Sunday, December 20, 2009

Magic stocks - Part II

Dear Readers,

I have discussed about a master file in one of my previous posts which I am preserve for short term/intraday decision making, spot multibaggers as well as for monitoring the growth trends of scrips. I wish to share some interesting facts on certain scrips during this month or from just 14 sessions of the market (BSE), from December 01 to 18. Please refer my previous post in this connection in the following link, where you will get how this file helps for short term gains.

Interesting facts

These findings are amazing in the wake of time frame, all these happened in just 14 market sessions, where hardly any noteworthy events reported related to market/economy.

a) 300 stocks earned more than 20%

b) 43 Stocks earned more than 50%.

c) 25 stocks earned more than 60%

d) 10 stocks earned more than 70%

e) 5 stocks earned more than 80%

f) 2 stocks earned more than 90%

1. BSE Code 500356, Rama Newsprint & Paper Ltd standing at the top with a gain of 95.93%.

Price on 30 Nov 2009 – 20.90
Price on 18 Dec 2009 - 40.95

2. 531396, Women Networks Ltd grabbed a 92.91% stands second. The stock never saw a decline in last 14 sessions and continuously on UC of an average of .46 paise/day! (Incredible!, how these Women looks like?)

Price on 30 Nov 2009 – 6.91
Price on 18 Dec 2009 - 13.33

3. Penny stock, 531456, Minaxi Textiles at third with a 83.78%
Price on 30 Nov 2009 – 0.74
Price on 18 Dec 2009 - 1.36
4. In the known category, the railway stock Kernex Micro Systems grabbed a 64.55% and standing at 18th

Price on 30 Nov 2009 – 81.35
Price on 18 Dec 2009 - 133.70

Please have a look at the image, where I placed the list of top 25. On the negative side, most of the scrips showing heavy lose in prices, were undergone split/bonus issues. Few of them considerably bottomed due to reasons yet to unearth, but as of now, in cheap valuation.

Have a look and comment.

Shabu Thachat –


Sunday, December 13, 2009

Review - Year 2009

Dear Readers,

One of the action-packed and historic calendar year in terms of market is going to end. The year has provided mixed postures of both pain and pleasure to the investors. We witnessed the painful lows and on the other side, pleasing recuperations like a phoenix. In my view, the first and foremost positive outcome of Year 2009 is, it brought back the faith on market to the investor community. The year 09 also established the dominance of equity investment once again, and above all it has brighten up the apparent phenomenon, the unbeatable ‘Indian growth story’. In addition, the year has shown utmost kindness to thousands of investors who trapped in the market at the peak of 20-21 thousand levels (2007-08), recouped more than half of their lose.

I would like to look back through the year, in association with this blog and my Portfolio Advisory Services. I can say with sheer satisfaction that, 90% of my recommendations keeping far ahead compares to the percentage gain on indices. And some of them performed even beyond my expectations. This post is dedicated to my esteemed clients who kept utmost trust on me in the most testing time. I wish to discuss on few of my earlier recommendations which turned to real multibaggers. These stocks rewarded fabulous gains to me as well as to my certain clients in the year 2009.

Here, I have included the stocks which performed extremely well or which demonstrated the real Multibagger perception in a very short span of time. I would like to underline that, these stocks are not only performed vigorously in the line of their business but also not involved in any unauthentic means to establish their multibagger membership. Shortly, these stocks are genuine in all respects with in my awareness and I am still keeping a strong zeal on their tremendous growth potentials in the long run.

The following data is not exaggerated in any way and it is the true history with this blog. These recommendations were published on 04 March & 11 April 2009 respectively in this blog and has recommended to certain clients prior. I have placed the link below for a review as well as added the build up value of Rs. 10000/- for an easy get.

Om Metal Infraprojects

Price on 03/03/2009 - Rs. 6.76
Recommended buy range - Rs. 5.00 - 8.00
52 Week high(Oct 2009) - Rs. 37.50
Return % - 455%
Build up value of Rs. 10000/ - Rs. 55500/-

Amara Raja Batteries

Price on 03/03/2009 - Rs. 33.60
Recommended buy range - Rs. 30.00 – 35.00
52 Week high (Nov 2009) - Rs. 182.50
Return % - 443%
Build up value of Rs. 10000/-
Rs. 54300/-

Hind Dorr Oliver

Price on 03/03/2009 - Rs. 35.25
Recommended buy range - Rs. 20.00 – 30.00
52 Week high (Aug 2009) - Rs. 177.90
Return % - 405%
Build upValue of Rs. 10000/- - Rs. 50500/-

Kitex Garments

Price on 10/04/2009 - Rs. 05.04
Recommended buy range - Rs. 03.00 – 05.00
52 Week high (Dec 2009) - Rs. 29.00
Return % at 52Wk High - 475%
Build up value of Rs. 10000/- -
Rs. 57500/-

Portfolio Advisory Services

The service I made public through this blog on 08 August 2009. Till that time, I was running this for few buddies in my locale only. Again, I have got, and continuously getting tremendous response from all kind of investors. The leading numbers of my clients are in the category of inexperienced youngsters. The next higher numbers comes from the category of to be pensioners who have little time ahead to left their pay packets. NRIs positioned at third, and interestingly, house wives are positioned at fourth, mostly from metros/cosmopolitans. Fifthly, people I mentioned earlier who lost their big part of money invested at the peak levels. Then comes the middle aged, but fresh to market, retired people etc… I am planning to publish a special post in this row, but in leisure.

Some of these Portfolios are well maintained, scrips selected with extreme caution, but the majority is filled with junk shares. I usually asks clients, `Is there any particular reason behind this selection of stock X?. Majority of them have not clear answer or some of them even unaware about the business company involved, but they bought shares!!

Let me conclude.., Investment simply means put your money to earn more. It will help you to meet your certain fiscal goals. It may be for buying or building a house as your own, for marriage of your daughter, paying your kid’s education, for a tension free or comfortable retirement life, for a farsighted savings for your coming generations or whatever important to you. It is not mandatory that you have to be rich to be an investor. Investing even a small sum can build significant rewards over the long-term. An instant example with us, is the Kitex story itself. But it is important that to have to reach in a solid decision about how much you want to invest, where, how and when?. To choose wisely, you need to gain wisdom(the real power) on the entire investment spectrum, rules and logics of the game you are going to play, and above all, their relative risk exposures.

