Confidence Petroleum – A titan amongst titans!

Talking about Titans, what you are seeing above is Prometheus at Rockefeller Centre. By the way, Prometheus was the Titan God of forethought and crafty counsel. Now, over to Titan Industries Limited, a stock that was picked up by none other than RJ, the bull of bulls when it was dirt cheap.

Watches and jewellery maker Titan Industries spurted 6.22% to Rs 3491.35 after net profit surged 64.7% to Rs 127.77 crore on 33.9% rise in net sales to Rs 1535.97 crore in Q2 September 2010 over Q2 September 2009. The company announced the second quarter results after trading hours on Monday, 25 October 2010.

The LTP of Titan today 26 October on BSE was Rs.3491.35, up by Rs.204.40 or 6.22 per cent. Guess day traders who bet on opening might have slept happily and peacefully on closing instead of taking a nap.

On 4 January 2010, the stock was quoting at Rs1420.75 and today it closed at Rs.3491.35 which translates into the stock being a 2.45 bagger in about 10 months.

If you were to do a simple back of the envelope calculation, you would have realized that even our stock recommendation of Confidence Petroleum [ CP ] which was certainly a value buy at Rs.8-9 levels would have given you more returns.

On 4 January 2010, CP was quoting at Rs. 9.21 and today 26 October it closed at Rs.22.95 and that very well, my friend, translates into CP turning out to be a 2.49 bagger.

Yes, we sure didn’t recommend companies like Titan which is from the house of Tata’s but in terms of matching the might of Titans we sure did recommend something of great value like CP which has given our investors nothing less than Titan! As a matter of fact, investors would have been much better off buying CP as they would have got a bigger bang for their bucks considering the extremely high delta between the two scrips.

Agreed, the business model and other aspects of the two companies are poles apart but at the end of the day we want to see money on the table and not money flying off the table! And, I believe and hope you agree that we at HBJ Caps have been doing just that since inception and our subscribers are winning all the way in every way.

Cheers!

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