Downtrend Intact - Watch MRPL!

Dear Friends

All of you who have resisted the temptation to go on a full fledged shopping spree in recent market rise have done a great job. The market may not be crashing but the downtrend is intact and bad results in this quarter can make it worse.
Hence, it is in our best interests to wait and watch the results before taking further action.

The stock that has been giving really good signals is MRPL. People can invest in MRPL in steps and keep this stock in kitty for around 3 years to get phenomenal gains. Watch out for the following levels to buy:
1) 61: 10%  of intended investment in MRPL
2) 57: 20%
3) 51: 30%
4) 47: 40%

Even if you can catch this stock anywhere below 55 and you intend to stay invested for long term, there is nothing to worry about and watch further levels. The stock can give great benefits in terms of dividends and price rise.But if you can watch the market continuously, then it is better to invest as per levels above.

Cheers!
Invest2Richness

Market Crash - An Opportunity?

Wow! The market has gone for a toss and it is a time to make sure you have enough cash when the opportunity arrives.
As I said in my first blog, you should not have invested more than 30% in the stock market. You should have at least 15% of your portfolio in Gold. That means your total investment as of today is around 45%. You must have at least 55% cash in your kitty.
Now, the time is right to start cherry picking and buying some stocks that can give an awesome return from the current levels. Remember one thing in share markets, invest when the opportunity arises. When you wait with cash, always sense a level comfortable to invest. No need to catch the bottom but your investment level should not be more than 20% higher than bottom.

Right now, two scripts that catch my eye are SPICEJET Ltd. and Ruchi Soya.

For Spicejet, anything near or below 22 is good enough to start buying in this crash. The stock will recover as fuel prices go down in next quarters and can give best returns in stock market in 1-2 years.Buy twice the quantity you already have.
Ruchi Soya is fast approaching our buying target as specified below. When it touches those levels, go for it!. Make sure you invest only 15 - 20% of your current cash in above stocks as of now. That means your total investment in equity should not exceed 50% and it is better to stay in cash and buy slowly for next 3-6 months.

Also, keep a watch on Chennai Petroleum Corporation, IOC and HPCL and if you have extra cash to invest or park for 3 years or more, those are the companies you should be looking forward to.


Cheers!
Invest2Richness
invest2richness@in.com

Rocking Recommendations - Ruchi Soya!

Dear Friends....

If you followed my strategy and recommendations till now, you would understand that I am here to help you people to preserve your capital and help it grow in next 3 - 5 years. Anyone who has followed my recommendations will be in good profits or at least in green.

The next stock you should keep an eye on is Ruchi Soya. The company is good and you can look forward to good profits and growth in this company. If market goes down and you can get this one below 91, buy at following levels:

1) 90 - 20% of intended quantity
2)  81 - 30% of intended quantity
3) 75 - 50% of intended quantity

Regards
Invest2Richness

Scams Galore-SpiceJet and SunTV

Dear Friends

There we go again. The 2G scam has taken its toll on two really good scripts.
Now, if the analysis and news is read properly, Maran used BSNL for his personal profit and the company that benefited was SUN TV that may have to pay around 630 crores (without penalties) for use of BSNL lines. Even, second case of tie up with a Malaysian communications company clearly seems to benefit Sun TV.

Also, Marans have a 70% stake in Sun TV but only 34% in Spicejet that was acquired only in 3rd Quarter 2010.  So, which was the company that benefited in 2007 - has to be Sun TV because Marans never controlled Spicejet at that time!!
WOW!!! That means the company that can actually suffer financially is only Sun TV and not Spicejet. So, there you go. You have one of the biggest opportunities to buy a great stock at rock bottom prices. The company is the most profitable in airlines industry with minimal debts. Secondly, Marans have bought a stake in the company at an average of 47-48 and you are getting this company much cheaper than promoters price!! Yeah, this is a stock to have in your kitty at right time.

Forget Market and buy in following stages (Around 15%-20% of your portfolio):

1) 34 - Buy 20% of intended quantity.
2) Below 31 - Buy 30% of intended quantity.
3) Below 28 - Buy 50% of intended quantity.

On Upside, buy on 36+ and 41+.

Regards
Invest2Richness

Mahindra Satyam and MRPL - Good Buys!

Mahindra Satyam is the stock to own and should form at least 20% part of your portfolio and at most 25%. It is important that you always diversify the risk no matter what and no matter how much potential of a stock is.
Keep an eye for these levels:
78: Buy 20% of intended quantity.
75: Buy 20% of intended quantity.
72-73: Buy  30% of intended quantity.
68: Buy 30% of intended quantity.
The above levels will be reached only and only if market is very weak. If you are really a long term investor, invest in bulk if stock touches 72-73.
On the upside, buy further once stock crosses 81 comfortably and stays above that. Next level would be 85+ and further 91+....

 Buy MRPL. It is giving excellent results every quarter and we expect those to continue.

Regards
Invest2Richness
A Selfless service for Small Investor!

Market Down -Buy Mahindra Satyam

Hi Friends

As expected by us, retaining cash in current market should have brought you some relief. If you followed our guidelines, you should not have invested more than 20% of your cash in equity. You must have 15 to 20% of your investment in Gold already.

Our next recommendation is Mahindra Satyam. The stock has given strong buy signal and can be picked up at 79 and below. If the stock touches 75, you can add MSAT as 10% of your portfolio. We will add another 5% on confirmed upside or further slide if market weakens further.

Regards 
Invest2Richness
A selfless service for Small Investor

ADSL - UPDATE

ADSL is a very strong buy at any level near 53 and if it touches 51, ADSL can be bought aggressively. But make sure that max investment of your portfolio in ADSL would be 1% - nothing more than that.

