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Monday, February 11, 2008

RELIANCE POWER LISTS BELOW ISSUE PRICE

The worst fears of the market have come true. In my last blog, I mentioned that if Reliance Power lists below its issue price, it will take the entire market down with it. That is exactly what happened today. The bell has tolled. Not only has the Reliance Power stock opened below its issue price, it has closed at a dismal Rs. 375.

Having said that, this current crash in the market presents a good opportunity to buy select good value stocks at prices you could only dream of till a couple of months back. Gems like JKLAKSHMI CEMENT, for example, are now available at throwaway prices. Long term investors can build their portfolios now.

Cheers!

26 comments:

hardikpndy said...

Hi Superstar

Is it advisable to wait for market to bottom out?

Is it not better to watch silently and grab multi baggers as soon as the upward move is seen in the market?

As it happened with me, when I purchased Godrej, cyber mate and JK lakshmi at 18k+ levels and market still going down.

If you have idea on when bottom of the market or lower circuit on the shares can be seen, reco by you, please let us know.

cheers,
HARDIK

Pawan said...

Sir,
It will be really great if you can give your top 5 picks in this market.It will really help people to cover the loss in long term and make a better portfolio. Thanks in advance

Superstar said...

Hi Hardik,
Who knows where exactly the bottom is. Last time 4500 on the Nifty acted as a strong support. Let's hope it will not be broken this time. In my opinion one can start nibbling on stocks which you have identified for buying at every dip from now on. If you wait for an upward move, then the move may be too fast and you may not be able to catch your desired stocks then. The best way is to start investing in LOW PE, GOOD VALUE stocks on every dip. Instead of buying in one go, you can stagger your purchase.

Cheers!

somen said...

Naveen Bhai,
Whats ur opinion about Burnpur Cement in 1 year target?

Prativa Satpathy said...

Hi Superstar,
What is your view on J K CEMENT?
Should I switch over to J K Laxmi? I had bought J K Cement @ 190.00.
Regards

Annam said...

Hi Naveen ,

What is your view about Auro pharma now.Is it a Good Pick now?

Thanks
Annam

Paul said...

Here is what Shankra Sharma of First Global has to tell about Indian Market. His views as reported by CNBC-TV18 on 26th Sept-07,

"Our view is that India is headed for a market situation in the next six months time wherein we will see index levels get taken out successively. I would be surprised if the index doesnot hit between 25,000 and 30,000 in the next six-nine months time."

This same person today (11-Feb) says that the markets can go down by another 20%.

"I see a journey back to levels, which will approach four digits rather than remain five digits. It may or may not get there, but you will definitely get very close to those levels. By the middle of the year, we should be trading closer to those levels, 20% lower rather than 20% higher."

Should we believe these Global Chameleons? Should SEBI put some accountability on silly brokers like this?

Superstar said...

Hi Somen,
I am generally bullish on the Cement sector, but since Burnpur is a new listing, not much historic data is available on that. So I cannot comment on that.

Hi Prativa,
JK Cement is an equally good stock as JK Lakshmi Cement. Only difference is that JKLAKSHMI is available at more attractive valuations. You can hold both but it's not a bad idea to switch to JKLAKSHMI if you have to choose between the two.

Hi Annam,
Aurobindo Pharma at present levels of 300 or below is surely a good buy for long term.

Hi Paul,
Good observation about Shankar Sharma of First Global's comments. You need to always take these guys' views with a pinch of salt as they always have vested interests while making comments on Tv.

Cheers!

Santhosh said...

Hi superstar,

is it worth to invest in LIC housing Finance for Long Term say 1 year?

Superstar said...

Hi Santhosh,
Yes, it is definitely worth investing in LIC Hsg Fin at cmp for long term. It is a value buy.

Cheers!

microsoft.public.mac.virtualpc said...

n the lighter side.....

IPO Schedule from the Reliance Group:

Reliance Grey Market Operations Limited
Reliance IPO Managers Limited
Reliance Public Loot Bazaar Limited
Reliance Papa Ka Naam Roshan Karega Limited
Reliance Brothers Fighting Limited
Reliance Tower Falling Ltd
Reliance Power Failure Ltd
Reliance Vada Pav Limited
Reliance Cycle Repairs Limited
Reliance Nita Ambani Airways Limited
Reliance Chaddi-Baniyan Limited
Reliance BIG FM Suniye Limited
At Last
Reliance Indian Cricket League Limited

Ashish

microsoft.public.mac.virtualpc said...

IPO Schedule from the Reliance Group:

Reliance Grey Market Operations Limited
Reliance IPO Managers Limited
Reliance Public Loot Bazaar Limited
Reliance Papa Ka Naam Roshan Karega Limited
Reliance Brothers Fighting Limited
Reliance Tower Falling Ltd
Reliance Power Failure Ltd
Reliance Vada Pav Limited
Reliance Cycle Repairs Limited
Reliance Nita Ambani Airways Limited
Reliance Chaddi-Baniyan Limited
Reliance BIG FM Suniye Limited
At Last
Reliance Indian Cricket League Limited

Hemantp said...

