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United Drilling Tools recommended @ Rs.30 about ten months back hits its life time high today and closed in upper circuit. Due to merger of some group companies and change in auditors , company could not submit its financial results of past few quarters within the stipulated time . But now company announced the result of all pending quarters . For the nine months ended December 2014 , company reported a turnover of Rs.110 Cr against last full year sales of Rs.36 Cr and a net profit of Rs.33.35 Cr ( less than 1 Cr in last full year) . On expanded equity of Rs.10.2 Cr , company reported an EPS of Rs.32 + for the nine months period . Though the stock already appreciated by more than 4 times within 10 months , risk takers can still HOLD it.
Earlier its shares shifted to 'Z' group due to non filing of financial result withing the stipulated time , but since the company filed the same in BSE now , I expect , it will return to its original group in near future Recommendation Link HERE
Kaveri Seed Company initially recommended @ Rs.272 ,which hits its life time high Yesterday. Post recommendation company splitted its face value to Rs.2 from Rs.10 and issued 5 shares for every 1 share . Adjusted to this stock split , an amount of Rs.272 invested in 2010 appreciated to Rs.5385 so far . Now suggesting to take some more profit from it by selling another 20 % of your original holding and keep the remaining.
Granules India is one stock recommended here more than three times in the past from a level of Rs.79. Today , stock hits its life time high of Rs.1017 ( so far) , an 11 times appreciation in three year time period.More than making money , I believe such experience will give confidence and patience to my readers to HOLD high conviction stocks for long term , irrespective of their slow moving nature during consolidation periods and prevent temptation to shift from steadily moving high quality stocks to fundamentally weak operator driven stocks in an efforts to make quick bucks. Now company fixed 24 March 2015 as the record date for 10:1 stock split . Still recommending to HOLD it .
Happy Investing Link to Initial Recommendation HERE
Shemaroo Entertainment is relatively a newly listed company
in Indian stock exchanges . Company came out with an IPO in last September and issued its
shares at a price of Rs.170 . This Mumbai based company is the largest media
content synicator in India and own the rights of about 3000 movies ,mainly
Hindi and also some regional language movies .Company acquiring contents from
its original producers and monetize the same by re-selling it to different
media platforms.Shemaroo acquiring its movie rights in two different models -
perpetual or aggregated. Perpetual Rights meansthe rights to distribute content worldwide for anunlimitedperiod across all media. Aggregation method means ,the rights are
restricted for fixed period, platforms, or geography . Company selling these contents to
both conventional media platforms like TV Channels , Cable TV Networks..etc and
new generation media platforms like Mobile ,Internet..etc. At present , major
portion of income is coming from Conventional platforms , but the growth rate is far better in new media
platforms.For the last nine months growth rate in Conventional platform was 9 %
where it was above 40 % in new media segment. This same trend is expected in
future too. Government’s and Telecom companies' efforts to expand the
infrastructure for broadband and introduction of modern technologies like 4G
..etc are expected to sharply increase theInternet penetration in India in the coming quarters . Number of mobile
Internet users are expected to grow exponentially in India in the coming years
.Such a situation may help the company to achieve faster growth in its media
syndication business through new gen platforms like mobile phone and Internet. Recently
company tiedup as an official channel
partner for You Tube where it is managing more than 30 channels. It is also
providing content management services to partners including Reliance
Communications Re1 WAP store, and Airtel digital television for an interactive
devotional service -iDarshan.
the nine months ended December 2014 , company reported a top line of Rs.238 Cr
and a net profit of Rs.28 Cr . It is expected to complete FY 2014-15 with an
EPS of Rs.18 .At the time of IPO , company had a debt of over Rs.100 Cr . It
raised Rs.120 Cr through IPO and so far utilised an amount of Rs.40 Cr (
approx) for working capital requirements .An amount of Rs.70 Cr still invested
in mutual funds and liquid securities . As per December quarter share holding
Promoters are holding about 66 % stake in this company.Recently JP Morgan Chase’s
offshore subsidiary Copthall Mauritius Investment
Ltd acquired 4.5 lakhs shares from open market @ Rs.230.Promoters very good
relation with major film producers and their more than 30 year experience in
this business giving indisputable leadership position for Shemaroo in media content
syndication industry .Considering the huge growth potential of new-gen media going
forward , I believe , Shemaroo can improve its already dominant position in
this industry. Stock is currently trading around Rs.208 .considering the present high
volatile market situation , suggesting to accumulate it in a staggeredmanner with a long term view. Stock is listed in both exchanges.
SML ISUZU recommended @ Rs.335 hits its life time high today @
. Those with some risk appetite may still hold the stock for long term and others can book part profit and keep the remaining as cost free.