Update - 5th June 2011

The stock again is weak but can recover any time and if you have bought at 51 or below, nothing to worry about. But because it is a risky asset, make sure that your investment is not more than 1% in this stock. In case everything is lost in this one (worst case scenario - which should not be the case considering book value of company is 136),  then also you will easily recover everything in my other recommendations if you invest at right time.
The potential of this stock is 100% rise in six months from current levels and 300% rise in 1.5 years.

Invest2Richness

Allied Digital (ADSL) - Base Confirmed

Dear Friends

ADSL has been a heart wrenching experience for many of my small investor friends. Today, ADSL management gave a silver lining to the stock by buying the stock above 53.95 providing it a very strong support at 53 as a part of its buy-back offer. 100,000 shares were bought by Anand Rathi and subsequently the stock was picked up by some other big investors resulting in huge delivery volumes.

Keep an eye on the stock and any level between 59 to 61and below is a good entry point if you want to stick to the stock for medium to long term. However, the stock carries medium risk but looks very cheap below 60 especially after re-assurance of the promoters. One can invest in ADSL but not more than 1% as a part of one's portfolio. The fundamentals still remain intact. However, it will be a traders paradise for foreseeable future.

Regards
Invest2Richness - A selfless service for retail investors.

Investing Strategy and Recommendations

The investing strategy has to be fairly simple. The strategy that you can understand and comprehend well is the strategy you should chose and follow.

The strategy should be a result of thorough analysis of Government Policies (try to see the writing on the wall), national and international currency policies, commodity pricing policies and thorough business analysis. Eg: A person who is buying Dollars today is definitely a fool! Same is the case with a person who is selling Gold!

I will be giving long term recommendations with a time-frame of 1 to 3 years. I don't give trading recommendations.

For now, the stock markets are going down and it is in peoples' interest to stay in cash. Any analyst who says buy is fooling you except some who may be recommending select stocks or commodities. DO NOT listen to your brokers or technical analysts on TV. Use your own brains or if you can't, just follow me. I have started investing my time in this blog just to hep you invest sanely.

Recommendations :

1) Stay in cash as much as possible - at least 70% in cash.. Rest 30% - invest as below.
2) Buy physical gold with 15% of the money you intend to invest. You should buy physical Gold. Do not go with ETFs. Keep this with you forever!! Gold never fails you. If the price of Gold falls in long term, that will mean decreasing inflation and increasing value of money and even after selling Gold, you will still be able to buy the commodity that you would have bought at a higher price when you bought Gold. If you do not understand what I said, do not try to. Just buy Gold especially now that the prices have cooled down a bit. Try to buy gold below Rs. 22,500 per 10 gram.

Invest 10% in stocks below. If the amount you have to invest is less, then you can buy only 2 stocks from the list below:

3) Buy HPCL (Hindpetro) for 2 years.
4) Buy ONGC for 2 years.
5) Buy  Chennai Petroleum Corporation for 2 years.
6) Buy MRPL for 2 years.

Just stick with the recommendations above and do not buy anything else for now. Invest 10% in above stocks and keep 70% cash. Remember, you have cash and even if stocks go down, don't worry - we'll average at appropriate time.  The point is that you will invest for 2 years so no need to see market every hour. You can check the status once a week. Just find time for yourself and and your family.

7) Rest 5%, I'll inform you once I see the results of some good turn-around companies.


You can ask any questions you have through comments. This service is for retail investors who normally lose money to big corporations and brokers.


Thanks and Stay Tuned!

PS: In case someone wants my advice on personal portfolio, you can send a mail at "Invest2Richness@in.com" with subject as "Portfolio Advice" and I'll get in touch with you. I will charge for personal portfolio advice only and only after you have earned handsome profits. My charge will be 5% of your "profits" at end of 1st year and every subsequent year till you keep investing as recommended by me.

The Selfless Stock Guide!

Since past 9 years I have followed Indian stock market thoroughly. I have seen it rise from 3000 to 21000 and then fall to 8000 and rise again to 20000. Wow, what a ride it has been!!

I know may people have lost a lot of money in market and they are always looking for one single person who can share knowledge on earning money in Stock markets. So, I decided to take this opportunity to help retail investors invest wisely.

The fundamentals of retail investing are very few and simple:

1) Don't invest more than 10% in risky assets or stocks
2) Always have 10 to 20% of your portfolio in physical Gold.
3) Always keep at least 20% cash in hand.
4) Wait for the right time to invest (many financial experts fool you at this point - DO NOT GET FOOLED. Waiting with cash in hand is one of the best decisions you can make in trubulent times).
5) When the time has come, do not worry for 5, 10, or 20 bucks, just invest for long term.
6) Try searching for large caps that can give decent profits in 3 years and then go for MidCaps that can give very good profits in 2-3 years. The idea is to invest in companies that are well established in their segment and are big enough to  weather any storms.
7) Invest Wisely . :). Do not invest because others say so. Invest because you have done enough research and because you know you can earn money.
8) Do not trade if you do not have enough cash. Always go for long term investment in right opportunity at the right time.
9) If you have enough cash, investing in land (especially in India) is always a good decision. Investments in Flats/Apartments can falter.

Well I can think of many more points but I'll stop here. Now on, I'll be recommending the exact strategy for people to follow and invest. People who can invest with me for 3 to 5 years should be able to get anywhere between 300% to 700% returns.

Stay Tuned for Next Article! It will exactly tell what to do from tomorrow onwards in Indian market.

Cheers!