Don't you ever believe in Astrology - Just believe in yourself

I am no Astrologer nor do I believe in Astrology. I just believe in myself, I believe in logical thinking, I believe in sharing knowledge and I believe that one should be happy if others are happy. Yes, I believe in destiny but only to the extent that it guarantees me just one thing for sure and that is Death - all other things I decide, not Destiny.   

And, today I am happy that somebody out there would have profited modestly today after reading my article titled “ Good God, what should I buy ? “ provided they bought the shares in the opening session.

Brief extracts of the 2 stocks I spoke of is as under :

1.BGR Energy [ The stock rested today at Rs.737.05, up by Rs. 46.45 ]

Yes, BGR may replicate a BHEL but that’s different subject altogether. And yes, I will not be surprised if BGR continues to move northwards for days/weeks at a stretch. But, the question is , do you have the guts to buy a scrip after it has risen by Rs.120.05 in a single day! If you have the guts, just go ahead and rest assured you would have embraced a 3 bagger!

Congratulations to those who mustered the courage to buy BGR Energy Systems Ltd.

Those who bought one junk of 100 shares would be sitting on a cool profit of around Rs.4645/= in just one day whereas it would have taken roughly 285 days to get the same returns had you parked Rs.69000/= in Fixed Deposit at 8.5 per cent p.a.

Just watch my words and you’ll remember me : I am saying this again – BGR Energy Systems is poised to give great returns to those who pick up this stock even at current levels or on sharp corrections and hold it for about 1 or 2 years.

2. JAIPRAKASH ASSOCIATES [ The stock closed at Rs. 110.20, up by Rs.2.9 ]

To cut a long story short just consider this: In this month the stock saw a high of Rs.138.90/share on 10 November and it closed today at Rs.107.30, that’s a loss of 22.75 per cent. The 52 week range was Rs.167 -99. Considering the above factors and the typical behavior of this stock, I expect this stock to rise by around 25 per cent in about 1 to 2 months time. And expect Jaiprakash Associates to give you 50 per cent from current levels if you have the patience to wait for a longer time frame.

Congratulations to those who mustered the courage to buy Jaiprakash Associates Ltd..

And mark my words, you can get 25 to 50 per cent returns even if you buy Jaiprakash Associates at current levels.

Friends, don't you ever believe in Astrology- Just believe in yourself and then you your self will become the Greatest Astrologer in the World - that is you will be able to carve and foresee your future as you wish your future to be.

Happy Investing.

Good God, what should I buy ?

Last week was a virtual nightmare for stock market investors but it seems that the current week having begun on a good note may cheer up many investors. The sensex rested at 19405.10, up by 268.49 points or 1.40 per cent.

But the biggest problem in such times is that investors get totally confused in case they have cash and wish to take advantage by buying stocks which were beaten and battered for quite some time. This is particularly true in case of those investors who have limited cash on hand but several stocks in mind. An investor may wonder whether he should take a call on the most admired company RIL which has gone up by Rs.35.65 [ 3.5 per cent ] or whether he should buy Reliance Infrastructure which is down by Rs.401.40 from its 52 week high. An investor may also start wondering whether he should grab one or two of the so called “tainted” or ripe for “tainting” type of stocks like LIC Housing Finance Ltd, Unitech, Jaiprakash Associates, Reliance Communications. Or better still, should the investor take a well calibrated move by hugging BGR Energy- hold your breath, as this stock closed at 690.60, up by Rs.120.05/share which is pretty cool sum that day traders might have pocketed. The spike started happening after the company faxed its “clean image” letter to the bourses today. Yes, BGR may replicate a BHEL but that’s different subject altogether. And yes, I will not be surprised if BGR continues to move northwards for days/weeks at a stretch. But, the question is , do you have the guts to buy a scrip after it has risen by Rs.120.05 in a single day! If you have the guts, just go ahead and rest assured you would have embraced a 3 bagger!

Well, for the faint hearted, it is extremely difficult to pick the right scrip when you have limited cash at your disposal. Well, I’ll make things easier for you.