Few words to NRIs

I am monitoring the increasing number of hits to this site from NRIs, which is the muse behind following words. Here, let me place the appealing truth, our own motherland, India is comes under the top five economies in the world in terms of market potentials. Don't see it as a casual news which you read everyday in news papers! The news is nothing new, but I am assuring you, things are going in that way...As of now, we are positioned far ahead of developed countries like UK, France and Italy. Can you imagine that, we are ahead of UK who has ruled us ruthlessly for some 200 years?. Yes, I mean it!!, our growth have no limits. We are still in a nascent stage.. I am seriously dreaming a day, where the whites will work in our farms!, Oil riched Gulf people will serve our industries..People all over the world will shift from the products like Gillete to Godgrej or Emami...but largely depends on our politicians... We have been graded as the 3rd biggest economy in Asia in terms of GDP. I have placed a link of Wiki, where you can find our position in the list, as where we stand. Check serial numbers, 16, 28, 41, 49, 51, 69, 81, 102, 104, 110, 124, 140, 152, 155, 168, 172, 173, 177, 188, 192, 193 ,206 & 209.

Have a look on our position in the list and find where the established giants are standing. All these make investment in India is a most positive option for you. The Indian market proposes a great potential for the investors as the echelons of power of purchasing is improving day by day. In order to accomplish gains from investment in India, it is imperative that you should not think on any short-term goals; as any fiscal gains could only be accumulate from absolute patience.

Thats all for now and comment please....

Wishing all a Happy and Prosperous New year in advance..

Shabu Thachat



Sunday, December 6, 2009

Strategy - Short Term / Intraday Trading

Dear Readers,

Let me welcomes all of them who joined in the Portfolio Advisory Services in the month of November. This article is in response on certain queries raised by few my clients/readers. Please go through the interesting part or the core of an email query from a client.

[You have mentioned, some of your friends are making good money from intraday/short term trading. Can’t you try this?. As you said, if we all are here to make good money, then why can’t we try that? Can you provide good short term tips to us? I agree, long term investment pays better, but who knows about tomorrow in such an uncertain world? If we make something today that is true! The long term benefits are sometimes equivalent to insurance gains, rewards after death only. I am a person who wishes to live in present. Do you really practice intraday trading? Can you provide tips in this nature? ]

Another motive behind this article is a comment from Mr Venkat on my previous post. Check the link or find his few lines as it is:-

[“As you said in your one of the comment's that, every 6-10 scrips does make 100% return in last 30 days of their sessions. True to everybody word!!! .. But really which basis we can catch hold of these is out of my limit. ;).”]

I always prefer long term investments and still spending most of my time for the purpose. And it is true and an experienced fact that, a minimum of 6-10 scrips does make more than 100% returns in every 30 days of their sessions irrespective of the moves in indices. Some even do it in lesser sessions, any way, it always happens in market.

Let me come to the point. I do short term/intraday trading, based on my own parameters. I can explain the method I follow, but with a bit preface which may helpful for freshers.

The basic theory of demand and supply is the driving force which fluctuate the share prices. The propensity to boost in price of a share means augmented demand whether it is for short term or in long term. The long lasting demand of a stock depends on various factors, which we will discuss later. But for now, what all the factors which amplify the demand of a particular stock in short term? Simply, something is happened or happening behind the screen or certain positive news sparked on the company/scrip like any of the following:-

a) Positive Mergers & Acquisitions.

b) Positive company results .

c) Fresh and commendable orders bagged by the company.

d) Tie ups/collaborations with heavy players in the industry.

e) SIgnificant Awards/recognitions/approvals/patents to the company or to their products.

f) Chairing of well known professionals/intellectuals to the board or as Directors.

g) New or sensitive product launches.

h) Heavy insider buying or promoter’s accumulation from open market/Buy backs.

i) Heavy corporate Interventions/HNIs/MFs/Investor legends/other Financial services.

j) Sometimes, bad news on major competitors, :-)

k) Increasing of assets by the company.

l) Positive media reports/Survey/research results.

m) Dividend declarations.

n) Positive technology advancements in the sector.

o) Favorable Govt decisions/rules/stands to the industry.

p) Positive Industry growth charts/figures.

q) Baseless but temporary positive rumors.

r) Favourable court verdicts in disputes involved.

I have tried to include most of the reasons whatever I remembers right now, please suggest if I left anything.

What basically an intraday/short term trader have to do is, have such positive but genuine news as earliest and prepare the strategy. (I am not overlooking people who trade on analyzing technicals, charts or graphs). I had tried to catch such fiery news in my initial days of investing, and I did few, but in vein… It seems I was the last person who has read the news. Share prices started their journey to south, almost every time after I secured my positions. I always felt frantic as the scrip was waiting my entry to get fall.

But, now things are changed a little. I have learned some precious lessons my own from the market as well as from my earlier lose. I am maintaining a simple and ordinary tactic to carry out intraday/short term trading which I found beneficial and doing not bad.

I have created and maintaining two master files in MS Excel containing Code/ticker and Scrip name of both BSE & NSE. I add everyday closing prices automatically against each scrips under the header of particular date using some database tools. I insert a column in between every date and apply formulas to calculate the differences between every two days.(Current day-minus-Previous day). Now, I have the regular price changes between each days in columns against entire active scrips on BSE/NSE. I have placed formulas to highlight the both increase/decrease figures in different colours, green and red. (see the screen shots)

If I notices consecutive 2-3 green figures at any row or against any scrip, I stuck there. Then I start dig for the news related to the scrip. Or, If I noticed the news first, I searches the 1 or 2 green figures on the corresponding row or wait for that to take place. If I noticed a justifiable UC(Upper circuit) percentage in 1, 2 or 3 days with backing of an apt news (probable demand generator), it leads me to more accurate judgments. Decision making on a buy is based on various factors such as impact of the news, company fundamentals, bit technicals, business model etc.. In most of the cases I place orders with strict stop lose, but in some cases I deliver the scrips which have good potentials, for short term. And the file is also works well for those who intrested in Arbitrage too.

Well, I have decided to answer these queries in this platform cause, I am eager to know what my readers think on this practice. I will not claim this approach is a fail-safe one, but experienced that it is far better than depending fraud tips of unknown people. I am maintaining this database by last few months and updates on everyday basis. I am ready to share this data with my clients for free on mail request.

Any one can try this who wish, but with extreme caution!. I cannot assure any authentic background for this strategy. In addition, I never recommends to play on margins. On the other side I have experienced about 80% accuracy if we go with genuine scrips with a support of logical news.

"If you don't like how things are, change it! You're not a tree"

Jim Rohn

Regards & Happy Investing

Shabu Thachat -


Sunday, November 29, 2009

Market-casual thoughts

Today, I wish to talk on few investment concerns. At straight, every smoker knows that cigarette smoking is harmful to health and every drinker is aware alcohol is ruinous. We get these cautions on every packet of cigarettes or bottles of wines. But some of us consume the both or any, even after the absolute consciousness. The plain purpose of above words in such a blog, related to investment myths. Any way, we don’t have such cautions available on scrips. Majority of us treats investment advices on the way, chain smokers or heavy drinkers responds to the cautions quoted above.

The path of the market seems on a slipping floor. It is not showing any boldness, responds in a very sensitive manner like a teenager. Market is reacting to every related news with an antagonistic way. 300-500 points up or down of Sensex in a single session is none a matter to us. The market is even capable to bring down or up some 2000 points in just a week or in 3-4 trading sessions. What is going on?

