Good Day Brothers and Sisters,
Its Tuesday, 5th February 2008
Hello My dear Brothers and Sisters,
Good Morning and a Great New Day full of laughter,
joy and peace to you all,
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Feel free to forward this post in its entirety
without changing the credits
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We all love it ... an opportunity to make money ....
20 stocks that can make you rich
Jitendra Kumar Gupta & Vishal Chhabria in Mumbai
January 23, 2008
One of the fundamental principles of investing or wealth maximisation is to
buy stocks at the right price which is difficult to achieve in a market
that has been moving up since the last four years.
The current mayhem in the domestic stock market provides an opportunity
to buy quality stocks at cheaper valuations. After the bloodbath in the last
few days,
which saw bouts of selling across the board, many experts believe that
this is the right time to identify and pick good stocks,
as valuations are fairly attractive relative to fundamentals.
Most investment experts believe that fundamentally nothing has changed
and that India remains a long-term growth story with GDP expected to grow
in excess of 8 per cent over the next few years.
Check out the more than 20 stocks (in the table below) that experts believe
can make you a fine packet over time.
The domestic consumption- led demand augurs well for the economy
as it largely insulates it from the potential slowdown in global growth
and this should continue to reflect in the markets.
We spoke to experts to know whether it is the right time to invest and what,
according to them, are the value picks.
"We believe that one should play big in banking & financial services and
capital goods & engineering services sectors as they have now come to very
reasonable levels and provide compelling investment opportunities.
If you look at such 6 sigma events in the past due to technical factors,
the market has provided great investment opportunities. This is the right
time
to invest and one can expect 30-40 per cent returns, may be more,
in next three to six months,"
said Vikas Khemani, co-head of institutional equities, Edelweiss Capital.
Amitabh Chakraborty, President-Equity, Religare Securities, said:
"We believe the market is trying to find a bottom. The exogenous factor,
such as US recession has in general caused risk aversion, so a few FIIs ,
especially hedge funds have sold.
Additionally some large proprietory book players had to liquidate their
position,
not only in India but across Asia."
"India has been the best performing market until now,
naturally in a liquidity squeeze back home, these pop book have turned
sellers.
We believe this week market will stabilize, and if volatility gets reduced,
slowly market will recover, as the refund money from Reliance Power issue
comes back to the system and the market builds on budget expectation
in February," he added.
"There is no direct impact as banks in India are not exposed to CDOs
with sub prime assets. However, India is exposed to global risk aversion
because of anticipated deep recession in the US.
Much of industrial growth last year was due to easy capital,
mostly from the private equity and FCCB or through the QIP route.
If that flow tapers off, as risk become costly, then India's growth story
might
come under risk., at least over a medium to long term perspective. "
"We have advised our clients to adopt a wait and watch policy as there has
been
no change in fundamental macro story. If investors are holding sound micro
story,
they should avoid selling, as n our opinion this is not the right time to get
out."
"As the market has fallen so much, recovery will be led by the blue chips.
We believe Reliance Industries [Get Quote], L&T, ABB, SAIL [Get Quote],
SBI [Get Quote] offer value, purely from price performance point of view.
We like HDIL, KS Oil, HCC, MRPL, Opto Circuit and Punj Lloyd [Get Quote]
in the mid-cap space."
Shahina Mukadam, head research, IDBI Capital, said:
"The Profit booking and selling by FII's in the last couple of sessions
has been a major factor in the sharp market correction.
The markets recovered post lunch with support from the domestic institutions
and mutual funds and we expect that the markets will stabilise at the current
levels."
"The impact of the US subprime crisis on the financial sector is having its
ripples
across the world and selling is happening across global markets.
Investors should start investing if not already doing so in the markets
at the current levels and should buy fundamentally strong companies."
"Almost all sectors / stocks have corrected and a near term rebound
is likely in blue chips in oil & gas / telecom / banks."
Most of market pundits prefer stocks in sectors like capital goods,
power and power equipment, infrastructure, financial services and telecom.
These sectors provide long-term visibility and sustainable earnings growth.
With regards to individual stocks, the experts recommend the following
'value' picks
(see table: Value Picks).
VALUE PICKS FROM EXPERTS
Harendra Kumar
Head of Researchm, ICICI Direct
Ajay Parmar
Head of Research, Emkay Shares
Amar Ambani
Head of Research, India Infoline [Get Quote]
Vikas Khemani
Co-Head of Institutional Equities, Edelweiss Capital
Reliance Industries
DLF
Jaiprakash Associates [Get Quote]
Larsen & Toubro
Reliance Communications [Get Quote]
HDIL
BHEL
BHEL
Tata Motors [Get Quote]
Jaiprakash Associates
ITC
Punjab National Bank [Get Quote]
NTPC
Tata Steel [Get Quote]
GMR Infrastructure [Get Quote]
Power Grid Corporation
Power Grid Corporation
BHEL
Patel Engineering [Get Quote]
Reliance Communications
JSW Steel [Get Quote]
Aban Offshore [Get Quote]
ICICI Bank [Get Quote]
HDIL
Lanco Infratech [Get Quote]
Voltas [Get Quote]
Oriental Bank of Commerce [Get Quote]
ITC
Indian Overseas Bank [Get Quote]
http://www.rediff. com/money/ 2008/jan/ 23rich.htm
I am not much into Stocks, but the above article made sense
to me and I could follow much of it ....
Be that as it may, you are still advised to consult with your
financial consultant before taking a call .... Although what the article
above stated was pretty much within sane reason ....
That's my disclaimer
With that thought in the back of your mind, its
TIME TO GET THAT BUTT MOVIN'
Time to "seize the day......"
CARPE DIEM
Until next time, make it a blessed day,
Make this day good
Love you all
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Working for God on earth does not pay much,
but His Retirement plan is out of this world.
Help someone have a nice day,
visit www.thehungersite.com
With best wishes from
Rahul,
([EMAIL PROTECTED]
[EMAIL PROTECTED])
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