These are some of the companies which i feel has bottomed out.These are pretty interesting companies with decent busienss models and good fundamentals.So check them out.
1)Aishwarya Telecom:-In my earlier note i said it for no reason desrves a price of 136rs.Just look at the bechara now,quoting at 28rs.Surely bargain hunters would opt for it sooner or laters.So though not 136 but a mere 28 is very feasible for one to have a token position.
2)Asian electronics:-Market i feel has discounted all bad news of the company.Asian electronics at present level of 70 is a good buy.Within the next 6 months asian should rebound bigtime.Battle to regain its lost glory has already begun.
3)Futura polysters:-The court recently sanctioned the demerger scheme.So one is surely entitled to get innovasnyth technologies now.Futura polyster is a steal at present levels of 22.A great buy.
4)Jai corporation:-A huge sucess story being beaten down badly though for some reasons.But still jai corporation doesnt deserve a price of 280.Several funds opted for it,a great company with a solid aggresive,vision oriented owner.He has taken oath to take the company beyond ones reach.A good value buy.
5)Jaiprakash assocaites:I feel pity for these company,a superb company being misunderstood so badly.At 150rs its a must have in anyones core portfolio.You are also entitled to get free shares of JP Infratech.
6)Kemrock industries&exports:-One of my hot favourites of yesteryears.Superb result,great aggresive management.The company supplies its products to the biggies like boeing and all.At 300 i would definately book it for my portfolio.
7)Punj lloyd:-People who feel larsen&toubro is beyond your reach please dont get disapointed.The next larsen in making,the company with over 20000crs of order book is just quoting at 210 levels.Exit out flop ones in the basket to replicate it with a sucess,punj lloyd.
8)Saag rr infra:-The company ended the fiscal with 66crs of topline.It has got a robust order book position of over 410crs.So huge revenue visibility,sunrising sector coupled with great outlook makes it a super buy.The company is quoting at 38rs.
9)Valuemart Info Technologies Ltd:-To start with the company is quoting at "3"rs presently.To conclude-checkout its promotor-the real man with an amazing mind.He has taken a lot at 6rs now its hi-time you book it at the earliest.Valuemart info is a great but at the curent level of rs 3.
10)Walchandnagar Industries Ltd:-My 2nd 50 bagger,my darling,my walchandnagar.Dont be jealous guys though not a 50 bagger but walchandnagar still has the potential to do an encore from the present levels of 200.A quality company at much of a discount.
Monday, July 7, 2008
Mental mistakes in stock markets
[Cause of recent fall in indian stock markets/motilal oswal brokerage and recomendation/zandu pharma news and reason for sharp upmove/10 mistakes which should be avoided/how to be a good stock picker/how to make money through trading/investors make money while traders loose big/what are the nifty levels to watch out for/support and resistance for nifty and sensex/deepak mohoni and prakash gaba bakwas tips/good advisors of indian stock markets/under owned and over owned stocks]
Stock indices have had a huge fall recently.The price cut has been particularly severe in the midcap segment,i.e,in stocks that have a low capital base and relatively low liquidity.It may be the time to step back a bit,book your losses on them and look for fresh oppurtunities in attractively valued stocks that have got pounded despite decent fundamentals.Picking good stock is the key to succesful investing in bull markets.Over-owned stocks pose a higher risk of loss when the markets turn down.
There are so many common mental mistakes investors make,that often lead to losses.Some of these avoidable errors are:-
1)Overconfidence-This can lead to complacency and over exposure.It is the most common mistakes investors make when they are making profits.In equities you can never throw caution to winds.
2)Herd-like behaviour driven by a desire to be part of the crowd or an assumption that the crowd is right-If midcaps are rising people buy these stocks without even knowing anything about the companies.There are so many companies in our markets which only exists on paper,they moves with the winds or faces some unscrulpous activites,the simple gullible investors gets in at the top and that leads to a paralysis when the price suddenly falls and as soon as that happens you are stuck badly unable to take a call on the stock.Look whats happening now.
3)Excessive aversion to loss=Inability to book a loss when an investment goes wrong is the single biggest cause for losses to investors.Unless a stock has been bought on strong conviction of long term value,those who make investments for quick gains must learn to exercise stoploss.
4)Fear of uncertainity-This leads to inaction.If we book profits and the stock still moves higher,we feel bad.Therefore if a stock is moving up most investors refuse to book gains.And many a time this ultimately leads to losses.
5)Fear of making an incorrect decision and feeling stupid-This too leads to inaction.People often opt for inaction when faced with fear of making a wrong choice.However little do they realise that not acting in time too is a choice that they made unknowingly.