This stock recommended @ Rs.138 hits its life time high today @
Rs.584 . Now the promoters are hiking their stake by subscribing additional shares along with well known investor Prof .Shivanand Shankar Mankekar through preferential allotment . Post allotment , promoters stake will rise from current 69.03 % to 72.02 % and Prof. Manekar's stake will increase from 2.39 % to 4.86 % ( under public Category.) Those with some risk appetite can still HOLD this stock.
Investing in the stock market is one of the best things you can do
with your money, provided that you know what you're doing. If you don't know
what you're doing, you might as well take your money to Vegas — you might even
get better odds. But if you're going to play the market, do it right.
are some common mistakes many
investors make. Know them and avoid them.
1- Buying a stock because it pays a
corporation can distribute profits in the form of dividends. In other words,
each share gets a certain amount of money. While it's great to get a dividend,
it's not wise to hunt them. So, the mistake that a lot of guys make is to buy a
stock shortly before they expect it to pay a dividend.
that sounds good, the problem is that the price they pay for the stock likely
reflects the anticipated dividend. In other words, shopping for dividends means
to do instead:
It's good to have dividend stocks in your portfolio, but they're not the only
way of making money. Instead, hold a diverse portfolio, knowing that some of
your stocks will likely pay a dividend and others won't for a very long time
(if ever). If you do that, you'll find that you're one step further on the road
to holding a collection of blue chips (which tend to pay dividends) and more
speculative securities (which may be years away from profitability, despite
increasing stock prices).
2- Buying a stock before an earnings
An earnings report is
like a quarterly scorecard from a company. But before that scorecard is
released, market analysts spend their days making predictions. Most companies
meet or beat expectations. The mistake, then, is taking an earnings report too
seriously because meeting or beating earnings just isn't news. So, if your
strategy is to speculate based solely on earnings reports, you'll be basing
your predictions on accounting tricks.
to do instead: Earnings
reports have their place, but you want to use them as a signal. What should you
be looking for? The company that doesn't meet its earnings.
it may be a good investment, depending on why it didn't make its earnings and
what it can do to change that (you'll have to investigate). But in the
meantime, the stock price has likely gone down, which means there could be an
opportunity for you.
3- Buying into the hype
Remember Pets.com? It
was pretty much the poster child for hype in a boom market. In fact, there was
so much hype around Pets.com that Jeff
Bezos (CEO of Amazon.com) later confessed that investing in that company
was one of his biggest mistakes. But what happened to Jeff happened to a lot of
guys: They got carried away by the hype (and by a stock price that grew in
leaps and bounds daily). In the end, the company was worth nothing.
to do instead: It's
easy to tell you not to believe the hype. But that is, in essence, what a lot
of guys should do. Few companies out there can live up to the hype, so you
should take it with a grain of salt. When you see a rocketing stock price and
all you hear is about this hot, new company, think to yourself that these are warning
signs, not investment signs. Remember; living up to that kind of hype is
a once-in-a-lifetime investment.
4- Assuming that if a stock price is
low, it's good to buy
Buy low, sell high,
right? Well, maybe. Just because a stock price is low, doesn't mean it's a good
buy. And, conversely, just because the price is high, doesn't mean it's a bad
buy. The mistake is not knowing that "buy low; sell high" is really
shorthand for "buy stocks that are undervalued and sell stocks that are
What to do instead: High
and low are relative terms — $300 may seem like too much for a stock, whereas
$3 might seem like a bargain. But you have to put the trade in context. Ask
yourself if the company is under- or overvalued at its present price, based on
market cap and P/E. That's the mark of 6- Blindly following the lead of an
easy to get the business page confused with the gossip column; after all, both
do a ton of name dropping. A lot of guys make the mistake of following a
big-name investor like Mark Cuban or Kirk Kerkorian.
The even bigger mistake is
thinking that by copying them, you're guaranteed a payday. First, there are no
guarantees. Second, even if they are right, they haven't told you their
strategy, so you won't know when to sell. What to do instead: You should follow what some of these
investors are doing (if only because they have the capital to move markets).
But by follow I mean pay attention to, not copy. In short, know
everything you can, but think for yourself.
5- Not cashing out &
locking in your profit
At some point,
you need to take profits. But when you take profits (sell), it can make all the
difference. The truth is that there is no easy answer for this. Sadly, a lot of
guys get a gambler's mentality when it comes to profit taking. That's the
mistake. Or, they see a little bit of profit, and hit the panic button and sell
too soon. That too is a mistake.
What to do instead: Look at the profits (rate of return) that
are common to the sector. The key is to be realistic. What you need to do is
stay disciplined and not get greedy or scared. Plan your profit taking as
carefully as you plan your investing.
6- Not cutting your losses
Stocks move up
and down. But sometimes a stock suffers a steady decline. Surprisingly, some
guys see that happening and they root for their stock like it's their favorite
sports team. In other words, they become emotional. Day in and day out, they
obsess over a declining stock price as they lose more and more money.
What to do instead: Short and sweet, sometimes you need to
cut your losses. Success is a relative term when it comes to investing.