My clients usually ask such questions. Few of them even ask for short term recommendations. But, I am not sufficiently expert to answer them in any condition. But I wish to spread few words my own. The path of the market is mysterious. I don’t think, any one can calculate the market’s future. But we still read a lot of expert views everyday in Medias. They predicts in their way, market is passing it’s own way. Majority of them come again shamelessly and blasts new bombs. I have a collection of their statements since last few years which I kept in separate folders by names, and it is really interesting when we look now. About predictions, the only possible thing is, we can reach on certain presumptions considering various aspects related to economy or market. Nothing else!

On the other side, the unpredictable nature is one of the most charming side of market. Just recall the days of year 2008. Market was declining day by day on global cues. Was there any attractions? And before that, market were on mountaineering, everyone were making money but short live, and lost than they made. Simply, the real allure of the market concealed in, expecting the unexpected. Everyone here is to make good money by fastest means. I don’t know any one, who buy stocks to play with hard earned coins.

A big percentage of investors enter in the market with a pre-assumption of immediate gains. But normally market sides them on the shore, like oceans do with scraps. Long term investment is an established and widely accepted strategy even if very less people follows. A very few short term/Intra day traders makes good money too, but less in size compare to the patient investment. Experts says, the current volatile market is one of the solid opportunities to make good money, after the previous extreme lows which most of us missed out. But, here again, I am not proficient in that way. But I wish to be….

Let us see, how people buy stocks? A large part of retail investors buy stocks while the market moves to north. The intention is to take positions before market reaches in higher levels. When a crash occurs, most of them sell out their entire holdings irrespective of company potentials, cause the scarcity to further declines. Probably these people pay heavy brokerage almost nearest to their gains in long run.

Some investors take their positions in upcoming market and sell out on nominal gains. If a crash occurs and stays for longer time, they even divert their funds to other investment options. These people never wish to stay their money idle.

A very few category of investors get pleasant while market is crashing or on inconsistency. They always keep a considerable portion of their money idle and sit on it calmly. When market crashes, or in between sucker rallies, they put their money and manage exit meeting their pre-assigned target with legitimate profit before next crash. It is the best strategy for short term traders, but not practical for everyone .

Some people buy stocks in batches while market crashes or responds erratic, sucker rallies bring the market again in heights, they stay calm, they wait for the next more solid crash to get the same stocks (on which they have downright faith) in lesser prices. They accumulate their favourite stocks in more genuine prices. These people come normally in the category of patient long term investors and who actually makes money in the real depth. I wish to be here. Moreover, interested to deal with people who keep this mindset.

I am always in favour of long term or patient investments, but I truly respect few day traders who make consistent gains. I personally know few such smart and hardworking guys. They work hard to keep pace with the market and doing extensive research before play the game. They unearth some positive news, collect maximum details on the news, company details, graphs, charts etc.. Then put their money with brave heart. Probably the result will be fruitful according to the positive reaction to the news/info. These are the people who benefits maximum from the minimum time. A real intraday trader should have an immediate decision making capability, utter braveness, a solid background for high risk tolerance, good knowledge on the scrip/company, charts/graphs, resistance levels, awareness of the farthest possible reaction levels etc… If you have it in you, go ahead and try your luck.

But, majority of my intraday friends are on the other side. They sit in front of the system by around 9 am or before. Looks like preparing for a 100 Mtr sprint. With 2-3 mobile phones (to avoid chances of missing even a single tip from their most [un]trusted sources) to receive tips, resistance levels, entry prices, intraday targets etc.. Or, some of them closely watches the initial moves of indices, and put their/broker’s money blindly… Usually, most of the days happens bad for them. Any slight negative news usually brings the market to heavy collapse and they compelled to sell out on lose. Sometimes, the market goes up, but the scrip they bought to south only.... Most of them cannot even deliver good stocks because they usually play with margins. The interesting thing is they surely discuss their sporadic gains with us, which rarely occurs, but the loses never. Next day they sit again to recover the earlier lose with a fresh guy’s tip mostly paid ones.

I think its enough for now, usually I am hesitate to read lengthy contents, so hope my readers too.

Comments Please

Shabu Thachat –

Monday, November 23, 2009

Worthy reading - Part - I

Dear readers,

I have recommended considerable number of stocks through this blog to my readers. Today, I wish to recommend bit more beneficial support in the nature. It is a casual converse where I wish to introduce few best blogs/sites/links to my readers. I was in thought of such a post since few months, but I decided to do it right now, in response of certain queries from one my reader. The intention is clear, that I wish everyone have a close read to the following rich links who desires to approach the market in a legitimate way. I respects these people (blog owners) on the basis of their knowledge, experience and fidelity rather their degrees. I wish to appreciate the other side too, the generous effort to help the investing community without any fiscal anticipation.

It is a blog of Mr. Yogesh Chabria. I consider him as an outstanding personality in the segment and totally different from the crowd. I like the manner of his presentations which injects verves in your nerves.(I felt so…) He is one of the rare cerebrals I respects in the multitude of market experts . I don’t think I am proficient to rule out any of his posts. Find time to make a read to his entire posts or try in leisure. You will surely feel bit different.

Blog of Mr Kumaran Seenivasan, A true professional in the segment and I am following since the blog’s inception. I would not like to extol more about his articles considering the scope of misinterpretation of my intentions, but wish my readers must have a staid look to the following praiseworthy links.

How to select best stocks

When to buy a stock

When to sell a stock

Calculation of indices

Cash flow statement analysis

Balance sheet analysis

Buy & Hold strategy

Beating the Market

Multibagger concept

A lot more are there, but I am selective to assemble the basic but significant concepts to freshers. I have to introduce few more blogs in this row, but next time.

Knowledge is power…
Shabu Thachat -

Sunday, November 15, 2009

Hanung - A serious toy?

Dear Readers,

With out much introductory notes, I would like to talk about one of my favorite stocks. This post dedicated to unknown readers (other than my clients) who donated their own, from their gains on my previous recommendations. The company we going to discuss, is not comes under any established or conventional emerging sectors, but still I have good faith on this company, their business as well as on its able management.

