Bears on rampage ....

When it was thought that market will take it forward beyond 14K market tanked and yes it was victory of bears on a given day. I doubt whether they will succeed again on Monday with the same veracity. At least for the day my reading flopped and I expect weak opening on Monday with another 100 points downside as there was no short covering at all till the end of the day. It is very clear that if operators wanted to reverse the game with the word go on Monday then short covering had to happen today. Even if US market goes by 3% today our market will correct further on Monday. Therefore avoid buying on Monday morning even if Sensex open on plus side and wait for correction of 100 odd points on lower side for fresh buying. At the same time do even think to go short because Bulls want only that too happen……

RIL, SBI, ACC and Tisco will remain my focus stocks where I will bet blindly irrespective of the fact these stocks are momentum stocks (except SBI) and will remain volatile with Sensex movement. Monday Cairns issue is opening and RIL and ONGC will get re-rated. Today's movement should not even be considered as major correction though majority of traders echoed that view.

We have initiated a buy call on a large cap company though the price is like a small cap. Apple Finance Ltd. the beleaguered Atul Nissar co having huge property besides the diamond plaza at BKC where the current rates are Rs 30000 per sq ft. Co plans to sell around 2.4 lac sq ft at an estimated selling price of Rs 25000 per sq ft raking in revenue over Rs 600 crs. Costs could be Rs 48 to 50 crs whereas tax outgo could be close to Rs 100 crs. Debt is around Rs 200 crs after OTS which could leave around Rs 250 crs with the co the value of which comes to Rs 45 per share. It is not sure how much money will come to the co and how much will be out of books is anybody's guess. Even if that is discounted I think there is fair chance of making at least 200 to 300% returns is not ruled out. Permanent Magnate is another realty story in Mumbai where operators are active and could flare up like a rocket. A cartel close to Enam and T Rowprice has accumulated enough shares over last one year and now just started the price movement. Earlier at Rs 84 we had initiated buy call on Elnet which is never known for its realty. Today when broke this story to a leading fund the stock hit upper cct of 20%. It has huge land which was earlier outskirts of Chennai and now has within the city limits. Stock has potential to become 10 baggers from here.

The buzz is not getting over here….the biggest ever Kolkata realty story is yet to be unfolded in market is Gillander Arbuthnot. Co has reported net profit of Rs 8 crs on equity of Rs 11 crs for Sept quarter out of its tea, construction and real estate business. On merits alone stock should get valuation of Rs 200 plus. Its property is running into millions of sq ft which co is going for development post de-merger of realty division. I would rate this stock as one of the best stock in Indian terrain and suggest all investors to have at least 500 to 10000 shares with a vision of 1 year where value unlocking will happen.

Please bear in mind whichever stock we had chosen from illiquid belt has become liquid in a short span of time. Binani, Crest, Century ply and Josts all went on to become rocket. The supply is coming from the fund whose wish list is that the Gillander should go below Rs 100 where they want to make some deals then rig up the price. At the same time there is a smart investor whom I know personally has accumulated over 1 lac share so far and in a mood to acquire another 3 to 5 lac shares between Rs 100 to Rs 125. Therefore every time this stock goes to a level of Rs 100, value buying starts. Once this crosses Rs 150 level the desperate fund will come forward for buying.

"The three great essentials for achieving anything worthwhile are hard work, "stick-to-it" ingredient, and common sense." If you follow the same in investing in stock may be you too make tons of money like all intelligent market wizards do make. Buy when nobody is interested and no volume and in bulk with conviction and sell when market demands it. All big men earned big money doing this…..

Thanks Vinit