Considering the strong volatility of the markets, the safest bet, to my mind would be Jaiprakash Associates. It’s a Sensex and Nifty stock that rises with grace and stoops down with humility and again rises with glory – such is the nature of this stock. Well, I presume that most of you would be aware of this company, yet I am providing below a brief about the company.

Jaiprakash Associates Limited is a diversified infrastructural industrial conglomerate in India. It is engaged in the business of heavy civil engineering construction, power, cement, hospitality, real estate, and expressways. During the fiscal year ended March 31, 2010 (fiscal 2010), the Company had hydropower operational projects of 300 megawatts Baspa-II (Himachal Pradesh) and 400 megawatts (Uttarakhand). In hospitality sector it owns and operates four five star hotels, two in New Delhi and one each in Agra and Mussoorie with a total capacity of 644 rooms. In real estate sector it has 452 acres, which includes residences, commercial spaces, corporate park, entertainment and nature in abundance. It has 165 kilometers long six lane Yamuna Expressway project from Noida to Agra for commercial, industrial, institutional, residential and amusement purposes, and 1047 kilometers long eight lane Ganga Expressway from Greater Noida to Ballia (Eastern Uttar Pradesh).

In FY10, the total revenues and PAT was Rs.10,066 crores and Rs.1708 crores respectively. The company’s profits have been growing at a 5 year CARG of about 21 per cent and Institutional holding stands at 33.39 per cent as on 30 September 2010.

To cut a long story short just consider this: In this month the stock saw a high of Rs.138.90/share on 10 November and it closed today at Rs.107.30, that’s a loss of 22.75 per cent. The 52 week range was Rs.167 -99. Considering the above factors and the typical behavior of this stock, I expect this stock to rise by around 25 per cent in about 1 to 2 months time. And expect Jaiprakash Associates to give you 50 per cent from current levels if you have the patience to wait for a longer time frame.

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

Got the guts to make tons if money by short selling LIC Housing Finance Limited ?

[ Money, Money on the Wall, tell me who's the smartest of them all l

America, the land of opportunities – a land where people make loads of money even as people continue losing loads of money, Yes, that’s what guys like James Chanos do – he is a Master Strategist when it comes to short selling. James is in fact stronger and mightier than James Bond when it comes to making money off the street.. James is President and founder of Kynikos Associates, a New York based investment company that is focused on short selling.

Way back in 2000-01, James made a killing short selling Enron. Many of you may be aware that the Enron stock declined from $90 in August 2000 to a low of $1 near the end of 2001. Over this period, James Chanos was a short seller of Enron during 2001, increasing his short position as more information surfaced. Kynikos profited greatly and Chanos himself became somewhat of a celebrity as a consequence of his early awareness of Enron’s problems.

Closer to home, we may not be having specialist investment boutiques specializing in short selling but one thing I can vouch for – there are many smart guys on our own beloved soil who make tons of money short selling – they have done it before and they are doing it now. Yes, buddy, you got it – these smart folks have been brutally short selling LIC Housing Finance Limited for the past few sessions. LIC Housing Finance Limited which was quoting at Rs.1320 on 18 November went downhill and rested today at Rs.932/share, down by 29.39 per cent. So, you want to be the next James Chanos of India?

And probably you are wondering how low could low be – the Support of Rs.816 or the 52 week low of Rs.712.80 or some lower mandatory figure rocking like a pendulum in your head? Well, buddy you may be on the way of making a killing in the next few sessions by short selling LIC Housing Finance Limited. That’s if you were to believe what the experts are saying : “The stock could remain under pressure in the near term due to uncertainty over the company’s future growth strategy,” Religare Capital Markets said in a note. The brokerage said that though it doesn’t expect any serious financial impact from the scandal, the stock could underperform its peers in the near term.

In a research note Thursday Kim Eng Securities said that unless investor fears are assuaged, they are likely to continue selling the stock, at least in the near term. With foreigners holding 42% in LIC Housing, the stock may dip further, it added.