In 1990, Ashok Kumar Bansal, a chartered accountant felt, he have tired of helping others to get rich, decided to strive something own with his own ideas. In search of a new "export item” he chosen two, liquid mosquito repellent and soft toys. Mr Bansal realized that the exports of the mosquito repellent would be restricted to Asia as “the lack of mosquitoes in the developed countries". That realistic thinking made the soft toys as the logical choice. It is important to mention that, there was no quota for soft toys at that time, since the category hardly existed in Indian market. (The vision)
With Rs 25 lakh borrowed from his father, Bansal set himself up in business. He has arranged a technical collaboration with Korea's Hanung Industrial Co. He also took up the Korean company's name for a simple, practical, but clever reason. "India was not associated with quality products then," he states. "We were seen more as a Korean company than Indian. That helped in getting orders." (Survival Technique)
Company Snapshot

BSE Code - 532770

Sector - Misc (Soft Toys & Home Furnishings)

CMP - 115.45(13/11/2009)

EPS - 24.57

PE - 4.70

BV - 121.29

FV - 10

52 Week L/H - 24.25/132.30

Buy Range - 85-110(Accumulate in every fall/SIP )

Ever High post 2000 - 300(Jan 2008)

Market Cap - 290.82

Chairman - Ashok Kumar Bansal

Promoter(s)’s holdings- 63.25%

HTTL is engaged in the manufacturing & exporting of stuff toys & home furnishing products. The business consists of soft toys manufacturing facility, home furnishing production facility and textile processing facility. The company is treated as largest producer and exporter of Soft Toys, Decorative Cushions and Room Furnishings in India. The company also launched a wide range of home furnishing with attractive colours, designs and fabrics. Hanung is the largest manufacturer and exporter of Non- Toxic, child safe stuffed toys in India.

HTTL has more than 100 distributors, more than 3,000 retail stores and multi brand outlets. The company has signed an export order tie-up with a leading US buyer for exporting home furnishing to the extent of USD 50 Million (about Rs 2,000 million) to be completed by December 2009. Further, the company has so far signed long term export contracts worth of $265 Million (about Rs 10,600 million). In April 2008, HTTL signed a MOU to acquire 100% stake in a Chinese soft toy manufacturing unit, having an annual installed capacity of 10mn pieces. This unit is said to have infrastructure to double Hanung's toy competency in the long run. It is expected that, this acquisition could further strengthen HTTL's international presence, improve its overall market share in the toys segment and will help to expand the overall margins.

HTTL continues to record sturdy order flows even in the midst of an uncertain export environment. Entering in long-term contracts with organized clients is not a common practice in the textile industry, as international retailers lean to alter their sources of supply based on fast changing fashion trends. HTTL has managed to enter into 2-3 year contracts with its clients. In milieu of concerns of a slowdown in the US imports, the long-term mode of such contracts provided greater visibility to Hanung's revenue flow. At present, HTTL has a healthy order build up of Rs. 1350 cr. of which Rs. 1060 cr. are long term orders, which are executable over a period of 2-3 years (be patient)


The ISO 9001-2000 certification

International Standards like EN-71, ASTM and BS-5665.

IKEA has certified as I-WAY and 4-SIP vendor.

Target Group USA’s approved vendors.

Wal-mart certified factory and their approved vendor.

JC Penny USA certified factory and their approved vendor.

CHF Industries USA client.

The Metro Group of Germany’s ‘Approved Manufacturing Practice Certificate'.

Lillian Vernon Corporation of USA’s 'Certificate of Appreciation'.

SPLASH, the brand for domestic furnishings, was started in 2004. Mr Bansal says. "What took the toys business 17 years to achieve, the furnishings business has given us in just three years" . In very short time, HTTL has managed to export 90% of its production of Home Furnishings to all major markets including, USA, Europe & Latin America.

Client Base


Shopper’s Stop
Big Bazar (Pantaloon group)


America Pacific
Springs Global
Britanica Home Fashions
CHF industries
Kojo Worldwide


Ikea Sweden
Debenhams UK
Wal-Mart ASDA UK
Metro Group Germany /Italy
Marko Group - Poland
Francodim France
Carpenter Sweden
Loja do Gato preto Portugal

Latin America

Sodimac Home Centre Chile

Right now, Hanung is preparing Christmas-themed toys and shaped cushions (Santa Claus, snowmen and reindeer) for Europe and North America. In India, on the other hand, while big cats are a perennial favorite, the current craze is cartoon and animation characters. The company has also discovered the potential of film merchandise, apart from becoming a licensee for Disney characters, the company tied up with Percept Picture Co to manufacture Hanuman toys based on the recent hit animation movie.

One of the biggest reasons for Hanung's success is its cost management strategy. It saves on raw material by entering into long-term contracts with suppliers. Its plants are located in tax-free and special economic zones, leading to substantial tax savings. "Competition is growing. But we hope to be a Rs 1,000 crore (Rs 10 billion) company by March 2010," says Bansal. (The sheer Confidence)

My View on the scrip

I am very much confident on this company and it is one of the “possible multibagger” scrip from my hot list due to following reasons:-

a) A company which have order book value is several multiples of it’s market Cap.

b) The consistent growth rate.

c) Monopoly in domestic market.

d) Attractive current valuation

e) The reputed high net worth foreign/domestic client base

f) The efficient, intellectual and visionary management like Ashok Kumar Bansal.

g) The company which most responsive to trends

Mr Ashok Kumar Bansal is an innovative and one of the intelligent entrepreneurs in our country. I strongly believe that he will keep additions and deletions with his business according to the changes of his surroundings as well as trends. The goodwill and reputation of the company/products in domestic and international market is really envious.

A bit personal and about the realaiability of their product, I have bought a Teddy Bear some seven years back for my son is still with us unharmed.... and his younger sister plays that....It is glad to have some shares of HTTL next time, while you buy a teddy bear for your kids from Hanung's range.. In my view, this scrip has all that vital characteristics to be a multibagger!.. minimum 4-5 times…Lets see....

It seems, Mr Ashok Kumar Bansal is fully aware about the following famous qoute of Charles Darwin:-

"It is not the strongest of the species that survives, nor the most intelligent, but the one who most responsive to change"

Comment please..........

Shabu Thachat


Saturday, November 7, 2009

Patience - Pays


Dear Readers,

What are the essential traits for a smart investor? Let me answer this question in my own way.

In my view, the first and foremost quality of an investor is having good knowledge. Generally, he must have sound knowledge on his entire investment stratum. Here, the word knowledge is pervasive from the updated information on the intact subjects to the expertise he attained by experiences which may useful to him as an investor. Broadly, he or she should have updated wisdom with in the sphere.

The second aspect as well as the true subject of this post is “Patience”. I wish to discuss about this key topic with an investor’s angle. Patience is one of the most indispensable and must have element for any investor. Please relate the following lines with an investment angle rather than the logical harmonizing of the word “Patience”

The Dictionary (Webster’s) defines “being patient” as follows:-

(a) Enduring pain, trouble, etc. without complaint
(b) Calmly tolerating insult, delay, confusion, etc.
(c) Showing calm endurance
(d) Diligent, Persevering

Patience can be described as a state of endurance under intricate circumstances. In other words, keep yourself stubborn towards delay or provocation without being bothered or distressed. The word “Patience” can also interpret as a decision making quandary which involves both the options of either a small remuneration in a short term, or a more precious return after a long period of time, pointing to the worth of waiting, You can realize with in nearly all of the investment options, delayed rewards are persistently on the higher side than the price of immediate gains.

