Return of 500% in just 5 years.: August 11, 2011

Thursday, August 11, 2011

WHETHER DOW JONES INDUSTRIAL AVERAGE MADE A DOUBLE BOTTOM?

IN OUR OPINION DOW JONES INDUSTRIAL HAS MADE A DOUBLE BOTTOM FORMATION AT 10604 LOW MADE ON 09.08.11 AND SECOND BOTTOM AT 10686 MADE ON 10.08.11. WE THINK THAT THE WORST IS BEHIND US FOR BOTH U.S. AND INDIAN MARKETS.

IN OUR OPINION ALL THE WORST THAT COULD HAPPEN TO U.S. HAS BEEN PRICED i.e. DOWNGRADING OF U.S. BY S&P AFTER 75 YEARS, QE3 MAY NOT BEEN COMING IN THE NEAR TERM, UNEMPLOYMENT AT ALL TIME HIGH ETC.

AS FAR AS OUR INDIAN MARKETS R CONCERNED RATE OF INTEREST R NEAR PEAK LEVELS. RBI WILL THINK TWICE BEFORE RAISING MORE RATE OF INTEREST IN FUTURE, SINCE GROWTH HAS STARTED FALLING DOWN. INFLATION IS NEAR PEAK LEVELS. CRUDE IS FALLING WHICH MIGHT HELP INDIA IN THE NEAR TERM ETC.

THEREFORE, FOR U.S. MARKETS U CAN LONG DOW JONES AT CMP OF 10800 WITH A STOPLOSS OF 10600 FOR A TARGET OF 11110, 11388 AND 11668. IN RESPECT OF INDIAN MARKETS, WE WOULD LIKE TO SAY THAT U CAN PUT IN AT LEAST 25% OF THE MONEY IN THE COMPANIES U LIKE AND ADD MORE ABOVE 5350 NIFTY LEVELS. NIFTY HAS THE TARGETS OF 5234, 5288 AND 5333 IN THE NEAR TERM.

7TH BINGO! LOVABLE REACHED OUR SECOND TARGET OF 458

TODAY WE RECOMMENDED TO BUY LOVABLE LINGERIE AT CMP OF 440 WITH A STOPLOSS OF 434 FOR A TARGET OF 453, 458 AND 463. OUR SECOND TARGET OF 458 ACHIEVED. BINGO AGAIN!

6TH BINGO! LOVABLE LINGERIE REACHED OUR FIRST TARGET OF 453

TODAY WE RECOMMENDED TO BUY LOVABLE LINGERIE AT CMP OF 440 WITH A STOPLOSS OF 434 FOR A TARGET OF 453, 458 AND 463. OUR FIRST TARGET OF 453 ACHIEVED. BINGO AGAIN!

BUY LOVABLE LINGERIE AT CMP OF 440 WITH A STOPLOSS OF 434

WE RECOMMEND TO BUY LOVABLE LINGERIE AT CMP OF 440 WITH A STOPLOSS OF 434 FOR A TARGET OF 453, 458 AND 463.

BUY A2Z MAINTAINANCE AT CMP OF 213 WITH A STOPLOSS OF 200

WE RECOMMEND TO BUY A2Z MAINTAINANCE AT CMP OF 213 WITH A STOPLOSS OF 200 FOR A TARGET OF 223, 228 AND 233.

5TH BINGO! AUTOLINE REACHED OUR THIRD TARGET OF 153

TODAY WE RECOMMENDED TO BUY AUTOLINE AT CMP OF 136 WITH A STOPLOSS OF 130 FOR A TARGET OF 143, 148 AND 153. OUR THIRD TARGET OF 153 ACHIEVED TODAY ITSELF. BINGO!

4TH BINGO! AUTOLINE INDUSTRIES REACHED OUR SECOND TARGET OF 148

TODAY WE RECOMMENDED TO BUY AUTOLINE AT CMP OF 136 WITH A STOPLOSS OF 130 FOR A TARGET OF 143, 148 AND 153. OUR SECOND TARGET OF 148 ACHIEVED TODAY ITSELF. BINGO AGAIN!

3RD BINGO! AUTOLINE REACHED OUR FIRST TARGET OF 143

TODAY WE RECOMMENDED TO BUY AUTOLINE AT CMP OF 136 WITH A STOPLOSS OF 130 FOR A TARGET OF 143, 148 AND 153. OUR FIRST TARGET OF 143 ACHIEVED TODAY ITSELF. BINGO!

BUY AUTOLINE AT CMP OF 136 WITH A STOPLOSS OF 130

WE RECOMMEND TO BUY AUTOLINE AT CMP OF 136 WITH A STOPLOSS OF 130 FOR A TARGET OF 143, 148 AND 153.

2ND BINGO! SILVER REACHED OUR SECOND TARGET OF $39.83

ON 10.08.11 WE RECOMMENDED THAT "WE THINK THAT SILVER HAS COMPLETED ITS CORRECTION UPTO 61.8% RETRACEMENT TO $37.08. NOW U CAN BUY SILVER AT CMP OF $37.88 WITH A STOPLOSS OF $36.41 FOR A TARGET OF $39.18, $39.83 AND $40.88." OUR SECOND TARGET OF $39.83 ACHIEVED TODAY. BINGO!

