Friday, December 24, 2010

Happiest ever decade !!!

Dear Readers,

Another excellent year and a remarkable decade are departing. I wish you all a merry X-mas and a prosperous new year in advance, moreover wishing you the happiest ever decade ahead in your investment life. Investing in carefully selected Indian equities, taking part even at the current levels will be one of the consummate decisions for you in this New Year. Because India and its market is developing such an outstanding base of opulence to multiple your money in coming years.

Money simply doesn’t make money in the market. Money, even a small portion, with a better level of awareness will surely help you to achieve your goals. Internet, the largest and fastest knowledge base is in front of us at the cheapest cost. Today, knowledge is at our finger tips or we can unearth any information with in seconds. I think, its obligatory to keep up-to-date ourselves before any kind of investment decisions, especially in the current scenario. I personally know people who lost more than 50% as well gained more than 150% in the recent course of Sensex’s 9000-21000 rambles. So, wisdom matters. The awareness or reasonable understanding on your stock selections worthier than anything and it’s the most important point you have to carve on your brain at this New Year.

Stocks discussed a lot by media or experts may not beneficial for you always and generally they burn your fingers. You have to develop a reasonable decision making strategy considering the news and it’s probable impact on the share prices. Never ignore technicals, as these figures will give you an insight on the way how the company is performing. But you have to focus on the probable demand of the product/service offers by the company or weigh, how it can turn vibrant in the future.

I think, short term trading will be more hazardous in the days to come because of rising contribution of fastest communication means like internet/Mobile phones etc... And the increasing number of market participants as well high scale of volatility on indices will compel you to be faster than anyone. I know people who trade everyday as a routine and some others trades once in a while or so. The second category reacts only to accurate news thread after confirmation on the source and correctness of the information. Interestingly they are even ready to wait weeks for such a suitable event.

I am equally passionate on launch of this new decade with the previous extreme lows of market, where we had enough to hope. Its again the time is arrived to fill your bags with good scrips in small batches with an ownership mood. Its sure, the span of next 10 years or coming decade will reshape the face of our great nation and I would like to invite you all, to participate in this excellent journey and to grab your own portions.

Even after all the ongoing anarchies, I am keeping 100% confidence on our scenario and there is hardly anything visible ahead which enough to deviate my morale. Yes, further unbelievable corruption revelations might have there in future, but personally I am positive to all those processes. Cyclic refinement is one of nature’s unquestionable practices or we can take it as, cutting down certain weak or overgrown branches will surely boost the growth of core trunk.

The coming New Year and decade is one of the rarest occasions to us and I would like to stress on that point. It’s a time to forget all the failures and to adopt a cognizant and calculated strategy with a long term vision. Forget all the bitter experiences and look for a bright future ahead stepping with our promising financial system. Just focus on the size and power of one of the world’s most persuasive purchasing/consuming band of population. I think, the single reason is enough to up keep the trust on our economy.

Naughtily, I am keeping an inflated wish or it may be a cycle of economics. A recession born from us (not from US) on any possible grounds at a certain point of time in future, may be after some 10-15 years, which will trembles the global economy, like what we suffered of late. I am totally not interested to consider anything negative on our growth course prior that possible threat.

If you are an investor with long term vision, don’t bother much on Index figures or on its temporary wavering. An easy target for Sensex’s 30,000 is there with in a short span of time. A new journey for the market has begun few months back which might have take it to much higher levels over the next few years. Probably 35-40k levels over next 5-7 years is imaginable and I strongly believe its attainable.

The above statement is clearly not a prediction, but I am compelled to believe like after a close watch on the Sensex’s history of past couple of decades. I would like to place some interesting statistics on Sensex to convince you the possibilities of above said figures at my next post. Hope, it may help you to get convinced on the trend of overall growth trajectory of Indian market and relevant future figures too.

Before that, I wish every one of you have read the pages at following link, what people thinking on us.

Once again, Wishing you and family a Happy and prosperous year ahead filled with peace, joy and wealth as well welcome all those who joined in the Portfolio Advisory Services in the month of Dec.

Comment please...

Shabu Thachat –

Saturday, December 4, 2010

Alert on Parekh

Dear Readers,

Please refer the SEBI order at following link and have a full read with patience, Its informative.

