Magic stocks - Part II

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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.

http://www.stockinfos.in/2009/12/short-term-intraday-trading-my-strategy.html

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%

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Price on 30 Nov 2009 – 0.74
Price on 18 Dec 2009 - 1.36

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4. In the known category, the railway stock Kernex Micro Systems grabbed a 64.55% and standing at 18th

position.

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 – sthachat@gmail.com

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Review - Year 2009

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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.

http://www.stockinfos.in/2009/03/multibaggers-part-ii.html

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/-

http://www.stockinfos.in/2009/04/penny-passion-part-i.html

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.

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_rate

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

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Strategy - Short Term / Intraday Trading

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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 - sthachat@gmail.com

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