AVOID:XL telecom and energy ltd.

dear sir,please tell me about xl telecom&energy i have 100 shares @ 350 Rs but right now its price is 58 rs kindly advice me what should i do can i average in this stock? ask by respected visitor mohsin memon ji by mail

1.XL telecom and energy ltd have a low promoters holding 26.70 percent and 45 percent of this holding is pledged so this is not a good fundamental.
2.XL telecom and energy ltd have a net loss 2372 cr at June quarter so this is a huge loss making company.
3.This share traded at 56.05 only on speculative reasons as you see fundamental not support this price.
4.EPS of this stock is -123.41 (please attention on – minus sign) as per moneycontrole site but you see June 09 result at BSE site you find equity capital of this company is 187.85 and net loss is -2372.06 so exact EPS is-2372.06/18.785=-126.27 so -126.27 is right EPS of XL telecom ltd as per BSE site which is authentic site of Indian share market.

5. book value of xl telecom is 28.07 only.

6. debt/equity ratio is 1.32 in xl telecome.
7.We think this is better that you avoid this share. and do not avarage out it at current price, it is wise to avarage out it near it book value at 30 if come

THIS ANALYSIS IS MAHESH CHANDER KAUSHIK OPINION ONLY NOT A PROFESSIONAL ADVICE SO READ DISCLAIMER BEFORE TAKE ANY ACTION.
SENT YOUR SHARE QUERY TO mckaushik00@yahoo.co.in FOR A FREE ANALYSIS ON THIS BLOG.
PLEASE SENT ONLY ONE QUESTION AT A TIME.

MULTIBAGGER SERIES PART 2 :SINGER IS READY TO BECOME A MULTIBAGGER

singer India is a small cap former penny stock now traded at bse scrip id 505729 at the price of 30.55
Singer India have 92, 51,559 equity share. And general public hold only 872422 shares this means promoters of company hold 90.57 percent stake in this company so promoters holding are strong in this company. (base BSE information as June 09 quarter)
you noted that general public hold only 872422 shares and company record net profit of 18.90 cr at June 09 quarter EPS of singer India for June 09 is 2.42 it means if we estimate FY 09-10 EPS of singer India 10 then share traded at P/E of 3.
singer India is a debt free small cap company
after it financial restructuring and low public share holding or zero debt we think that singer India is ready to became a multi bagger but read disclaimer on this site before investing and our discloser that Mahesh chander kaushik owner of this site also hold 120 shares of singer India so our personal interest is included in this company .

SENT YOUR STOCK QUESTIONS TO mckaushik00@yahoo.co.in for a free analysis on this blog.

SMART TRADING IN NIFTY AND GOLD

Sir,
I have around Rs 10 lakhs for investing in stocks. Is it a good time to invest? Should I invest.
Can you suggest 5/6 good stocks where I can invest? My investment horizon is 2 years-ask by anoanymous.

1.First off all you invest 10,000 in delivery base nifty units (also called nifty ETF) in every Monday till 3.50 lac is invested. It takes time near about 9 months but in this method you accumulate nifty in good average price I choose Monday because most of Monday market is down.
2.Similarly invest 10000 in gold ETF at every Monday till 3.50 lac is invested.
Hold 3.00 lac as cash.
3.after 9 months when you complete 3.50 lac in niftyETF and 3.50 lac in gold ETF then watch your investment value at every Monday suppose you see value of nifty ETF is 380000 due to market rise then sell some nifty ETF to book 30000 and maintain 350000 in nifty and you see gold ETF at 335000 due to fall in gold price then invest 15000 in gold ETF and maintain it at 350000.
4.repeat this process every Monday, if value of every fund (nifty or gold) is reduce then 350000 then add more unit from your cash holding and maintain it 350000 and if value more then 350000 then book profit of excess amount.
5.In this method you book profit when market is up and make new investment when market is rise.
6.Power of this method is very strong suppose if nifty or gold rise only 1% in a week then you earn 7000 and you’re monthly earning 28000 if they rise 4% in a month. And when market down you automatically invest fresh amount to maintain 350000.
7.I think this is a best policy to invest in market and also give you trading benefit and chance of loss in this method very low.
8.if any one have less amount even if 150000 then divide it 3 block of 50000 and use this method.