The stock selloff is just part of the story: The bigger concern is the blow to the credibility of India’s state-run banks and insurance companies, long regarded as trustworthy and reliable by the general public. It will be harder for LIC Housing to recover from this than from a stock slump [ wsjonline ]

LIC Chairman T.S. Vijayan openly addressed this fear. ” More than the financial thing, it is the reputational risk that we are facing, not only to LIC Housing Finance, but to Life Insurance Corp. also, “ said Mr. Vijayan speaking to television channel CNBC-TV18 Thursday.

In a very bizarre case, LIC Housing Finance Ltd is a stock that can go further downhill because of the "bribery" issue and consequent negative sentiments etc in which case the fundamental-cum-technical aspects go for a toss. In such a scenario, smart investors indulge in SHORT SELLING wherein they buy the stock on "gap down " and wait patiently for the stock to be hammered down mercilessly as is happening for the last few sessions. And, these short sellers will continue making money for another few sessions until the "fear" factor evaporates and confidence about this stock gets resorted back to normal.

So, who said you can't make money in a falling market. When you short sell a stock, there is always the risk of losing money if the stock price goes up. Of course, you can always set a hard Stop Loss and play the game and be a winner if the stock continues going downhill in which case you would have learnt your FIRST LESSON IN SHORT SELLING, if you havn't done it before. But short selling is an art that should be embraced when there is bad news flowing or rather when blood has started running in the streets. You have to be pretty smart to pick the right stock at the right time in order to play this dangerous game called Short Selling. Expect short sellers to make a killing on LIC Housing Finance Ltd in the days to come.

So, buddies, do you have the guts to make tons if money by short selling LIC Housing Finance Limited – do so at your own risk because short selling is for the dare devils who can dare to dive 30000 feet from an airplane without worrying whether the parachute will open or not !

And yes, if you make money after reading and acting on this write-up, you owe me a moral responsibility - you need to treat me with just a cup of sizzling hot coffee in a nice cozy restaurant. When the market opens on Monday 29 November, sell LIC Housing Finance Limited, if its in the red, place a stop loss and pray for the profits to flow into your account until the closing bell - and yes, don't forget to square off the deal by buying back the quantity of shares you sold at start of the day.

Remember : Boom or Bust, the smartest guys on the street know how to make a killing but you need guts, you need drive, you need a laser sharp mind and you need a big heart to smile if you lose MONEY!

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

Grab this report : Outlook for market in next 6 months

Dear Investors,

Whether you are investing on your own or availing PMS or subscribing to one or more Stock Market Research /Brokerage services, I assure you that nobody other than HBJ Caps can give you a clear cut, focused and unbiased view of the current and future outlook of the Indian Stock markets which is confusing all and sundry - nobody knows for sure whether the markets will rise or fall and to what extent the markets will continue to stay volatile. Not even the best astrologers will be able to tell you how to make the next smart move in the markets – the challenge of predicting the future course of action in the midst of QE2, Koreans fighting, China tightening its finances, Ben making the US printing press his permanent home etc is a nightmare of all nightmares – bigger than the Internet and US Housing nightmare!.

Trust me friends, time is running out pretty fast - just subscribe to the Bargain Stock Package [ BSP ] that is still available at a deep discount until 30 November 2010. The annual BSP from IVI Unit will cost you Rs.5000/= only and you will get the following report absolutely FREE. No sooner you remit and we receive the annual subscription fees, the FREE REPORT will be emailed to you instantly.

Research Report: Is this a trend reversal? Outlook for next 6 months.
{Report on market trends for next 6 months by HBJ Capital, www.hbjcapital.com / www.hbjcapital.in /www.multibaggerpennystocks.com / www.stoplosstrade.com}

Topic Covered....

