Aristotle’s Classical Five Elements

On May 26, 2010 the Sensex closed at 16387.84 and on August 26,2010 we see the sensex trading at 18226.35, a smart rise of 1838.51 points in three months flat! Even in the past one week the sensex has risen more and fallen less – it’s risen by 400 plus points and fallen by 150 plus points.

Should we then conclude that most of the bears have gone on a long long vacation. Perhaps yes. But the invisible and invincible market forces are always haunting the smart and dumb guys on the street as if they are posing the following questions in mild horror:

1.Is somebody out there trying to do something foolish by selling his/her chips when the markets are down so that we can buy cheap?

2.Are the smart / dumb guys trying to do something foolish by buying scrips which are rising in a rising market so that we can sell those scrips at much higher prices later on?

3. Or is somebody being utterly foolish parking a bulk of his/her savings in bank deposits which generate negative returns only because they don’t have guts and knowledge to play the markets?

Interesting and confusing too!  No issues – I am just as confused as you are, neither more, nor less. But hold on. I have for you some scrips which will probably give you a feel of Aristotle’s Classical Five Elements. Take a look at them and if convinced, just go for it. If you come across more elements, just shoot out a mail and I’ll see if I can suggest some good scrips that have some sort of inkling with the element concerned.

I am quite sure that most readers/investors suffer from data overload and hence I have attempted to give certain good  "Buy" recommendations without taking you through a cobweb of data. In fact, I have not given any details about the company as such and have left you guessing about the products manufactured by the company. Yeah, it’s a no-brainer!

Element	Scrip	No fundas, No data overload
Water	Amar Raja Batteries PE   9.9	A few years back I owned and drove a second hand Fiat and use to fill water in its batteries once in a way. Sold  the junk and now take the longest route to board a PMT Bus. Problem is that I have to slyly hire an auto to get to the airport for boarding my flight and board an auto again on my way back. Wish Cool Cabs were plying in my city so that I could fly in style and ride in style!..
Earth	Graphite India PE   8.1	Pet coke and needle coke are the key raw materials derived from sweet crude oil which in turn is gifted to us by Mother Earth. Graphite knows how best to use such gifts for the benefit of the human race in general.
Air	Balkrishna Industries PE   5.4	The other day I was on my way to Shoppers Stop in my brother-in-laws Omni when my “saala” suddenly stopped the car. The rear left tyre had gone bust. It took one long hour to set things right despite air being available on a 24x7 basis.
Fire	Tata Steel PE  7.76	And now lets go relax – just ponder over this poetic stuff: “My body is made of swords, Iron is my blood, and glass is my heart. I have overcome countless battle fields undefeated. Without once retreating. Nor once being understood. Always alone, intoxicated with victory on the hill of swords. Therefore there is no meaning to that life. Perhaps this body is nothing but a sword itself.”
Aether	Confidence Petroleum PE  13	Can’t do without the stuff that the Confidence manufactures. Confidence Petroleum is one scrip which to me is like Aether, all powerful beyond space, beyond time. Neither time, nor space can stop this stock from moving onward, moving forward!

So if you like Aristotle’s Five Elements and the accompanying five scrips then just go for it. Be brave and embrace these 5 good scrips having good fundamentals and are available at reasonable valuations in terms of Price Earnings – tomorrow may be too late. Buying at the right stock at the right time is crucial – that’s if you’re a Value Investor  and not  a Value Destroyer!

If any one of you guys require any information about the above companies and wish to know what sort of returns you can expect by taking a call on such companies, then just send me a mail and I’ll be delighted to send you a brief about these classical stocks that are destined to spice up your portfolio. And yes, this is absolutely FREE just for YOU.

Don’t you ever beat a retreat – use your intelligence as a sword and fight the monster called the “markets” until you emerge with victory. Victory to you, Victory to your Bank Account[s] !.

Kishor S. Khot, [Kishor@hbjcapital.com], Equity Strategist, HBJ Capital Services Pvt Ltd