Dear friends
In the interest of all investors, we are back with the richness guaranteed blog!
Now that market has risen at an amazing pace, if you feel that you have been left behind, that is not the case. This is just a suckers rally and the fundamentals have been worsening each passing day. Especially for Indian markets, oil at $120+ and Sensex at 18K plus does not make sense!! One has to go down fast and we know with Iran episode happening, it is not going to be oil.
Hence, we suggest people to sell most of the stocks at current values except 10 to 20% investment in HPCL and ONGC. However, in the same series, we are also recommending the following stocks as medium term buy and explaining the buys.
1) Shipping Corporation of India (SCI) - Baltic dry index has crashed and there is nothing worse for shipping industry. So, this is the right time for long term investors to keep a watch on shipping stocks.
We suggest to buy SCI at the following levels:
10% - CMP
20% - Rs. 62
30% - Rs. 58
40% - Rs. 51
There is a huge probability that the stock may not move below 60 but keep your eagle eyes on this one! An yes, do check the dividends which can cross 8% easily for you.
2) Essar Shipping - This is our hottest buy of the season.
Ruias are very intelligent people who know how to create wealth for themselves and for other few who understand their gameplans!.
We all know that erstwhile ESPLL (Essar Shipping,Ports and Logistics Limited) was listed as Essar ports Limited(EPL) in 2011 and a new company Essar Shipping Limited (ESL) was listed. Now, investors never got a chance to look at the businesses this company was controlling but the latest Q3 2012 results reaffirm what we always thought.
Essar ports is good and has been steadily growing. However, if you take a look at 2011 and earlier results of ESPLL, the subsidiaries or companies that generated maximum profits for ESPLL are listed under Essar Shipping and not Essar Ports. No wonder, the book value of ESL shown on moneycontrol is 250+!!
Also, every 3 shares of ESPLL were divided into 2 shares of EPL and 1 of ESL. Hence, out of around 600 million shares , 400 million shares are of EPL and only 200 million of ESL which makes float of ESL very low and hence EPS higher.
The gameplan was simple. List ESPLL as EPL but move the major business lines to ESL (Shipping/Charter, Logistics, Oilfield Services), reduce the number of shares and increase value tremendously. Hence, if Essar ports (EPL) trades at 70, ESL should actually trade at a premium to that, around 100!!
Now, we would suggest readers to catch ESL before it is too late (however watch out for 2G case hearing on 22nd feb and if script falls, catch more!). Buy at following levels:
1) 25% - Right Now!!
2) 25% - After Feb 22 after case hearing. Buy on dips if result is not in favor of Essar promoters else buy on rise as well.
3) 50% - Anywhere between 25 to 30! Just buy on dips.
If the script refuses to come down, catch the uptrend at following levels - 37+, 43+, 52+...after this there is no looking back!!
Cheers!
Invest2Richness
In the interest of all investors, we are back with the richness guaranteed blog!
Now that market has risen at an amazing pace, if you feel that you have been left behind, that is not the case. This is just a suckers rally and the fundamentals have been worsening each passing day. Especially for Indian markets, oil at $120+ and Sensex at 18K plus does not make sense!! One has to go down fast and we know with Iran episode happening, it is not going to be oil.
Hence, we suggest people to sell most of the stocks at current values except 10 to 20% investment in HPCL and ONGC. However, in the same series, we are also recommending the following stocks as medium term buy and explaining the buys.
1) Shipping Corporation of India (SCI) - Baltic dry index has crashed and there is nothing worse for shipping industry. So, this is the right time for long term investors to keep a watch on shipping stocks.
We suggest to buy SCI at the following levels:
10% - CMP
20% - Rs. 62
30% - Rs. 58
40% - Rs. 51
There is a huge probability that the stock may not move below 60 but keep your eagle eyes on this one! An yes, do check the dividends which can cross 8% easily for you.
2) Essar Shipping - This is our hottest buy of the season.
Ruias are very intelligent people who know how to create wealth for themselves and for other few who understand their gameplans!.
We all know that erstwhile ESPLL (Essar Shipping,Ports and Logistics Limited) was listed as Essar ports Limited(EPL) in 2011 and a new company Essar Shipping Limited (ESL) was listed. Now, investors never got a chance to look at the businesses this company was controlling but the latest Q3 2012 results reaffirm what we always thought.
Essar ports is good and has been steadily growing. However, if you take a look at 2011 and earlier results of ESPLL, the subsidiaries or companies that generated maximum profits for ESPLL are listed under Essar Shipping and not Essar Ports. No wonder, the book value of ESL shown on moneycontrol is 250+!!
Also, every 3 shares of ESPLL were divided into 2 shares of EPL and 1 of ESL. Hence, out of around 600 million shares , 400 million shares are of EPL and only 200 million of ESL which makes float of ESL very low and hence EPS higher.
The gameplan was simple. List ESPLL as EPL but move the major business lines to ESL (Shipping/Charter, Logistics, Oilfield Services), reduce the number of shares and increase value tremendously. Hence, if Essar ports (EPL) trades at 70, ESL should actually trade at a premium to that, around 100!!
Now, we would suggest readers to catch ESL before it is too late (however watch out for 2G case hearing on 22nd feb and if script falls, catch more!). Buy at following levels:
1) 25% - Right Now!!
2) 25% - After Feb 22 after case hearing. Buy on dips if result is not in favor of Essar promoters else buy on rise as well.
3) 50% - Anywhere between 25 to 30! Just buy on dips.
If the script refuses to come down, catch the uptrend at following levels - 37+, 43+, 52+...after this there is no looking back!!
Cheers!
Invest2Richness
