Ten months ago, in the month of November theindiastreet.com made a bunch of recommendations
in an article titled “10
Bargain Buys In Today's Market”. Out of the ten names I listed, there
have been particularly two names which had you backed with your money at that
time you would have earned a guaranteed profit by now and a huge one #1 Tata Motors - When I wrote the
previous article the company was quoting around the 120 rupees/share range. As
of today’s closing the same share quotes at rupees 604/share.An investment at
that time would have guaranteed a return of more than 300% Percent as of today.
With stock #2 Biocon your
return as of today would be 100%.And in the case of SAIL, ICICI Bank, Tata Steel;
the return varies from 100% to 250%.
The
Tata Motors rally is one which has baffled many market experts but we called it
right. Without getting too excited I want to explain the reasons for this
phenomenal rally.
If
you’re looking to invest in a solid Indian consumer electronics company then Videocon
is probably an ideal fit for you. Its stock is not priced too high and a single
share of the company is currently trading under the Rs.160 range on the Sensex . It’s a decent fit for intraday movements but considering the
situation that the company has been in and the progress it is slowly making.
Videocon is a pretty good and robust long term stock. If you have an investment
horizon that wide then you should take a look and consider Videocon.
Editor Note: Had you invested Rs. 10,000 into each of Vadivelu's 75 stock picks (Rs. 750,000) - today you will have accumulated an amazing Rs. 17,00,000 a whopping 226% return.
In my earlier article, “Psychology of investing and trading” we discussed about long term investing. The long term investors (Rakesh Jhunjhunwala as an example) have a distinct advantage over others in the sense they need not follow the market every day or week. People with busy schedules, NRI’s, etc. can be long term investors. As the name implies, one has to hold the stock for a year or more, depending on his risk profile and profit margin.
