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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675
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   Topic: Innovative Stock Ideas!!!!
Posted: 24/Jul/2006 at 4:17pm |
Hi everybody,
As a responsible group emeber, I take this opportunity to tell you about some stocks which are looking very attractive to me.I trade on the basis of financials basically. For me good financials is the necessary condition and the right timing of entry and exit is the sufficient condotion for a successful trade.
Some of my discovered ideas are:
1.Pidilite Industries.
2.Electrosteel Castings
3.Albert david
3.Ballarpur Industries
5.Kanoria chemicals
6.BASF
7.Thirumalai Chemicals
8.Ultramarine & Pigments Limited
9.Foseco India
10.Alfa Laval.
11.Ciba specialty
12.Great eastern Shipping
13.Varun Shipping
14.Shipping Corporation
15.Chambal Fertlizers
16.Bayer Diagnostics India Limited
17.Schablona India Limited
18.Chennai Petro
19.JK Paper
20.Abbott India.
21.Pfizer
22.Havell's India
23.Granules India
24.Denso India
25.Novartis
26.Orchid Chemicals.
27.Merck India.
28.Cadila Healthcare.
29.Cheviot
30.Kothari Products
The list can go on and on, but I have told some of my favourites.If you have idea or any feedback to throw, kindly feel free to do so.
Regards,
Vivek
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prashantmohta
Senior Member
Joined: 23/Jul/2006
Location: India
Online Status: Offline
Posts: 1074
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Posted: 24/Jul/2006 at 11:56pm |
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value stocks are boring because they are rationally priced ,while investing in growth stocks an investor can get pe multiples in thousands like AOL,GOOGLE,YAHOO.
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
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Posted: 24/Jul/2006 at 12:04pm |
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The point in is to get in early and let the pe expand if I can understand you correctly. Most of the investors get in late and then... the pe contracts!!!
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675
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Posted: 24/Jul/2006 at 10:00am |
How do you define growth is also a matter of subjectivity.Its like this.. if a stock is available at a P/E of 6. then effectively it translates into the fact that my money will double( if, I think the EPS to be my real earning) in (72*6)/100 years. I often get perplexed when I people starting to talk of prices, while talking of growth.If I ignore dividends, then if a company having a PE of 5, should add whatever I have invested, to the book value in a period of 3.6 years.Is increase in intrinsic vaslue not a component of growth.Beleive you me, markets dont ignore fundamentals for too long...and it is the presentaion of anomalies which presents us with an opportunity to make a killing.
Best Reagrds,
Vivek
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 24/Jul/2006 at 10:08am |
Hi Vivek,
Could you check up and explain on the line "if a stock is available at a P/E of 6. then effectively it translates into the fact that my money will double( if, I think the EPS to be my real earning) in (72*6)/100 years
My understanding would be if a stock is available at a PE o6 then you should probably be able to recover your initial investment in 6 years.
Let us assume the stock price to be RS 72
EPS 12
PE 6
Now if each year you get back Rs 12 and without growth it should be back in (12+12+12+!2...) =72 in 6 years!
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675
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Posted: 25/Jul/2006 at 7:30pm |
Dear Mr. Basant,
I beleive you are cirrect. Actually, I tried to apply the rule of 72, but then I tried to in-built a case for incremental EPS onto my argument.I assumed rate of return on mu fund investment to 12/72*100.
Thanks for pointing out rectification.
Regards,
Vivek
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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675
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Posted: 25/Jul/2006 at 7:32pm |
Dear All,
Two of my companies have come up with results and both to my opinion have been bombastic. Will be glad if somebody can throw light on results of thirumalai chemicals and pidilite industries.
Regards,
Vivek
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
Online Status: Offline
Posts: 18403
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Posted: 25/Jul/2006 at 7:40pm |
No problems. Any way I was looking at your portfolio why are you sticking to SChablona a somany group company was delisted for quite a while, management carried out restructuring divided shares, I mean they were the off shoots of the license raj. After liberalisation all there has been a change in leadership in Corporate India. Most of the family owed business had to give way.Not sure what schablona does these days and I never had a look at its Balance sheet in recent times but I am sure it was in a mess. Others that i would aggressively avoid are ALbert David, Varun Shipping,Jk Paper, chennai Petro, ballarpur etc.
The ones which I would fancy are Pidilite, Havells and the MNC and top Indian pharmaceuticals.
Edited by basant - 25/Jul/2006 at 10:16pm
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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