When come to the stock market investments, the big money is not laying in the buying or selling but it is veiled in the waiting, or we call this patience. Turning a scrip in to multibagger is also not a process of some few weeks. In other words, we have to give enough time to the management whome you selected after a strict and an exhaustive process. The concept is closely related to high end of patience and the reward must be fruitful. I think, majority of the investors are aware about this fact, but a very few or rare percentage practicing it in the real life. It is hard to stay consistent with your beliefs between the frenzied and provocative crowd of experts. But you have to!.. It is not an easy exercise to keep you idle, between the extensive internal or external provocations. The internal emotions also play a big role in the decision making like greed etc.. If you controlled yourself, the hardest part is over. Here I wish to list the third important quality of a smart investor, `faith’ or we call the confidence.

Let us see how these three essential elements related to each other. The word “patience” is very much synonymous with the “faith”. You have good faith in you, that is the reason you are keeping good patience towards your decisions. The sheer faith probably restricts you to act against provocations. The faith again closely associated with your “knowledge”. To have patience means to have faith in your selections, decisions, knowledge and above all in yourselves. Again, the faith or sheer self-confidence is a distilled product of true knowledge you attained. You can see, how these three terms are related to each other, the Patience, Knowledge and the Faith. Please read the para again, if you wish to take it as a serious note.

I wish to compare the investment in stocks with growing a seed. You have to let the seed to sprout, gradually to a plant on the way to become a huge tree. As you know, the tree has much higher value than the seed or the early plant. Certain trees bestows you delicious fruits through out its life as dividends. If you can grow a forest or a farm in this sense, it will endow with an unmatched returns or it may change the life of your coming generations.

Following are the very few worthy examples of the fruits of patience in recent past. I have placed the turn around value of Rs. 10000/- at the bottom of each scrip.


Price in Oct 2001 - Rs. 41.70
Price in May 2008 -Rs. 4390.00
Returns - 10427.58% (7 Yrs)

Rs. 1052758.00

Bharati Airtel

Price in Nov 2002 -Rs. 21.50
Price in Jan 2008 -Rs.1010.00
Returns - 4597.67%(5 Yrs)

Rs. 469767.00

Electrothem India

Price in Jun 2003- Rs. 2.45
Price in Jan 2008 -Rs. 619.00
Returns - 25165% (5 Yrs)
Rs. 2526500.00

Bajaj Electricals

Price in April 2003 - Rs. 20.00
Price in Oct 2009 -Rs. 835.90
Returns - 4079.50 (7 Yrs)

Rs. 417950.00

Crompton Greaves Ltd

Price in Sep 2001 - Rs. 18.10
Price in May 2006 -Rs 1225.00
Returns - 6667.96%(5 Yrs)
Rs. 676796.00



Axis Bank

Price in Jan 2002 -Rs. 25.70
Price Jan 2008 -Rs. 1291.00
Returns - 4923.35% (6 Yrs)

Rs. 502335.00

Data courtesy :

There are hundreds of scrips in this category and it is not possible to list the entire. I am not disregarding the complexity on decision making on the entry or exit point in such stocks rather wish to illustrate the power of patience.

Do you believe, you have such diligence in you to devour the fruits of patience?

Learn the art of patience. Apply discipline to your thoughts when they become anxious over the outcome of a goal. Impatience breeds anxiety, fear, discouragement and failure. Patience creates confidence, decisiveness, and a rational outlook, which eventually leads to success - (Brian Adams)


Comment please...


Thursday, October 22, 2009

Magic stocks or mad?-Recent multibaggers

Dear Readers,

I wish to discuss about the multibagger concept again in the wake of recent market budges. Basically the concept is one of my close preferences and I am always keen to monitor such episodes in the market. For any investor, buying stocks which can be multibaggers are the most appealing option. But how does one spot a multibagger. So far, the question is unanswered. You may get more confused after reading this article and I am really sorry for that.

Probably, we talk about the multibagger concept with a long term outlook, but sometimes it happens with in no time, where all the fundamentals, technicals, industry perceptions, growth perspectives, economical supporting scenarios, managerial competence and other related elements, everything or few of them befalls claptraps. I would like to share my findings on such a juncture, none a surprise, but it is there.

I have an excel sheet of BSE stock prices on 02nd April 2009 in my archives. I usually keep the entire price list of certain days for a future review. I was analyzing the performance of various scrips comparing with the prices of 20 October 2009 as part of my homework. It is really surprising and the findings are mind-boggling. I found such scrips which earned more than 1000% returns in just 6 months, more than 2200% return in a year. Is it possible? I am trying hard to make believe my eyes as it is unusual in the market with in such a short span of time.

Right now, I am not paying attention to discuss the exact reasons behind such rocket moves, rather I wish to state my findings and figures as well. Please rectify me if anything noticed wrong and I shall grateful for that. I am not sure about the exact number of stocks listed in BSE, but my analysis based on the stocks traded on or between 02 April 2009 and 20 Oct 2009. We have to keep in mind that the accrued overall gain by BSE Sensex for last 6 month is around 115%, from the lowest 8000 levels to ongoing 17000 mark. And let us compare the findings with this as a benchmark.

Let me list some real magic or mad stocks for you:-

BSE Code -531358
Scrip-Choice International
Sector - Investment and Finance
Price on 02 April – 13.15
Price on 20 October – 150.00
Gain – 1041%(6 months)
52 Wk Low – 6.50 ( Yearly gain 2207%)

BSE Code -517973
Scrip -DMC International Ltd
Price on 02 April – 2.26
Price on 20 October - 24.85
Gain – 1000%(6 months)
52 Wk Low – 1.66 (Yearly gain 1397%)

BSE Code - 533055
Scrip-Edserv Softsystems
Sector – Education/Software
Price on 02 April - 21.60
Price on 20 October – 233.90
Gain – 983 %( 6 months)
52 Wk Low – 18.70(Yearly gain 1150%)

BSE Code - 526544
Scrip - Scanpoint Geomatics Ltd
Sector – Niche (GIS and Image Processing Software, IGIS Mobile GIS, Q-Pad etc..)
Price on 02 April - 3.47
Price on 20 October – 34.50
Gain – 894 %( 6 months)
52 Wk Low – 2.07(Yearly gain 1566%)

BSE Code - 531882
Scrip - Kwality Dairy (India) Ltd
Sector – Food Processing
Price on 02 April – 97.30
Price on 20 October – 900.90
Gain – 826%(6 months)
52 Wk Low - 14.60(Yearly gain 6070%)

I have placed the details of 5 toppers above. I would like to state again, I am not yet scrutinized the exact reasons behind such rocketing of scrips mentioned here, whether it was related to speculations or anything else. I am examining one by one to find the probable reasons behind such unbelievable darts as well as their sector profiles. The list is lengthy and I will certainly provide some brief statistics on the same.