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Ad-Manum Finance Ltd

sir please tell me fundamentals of Ad-Manum Finance Ltd ask by shri nisu katiyar by mail

1.promoters hold 61.59 percent stake in Ad-Manum Finance Ltd is a good fundamental.
2.Ad-Manum Finance Ltd touch its 52 week high 18 at 11 June o9
3.Ad-Manum Finance Ltd recommended dividend @ 1 per share. And company give continue rs 1 dividend in last 4 year.
4.eps of Ad-Manum Finance Ltd is 4.25 and book value 32.53
5.but debt/equity ratio of Ad-Manum Finance Ltd is more than 4 this is the reason that why this company traded such lower price (16) instead of other strong fundamental. I think you understand that this company have 4 time debt of his equity capital and I can not understand that why company recommended dividend instead of paying debt.
6.I think due to it small cap of only 30 lac shares it may be possible it become a multibagger but you may trap in this company at his year high due to it very high debt so please avoid it.

jindal cotex limited ipo:AVOID

hello sir.please tell your views regarding jindal cotex limited ipo. ask by satya ji
respected satya ji
please avoid jindal cotex ipo why please read full report in this link
http://www.moneycontrol.com/news_html_files/news_attachment/2009/JIndal%20Cotex%20Ltd%20-%20IPO%20Note.pdf

key words:- ipo analysis jindal cotex recomandation avoid sharegenis mahesh chander kaushik

Multi bagger stock recommendations series part 1: natraj protein

Respected sir i want your valuable advicein natraj protein.should i invest in thise stocks. pls suggest me. -ask by shri nisu katiyar from mail

1.natraj proteins ltd promoters hold 20,32,500 share but they pledged 1259500 share so if we see promoter holding of this company this is a neutral condition neither very positive nor very negative.
2.general public hold 25,07,500 share in this company so I think this quantity easily block by some big players when they want to start speculation in natraj protein this sign show that natraj proteins ltd have potential to became a multi bagger stock
3.if we see last few year high low in natraj protein it see that in last 13 years share make a low 0.60 paisa in 1997 and high 28.50 in 2008 so this share have potential to start multiply run but itis possible only when it cross 29 with high volume.
4.fundamental of natraj protein company is also good with a EPS of 2.13 and book value 23.23
But natraj protein is a high debt company it debt/equity ratio is more then 2 is very bad fundamental.
5.natraj protein net operating income is continue in up trend in year 2004 net operating income is 86.58 cr and in 2008 it reach at 160.43 cr.
6.So we think one day natraj protein share may became a multi bagger so only high risk speculative investors enter in this stock and wait for it multiple run (read disclaimer before investing) so you can buy this stock for a decent return.

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INTRA DAY TRADING IN CNX NIFTY AND BANK NIFTY

i am intraday trader only in nifty & banknifty so plz help abt any tips-ASK BY SHRI YOGESH RASKAR

1.check SGX nifty everyday morning before Indian market open it may help you to get idea that how Indian market move today?
2. learn technical analysis from following link for more help on intra day trading, nifty trading. F&O trading.
http://sharegenius.blogspot.com/2009/03/how-to-easily-learn-technical-analysis.html
3. I do not like intra day trading why? Read following link
http://sharegenius.blogspot.com/2009/01/sai-baba-and-share-market.html
4. download historical price data of last 5 year of nifty and then match it with similar situation for example current nifty is on 4700 than match it historical behavior when 4700 came in last 5 year.

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BEST MUTUAL FUND FOR INVESTMENT

hello sir.i want to invest in mutual funds.plz recommend me a good mutual fund which can give good returns on short term investment.-ask by satya ji from mail

Respected satya ji
We recommended you to invest in HDFC TOP 200 FUND (G) because
1.the crisil CPR rank of HDFC TOP 200 FUND (G) is 1 and value research give5 star rating to this fund
2.HDFC TOP 200 FUND (G) gives 304.1 percent return in last 5 year and 65.9 percent in last three year and 24 percent in last 1 year.
3.HDFC TOP 200 FUND (G) asset size on 31 July 2009 is 4475.33 cr which is one of largest asset size in Indian mutual fund and I think a fund with large asset size perform better than small asset size mutual funds.
4.launch date of HDFC TOP 200 FUND (G) is 11oct 1996 so a track record of 13 years is there
5.you find more details about HDFC TOP 200 FUND (G) on following link with latest current NAV
http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=f52bc715-0cfc-4a6a-941b-9a2618e62511

6. remember mutual fund is best tool for long term investment not for short term

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meaning of normal terms using in SBI CAP SECURTIES

Hi sirmy a/c is sbi caps securities.Is there any minimum number for which i should apply?what is meant by short term and long term investment(duration)
In my trading acc,when i clicked buy option there some terms which i didnt understand likea)order typeb)trade typec)AMOpls tell me in detail and advice me any source where i get all these details.-ask by shri sai dilip ji by e mail

1.AMO means after market order , this facility give you chance that you can place your order when market is closed.
2. ORDER TYPE give you 2 option that either market order or limit order. You can put a market order when market is open. And in market order share buy or sell at market price. If you give a limit order for example you select limit order for punj lloyes @230 than if 230 is came your order is executed.
3. TRADE TYPE means cash trade (for delivery buying) or margin trade (for intra day)
4. minimum share quantity in online trading is 1 share only.
5. in income tax view less than 1 year investment called short term investment
6. more than 1 year investment called long term investment.

