERAL PARTS. FOR E.G. IF YOU INTEND TO BUY 100 SHARES, BUY IN MULTIPLES OF SAY 10 !

IN A BULL MARKET, IT SHOULD BE MORE OF SELLING. ALL THAT YOU HAVE ACCUMULATE IN THE BEAR MARKET SHOULD BE SOLD. "FRESH HIGHS" ARE MADE. KEEP OFFLOADING ON EVERY HIGH ! IN PARTS.

PLZ NOTE BEAR MARKETS MAY LAST FOR 18 MONTHS OR MORE. SIMILARLY BULL MARKETS TOO CAN LAST FOR A WHILE. AND FOR ORDNIARY INVESTORS ITS NOT FEASIBLE TO DEMAND SO MUCH DEDICATION.

MAY BE THATS WHY WE HAVE BULL PHASES IN BEAR MARKET AND BEAR PHASES IN BULL MARKET, WHICH ARE GOD SENT OPPORTUNITIES !


SO READERS HAVING BRIEFED YOU ENOUGH ABOUT HOW TO GO ABOUT INVESTMENTS, I WILL NOW KEEP POSTING MY MULTI BAGGER EQUITY CALLS ON THIS BLOG AS AND WHEN THE OPPORTUNITIES ARISE