The 10 pointers which will help you to protect your losses and enhance the profits.Also accumulate the given names too.
1)Accumulate high conviction Top 10 ideas:-Tv today,Godrej properties,Ptc Finance,Jyothy labs,Canfin Homes,Shilpa Medicare,Fluidomat,Selan exploration,Transport Corp and Atul auto.
2)One question which flows incessantly is the query regarding targets.I mean why do you need to bother about targets?We all talk about the Jhunjhunwalas and the Damanis,crave for 10-20-50 baggers.Imagine if the ones who owned those stocks,sold at 20-30% profits or exited on some targets,Would they be worth so much today?Simply no is the answer.Please don't bother about targets.Stay put till the story is intact.
3)Its definitely important to ride your profits as well as to conserve them.The best way to do so is to keep a trailing profit level at your comfort.Say I have recommended a stock at 100 for a target of 150.It meets the target so will you sell?Again no is the answer.You keep a stop profit at 130 and continue to ride the rally.If it falls to 130,be happy as you have made 30%.But there's more than a chance it may continue to move up.Say if the stock moves from 150 to 180,put the stop profit at 150-160 and so on.In this way you can taste the real bigtime multibaggers.
4)I have been fortunate to earn quite a sum through stock markets.The secret being simple.I have always put some fund on a monthly basis throughout the last 11 years of my stock market endeavour.No matter if its 500 bucks or 5 lakhs,every penny helps.They make your cost of acquisition price very healthy.So try to allocate some fund every month folks.
5)The aspect which pains me a lot is the act on ignorance.You guys often buy without even knowing what the company is all about.Hearsay,rumuors get heavy on you.Equity represents lucrative ownership.Imagine a click of a mouse makes you the proud owner of a great company.Its obligated to share each and everything with yourself.Can wealth be made in more easier way?So the next time you delve into some company,make sure you have reasons and logic backing it.
6)Understand margin of safety.Its great to know about a company,its business and future prospects.Knowing about margin of safety is of prime importance too.A good dividend yield,great visionary promoters,any competitive advantage or moat,attractive valuations and decent return ratios act mostly as the margin of safety.If your company got all of these or say some of this aspects-It will more likely outperform the markets both ways,bear and bull market.
7)Am not a votary of stop losses,more a believer of averaging rather.But I have observed a lot of members piling on the ones which got a lot of risk and the high beta factor.Under such circumstances put a stop loss at 35% below the acquisition price.Again minimising losses and maximizing profits should be your mantra always.Even in my scrips, if something moves down more than 35%,simply exit from it.Coz after a lot of careful study, taking into account the margin of safety factor,a scrip gets suggested.So such a severe fall will only indicate something has gone wrong terribly.
8)Please don't chase any stock.Often the day after my recommendation,I find a lot of scrips either hitting upper circuit or quoting near to the circuit.Why to chase a stock?Is it like you wont get any more opportunities or am I winding up the consultancy services?Haste only makes waste.Buy slowly,steadily.Accumulate in the declines.Even if it moves only up,there's something better waiting for you to lap it up.
9)I know all my members are realistic and not the ones who gamble to loose.Warren Buffet, the greatest and the richest investor of all times made billions just by 20% odd compounding.So if you have been able to make 25-30% in a year,pat on your back as you really have accomplished something commendable.Any one who is looking for doubling or tripling of money in a quarter,can well make their way in the horse race course or in the lottery ticket counters.
10)Make a proper portfolio allocation.Often a lot of people puts 100% in a single counter.Ain't there more 5200 listed counters?If you have got high conviction,can put 25-30% in it.Not more than that.Always better to construct a diversified portfolio of 12-15 stocks.A single 30% allocation to a 20-30 bagger can well liberate you.Also a 26% portfolio compounder for 16 years with just 3000rs monthly fund allocation will give you the craved millionaire status.It would be prudent to note that my consultancy services have provided over 30% CAGR since its inception.Last year being as high as 47%,as you folks are aware.Happy investing members.
Short term call:-(Given hardly 3 weeks ago)
Target:225(Raised from 185)
Note:A short term call and thus makes no senses to pen a large note.
Business:Established in 1962 as Tata Robins Fraser, TRF is a pioneer in solutions for material handling equipment and processing systems required in the infrastructure development and automotive applications.The material handling equipment and systems business caters mainly to sectors such as power, steel, port, mining, etc. Its two principle business segments, products and projects, are further divided into the following business units:
Bulk Material Handling Equipment: The division specialises in the design and manufacture of a wide range of material handling equipment, such as wagon tipplers, conveying systems, screens and crushers, travelling wagon loaders, etc. The division manufactures its products in its state-of-the-art works at Jamshedpur.
Bulk Material Handling Systems: The division offers a complete package of material handling and allied systems and services on a turnkey basis.
Port and Yard Equipment: This division focuses on the design, supply, erection and the commissioning of material handling equipment for ports and stockyards including level luffing cranes, ship loaders and unloaders, container cranes, stacker-reclaimers, etc.
Balance of Plant (BoP): This division offers complete EPC solution to power plant developers, comprises systems and utilities like coal and ash handling plants, water treatment, cooling tower, electrical-BoP, civil work, HVACs and compressed air, fire prevention and fuel handling systems. Its services also include system engineering for integration within BoP packages and those between BTG and BoP.
Operation and Maintenance Services: The division provides operation and maintenance services to customers using bulk material handling equipment.
Joint ventures, subsidiaries, associates:-
1)York Transport Equipment (Asia) Pte, Singapore is engaged in the business of production and distribution of trailer under-gears, which includes axles, suspensions and other components.The company has manufacturing facilities in Singapore, Australia, China and India.
2)Adithya Automotive Applications is an automotive applications unit in Lucknow, India, which provides end-to-end solutions through fabrication and machining for tippers, load bodies, refrigerated bodies, etc.
30Dutch Lanka Trailer (DLT) Manufacturers, Sri Lanka is a world-class trailer manufacturing company with manufacturing facilities in Sri Lanka, Oman and India. It exports trailers to over 30 countries.
4)Hewitt Robins International designs and manufactures mobile crushing plants and screens, feeders, foundry equipment, etc. The company produces standard and custom-designed equipment to perform in the toughest industrial environments.
Story:Often a quarter is enough to start a new bright trend.The same is the reason for recommending this week's call TRF or Tata Robin Fraser.
Results:TRF delivered consolidated 4th quarter revenues of 352crs vs 292crs in the corresponding period.It hit a PAT of 24crs vs a loss of 50crs earlier.For the full year 2013-14,the company clocked consolidated revenues of 1175crs vs 1115crs.Losses reduced to 28crs vs 92crs.
Conclusion:Earlier its debt went up as collections wasn't good because of the money market situation, some of the customers didn't pay and some of the projects got delayed. A lot of its money gets spent on these projects and overall the debtors went up and that impacted it badly.Company now got plans to reduce its debt by 10-15% which will help it to improve its margins.Management is very confident of making a strong turnaround in the present fiscal.This is the same company which even few years ago quoted at a level of 1100 bucks.Sectoral slowdown and resultant losses made the company shrink to new lows.It belongs to the coveted TATA stable and with better numbers,scrip may certainly roar and move on to new levels.
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