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.