- View for next 6 months: Maintain x% of your portfolio in CASH.
- Next phase of the banking crisis in USA
- QE2 - It’s actually hurting the markets
- A stronger dollar and rising interest rates are not good for stocks. Now we have both!
- Economy changes but history repeats : Nikkei fell down by 34% due to QE from BOJ in 2001

- Study on next market move till 2016
- Europe's debt crisis is contagious
- China's attempts to tackle inflation
- After 2G Scam, now Housing loan scandal
- No irrational exuberance seen in the market
- Another x% correction on the cards
- Excess supply zone for Nifty is xxxx
- Strong Support @aaaa/bbbb

To get this report, subscribe to any of our paid services. This report is only for private circulation to existing members of HBJ Capital.

Trust me friends, I am telling you this from the bottom of my heart - you will part with Rs.5000/= in order to become subscriber of IVI' s Bargain Stock Package but in return you may end up saving lakhs of rupees after reading our :

"Research Report: Is this a trend reversal? Outlook for next 6 months.

So, the choice is yours - do you want to SAVE Rs.5000 and LOSE Rs xx lakhs or do you want to part with Rs.5000 and SAVE Rs.XX lakhs?

Please feel to write to me or Sandeep Jain for any doubts/clarifications.

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

A simple stock idea that can give good returns over the long haul

Friends, trust me, no one can give you multi bagger stock ideas off and on, every day, every week. If somebody tells you that he/she can do so, then that person is a master liar gifted with a crooked mind, a crooked heart and in all probability the stock ideas could be equally crooked backed by crooked promoters who churn out crooked figures and so on and so forth.

Now, the crooked person who was once a RAJA is no more a RAJA but the company that he was running in a crooked way has now a new owner who is as straight as straight can be – you guessed it. The name of the company is Satyam which is now owned by one of the most ethical entrepreneurs that’s Mahindra.

“Customer centricity, high standards of corporate governance, unimpeachable ethics form the cornerstones of the Mahindra Group.” That in short are the credentials of the new owner. Mahindra Satyam is now part of the $7.1 billion Mahindra Group, a global industrial federation of companies and one of the top 10 industrial firms based in India.

Now, please write this down in letters of Gold – The Stock Markets is one place in the world that can fleece a person to death and at the same time its one of the coolest place in the universe where one can make a killing and who gets killed and who makes a killing depends on who is alert and who is not.

And those who are alert would have realized that in a highly volatile market where even a company like SKS Microfinance was thrashed by the bears has now started to be embraced by the bulls. A good company becomes bad, ugly ducklings can get uglier and dud stocks can rise to great heights. Anything is possible in the stock markets. Even if a great company like Great Offshore is being battered then there has to be a reason for the battering. And even if Mahindra Satyam is going downhill, there has to be some logical reason for the stock to reach a low point. Satyam Computer Services Ltd which was quoting around Rs.120.85 on 14 January 2010 has today touched a 52 week low of Rs.68.15 per share. Agreed, every stock will have a divergent view at any point in time – some may be bullish and some may be bearish, some were bullish earlier but have now got more bullish now. Just like the FII’s who had a 9.05 per cent stake in June 2010 have now hiked their stake which stands at 9.87 per cent and the DII’s have reduced their stake from 4.62 per cent to 3.29 per cent during the stated period.

On a consolidated basis, Revenue for FY11Q1 and Q2 was Rs 1,248 Crores and Rs 1,242 Crores respectively. PAT for FY11Q1 and Q2 was Rs 98 Crores and Rs 23 Crores respectively.

Vineet Nayyar, Chairman, Mahindra Satyam, has this to say about the Quarterly results : “The announcement of Quarterly results is an important first step towards building a high-growth business. The synergies with M&M and Tech Mahindra are quite visible and we are seeing definite traction in our joint go-to-market strategies.”

And CP Gurnani, CEO, Mahindra Satyam, said, “Our performance over the last two quarters clearly reflects the stability that has been brought in. We have retained our traditional strengths and leadership in areas like Enterprise Business Solutions (EBS) and Integrated Engineering Services (IES). Our uninterrupted service delivery has helped us to expand on existing relationships, resulting in multiple order renewals.”

