Systematic Investment Advice

#11
Hello friends this is for appraising the performance of my recommendations.

Bhagyanagar Metals recommended at 27 current price 30
gayatri sugar recommended at 20 current price 24.7

For more calls on stocks that are fundamentally good keep watching this thread.

Among the above stocks investors can enter in Bhagyanagar metals at current levels because the future outlook of the company is very positive. But in gayatri sugar investors can hope for some lower levels than this...


BEYOND GREED AND FEAR...:) :)
 
#12
Samtex Fashions---BUY BUY BUY

Hello friends,

This is my new recommendation and it is for a long term nature. I think samtex fashion is a good long term prospect. The reasons is that the share is quoting at around 31 and its book value is around 42(data courtsey moneycontrol.com). So sooner or later the dalal street will discover the value hidden and the price will rise. The another reason is that the performance of the company has been good in the previous quarters and so there is a bright future prospect....

So investors are advised to enter the stock but since the previous day it had hit the circuit and today it had only marginally increased the investors will get an opportunity to enter at lower levels. The entry price will depend upon tomorrows momentum. But if i am a long term investor of around 1 year i would enter at the current levels....


BEYOND GREED AND FEAR...:) :)
 
#13
Friends today bhagyanagar metals hit the upper circuit and the latest price was 32.30. Investors who had entered the stock at 27 by the recommendation in this thread are advised to book some profit. Investors can sell about 25% of their holdings and maybe enter at lower levels.

Aggresive investors who have a high risk appetite are advised to stay invested. I think that tommorrow also the stock will rise but there are chances of the momentum reducing and so there will be a reduction in volumes...


BEYOND GREED AND FEAR...:) :)
 
#14
Hello
The stock will move up if it is traded at the value less than the book value. It is not always true. & it is not a decisive factor while selecting stock. Senior members pls clear the point.

Thanks
vachhanipm
 
#15
vachhanipm said:
Hello
The stock will move up if it is traded at the value less than the book value. It is not always true. & it is not a decisive factor while selecting stock. Senior members pls clear the point.

Thanks
vachhanipm
Hey vachhanipm,
thanks for your reply. I know that trading lower than the book value cannot be the only factor in investing into the stock. But one important reason for considering the book value is that book value is the intrinsic value of the stock and sooner or later the value of the shares would go above the book value. Thats the reason i posted this recommendation in the longterm prospect.
Its like suppose the company invested in a factory by buying some land and after ten to fifteen year the value of the land has increased ten times so thats and increase in the book value of the share and so in the books of the company its value is high. SO now if there is an acquition by another company it would be offered the price at the book value so the price would be higher than the market price.
So any company would prefer to buy from open market instead of buying at book value and so as the demand of the shares would increase the price of the shares would start increasing.
And its my personal experience that sooner or later the price of the shares increase above the book value. Legendary investors like Peter Lynch and Warren Buffet follow this simple strategy of buying shares at a bargain price to the intrinsic value.
This is my opinion.. Happy investing.




BEYOND GREED AND FEAR.......:) :)
 

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