6)Reluctance to admit mistakes-This is another behaviourial pattern that leads to incorrect decisions.In markets,we are loathe to admit that we made a wrong decision.However admitting a mistake and taking corrective measures often saves a lot of money.
7)Following tips of self-proclaimed advisors aware of nothing-In a bull market so many self proclaimed analyst grows,they wud just name the company backed by nothing,the scrip moves up 10% and bang he is the next big bull that we all are looking for.This is another classical behavioural patern.Now simple investors would opt for that scrip without having any confidence or conviction and as soon as the price falls down,the villain is there to catch hold of.
8)Exiting out great scrips at lower levels and buying companies which exists on paper at highs-I get a lot of mails in my mailbox daily pertaining to these point,Arunji i entered your suggested great multibagger at these levels, it came down 20% from my level, so in fear i sold out,now it has more than doubled/tripled what to do?Buying into a scrip means you are actually buying a business.Its so hard to start a business and to run it,i mean just feel it, u have to have an office,plants,machiniries,employees so many hassles.But buying a single scrip of any company means you are the owner of a great business.That company is liable to share everything with you,you being the owner of that firm.But investors hardly cares about it..Do u?
9)Failing to accurately assess their investment time horizion-Most investors make investments for the short term but when the trade turns into a loss,they stick to it claiming that it was a long term call.This could often lead to huge losses.
10)Forgetting the powerful tendency of regression to the mean-This is the most important lesson for all investors.All stock prices must ultimately revert to their long term averages.All sharp run ups on dubious companies comes to an end in an most unpleasant manner.
Stock indices have had a huge fall recently.The price cut has been particularly severe in the midcap segment,i.e,in stocks that have a low capital base and relatively low liquidity.It may be the time to step back a bit,book your losses on them and look for fresh oppurtunities in attractively valued stocks that have got pounded despite decent fundamentals.Picking good stock is the key to succesful investing in bull markets.Over-owned stocks pose a higher risk of loss when the markets turn down.
There are so many common mental mistakes investors make,that often lead to losses.Some of these avoidable errors are:-
1)Overconfidence-This can lead to complacency and over exposure.It is the most common mistakes investors make when they are making profits.In equities you can never throw caution to winds.
2)Herd-like behaviour driven by a desire to be part of the crowd or an assumption that the crowd is right-If midcaps are rising people buy these stocks without even knowing anything about the companies.There are so many companies in our markets which only exists on paper,they moves with the winds or faces some unscrulpous activites,the simple gullible investors gets in at the top and that leads to a paralysis when the price suddenly falls and as soon as that happens you are stuck badly unable to take a call on the stock.Look whats happening now.
3)Excessive aversion to loss=Inability to book a loss when an investment goes wrong is the single biggest cause for losses to investors.Unless a stock has been bought on strong conviction of long term value,those who make investments for quick gains must learn to exercise stoploss.
4)Fear of uncertainity-This leads to inaction.If we book profits and the stock still moves higher,we feel bad.Therefore if a stock is moving up most investors refuse to book gains.And many a time this ultimately leads to losses.
5)Fear of making an incorrect decision and feeling stupid-This too leads to inaction.People often opt for inaction when faced with fear of making a wrong choice.However little do they realise that not acting in time too is a choice that they made unknowingly.
6)Reluctance to admit mistakes-This is another behaviourial pattern that leads to incorrect decisions.In markets,we are loathe to admit that we made a wrong decision.However admitting a mistake and taking corrective measures often saves a lot of money.
7)Following tips of self-proclaimed advisors aware of nothing-In a bull market so many self proclaimed analyst grows,they wud just name the company backed by nothing,the scrip moves up 10% and bang he is the next big bull that we all are looking for.This is another classical behavioural patern.Now simple investors would opt for that scrip without having any confidence or conviction and as soon as the price falls down,the villain is there to catch hold of.
8)Exiting out great scrips at lower levels and buying companies which exists on paper at highs-I get a lot of mails in my mailbox daily pertaining to these point,Arunji i entered your suggested great multibagger at these levels, it came down 20% from my level, so in fear i sold out,now it has more than doubled/tripled what to do?Buying into a scrip means you are actually buying a business.Its so hard to start a business and to run it,i mean just feel it, u have to have an office,plants,machiniries,employees so many hassles.But buying a single scrip of any company means you are the owner of a great business.That company is liable to share everything with you,you being the owner of that firm.But investors hardly cares about it..Do u?
9)Failing to accurately assess their investment time horizion-Most investors make investments for the short term but when the trade turns into a loss,they stick to it claiming that it was a long term call.This could often lead to huge losses.
10)Forgetting the powerful tendency of regression to the mean-This is the most important lesson for all investors.All stock prices must ultimately revert to their long term averages.All sharp run ups on dubious companies comes to an end in an most unpleasant manner.
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