Investment Idea (26-5-14 For 6-12 Months)

LAKSHMI ENERGY & FOODS LTD  CMP RS. 25.45 ON  26-5-14

(The stock has made an all time high of Rs.340/ on 17.9.2008)

POSITIVES:-1.Good EPS                        NEGATIVES:-1.Why running at low P/E?

                       2. Solid Book Value

                       3.Technically brilliantly poised for an up move

 

The stock looks good both financially and technically, I feel that it has bottomed out in the range of Rs.19-21 and is ripe for a reasonably good up move, The only concern is  that it is running at a very low P/E why ? may be it has not catch the fancy of the investor now but some day it will ,therefore one can invest 25-30% of the marked funds for the stock at current market price and then buy on dips  or on the momentum but be alert if it closes below Rs.21 and  get out of the stock if it closes below Rs.19.The upside targets for the stock could be  27.40 / 32.10 / 42.15 / 48.50 / 54.20 / 74.80.if the stock starts crossing the targets use them  as support and exit point.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price of the stock moves up to gain maximum profit.

NO  NOTE:-1.PRICE STATED HERE IS OF SPOT MARKET.

                 2.RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.

                 3.IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL  PROTECTION. 

 Contact me for strategic guidance to enter and exit the trade

Trading Cum Investment Idea(24-5-14)

RELIANCE INFRASTRUCTURE  CMP RS.727.75 ON 23-5-14


The stock looks good financially and technically  both One can take long position in the stock as trader at current rate and can increase position on dips with a strict stop loss of  below 660  and  treat  your trade as investment if the price moves reasonably up . I expect the stock to move up very fast going up the stock will face resistance at 895 / 1135 / 1224 / 1368 / 1404 / 1575,therefore use these figures as trailing stop loss once it starts crossing the resistance points.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price of the stock moves up to gain maximum profit.

NO  NOTE:-1.PRICE STATED HERE IS OF SPOT MARKET.

                 2.RECOMMENDATIONS ARE VALID TILL THE STOP LOSS IS TRIGGERED.

                 3.IN FAVORABLE TRADE TRAIL YOUR STOP-LOSSES FOR MAXIMUM GAIN AND CAPITAL   PROTECTION. 

 Contact me for strategic guidance to enter and exit the trade

Investment Ideas (24-5-14)

1.INDO COUNT INDUSTRIES LTD CMP RS.76.35 ON 23-5-14.
( The stock made all time high of  Rs.165.45 on BSE on 31.3.1992)

 POSITIVES:- 1.Strong EPS                       NEGATIVES:-1.No dividend in last 5 years
                        2.Book Value Rs.76+                                  2.Industry Commands low P/E
.                                                     

The company is in textile industry (Cotton/Blended)and has posted stupendous financial result for the year ended 2013-14 ,giving a standalone EPS of Rs.29.54 and consolidated EPS of Rs.30.96 ,at current price the stock is running at a P/E of  2.58 only,therefore I feel that the stock has potential to move up but kindly note that since the textile industry command a very low P/E so one should be circumspect before investing.The stop loss point for the stock would be below 51 .Technically stock looks good and if it starts moving  up then the levels are 100 / 141 / 165.


2.VARDHMAN TEXTILE CMP RS.345.05 ON 23-5-14.
( The stock made all time high of  Rs.425on NSE on 20.12.2013)

 POSITIVES:- 1.Strong EPS                       NEGATIVES:- 1.Industry Commands low P/E
                        2.Book Value Rs.447+                                
.                       3.Regular Dividend Paying Company                               

The company is in textile industry (Cotton/Blended)and has posted stupendous financial result for the year ended 2013-14 ,giving an  EPS of Rs.102.45 ,at current price the stock is running at a P/E of  3.36 only,therefore I feel that the stock has potential to move up but kindly note that since the textile industry command a very low P/E so one should be circumspect before investing.The stop loss point for the stock  would be below 320 .Technically the stock is not that good.and if it starts moving  up then the levels are365 / 378 / 411 / 425 / 436 / 505.


REMARKS:-Fundamentals are very good  but that is not reflected in the prices of the stocks, may be some day it will catch the fancy of the investors because you cannot stop the sun from shining .Only patient investor should invest but with strict indicated stop losses.

Kindly note that make your cost your stop loss in favorable trade and then trail it as the price of the stock moves up to gain maximum profit.

Contact me for strategic guidance to enter and exit the trade