Ideally, we think of success as how much you make. But sometimes success is
about how little you lose. A smart investor not only knows when a stock is in a
tailspin, he has the courage to let it go, so he can take his money elsewhere
and start making it back.
7- Not doing your own research
Chances are that you
have more than a few friends with their own ideas about investments. The mistake that most guys make
is taking their friends' advice at face value. This isn't to say that you
shouldn't trust your friends. They could be right. But copying them without
questioning them is like giving away your money and hoping it comes
to do instead:
Find out where your friends get their information. If they have a broker that
has made them a lot of money, ask for a referral. If they have their own
strategy, ask them to teach you (it may not be the best strategy, but any
worthwhile strategy should be able to hold up under the scrutiny of a student).
8- Gambling on penny stocks
With their low
prices, penny stocks look like sexy investments. But there are two problems
with such stocks. First, small prices typically mean smaller margins, so the
transaction costs can eat you alive. Second, penny stocks are more susceptible
to fraud and manipulation. While most penny stocks are legit, it's an area
where crooks ply their trade.
to do instead:
Penny stocks aren't for green investors, despite their price. Why? Because to
make money in penny stocks, you need resources. Furthermore, transaction fees
are likely higher when you're trading a high amount of stocks. Investing always means doing
research, but you won't read about penny stocks in the business section, so
you'll need the resources to dig a little deeper.
9- Being afraid to invest during bad
For the most part,
the economy moves in cycles. Boom years are followed by bust years. While you
can't seem to keep guys away from investing in boom years, it's like pulling
teeth to find investors in the bust years. Of course, there are more bargain
investments in leaner times, so staying out of the market in those years can be
a big mistake.
to do instead:
Remember this rule: economic downturn is an investment opportunity. While that
doesn't mean going all in when things turn south, it does mean that you should
look at the market with a different eye. Don't be discouraged when things are
tough, and don't follow the crowd.
10- Blindly following a broker
Do you have a friend
who begins every sentence with, "my broker says..."? Well, so what?
More than a few guys get burned by blindly following their broker's advice. Is
he an expert? Yes. Does he have an agenda? Quite possibly. Does he have the
power to predict the future? Of course not.
to do instead:
You should listen to your broker. But you should also question him. Remember;
at his core, he's a salesman, so he's trying to sell you something. Press him
on details. Why is this stock the next great stock? Did he invest his
own money in it?
11- Not staying on top of your
Some guys spend
months doing research, setting up a diverse portfolio only to make their
initial buys and go to sleep at the wheel. It's puzzling, but it does happen.
The trouble is that the market won't call you before things change. As a
result, a lot of guys wake up one day to find themselves busted.
What to do instead: It depends on the type of guy you are.
If the trouble is that you'd like to follow your investments but you just don't
know how, you'll want to take advantage of the tools offered by your brokerage
house. All brokers offer them and they work like household accounting programs.
On the other hand, if you're just lazy (it happens), you probably shouldn't be
so active in the market: look for mutual funds where you'll only have to review
things on a quarterly basis.
12- Entirely selling a winner
When you make a
profit, it's only natural to want to sell and take that profit elsewhere.
Conversely, a lot of guys look at their losses and hold onto them hoping
they'll get back to even. While those may seem like different problems, they
have the same root cause: misallocating your money. While nothing is constant,
the above strategy actually has you pulling away from winners and getting
closer to losers, which doesn't make any sense.
What to do instead: It's okay to take a profit (in fact,
it's smart). But unless you think the bottom is going to fall out on your
stock, don't sell it all — hold on to some of the winner stock.
13- Trading too much
Being a trader
or being active in the market doesn't mean making a ton of trades. But some guys
make trades the way the rest of us order drinks (pretty much without thinking).
While they may know what they're doing when it comes to the trade itself, what
they're missing are the transaction costs. Each trade has a commission fee and
each trade has tax implications. So, if your profit margin is slim, chances are
it will evaporate with fees and taxes.
What to do instead: Never let fees and taxes dictate your
trading moves. If you have to change your position, do it. But don't ignore
fees and taxes, and don't get trade happy.
14- Assuming that if you like
the product, the stock is good
How often have
you and your friends enjoyed a product (like a Krispy Kreme donut) and said
that you should own stock in the company? Well, some guys incorrectly assume
that a great product equals a great stock. But the truth is that there's more
to a good company than a good product.
What to do instead: Look at the product as a good starting
point. Okay, you found the next big thing. Now do your homework. Learn
everything you can about the company from its management team and its business
plan to its stock performance. Then make your investment decision.
Make money by avoiding mistakes
In total, we
discussed 16 common mistakes that investors make. Sadly, this is by no means an
exhaustive list. The truth is that all guys make mistakes with their money. But
what separates the winners from the losers are the guys who can apply what
A mistake is bad in and of
itself, but it is insurmountable if you don't learn anything from it, because
you'll likely repeat it.