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key word:_ sbi dmat online trading sbi direct share

HMT SHARE- JUST FORGET IT

I have 700 shares of HMT at avg price of 70/-. I am holding the stock for last five months.
Could you please suggest what to do with it?-Ask by shri Chandrachur by mail
1.this is a government PSU company and government hold 98.88 percent stake in HMT
2.FII and UTI or other mutual funds also hold shares in HMT so I think in this view company fundamental are strong.
3.in HMT 44 percent buying is on delivery base (as per information available on BSE )
4.The only one and most important negative thing in this company is that company makes loss continue and loss increase every quarter so this is a sick government unit.
5.We think one day government either sell stake of this company or try to make it a profit making company if this happen that day you make a decent profit in such type of stock so forget it for a good time.
6.I think forgetting of your 49000 is best policy but if you find it is difficult to wait a long time then book a suitable quantity at coming rally and hold remain.

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why kwality dairy makes new highs every day

Respected sir, I want to know about kwality dairy. I think its fundamental is not much good. But this stock is going high day by day. Why? - ask by shri nisu katiyar ji by mail
1. Promoter share holding in kwality dairy is very strong 4 Indian promoters hold 83.70 percent stake in this company.
2. Kwality dairy net profit continues in up trend with last three years. So fundamental of company is good. But price is very high and not match with fundamentals.
3. remember in 27 oct 2008 kwality dairy is trading at 14.60 and in 20 aug 2009 it reach at 449.95and in 2003 kwality dairy price only 1.85
3. Now we came your questions that “why kwality dairy going high day by day? That kwality dairy is a small cap company and authorized equity capital of kwality dairy is only 18.20 crore it means company have only 1, 82, 00,000 share and in these shares 1, 52, 33,400 shares hold by promoters.
4. So public hold only 29, 66,600 shares if big player hold this share and create a buy demand then price rise up day by day until demand is saturated.
5. We advice you if you hold kwality dairy then book your profit as soon as possible because if any bad news come in this stock then trap at high price.

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VARUN INDUSTRIES IS EXPENSIVE RIGHT NOW

Respected sir should i invest in varun industry at the current price of 95rs?-ASK BY SHRI ACHIN GUPTA JI BY MAIL

1. Promoters hold 65.26 percent stake in varun industries is a good sign for corporate governance.
2. Varun industries hold 1606.83 million reserves are also very very good sign for fundamental view.
3. Varun industries give 10 percent dividend last year.
4. EPS of varun industries is 5.80 in last year and this year 2009-10 we estimate near about 11 if every thing is go fair.
5. So varun industries price of 95 discounts it at P/E of near about 9 that is expensive P/E for steel sector so we think that price of 66 and below 66 is fair for entering in varun industries.
6. 18 august 2009 is ex dividend date for varun industries so I think you purchase it after 18 august and near about 15 September may be(not sure) you find a low price.
7. Remember varun industries 52 week low are 19.70 and only one month ago varun industries traded on 38.95 only.
8. So wait for a price low than 66 other wise you may trap on higher price.

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how to get 600 percent retrun from ganesh housing corporation ltd

sir i have purchased ganesh housing 500 share @ 105 rs. how future ofthis stock?-ask shri achin gupta from e-mail

1.ganesh housing corporation ltd is a 10 rupees face value share.
2. Promoters hold 57.49 percent stake in ganesh housing corporation and general public hold 10.73 percent stake FII hold 20.22 percent and mutual fund hold 5.41 percent share so share holding pattern is good and show ganesh housing corporation has good fundamental.
3.EPS of ganesh housing corporation ltd (GHCL) is 32.48 and book value is 127.95 in March 2008.
4. Ganesh housing corporation ltd (GHCL) has also free reserve of 117.95 rupees per share.
5. Debt/equity ratio in GHCL is 0.19 is also good.
6. Fundamental is very strong in this company than why it traded at low price in market? Yes, I have answer…. market is always right…. see it June quarter result below

Year 2009/06 2008/06 Var %
Sales Income 11.25 34.40 -67.29

Gross Profit 2.92 26.45 -88.96

PAT 1.55 25.19 -93.84

I think you understand this company profit down 88 percent in this quarter so price is low and market already discounted its result.
7. Year high and low of ganesh housing corporation ltd is also interesting for you see…..
Yearly High Lows
Year High Low
1996 65.20 20.00
1997 26.75 8.25
1998 11.00 11.00
1999 24.95 9.50
2000 18.00 3.15
2001 4.65 3.75
2002 9.90 2.00
2003 13.59 2.95
2004 43.00 6.94
2005 176.70 32.10
2006 324.10 44.10
2007 714.90 278.00
2008 830.00 47.00
It is quite interesting that a 2 rupees share of 2002 traded at 830 in 2008 . please also note difference of its year high and low in every year is 4-6 time so I think ganesh housing corporation limited is a fundamentally sound stock but it is also driven by speculators and I do not think that 88 percent fluctuations on profit in a year is normal thing.
8. finally my advice for you that track this share for its year low and enter only in year low in such type of stock because if you enter in year low than you are able to make near about 600 percent profit (not surely)in such type of stock but if you enter at year high than you loss more than 80 percent of your money easily ….so wait for year low and if you track its price regularly you easily find it then start accumulating .