I personally feel that under the able and dynamic leadership of Vineet and Gurnani, the company is going to go places- there is no doubt about it. The only thing is that it will take some time – you need patience and lots of it. But, rest assured you will someday in the not too distant future be rewarded for your patience.

So, what are you waiting for. Don’t you wish to buy a small pie of Satyam Mahindra? Rest assured, before the merger or after the merger with Tech Mahindra, money you will certainly make provided you get in now or on more sharper downward correction. Or, did I hear that you want the CMP of Rs.68.15 to go down by 68.15 per cent and then you will think of buying. Then forget it –you may never be able to buy at that price. In case you do, let me know and I’ll take out for dinner at Taj Intercontinental, Hyatt Regency, Sheraton or Le Meridian, choice being yours.

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

Quantitative Easing Explained [ Courtesy : http://money.cnn.com ]

ISMT - capable of giving you decent returns

ISMT an abbreviation for The Indian Seamless Metal Tubes Limited which was promoted in 1977 by a team of technocrats. The company is well managed by Mr. Salil Taneja - Chief Executive Officer (CEO) who has 18 years rich experience in this line of business.

ISMT is one of the most modern alloy Steel plants in India that produces a wide range of alloy steels from 20 to 225 mm diameter.

The Market Cap is Rs. 766 crores, the shares are valued at PE of 12.4 and were last traded at 62.50, the 52 week range being Rs. 64.95 – 29.70. Face Value is Rs.5. Plz visit http://www.indianvalueinvestors.com/2010/07/indian-seamless-metal-tubes-limited.html to view my elaborate write-up on ISMT.

ISMT, recently announced its unaudited results for the 2nd quarter of FY 2010-11. The company has posted a net profit of Rs 24.11 crore for the quarter ended September 30, 2010 as compared to Rs 17.7 crore for the quarter ended September 30, 2009, up 36.21%. Total income of the company has increased 42.21% from Rs 286.89 crore for the quarter ended September 30, 2009 to Rs 408.01 crore for the quarter ended September 30, 2010.

Conclusion : I had recommended the stock when it was quoting at Rs.52.30/share on 22 July 2010 and the stock is up by 19.61 per cent since then. In view of the good quarterly results, expect the upward spike in the stock to continue as we go ahead and expect 75 per cent returns to materialize from current price of Rs.62.50 in about six months time. For more sharper returns, you will need to hold the stock for a longer time horizon.

Move with Sanghvi Movers and keep moving, keep smiling all the way to your bank!

Sanghvi Movers Ltd (SML) was founded in 1989 by C.P Sanghvi and A.P Sanghvi. It is the largest crane hiring company in India and was ranked 19th globally by Cranes International. The company is based out of Pune.The company derives revenue by hiring the following type of equipments:

• Crawler Cranes with Lattice Boom ranging between 65 to 750 MT
• Hydraulic Truck Mounted Lattice Boom Cranes ranging between 125 to 450 MT
• Hydraulic Truck Mounted Telescopic Boom Cranes ranging between 20 TO 800 MT

Thus, SML provides various types of cranes and Logistic Services. SML is a great proxy on the surge in India Inc's Capex cycle. Cranes are an essential component for infrastructure building and with the massive investments lined up both by the government and private sector in India, the company is bound to benefit from the increased demand.

The clients of SML is indeed impressive and it includes major like RIL, L&T, BHEL, Suzlon etc

SML work requires transportation of heavy-duty cranes and extensive logistics services for mobilising and demobilising its cranes. It recently acquired a fleet of 50 trailers with an investment of Rs 8.5 Crs to help it carry its own cranes with short lead times.

I can as well write a thesis on India’s Infrastructure and win a Phd but nonetheless the entire thesis can be summed up in just these few words: “India will need to spend more than $1 trillion on infrastructure from 2010 to 2019, with roads requiring $427 billion, power $288 billion and railways $281 billion,” according to Goldman Sachs. And infrastructure needs cranes, lots of them – as simple as that. That’s precisely how India is destined to grow and that’s how SML is bound to grow and further that’s how your bank balance will grow even as the share price reflects the growing top line and bottom line of the company. So, did it not cross your mind that how complex things can be made simple. I have seen the corporate world in and out and I have seen people who love to confuse other people - guess they get paid for such a hobby! But, I for one love to simplify complex things even when it comes to explaining why planes don't crash midair when flying in the dead dark sky!

