Tuesday, April 7, 2009

Stock market:Invest as if you want to own the business

The art of Investing is buy low and sell high People who made money are the ones who bought stocks in tough time and made exit when peple were too comfortable with equiy market. Investment opportunities are available in plenty. At this point of time I thought of being an entreprenuer but no i feel I will buy small chunks of the stocks that will be making money for me & buy the servuce of experience management too is free. In this respect i would share two ideas time frame is unknown but it would definitely be a multi multi bagger in bull run. No. 1 unity infraprojects This stk is available wid lot of comfort in terms of Book value and order book. The most reasoable thing about this stk is its valuation less than 2 times its net profit and if I expect that they will not grow by 5% also still the valuation is at mouth watering levels.For full year the stock EPS will be 37 odd next yr it is somewhere in the range of 38.85+ its existing assets worth over 103 plus this means on NAV basis the stk two yrs down the line will be at 176 rs cash level add more the assets and decent order book unexecuted part. The stock will be a doubler atleast from here in less than two years and if bulls go crazy it may command a minimum PE of 6-10 times meaning 3-4 times return from current level. Another stock that interests is J K Lakshmi Cement available at 1.6 PE where its peers are anywhere between 7-8 times decent growth and dividend yield expected due to expansion. PE of the stock less than two thus the stk can be in three figures in six months time currently at 53 . I know difficulty is to time market but the best way is to invest and remain invested. I own definitely an Infra COmpany and a cemet industry common stock as an entreprenuer I am making money in the first year of my investment and my ROE is somewhere in between 30% what else should i ask for. Thank you investors for patient reading but these stocks will hog limelight as these are gems of mine with lot of due diligence and understanding I am recommending you all. Own these business today for reasonable return from Business perspective. Invest for your future today and dont get jittery if it falls in the short term and dont get excited if it gives decent returns. You will mint money in three yrs to 4 yrs atleast twice of what you make in NSC bank Fd or any other instrument ( COnsidered safe).