The following %age return figures are from approximate 6 months (02 Apr 2009 to 20 Oct 2009)

Number of stocks gained more than 150% returns - 434

Number of stocks gained more than 200% returns - 220

Number of stocks gained more than 250% returns - 124

Number of stocks gained more than 300% returns - 91

Number of stocks gained more than 350% returns - 64

Number of stocks gained more than 400% returns - 40

Number of stocks gained more than 450% returns - 28

Number of stocks gained more than 500% returns - 21

Number of stocks gained more than 550% returns - 20

Number of stocks gained more than 600% returns - 13

Number of stocks gained more than 650% returns - 11

Number of stocks gained more than 700% returns - 10

Number of stocks gained more than 750% or 800 % returns - 7

Number of stocks gained more than 850% returns - 4

Number of stocks gained more than 900% or 950% returns - 3

Number of stocks gained more than 1000% returns - 2

As a common trend, the majority of scrips comes under Small Caps (almost 80%) which seized more than 300% gain in a 6 month duration.

The single highest category of gainers is from small non banking institutions involved in financial sector, but most of them are unheard.

The majority of Mid caps restricted with a decent gain of 150 – 300%.

A large number of gem penny stocks are also played their roll well in the team with more than 400% gain.

I wish to conclude this post as it is getting lengthy, but will share this data to my regular clients for free of cost by mail.

Readers are requested to comment whether negative or positive which encourage me to bring more in this row.

The above information is a pure history and I am not responsible for your investment decisions based on the data above. Please do your own research before make any investment.

Warm regards

Shabu Thachat –


Thursday, October 15, 2009

Diwali Wishes-Temptations

Dear Readers,

Wish you all and family a happy, prosperous and sweet Diwali.

I have registered a domain for this blog and readers can access it by typing

I wish to recommend a scrip to readers as well to my clients as my present for this Diwali. The scrip is sweet indeed as the company involved in the field of food processing including fruits and Vegetable. One more imperative reason to suggest this stock as it comes under one of my much preferred sectors, Agriculture! the only sector, which have'nt a way back.

India with its population of about 1.10bn people, growing @ 1.6% pa is a colossal and growing market for food products as well as other processed eatables. Spending for food is the single largest element of personal consumption expenses. The increasing numbers of modern retail stores are itself the sign of high growth rate of Indian retail revolution. The consumer lifestyles are changing drastically with an increasing need of eased and hygienic edibles. All of the above factors will help to grow the underlying demand for the convenient food whether it is fresh or frozen. Above all, the role of food processing and preservation becomes significant since agricultural production is targeted to double in the next 10 years by Govt of India.

BSE Code - 519228
Sector - Agriculture(Food Processing)
CMP (15/10/2009) - 36.10
EPS - 23.61
PE - 1.55
BV - 98.79
FV - 10
52 Wk L/H - 18.85/264.75
Buy Range - 30-40
Ever High post 2000 - 350(Jun 2008)
Market Cap - 92.14 Cr
Chairman/MD - Vinit Kumar
Promoter(s)’s holdings - 21.13%

Temptation Foods Limited (TFL) established in 1991, affianced in the frozen processed fruits and vegetables belongs to Agricultural Sector. The company uses the most modern IQF (individual quickly freezing) technology for preserving the products. TFL has established it’s modern processing facility in the midst of fruit and vegetable farming zone at Jejuri, Pune. The plant involved in deep freezing of mangoes, pineapples, papayas, melons, grapes, strawberries etc. TFL also processes a variety of vegetables like green beans, green peas, cauliflower, okra, corn, carrots, chillies(red and green), ginger-garlic cubes, samosas, parathas, paneer products and a variety of other ready to serve eatables. The company has an Installed capacity 4000 MT for IQF Frozen Fruits & Vegetables.

TFL processes a variety of vegetables and fruits for the Indian markets and also exports to several of the biggest brands in USA, UK, Europe and the Middle East. The company has acquired the Everfresh brand of frozen Fruits and Vegetables from the K. K. Birla group in November 2007, one of the biggest domestic brands in the segment, Everfresh has reached in the top line of Rs 200 million in 2007. Ever Fresh offers quality IQF products over 50 types of vegetables and fruits such as French beans, carrots, cauliflower, coconut, sweet corn, tapioca, mixed vegetables, okra, spinach, karela, green peas, drumstick, brinjal, onions, Green Peas, American Sweet Corn, Baby Corn, Broccoli, Palak, Sarson ka Saag, Shredded Coconut under Delika brand name and different varieties of fruits like Alphonso Mango etc..

The company also processess, fig and orange, strawberry, chunky orange marmalade, plum, mixed fruit, and peach; sauces, such as pizza, Italian pasta, Szechwan, and Mexican salsa sauces; and dressings, including eggless mayonnaise, garlic mayonnaise, whole grain mustard, Italian salad dressing, French dressing, fresh mayonnaise, and sandwich spreads under Karen Anand brand name.

The company has recently introduced combination products like Gajar Mattar, Mattar Paneer, Aloo Mattar etc. Ever Fresh farm products are procured from Haryana, Punjab and the Terai region, the heart of the Northern Agri-belt of Western India. The farm produce is plucked and processed with the IQF technology within 24 hours. The products are then packed in unique food grade packaging at -20 degree C. The company claims that 'Ever Fresh' range of products are processed and packaged without any chemicals and preservatives and meets the national and international quality standards including FPO.

TFL today represent one of the biggest organized publicly listed companies in this sector. The Karen Anand range of gourmet products has also become a part of TFL’s list. The company produces the Karen Anand range of products at their plant in Jejuri near Pune. TFL processes Fruit and Vegetable produce at 6 plants: Sonepat, Karnal, Rudrapur, Kashipur(2 plants) in North India and Jejuri in West India. The plants have a combined annual capacity to process, pack and Individually Quick Freeze (IQF) over 60,000 tonnes of Vegetables and Fruits. TFL’s installed capacity of above 30,000 Tonnes is the largest company with such facilities in the country. Similarly, in-plant cold stores have a combined capacity of over 5,400 MTs again the largest such cold storage in India.

The company procures fresh fruits and vegetables mostly from the Terai region in North India and the Agriculture Produce Market Committee (APMC) of Mumbai and Pune. The plants are strategically located in the heart of the agricultural zones. TFL is the first Indian frozen food Company to get ISO 9001 certification. The Company also has International Quality Accreditations such as the HACCP and RINA ISO 9001:2000 approvals. TFL exports 90% of their products, however the company has recently started supplying goods domestically under the Everfresh brand. Nearly all large domestic retail chains are TFL clients. This segment includes retail chains like Metro, Shoprite, Big Apple, Spencers, Reliance Fresh, Spinach and Food Bazaar.

