Stocks for the long and short term portfolio

[tssumit]

Currently my newer holdings are RECLTD, ANDHRABANK, HINDALCO. Im waiting for good valuations on ITC & NTBC.

just want your opinion how will you compare Bank of Maharashtra and Andhra bank Mahabank is also paying DY of 4% (20% in last 4/5 yrs and 1 yr 15% of its FV.) and also growth is seen in its profits. whereas Andhra Bank profits seem stagnant. while comparing 2011-2012 and 2012-2013.

PS. My observation is based on comparing 9 months as 4Q13 is not yet out.

 

[jamit_05]

Great Stuff has happened over the weekend. Focused reading on a very important point about Value Investing: Moat. Yes, one single word can make the difference.

Finalized, scrips which I can confidently invest in. Yes, they have Moats. I will present proof.

These scrips are well known, generally profitable but currently unpopular for their own reasons. Being Completely dependable is the very first criterion.

Then is the price, to make sure I am getting more value for my rupee.

The 1st in the List is Bhel. It is still profitable. It is not in a cyclical industry. The demand for power equipment will be fair to good at least for another decade.

Second, is Engineer India Ltd. Same logic.

Both these will give Div Y of 3% plus at CMP.

Third, is Opto Circuits. This company is a little shady, when compared to the above two. Yet, is very solid. It is a leader, showing strong growth in sales, RoE, RoCE, Div Payout. Ratios are attractive. D/E is moderate.

Company has a risky profile as it has spend a lot of cash in acquisitions. But, the core company has strength to absorbs failures.

So, am looking to invest in the next downleg of Nifty in:

1) Bhel
2) EiL
3) OptoCircuits

 

[jamit_05]

Can I help you research those counters?

Yes, inputs are welcome.

 

[jamit_05]

Sir,
Are you new to value investing? If i may correct you the moat is called "margin of safety"

I ran the firms through the process prescribed by graham to screen stocks. All the counter that you have suggested have not passed them.

I have deduced that the stock are down. But are not still under the radar of value investors. Further more corrections may do the trick but at current levels these stocks are not attractive to me.

I suggest that you go look in the mid-cap sector and that too the upper cap. counters. There are plenty of value stocks in that arena. What studies are you doing in value investing? Which books are you reading? Hope my analysis helped everyone.

(LOL... that is cute.)

Moat and Margin of Safety are two different concepts.

There are entire volumes written on Moat. Pick any.

 

[jamit_05]

If I am not wrong 'Moat' is buffet's word.. that basically means monopoly like.. correct me if iam wrong..

Yes.

It is a beautiful concept. One Prof. Bakshi demonstrated how HUL has moat... very interesting. I wish I still had the link when Mr.Buffet explains moat. Very nice video.

 

[jamit_05]

here http://www.youtube.com/watch?v=BfPstvyyC1Q

Yes. That is precisely it. Throw in some sharks, crocs and gators... how simply explained... humble chap.

 

[jamit_05]

Wipro down 11 % ... Rs.50 taken out... just like that... GOI is slamming big scrips that does not affect the index too much.

Rs.300 and near abouts are a good time to purchase...

 

[sabhlok_r]

Amit your views on sbin...it is bouncing off a weekly support... can it show 2400 on rise?

 

[jamit_05]

Amit your views on sbin...it is bouncing off a weekly support... can it show 2400 on rise?

Yes, the weekly support is there, but it has shown no signs of a bounce. In this down trend with so much bearishness I would refrain from contra trades....

 

[sabhlok_r]

Yes, the weekly support is there, but it has shown no signs of a bounce. In this down trend with so much bearishness I would refrain from contra trades....

Amit, your timely input came handy...2073 to 2007