SEBI has banned promoters and promoters group of certain companies on further buy/sell in their own companies cause of some violations of rules/regulations noticed. The name of the companies revealed in the above order is nothing related to us, but name of one entity who is under suspicion, Pacific Corporate Services Ltd has considerable stake in Parekh Aluminex. (Check the following link)

Parekh Aluminex has already crashed by almost 20% (LC) on yesterday (03 December 2010) by when the news spread and I hope the blind sentiment may bring down the stock bit more. There is nothing fundamentally changed with the company/stock/business but there is a chance of possible illegal trades might have revealed in the future on Parekh Aluminex too by Sanjay Dangi group or Pacific people.

I hope its better to exit from Parekh Aluminex, whether lose or profit. Another possible strategy can be take out the Capital or Profit which ever is greater. The stock is fundamentally strong and we can think a re-entry at lower levels once the issues settled.

Check the following link too on revealed insiders...


Shabu Thachat –


Wednesday, December 1, 2010

Scam season – the endless story

We are in earshot of multi-crore scams and scandals involved by our Honourable Ministers, politicians, senior Govt servants, corporate negotiators, media icons and other top class officials. Filthy CWG scam, outrageous 2G Spectrum deals, greedy loan scams headed by officials of India’s Largest Home lenders LIC Housing finance, escorted by reputed PSU bank officials of Bank of India, Central Bank, Punjab National Bank etc..etc.

The amounts involved in such scams/scandals are proportionately increasing like the prices of Sugar, Onion or Gold. Money is becoming valueless. I remember the days; 1Kg Sugar was less than Rs.1.50/-, Onion at less than Re. 1/Kg and Gold was less than Rs. 100/Gm. The then scams were limited too with in thousands or lakhs keeping the ratios. Now we have grown, paying 20-40 times higher for above stuffs. The proportion of sums involved in scams are more attractive and may be its the reason, majority is interested in fiddling than anything.

Negative global developments including Irish reactions, Korean build-ups and finally serious wikileaks paranoia are adding the fuel. The Korean and probable revelations from wikileaks are more serious than anything. My assumptions may be wrong, but I am anxious because, US is playing at both the faces, they even took official advance bail on the wikileaks revelations by alerting us, you don’t believe all these.

The investor fraternity is in negative sentiment and its reflecting in the market as usual. Market has corrected almost 10% since the recent peak on 5 November 2010 due to a blend of international and India specific issues and is gradually recovering. There is no vaccine to cure the corruption plague. It was there in our blood, it is there and it will be!. We have keep roared as much with the media whenever we noticed such dirty practices. Media, the people we trusted or leaned on all these times, who shared our pain and enlighten our wishes each time we hassled by scams/scandals/politicians. They are also leaving us by realizing that they can make much more than what they earn by strolling within the four walls of channel studios. They too, finally found the alluring outside world which provides huge opportunities. If the revealed tapes are correct, its highly harassing. I could not yet convinced my sense up on the rolls played by our reputed media idols, especially Padma Shri Barkha Dutt. Recall her Kargil & Mumbai attack reporting, and the Padma Shri, our fourth highest civilian honour is still with her name. Won't we respect that class civilian decoration or we disregarding the others who awarded it?

Lets come back. Crashes and booms are common phenomenon towards every market and economy. I think whatever going on is simply related to sentiments and the economy is intact in our case. Such types of scams/scandals were there with every emerging economies and history denotes the same. Its our good luck that things revealed even lately because we are in a democratic structure. As investors, we should not be paranoid on such temporary sentiments but its wise to be very aware and cautious on such developments. Whatever going on is just a psychological extract and I don’t feel any big thrust on such issues. I am happy that, finally we got to know all these, God is with us and we are skilled or immunized to absorb all these shocking deeds with a cool sense. I think its an opportunity for our politicians for self realization as well thinking on remedies. From our part, we can only pray for some kind of Wikileaks exclusively for Indians and it will provide us some more interesting times with the market, moreover we always need some kicks to walk straight.

Market is a place where investors should prepare for the worst always and expect the unexpected. We have to be firm in such testing periods because we are strong enough. We are one of the fastest recovered markets from the recent historic downturn and there is hardly anything hazardous ahead. In the recent tweak, some sectors and stocks have corrected much more than the main stream because of certain sector specific bad news related to telecom, infrastructure, realty and banking etc... The valuations have turned more reasonable for certain scrips and those who unreasonably punished will recover fast.


Shabu Thachat -



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.

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