My View on the scrip

I expect substantial multibagger returns from this scrip with a 2-3 year term. The current valuation and growth prospects are really attractive. The food processing sector becomes significant as agricultural production is targeted to double in the next 10 years by the Govt of India. It is expected that the fast growing retail chain spectrum is an added advantage for the company for bulk orders from the retail giants. The increasing population and changing food habits even in urban areas will surely beneficial for the company. The recovery symptoms from the recession turmoil must increase the consumption by foreign/domestic clients. TFL comes under a distinctive class in this sector as well as keeping an enhanced reputation in its clients. A bit of speculative history is there with the scrip but still I expect Its a safe bet for long term.

Readers are requested to place their comments on the scrip.

I am not responsible for your investment decisions, please do your own research before make any investment decisions.

Shabu T -

Friday, October 2, 2009

The simple legend


Warren Buffet, the second richest man in the globe who has donated some $31 billion for charity. I think he is real legend in humanity too.

I wish to light on some interesting aspects on his life. You can read much more in between the lines…

He bought his first share at age 11 and he regrets now that he was too late! He remembers, things were very cheap at that time.

He bought a small farm at age of 14 with savings he accumulated from delivering news papers.

He still lives in the same small 3 bedroom house in mid town Omaha that he bought after he got married some 50 years ago. He says, he has everything he needs in that house as a human being. The house does not have a compound wall or fence.

He drives his car himself everywhere and does not have a driver or security people around him.

He never travels by private Jet. He owns the world’s largest private Jet Company.

His company, Berkshire Hathaway owns 63 firms. He writes only one letter to each of his CEOs in a year, specific to the goals for the year. He never holds meetings or calls them regularly.

He does not socialize much with high society people. He prefers to watch television in leisure.

Bill Gates, the richest (busiest too) man scheduled to meet him for half an hour, but the meeting lasted for some 10 hours.

Some of his advice to youngsters:-

Stay away from credit cards/Bank Loans.

Money doesn’t create man but the man who creates money

Live your life as simple as you are,

Don’t do what others say, listen them, do what you feel good.

Don’t go on brand names, just use those stuff you feel comfortable for you.

Don’t waste your money on unnecessary things; spend on them which are necessary.

After all, it is your life; never give a chance to others to rule on your life.

I wished to write more on his personality... but wordless now

Comment please

Shabu Thachat

Thursday, September 17, 2009

Sasken-true multibagger

Dear Readers,

I have not been recommended any stocks through this Blog since April this year. The lopsided market trends, official engagements as well as the homework for my Portfolio Advisory Services constrained me to publish a post in the kind. We have seen numerous ups and downs during this period. Some of us made decent gains, some missed the bus or some get off from the bus before it reaches the probable destination, and a few still waiting for a better time to make an entry to the market.

Any way, I would like to recommend one of my favorite and emerging stocks for my readers/clients. This scrip, which I already have recommended to few of my clients between May-July this year at 70-120 range. Please stick on, if you are not yet exited, else you can still accumulate this gradually at the range specified below. I would like to request you to go through one of my previous article related to the subject before you read these lines, will make a better idea on this amazing sector. Prepare your sense to hold this stock, a 3-5 years minimum, or practice patience till matures the 3G spectrum as well the upcoming mobile/wireless technology standards.

BSE Code-532663
Scrip Name-Sasken Communication Technology Ltd
Sector-Technology-Mobile VAS
CMP (24/07/2009)-165.80
52 Week L/H-41.00/184.90
Buy Range-Accumulate in every fall below 170
Ever High post 2000-624.00(Jan 2007)
Market Cap-456.40
Chairman & MD-Rajiv C Modi
Auditor- Deloitte Haskins & Sells
Promoter’s holdings-

In 1989, Silicon Automation Systems (SAS) started in a small warehouse in Fermont, California as a dream project of Mr Rajiv C Mody (Chairman&CEO) with 2 other co-founders, Suresh Dholakia and Badru Agarwala. Later the company's name has changed to Sasken Communication Technologies Limited(SCTL). The name 'SASken' is a combination of its original name (SAS) and the Scottish word “ken” means knowledge.

SCTL offers an amalgamation of Research and Development Consultancy, Wireless Software Products, Software Services and Network Engineering Services. The company has a worthy range of clientele, in the fields of Network OEMs, Semiconductor Industry and Terminal Device OEMs across the world. Sasken employed more than 3,200 professionals at its offices worldwide, has repeatedly featured among the Best Employers in leading industry surveys. The happy workforce with innovative mission.

The company headquartered in Bangalore, Global Development Centre (called Fac-Z) with 4 other development centers in the city, Bagmane (Fac-B), Hosur Road (Fac-W), Domlur (Fac-M) and Outer Ring Road (Fac-A). SCTL also has development centers at Chennai (Fac-C), Pune (Fac-P) and Hyderabad. The company also has offices in Kawasaki in Japan, Santa Clara, Plano and Burlington in USA, Monterrey in Mexico (Fac-Mx), Saint-Laurent-du-Var in France, Frankfurt and Bochum in Germany and Guildford in UK. Most of its foreign offices manages the sales/marketing operations.

Sasken Network Engineering Limited (SNEL)
iSoftTech Private Limited.
Sasken Finland Oy (earlier Botnia Hightech Oy – Finland)
Sasken Automotive Electronics Pvt Ltd – TSAE, A JV (joint venture) with TATA Autocomp(TACO)

In addition to being engaged in the development of a variety of technologies, Sasken is a member of premier technology forums/bodies including ITU, 3GPP, GCF, MPEG-ISO, WiMAX, NFC, DLNA and ATM, DSL & SDR forums. Sasken is a SEI CMM Level 5 certified company and its solutions are qualified by ISO 9001:2000, ISO 27001 and TL 9000 certifications. Sasken’s Wireless IP spread on more than 50 models and over 50 million phones across networks in Australia, China, Europe, Hong Kong, Japan and Taiwan. SCTL’s Test Lab has become the first and only Test Lab in India to be ISO/IEC 17025:2005 certified for Handset Protocol Conformance Test (GSM,GPRS,EGPRS,SIM/STK) Services.

SCTL products/services caters to big Network Equipment Manufacturers (both wireless& wire line), Semiconductor Manufacturers who supplies to Telecom Market, Wireless Terminal Product vendors and Test and Measurement Equipment vendors around the globe. The company offers services for planning, deployment and managing Wireless Networks to Network Equipment Manufacturers and Wireless Service providers. Sasken also offers software services for development and maintenance of various software components required for execute network support system in the field.

The company powers the Semiconductor industry with IC Design services and Silicon Platform Software services. The IC design Services include Design, Verification and Integration of Integrated Circuits, the SPSS covers, design & testing, maintenance/sustenance and integration of software around the chips.

Softwares are emerging as the principal factor in the next-generation wireless terminal devices, delivering a wider range of utility applications and experiences to the users. Mobile Terminal Softwares are critical to the realistic performance of Terminal Equipments, yet these are complicated and expensive to build up, consumes a lot funds of handset manufacturers. Sasken provides software solutions for 2G, 2.5G and 3G technologies, offering a range of platform independent, standards compliant Wireless Protocol Stacks, multimedia codecs, middleware frameworks and applications to boost the product range, helps the firms to come up with high end handset varieties in short span of time.