SML’s five year top line CARG was 18.69 per cent and bottom line CARG was 22.98 per cent. The revenues for the last fiscal of 2009-10 stood at Rs.331 crores and PAT was Rs.90 crores. Promotors stake stood at 44.72, FII’s stake was 7.83 and DII’s stake was 20.31 per cent as of September 2010. Thus 72.86 per cent is in strong hands.

SML has a Market Cap of Rs.780 crores, the 52 week range was Rs. 272 – 156 and the CMP is Rs.180.30/share, PE being just around 8.2! Just go for it and sleep tight on it for about 2 years flat. Now, tell me friends, can any FD or Post Office saving scheme give you such handsome returns? The answer has to be a resounding NO. So, take calibrated risks and start investing money in the stock markets for a better future.

Conclusion: Considering the fact that India’s infrastructure growth is pregnant with huge opportunities for players like SML, expect your money to double in about 2 years time even from the current levels. The downside risk is moderate and is linked to the approvals by our beloved sarkari babus and fund flows position of the private infrastructure players.

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

Don’t be left behind - sail with the HBJ Caps to the Land of Wealth and Riches

When it comes to making money you need to be proactive – if you want more and more money by embracing less and less risk, then forget it. Then you are just wasting your precious time reading this – in fact your time will be well spent comparing which bank out there is offering you that tempting 1 or 2 per cent more for your 1-3 year Fixed Deposit or comparing which post office saving scheme will maximize your returns. And then there are those who are utterly confused when choosing a mutual fund irrespective of the fact whether they know or don’t know who the concerned Fund Manager is and whether you can trust him to deliver the type of returns that HBJ Caps recommendations gives its subscribers.

If you folks are thinking that its just too late to join India’s Bull party then, I’m sorry to say that either somebody is misguiding you or making a big fool of you.

Just consider the following :

In the current calendar year till date, FII’s have pumped in a mind boggling sum of around Rs.1,30,000 crores something which our country has never seen before.

So, up to October 2010, FII’s have purchased shares equivalent to US$21.6 billion and reliable sources believe that going forward FII’s are expected to invest US$ 35 billion.

During the recent India Economic Summit 2010, Finance Minister Pranab Mukerjee said that the Indian economy was poised to return to the 9 per cent growth path despite signs of a slowdown in the manufacturing sector for the last few months.

"India’s Next Trillion Dollar Era will see a huge boom in consumption and savings/investment, which will throw up several Winner Categories i.e. those which grow at over 1.5 times GDP growth rate," and we at HBJ Caps will help you become a Winner by buying such Winning Stocks.

You don’t need to look beyond our shores in order to understand that our Stock Markets are poised to take a more pronounced quantum leap from here on.

So, don’t just sit there safely on your couch calculating the paltry returns you are getting from fixed deposits, post office savings and mutual funds. Aim for higher returns by investing directly in the stock markets if you have the time, temperament and talent to study and pick stocks.Or better still, trust HBJ Caps to make you richy rich. Don’t be left behind in the race to riches.

I have said it before and I’ll say it again – time is running out. Start looking at the stock markets as Gateway to Wealth and Riches. Do it on your own, at your own risk or just divorce risk by sailing with HBJ Caps who have established a track record of carrying our subscribers on a fascinating voyage which has already taken them to a few shores glittering with wealth. Join us on this life changing voyage right away – you can join in any time, any day even as there are many unexplored shores of wealth where our subscribers are destined to reach. Don’t be left behind. Act Smartly. Act Now.

To understand how best you can capture the various wealth creating opportunities presented by HBJ Caps, just get in touch with Sandeep Jain at +91 09886736791

Happy Investing.

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