Sunday, September 20, 2009

Handsome returns for good trader/investor

Today I was doing some very basic research on some stocks since one of friend wanted some information. So after doing that I thought of posting that material for the benefit of my readers. Here I have not gone deep into any technical or fundamental analysis & written in very layman language which can be read very easily, unlike some technical charts/fundas of fundamental analysis. Here I tried to concentrate on taking stocks from different sectors like IT, Bank, Export, Engineering, Sugar & etc & analyzed their lows, highs, comparison of returns with index(sensex), news flow due to which so much fluctuation in price happened &etc.

Here my motto of posting this material is nothing how a smart investor or trader can make some handsome money if he/she tracks the market & related news flow & etc.

As I said earlier, this material is very very basic, interested people can take this information can do the further research...

1. Tata Steel:

CMP: 518
PE: 9x
Book Value: 340
Touched low of 180 levels in March which is 1/2 of the book value.
Touched high of 950 levels in Jan 2007.
From March to Sep 180 to 530 levels i.e. 200% return as compared to 100% Index increment
Steel sales & prices in India & UK(Corus) started picking up as economy started recovery.

2. Aban offshore:

Company is into oil extracting from middle of the sea specifically.
Touched all time high of 5600 levels in Nov 2007
PE: 22x
Due to collapse in oil price from $ 147 to $ 40 levels & heavy debt asset ratio, price of the share collapsed from 5600 levels to 200 odd levels in March i.e below book value of 240 levels. Formed support at levels at 350-400 odd levels. From these 200 odd levels to 1600 presently due to some news on Debt restructuring & getting new contracts of 4 rigs in South Africa & 1 rig in Iraq. i.e. 700% returns in 6 months as compared to 100% returns on Index.

3. Shree Renuka Sugars:

Book value:35
PE ratio: 60x (Indication of growth expectation rather than too much higly priced)
One of the best managed sugar factory in the country by IIM passed out Mr. Narendra Marakumbi with great expansion plans.
Touched low of 45 levels in Nov 2008, as incremented to present 200 levels on some news like Sugar prices hitting 30 years high & probable less production in the Sugar Cane this year. i.e. 300% return in almost one year. Net profit more doubled from March quarter 33 cr to 70 cr in Jun 2009.

4. Sasken Comm. Tech:

CMP: 162
Book Value: 155
PE ratio: 16x
In March : Below 50.
Within 6 months : 200% returns.

5. Rajesh Exports:

Bangalore based company & India's largest gold & diamond exporting company.
CMP: 75
PE ratio:27x
In March: Sub 25 levels
In August: 40 levels
Zoomed to 40 levels to 75 levels on the news of gold hitting Rs. 1600 per 10 gms as recovery & inflation threat started & also festive seasons like Diwali, Dasara & etc. i.e. almost 100% returns in 20-25 days.

6. Patel Eng:

CMP: 487
Book value: 160 levels
In March: Touched 100 levels.
i.e. 400% return in 6 months

7. Axis Bank

CMP: 910 odd levels
Book value: 280 levels
PE ratio: 16x
In march: 300 odd lvels. i.e 200% returns in 6 months.

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