The Symbian Competence Center at Sasken provides licenses of Symbian OS, Series 60 & UIQ with Component Design and Development, Software Porting, Integration as well as Testing Services.

Sasken Symbian expertise covers :-

Application Development
Multimedia applications comprising Sasken IP
Symbian TRP customization and testing
Software porting & integration
Base porting
Device drivers
Testing & Integration.

SCTL also licenses the following Strawberra Multimedia products

Multimedia codec engines (video, audio, speech and image)
MMS client
Media suite/Audio/Video players
Still camera/Video camcorder
3G-324M Videophone terminal
ARM Approved Design Centre
Sasken’s expertise ranges across wireless technologies, hardware platforms and multiple Operating Systems. SCTL also mastered in existing wireless technologies including TDMA, CDMA, GSM, GPRS, EDGE, 3G, IS95 and 802.11b The company with its wireless experience, offers High-End Consultancy services in the area of emerging wireless technologies such as Seamless Mobility and Fixed Mobile Convergence. As of now, Sasken is the largest Silicon IP vendor in India.
In March, 2009, Sasken has entered in an agreement with Inmarsat , the leading provider of global mobile satellite communications services, to complete development of the next generation global satellite hand-held phones. Sasken and Inmarsat have working together for more than five years in the area of mobile satellite communications. Inmarsat has preferred Sasken, to design and bring into pre-production the complete phone, which would include the hardware component comprising design, development & testing of antenna, RF and Mechanical Elements and the Software Component Comprising Protocol Stacks, application framework and test lab offerings. This engagement is first in its nature for an Indian company to be involved from the basic design phase up to producing pre-production units.

My View

I have a strong faith on this sector and believe, Sasken will do miracles in coming days. Sasken is an undisputed emerging player in this segment with tremendous growth perspectives. I dream that, being the licensees of Symbian OS (The platform referred as future Operating System for Mobile applications) and the ongoing venture with Inmarsat will bring Sasken to new heights and these projects may guide this scrip to a real multibagger with in few years. Accumulate!


Sasken offers expertise in communications technology along with their capability and experience in wireless terminal development, they will make a strong partner, we will work closely with Sasken in the design and development of our satellite phone to offer a new and compelling product in our broad portfolio of services over the Inmarsat network.”

Perry Melton, Chief Operating Officer ( Inmarsat)

Intel’s -

Check my previous post too in this regard.

Readers are requested to comment whether negative or positive, as I am eager to know what you think on the above information as well as about the recommended scrip.

I am not responsible for your investment decisions; please do your own research before make any investment.

Contact –

Friday, September 11, 2009

Book Review - TNLG SMI

I wish to introduce one of my favorite books associated to stock investments. “The Neatest Little Guide to Stock Market Investing” by Jason Kelly. The book is much discussed and is a best seller in the category, my intention is to propose this book, as an essential read for every new and young investors. I strongly recommend all those to make a read who are related anyway to the market with an intention to make money.

The lengthy name of the book itself stretched than half of its cover page. But the most valuable but very simple following 4 sentences put on the cover page aptly described inside.(slight changes in various editions)

1. How the stock market works.

2. Concise summaries of advice from master investors like warren buffet peter lynch and bill miller.

3. How to beat the market with simple permanent portfolios

4. Keeping a cool head when others panic.

The book is basically targeted to novice investors, but by the end , author has taught several advanced expert level strategies that will ensure wealth for anyone who follows them diligently. The author explained the modus operandi of stock markets and simple techniques related to investment strategies. The book is streamlined to the final objective to making money with few clear cut revelations of various strategies.

The author stresses on few basic, but important aspects related to investment. First of all, an investor should know, why he is investing in stocks where such a variety of investment options available with lesser risk profiles. Kelly spell out one of the logical reason to invest in the stocks, as you can become a partial owner of big companies which you can not even dream out. He also establishes the stocks as the best investment option in entire category with a long term view.

The book also trying to convince some significant technical terms in simple lingo, like Return of equity, Price/Sales Ratio, Price/Earning Ratio, EPS, Net Profit Margin, Price/Book Ratio, Return on Equity and lot others. Its also elaborate the basic concepts related to technical analysis.

One core portion of the book is trying to exclusively discuss the strategies and investment techniques of the investor giants like Warren Buffet, Benjamin Graham, Philip Arthur Fisher, Peter Lynch, William O'Neil and Bill Miller etc.

Every stocks have a business value as well a market value. The market value is the same referred as CMP. We can buy any household items/garments with a considerable discount when a stock clearance occurs in any of the shops/brands in festival seasons or so, like wise we can buy stocks in good valuations than their original worth in certain junctures. Market always avail such chances irrespective of the trends. This strategy generally termed as Margin of Safety. Benjamin Graham is known as the father of this strategy. The book reveals investment related myths and tips of market legends in simple and with logical examples.

Jason Kelly also illustrates one of the famous strategies to make good returns from the market ie. Dow Dividend strategy. This strategy is treated as one of the most effective technique by decades. He also explains his own other extremely effective strategies like Doubling the DOW and Maximum Midcap etc.

He also placed a comparison on returns between his Maximum Midcap, Double the DOW techniques with DOW. He establishes, if someone invest a $10000 in DOW on 31/12/2002, it was around $14805 by 29/12/2006. But, if that investment applied with his own theories like Maximum Midcap or Double the DOW, the amount could have around $29457 and $19642 respectively. The logic can applicable to our market too.

Kelly makes the market easy to understand, exciting, and even incorporates some comedic pitch throughout the book. Although not trying to convince the readers that you can become a millionaire overnight, instead focusing on the proved formulas and strategies that will give an investor the lowest chance of loss and the highest chance of gain. He covers what has worked, what has not and what legendary investors experienced. He also summarizes similarities between those legendary investors.

The book lights on, how you can search and find out best stocks for good earnings in long term. It is also discloses, how to spot or avoid stocks which are under possible risk roofs.

I would like to sum up… It is a simple, intelligent and highly effective approach to investing. I can say from my own experience, the book is an invaluable resource for new and young investors.

Plus check the link... with a good read... may definitely help you


"Jason Kelly captured my investment methods well, and better than most who have tried to describe what I do."

Bill Miller, Portfolio Manager, Legg Mason Value Trust

Readers are requested to comment whether negative or positive which encourage me to do some more in this row.

Shabu -


The blog is associated with information on Indian stock market and author’s investment view points on various emerging stocks/sectors. The contents discussed in this blog are purely my own personal opinion and in no case weigh it as any kind of recommendation for stock market investment. The sheer purpose of this blog is to educate the interested community on market related subjects based on my experience and I am, in no way, responsible for investment decisions based on the contents described in this blog.

Total Pageviews