Updates: Carol Info and J Kumar

I have sent a small note to all while recommending Carol Info and J Kumar on 12 Feb 2008 (Please see below).

Received a note from Raj stating that he bought Carol at 33 (recommendation was to buy at 35 or near while it was trading near 58). Carol came down to 33 levels after 6 months. Raj sold it yesterday Rs 149 levels. A cool 351% in just 18 months without any capital gain tax liability and got two times 20% dividends also.

J Kumar is also more than doubled from those levels of 85-90. J Kumar is an Infrastructure and construction company and this sector had been beaten badly during the same time while J Kumar is doubled from those levels. Again no capital gain tax and dividends of 22.5% and 20% during the last two years.

Patience is the virtue. If invested in the right stocks when Mr. Market is fearful, success is guaranteed…

Highlighting this as an example, because many feel that people can't make money when markets are sliding (2008 was that time) but I believe it is the only time to make money. :-)

By the way, this is what CNBC said on the same day of my recommending J Kumar Infra and I received mails from some of my friends expressing their fears after seeing this news.

My question is, Is it still a good idea to follow CNBC/media channels/ print media/ advice given by an expert or do our home work?

J Kumar Infra not right horse to back post listing:
http://www.moneycontrol.com/news/ipo-listing-strategy/j-kumar-infra-not-right-horse-to-back-post-listing_325712.html

Enjoy investing...

Cheers,
Niteen S Dharmawat
http://dharmawat.blogspot.com/

IMPORTANT DISCLAIMER: Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective. The information contained herein is based on analysis and up on sources that I consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.

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From: Raj
Sent: Tuesday, January 04, 2011 4:44 AM
To: Niteen Dharmawat
Subject: Carol Info

Niteen,

Based on your stocks recommendations, I had purchased this stock when it was trading at 33, about 1.5 years back and sold it yesterday at 149.

Only thing is that I had purchased just 100 stocks !

Regards

Raj

On Tue, Feb 12, 2008 at 7:59 AM, Niteen S Dharmawat wrote:

These two companies should be on the radar to make an entry in this Topsy-Turvy times.

- Carol Info should be on the radar... it is a promoter company of Wockhardt. You would recall that Wockhardt planned for an IPO but withdrew at the last moment due to market conditions. A wise investor waits for such opportunity when the market has completely discounted the stock and enters into it for a long term. It's trading presently near 58 while the year low is 44 and year high is 122. A level near 35-40 would be ideal, but I am not sure if we will be able to get that. In last 3 years it has remained more less above Rs 30 levels so a price near 35 would give a lot of cushion. Also at the issue price of Wockhardt (adjusting 20% discount) it controlled shares worth Rs 250 cr (9.09% stake of Wockhardt) while Carol will be worth Rs 122 cr at Rs 35. A good buy, no doubt about it.

- The another stock to be on the radar is J Kumar Infra. It came with the IPO at 110 and presently at 85-90. A good company in bad timing for IPO. Very good profile, controls large infrastructure projects in Mumbai. I am not suggesting any entry level pricing but this is a good company and would bounce back in times to come.

You may share your opinion.

Cheers,
Niteen S Dharmawat
Mobile: 9850571857

IMPORTANT DISCLAIMER: Investment in equity shares has its own risks.
Sincere efforts have been made to present the right investment
perspective. The information contained herein is based on analysis and
up on sources that we consider reliable. I, however, do not vouch for
the accuracy or the completeness thereof. This material is for
personal information and I am not responsible for any loss incurred
based upon it & take no responsibility whatsoever for any financial
profits or loss which may arise from the recommendations above.

Updates: How to analyze the fundamentals of a company (with 3 sample case studies)

Hi,


You would recall that we analyzed three scripts (MIC, Asahi India Glass and Prakash Industries) in July 2010 which is exactly 6 months ago (the link of original article named: How to analyze the fundamentals of a company (with 3 sample case studies)). The objective was only one to understand how to analyze the stocks from fundamentals investment perspective and nothing beyond that. I revisited these scripts to understand how they have fared after a gap of 6 months.

As per my analysis only MIC was qualifying that too at a level of 28 or below (that time it was trading at 40). MIC went to those levels sometime ago and bounced back exactly from that level in the recent fall. One of the comments I received was about MIC saying that will it ever go to 28 levels? My answer was if it does not then I am not interested in this, simple. If someone had bought at 28 then it would be a 21% return in 1 month or 257% return in a year.

Asahi India Glass has given superior performance over a period of last 6 months. I had mentioned two things in my mailer about Asahi: one, it has very high debt and second, its promoters have bought equity (a very small number but positive factor to the stock) in the recent past. I did not recommend this stock because of its very high debt. But the story in this stock can unfold further if debt restructuring is on the card. Prakash was the worst performer of the lot. Else this could be the handiwork of some operator so be careful.

I have assumed that if someone has invested Rs 10000 in each of this stock on 7th July 2010 then the returns after 6 months are as calculated below. Overall, it’s an annualized loss of (-)5.3% while in the same duration the BSE Sensex has gone up from 17,471 to 20,561 which is a rise of 17.69% or 35.37% (annualized).



Original post: http://dharmawat.blogspot.com/2010/07/how-to-analyze-fundamentals-of-company.html

Look forward to receiving your replies.

Cheers,
Niteen S Dharmawat
http://dharmawat.blogspot.com/

IMPORTANT DISCLAIMER: Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective. The information contained herein is based on analysis and up on sources that I consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.