Be kind....
Tuesday, January 12, 2010
End of the day…
We were expecting market to correct on excellent Infy nos and better than expected IIP nos. This is market habit. It was known from the beginning today that market will correct after these events and try to break the 5200 mark once where stop loss of bulls will trigger.
Meanwhile it is learnt from sources that OLD FOX has made exit from Gillette P and G Golgate and Nestle in order to create some space for entering into high beta shares. So far what we have tracked is that he has made killing in bull rally in various counters and proved that he is the sharpest and he cannot be labeled as bear always. He is a fox and fox is known for its qualities.
We believe that the last wave before budget is set to start and A gr will participate very heavily. OIL stocks will make killing in next 2 months. So also metal, mining, cement and telecom will make killing.
The rally started somewhere in April 2009 and the first leg of completion of the rally will come to an end in March 2010 and this has happen with huge distribution and for that stock prices will move by 30 to 50% and may be 100% in some cases in next 2 months. Be prepared. Budget is providing them platform.
In B gr India Foil and Ess Dee merger happened and finally India Foil broke out with no limits. Now sky is the only limit as mgt holds 90% stake in India Foil. We had predicted this to happen in some time and it did and stock price rose from Rs 14 to 19. Huge upside is there in this stock. Expect at least 2 20 pc upper circuits before it hits another 2 to 3 10% cct and then finally cooling off.
Even in IDBI you have seen the right issue getting cleared. This was projected by group when the price was Rs 100 or below. In order to make big money you need to have lion heart as well as patience. Only long term investors can make cool money.
Mahindra have gone on record saying that due to lack of component the production cut is there. Similar is the situation with almost all vendors. Therefore the next buzz sector is auto ancillary. SNL Bearing which is subsidiary of NRB has great potential. Co had been reporting good nos even in bad times. Now time is good and hence I believe that co could churn excellent nos in next 3 years. At cmp of Rs 32 still the stock is available at market cap of Rs 10 to 12 crs whereas promoters had invested Rs 27 crs in the co at the first place. Going by the cost involved the share price look cheaper.
Have a look at SAAG RR a MNC co in OIL segment which has potential to become another Shivvani in time to come. This stock has foreign collaboration, promising sector and the best part is at right valuations from where this can become a multi bagger.
Be kind; everyone you meet is fighting a hard battle
BigGains !!
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