1ST BINGO! SILVER REACHED OUR FIRST TARGET OF $39.18

RAKESH JHUNJHUNWALA ON INDIA

IN AN INTERVIEW WITH ETNOW ON 09.08.11, MR. RAKESH JHUNJHUNWALA SAID" As an investor, I am quite sure that India is going to grow double digit. It may take three years, four years for us to set the base and ground for it. And Indians, you think of their $700 billion of savings and you do not get $7 billion into the stock market. The Government of India imported $38 billion worth of gold in the first quarter of this year. There is not $38 billion in the Indian mutual equity fund industry. So think of the amount of money that is going to come, it is going to come one day. My personal anticipation is it is going to come in the next 4-5 years and then you see what happens to the stocks"

RAKESH JHUNJHUNWALA ON STERLING HOLIDAY AND RESORTS

IN AN INTERVIEW WITH ETNOW ON 09.08.11, MR. RAKESH JHUNJHUNWALA SAID "Even Sterling is a business with very high entry barriers. It is a near zero debt company. Mr. Ramanathan who ran Mahindra Holidays is now head of the management. It has got very big entry barriers because you have to make 12-15 resorts, 20 resorts in order to launch a company and in India that's a very difficult proposition. There are at least 1 crore couples in India who are potentially in the next 4-5 years are customers and both the companies put together are getting 30,000 customers a year, so vast potentiality for growth. As income increases, discretionary expenditure on holidays will go up like anything. So that's why I invest"

RAKESH JHUNJHUNWALA ON DELTA CORP

IN AN INTERVIEW WITH ETNOW ON 09.08.11, MR. RAKESH JHUNJHUNWALA SAID "

I have bought 1.5 crore shares of Delta. I have put in Rs 78 crore in Delta. It is not small. By my standard also, very large. I have far lesser wealth than people think, but far more than I need. What I feel is that I am very excited about the gambling business in Delta and we hope to capture 75-80% market share in India."

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Trading in stock market is very risky. Please analyze yourself what is your risk profile. This blog is not perfect. This is not an advisory service to buy or sell. The contents of “this blog” are only for educational purposes. No liability is accepted for any content in this blog.

The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments

SGRG – SIP: BE THE MASTER OF YOUR OWN DESTINY

Welcome to the World of S.I.P. (Systematic investment Plan).

Thanks to the massive amount of time, money and efforts put in by the Mutual Fund Industry over the years, investors are now very much aware of this technique of investing.

Lets revisit the logic of SIP. We call it SGRG-SIP.

In a SIP you invest a fixed sum at a particular interval ( say a month) over a given period of time. In SGRG-SIP, instead of choosing a regular MF scheme, we decide an Index Benchmark, which can be NIFTYBEeS, JUNIORBEeS, GOLDBeS, BANKBEeS depending upon your risk profile.

Disciplined Approach

The first benefit of a SGRG-SIP is that you imbibe discipline in your investments. On a given date of every month you buy the pre-decided index Benchmark. However, the amount to be invested every month keeps on changing i.e. It will be communicated by us every month. You don’t really apply your mind whether to buy or not. Just go ahead and do it.

Don’t worry about the timing

Let me choose the worst possible month in recent history – January 2008 I Hope everybody remember this month.

So we baptize you with fire, by making you begin investing from 26^th December, 2007, a sum of Rs 25,000 every month on the last day of the month. This you religiously do every month for 36 months i.e. 25^th Decemeber, 2010.

Lets see how the Nifty faired. The Nifty that was 6070 on 26^th December 2007 closed on December 26^th 2010 at 6013. This is a fall of 0.94%. And say you like Reliance a lot. The price of Reliance on 01.01.08 was 1445 and on 01.03.12 it was 811 down -43.80% over a period of 3 years.

But our’s SGRG-SIP in Index benchmark’s actually gave A WHOPPING Annualised Return of over 50% p.a. during the same period.

What we mean to say is since, we cannot track the working and performance of each and every scrip, when you fundamentally like a stock, you should like the stock more if the price falls, other things being same. But human psychology will ensure that you get jitters when the price falls. And expecting that the price will fall further you don’t buy. A further fall in price will validate your fears and you would wait for a still larger dip. One fine day the stock will bounce back, leaving you in a frown.

But a SGRG-SIP will ensure that your fear does not come in the way of your investment. This ability of SGRG-SIP to systematically buy Index Benchmarks at all levels ensures good returns in a volatile market. So honour the sanctity of a SIP.

Power of Compounding

The power of compounding will ensure that even small investments in early part of life will leave a giant footprint over a longer period of time. You don’t really have to save big. The stress is not on the amount, but on the need to start early. And even if you have lost considerable time, don’t worry. Today is a good day to begin ! Let us also dispel a myth that SGRG-SIP is only for beginners or for small investors. Nothing stops you from allocating even large sums for SGRG-SIP. In fact experienced investors would find it more useful.

SOME REAL FACTS ABOUT SGRG–SIP

PRICE	S&P	JUNIOR	BANK	GOLD	SILVER
	NIFTY	NIFTY	NIFTY	SPOT	SPOT
01.01.05	4484	2080	3531	6301	10415
01.12.10	9095	5871	11988	29035	55900
% P.A.	15%	26%	34%	52%	62%
SGRG %P.A.	58%	399%	679%	1201%	10000%

Here are some real facts about our SGRG – SIP. We have compared the prices of some of the Indexes and Top Commodities in the World market since 1^st Januray, 2005. Here also you will appreciate that SGRG –SIP outforms all the asset class mentioned below by 100% at least.

Be the master of your own fortunes.Write your own success story. Choose your own Index Benchmark, which you will be investing over a period of time. Since your returns will be function of what asset class you choose, ensure that you put in serious efforts in terms of understanding what you are investing in. Ensure that the Index Benchmark you choose match your risk stance and return expectations.