Wednesday, May 24, 2006

Sasta stock !!!

This is all I've been listening and reading over the last two days. A friend at office tried an experiment on this - he picked ten random stocks given in the tabloids as ridiculously cheap stocks ... surprise !!! ... that herd of "cheap" stocks actually knoocked off 3.4% of an investors wealth in the last two days.

What did I do? I too bought some stocks on 22-May (when the mkt went down by 1000 pts). As I had only 80000 bucks, I divided the money among some 9-10 stocks. Here are my value picks -
a) Amtek India - I bought this again ... at 108 rupees. It's at 120 today.
b) Bank of Baroda - Bought at 227 rupees ... up to 239 rupees
c) Kalpatru Power - Amazing returns ... bought at 641 .... now up to 755 rupees
d) Mastek - up from my buy price of 307 .. up to 326 rupees
e) Rolta India - Bought at 184 rupees. Now at 194 rupees
f) Gujarat NRE - Bought a little more ... at 65 rupees ... its up to 75
g) Rain Calcining - 38 rupees .. 39.10 rupees
h) Tinplate Co of India - 73 rupees goes up to 77 rupees
i) Alembic - 328 rupees .. disappointing up to only 332 rupees
j) Alok Textiles - bought at 73.5 rupees ... at 77.15 rupees

I had my share of fun today .. the BSE fell by 250 points today ... and my portfolio actually went up a miserly 0.4%

19 Comments:

Blogger Amol said...

Shankar,

The EPS of Abhishek industries is 2.95. Last year it was 2.19. The company has posted very good results. Next year the EPS is expected to cross 4. I have a holding in this company for last 2 years. It did not move much all this while. I hope this year it finally starts moving. I understand that its a very good long term hold seeing the management. Lets see how it goes.

-Amol.

1:27 PM  
Blogger Ravi Purohit said...

Hi Shankar,

Interesting "sasta" stocks u picked up. Nice to see Tinplate in that list ;-).

Btw take a look at deccan gold mines, d-link, universal cables and tvs motors. I picked these recently.

--
Happy investing,
Ravi.

5:59 PM  
Anonymous Anonymous said...

sab kuch akele akele kar lie yar
batae bhi nahi.Ab bhi ye sab lia
ja sakta hai kya?

6:07 PM  
Blogger Rakesh said...

Shankar,
I tried a similar strategy but due to lack of time I have not been able to put sufficient money in the market.
I bought following counters:
NTPC @ 112 today rate 117
IDBI @ 68.65 today rate 72.50
IDFC @56.55 today rate 57.20

Right now I am in two mind about whether to put my money in mutual fund or buy some of these stocks

-Rakesh

6:30 PM  
Anonymous alok said...

hi shankar ,

i am holding some 100 stocks of aftek infosys at 100per share,i am thinking of averaging it by getting 50 more shares at the current price of 62.What do you say.I am seeing it from a one year perspective.I want to buy it to get a feeling of a lower price for this scrip as a loss of 38% is really scary.

What do you say???

7:48 PM  
Blogger Shankar said...

Hi Alok,

Buy Aftek Infosys ... at 62 rupees, it is the "sasta" IT tier-2 stock. ... an incredible PE of 8.14. The stock has an NCAV of 35.68. What are you waiting for?

I have it at 75 rupees. And no capital ... so no additional exposure.

Warm Rgds
Shankar

9:51 PM  
Blogger Shankar said...

Hi Amol,

I was talking to a friend of mine working with KPMG Consulting. The Trident group is a client of theirs and has some incredible plans for the next 3 years and is building brilliant, expansive systems to support plausible growth. His estimate - turnover to increase from 1500 to 4000 crores in the next 3 years.

I have a position in this stock.

Warm Rgds
Shankar

9:54 PM  
Blogger Amol said...

Shankar,

Thanks for your comments. As I mentioned even I am holding this since a long time. During the correction it had gone down to 22.30 but did not have even a single penny. Was cashless at the wrong time, so could not buy more. Anyways, thanks for the details.

-Amol.

11:35 AM  
Anonymous Anonymous said...

You seem to have become a god of small things - for all these people flocking all over your blog to figure out the latest "hot stock". Your generous recommendations (without any meaningful analysis), never seem to die out. Except for focus on the market-prices of stocks, I havnt seeen any meaningful conversation on analysis of stocks on this site.

Its amazing that a riding market popularizes even flawed analysis or faulty logic, and makes people shut their eyes to common sense! (There r bulls, there are bears, and then there are pigs to be slaughtered! :))

I wonder how will ur recommendations work out when the markets go into dizzy :))
Till then, enjoy the ride.

11:25 AM  
Blogger Shankar said...

Hey nice comment. I thought the human race had stopped being harsh and critical. My sincere apologies for not being able to make the posts more meaningful .. though I did make a bunch of money in the process ... even in a falling market.

Let's take the last ten recommendations (except ones given in the above post)... let's check it with sensex movements.
1. Bank of Baroda lost 0.2%; sensex lost 12%
2. Nahar Industrial Enterprises gained 9%; sensex lost 10%
3. Alembic was not recommended then, but later picked up at 328. it's up 9%; sensex in same period up 1%.
4. Nahar Export up 10%; sensex lost 9%.
5. NOCIL up 3%; sensex lost 9%
6. West Coast Paper up 4%; sensex lost 9%
7. Andhra Paper lost 1.5%; sensex lost 9%
8. Abhishek Industries up 2%; sensex lost 10%
9. Torrent SEC lost 15%; sensex lost 6%.
10. Hexaware Technologies lost 15%; sensex lost 6%

On an entire portfolio, I lost 5.2% in the crash (if any). On these 10 last recommendations I gained 4.8% while the market lost a weighted 10.2%.

True anonymous, the markets are dizzy over the fall ... so am I, over the rise in my portfolio.

Enjoy !!!
Shankar

PS: Add it to the stocks bought during the great 1000pt fall... I am 11% in the black while the sensex is 14% in the red.

6:16 PM  
Blogger Shankar said...

Hi Amol,

Abhishek Industries is closing in on the 30 rupee mark. (29.50 on May-26th).

Hold for long !!!

Warm Rgds
Shankar

6:20 PM  
Anonymous Anonymous said...

Well, I havnt started being critical yet - I wish you were working for me and then .... just kidding!

Its not about losing or making money dear - thats exactly the point I made! As Rubin says, its the process of thinking which is important, and your basic process - of recommending the stocks and talking about its minute-to-minute prices, without any real references to the economics of the business - is flawed!! I noticed ur previous posts - just to figure out if I could be wrong - but the best valuations matrix which I could figure out was references to the EPS and PEs (what bullshit man!).. I wonder if you ever done any analysis of a co. You may be making money, as we are in a bull run, when ever donkey makes money - and a day closing up or down is immaterial. But it may affect you/or others in long run.

As Barton Biggs says "we are in the search of the TRUTH - the investment truth"!! Hope you take this as a positive critism and thank me!

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