Hi Navin

I had invested in following stock 2/3 months before & suffering with heavy losses

Dish tv@ 100,Auro pharma@555 , appolo tyre @56, cybermate @17,vardhaman acrylics @11

can u pls suggest some statergy to go about as i am new investor.Pls help

Thanks

Paul said...

Hi superstar,

What is your view on Garware Wall Ropes. A company with nearly 400crs turnover, trading with a market cap of 220crs and PE of 9x. RJ has a stake in it too. Is it worth a BUY at these levels?

cooknow said...

Superstar I would request your view on NTPC and Punj LLoyd at present levels.Are they worth accumulating with a 1.5 year perspective.I have JK Lakshmi and Mangalam cement already in my Pf so looking to accumulate a few other good scris.Pls advise.Thanks

ashok kumar said...

Hi Superstar

Please give your comment on Bag films ltd. strong rumour that srk has acquired 10% stake in this company. I am getting lot of recommendations for this stock as multibagger.

regards

AShok

Abhinav said...

Hi Navin,

Desparetely need your advice...

Please suggest is it a right time to consolidate the existing portfolo of midcaps to bring down the average cost price or buy new Blue Chip scrips?

I hold JP Ass @ 356, LIC Housing @ 369, GMR Infra @ 244, RPL @ 218, RNRL @ 153, RCom @676, JY Hydro @ 127, Power Grid @ 143, Gail @ 490 and Tata Motors @ 790. I have almost Rs 3L invested and currently 60 K in red.

Please suggest.

Superstar said...

LOL Ashish,

Your spoof on Reliance IPOs was really funny. Thanks for the laughs.

Hi Hemantp,

I don't know anybody in the stock markets who is NOT in losses today. The only strategy which can be followed now in your case is to wait patiently for the markets to turnaround. Be prepared to hold on to your stocks for 6-12 months. Convert Dish TV into JKLAKSHMI.

Hi Paul,
I had myself recommended a buy on Garware Wall Ropes when it was around 40-45 levels on moneycontrol and it went on to become a Mega Multibagger from there. I haven't checked its latest results but speaking from memory, I think it should be a hold.

Hi Cooknow,
NTPC is a good stock to have in one's portfolio at current levels. I have been advising a SELL on the likes of Punj Lloyd and JP Associates for many weeks/months here on this site and my call has proven to be correct. I like Allahbad Bank apart from JK Lakshmi Cement for long term investment. You can see more tips in OLD POSTS in this site.

Hi Ashok,
It is true that SRK has a stake in Bag Films. But that is old news, as after that happened, the stock ran up from 10 to 100. I don't have access to its latest financials right now as the site is down, but I will not jump into this stock now.

Hi Abhinav,
Hold GAIL, Tata Motors, Power Grid, Rcom, RPL, LIC Hsg for long term. Liquidate the rest and buy JKLAKSHMI.

sharefree said...

Hi Superstar,
Trust you are doing well..

Bought Godrej Industries @ 295 its falling down everyday, suggest hold or sell pls.

Same with Arvind Mills bought @50.

Your views pls.

hardikpndy said...

Hi Superstar,

Markets are on recovery now. It feels good seeing greenery in Portfolio all around. Thanks for ur rekos. Truly.

Please tell your views on Tripex Overseas Ltd. Its PE is 3.46 with EPS of 4.14.

cheers,
Hardik

VAP75 said...

Dear Superstar,
I have benefited from your advise. Thanks for all your efforts.
Can you please advise on Deepak fertilizers from a short term & long term point of view. I have 200 at 126.
Thanks,
VAP

shashjpn said...

Hi Superstar,
Please give some recommendations for budget momentum stocks.

MANOJ said...

Dear Superstar,

Is it advisable to average cybermate at Rs.9. I have 6000 shares at Rs.16/-

Regards,

Manoj

Harb said...

Hi Navin, I am sure the market will skyrocket on monday given the news that RELIANCE POWER IS ISSUING FREE BONUS SHARES TO ITS SUBSCRIBERS TO COMPENSATE FOR THE LOSS THEY SUFFERED.

Cheers!

Harb

Superstar said...

Hi Sharefree,
Your prices for both Godrej and Arvind are not very high. You can hold both for long term (1-2 years) if you like. But I would advise a switch from Arvind into JKLAKSHMI considering it is likely to give much better returns.

Hi Hardik,
You are welcome. Tripex has not reported its Dec qtr results to the exchange. In the absense of latest financials, I cannot comment.

Hi Vap75,
Deepak Fert can be held for the time being. Fertilizer stocks are anticipating some good news from the budget. You can book profit in rallies if it goes to 150-160 for the short term.

Hi Manoj,
I had posted my comments after the last qtrly results. My view remains unchanged since then.

Hi Harb,
Hope you are well. The bonus announcement from Reliance Power seems to be a last ditch effort by Anil Ambani to save some face. The bonus ratio will be declared in tomorrow's board meeting, hopefully.

Cheers!

sanjay said...

Hi Gem,
you are vivacious.i want to know your view about shiva cement and bsel infra.
Thanks
Sanjay Kumar.