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mahindra and mahindra share

Respected Sir, I've purchased Mahindra and Mahindra stock 30 for Rs892. Is it the right decision. Should I hold it or should I buy more stock to average it. Please advice. ask by shailsh TM from e mail

1. Mahindra and mahindra is a solid fundamental auto sector company and market leader in auto segment so I think you have invested in good company.
2. But in share market fundamental work only 25 percent and 75 percent is speculation or demand and supply work.
3. So you buy a share when it price is on peak I think you already read my post “http://sharegenius.blogspot.com/2009/08/avoid-auto-sector-right-now.html ”
4. And put a vision on its year high low since 1990
Yearly High Lows
Year High Low
1990 130.00 60.00
1991 115.00 57.50
1992 190.00 68.00
1993 300.00 102.50
1994 430.00 270.00
1995 390.00 206.00
1996 398.75 211.00
1997 500.00 276.00
1998 332.00 134.00
1999 462.90 163.50
2000 664.75 163.00
2001 189.40 50.90
2002 140.00 78.75
2003 390.25 94.15
2004 558.00 358.00
2005 730.50 345.00
2006 909.95 488.00
2007 1,002.00 608.00
2008 872.00 235.50

I think you self think that your vision is against normal business skill that buy at low and sell at high.
5. now do not be worry I think market give you a chance soon to left out this share in a small profit or no profit no loss than wait for big fall in auto sectors and try to pick up it a lower price below 650 .
6. we advice only for hold do not think about average in such a small difference average only below 650 if it really came before your exit.

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subscribe recomandation on NHPC IPO

1. National Hydroelectric Power Corporation (NHPC) is a Mini Ratna Category Indian PSU company. NHPC is the largest hydropower generator in India with an operational history of last 28 Years.
2. NHPC has an operational capacity of 5,175 MW as of June 2009.
Another 4,292 MW of capacity is under construction. This is scheduled to
Become operational by 2013.
3. NHPC has plans to achieve 20,000 MW capacities by FY20... In the
Eleventh Five Year plan, NHPC has a scheduled capex of Rs 21,600 crore. This
Is likely to be followed by another Rs 30,000 crore in the Twelfth Five Year
Plan.

5. NHPC has a low debt to equity of 0.7x on the post issue net worth.
6. At the price band of Rs 30- 36, NHPC is valued at 1.7x to 1.9x post issue Book Value.
NHPC is valued at a significant discount to NTPC on Price to BV of 3.0x FY09.
7. So, we recommended our reader to subscribe NHPC IPO for listing gain or long term multiple gain

NAV of Reliance Infrastructure Fund

most of investors ask to me that current NAV (price) of Reliance Infrastructure Fund. in this fund i advice investors to invest below 10.

you find latest NAV of Reliance Infrastructure Fund in this link

http://www.reliancemf.com/NAV/Display.aspx?ReportID=6A646FF9-2A22-441B-AA2D-76CF67FC7BEF

we still mentain our view and i will remember you in this blog when it price go to below 10

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Avoid auto sector right now

We advice our readers that they can not invest there hard earn money in auto stocks like maruti, m&m, hero Honda, bajaj auto ,tata motarand other auto companies. Because:-
1.auto sectors make new highs in last five months you may note that price of maruti go to 500 to 1500 and we recommended mahindra and mahindra on this blog when it price is only 300 and now it is 900. So all the target of auto sectors is achieved and now the time to trap greedy investors.
2.Stock market always makes such type of trap. When a stocks make new highs it is technically very very sound so technical analyst advice investors to great target remember when reliance make new high of 3000 then technical analysts give target of 5000 and most of investors trap for a long long time.
3.If a fall came in auto sectors do not buy these shares because it is market behaviors that if market down a sectors with there peak then it enter in bear cycle for minimum 2 year.
4.So if you already hold auto segment share then hold it with strict stop loss because it is possible that this rally is continue till dec 09.
If you have any stock related quarry then please sent it to mckaushik00@yahoo.co.in and we will reply you on this blog at free of cost.

Key words:-do not buy maruti share, do not buy mahindra and mahindra share, technical analysis fundamental analysis maruti mahindra and mahindra bajaj auto hero Honda tata motar lml buy or sell advice.