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Wednesday, June 3, 2009

Hot Pick: FCS Software Solutions Ltd. Bse: 532666

Friends, I'm happy that my last three buy calls have all more than doubled in the last couple of months. While the index stocks (the big caps) have rallied a lot after the elections, there is a lot of value in the Mid-Small caps. One such stock is FCS Software which is a dividend paying company, giving consistent results over a period of time. The promoters hold a good 67.92 % in the company which should give confidence to the other shareholders. The nine months EPS of the company is already Rs.16 and the fourth quarter results will be out by the end of June. The stock is grossly undervalued at current price of 46 and is trading at a PE of less than 3. Investors can buy this stock at current price.

Cheers!

47 comments:

AK said...

What is the immediate trigger for this stock with the ruppee appreciating ? Near term target ?

Unknown said...

hey super star, i have seen one more good script (SPEL Semiconductor). Seeing its mar 2009 results and statement on its website

http://www.spel.com/Q4FY200809.html

Could you have a look. I think its quite a good script and still under rated. Ambrish

Unknown said...

Superstar,

Also I would like to know the "Temptation Food" stock... It looks very attractive and good revenue, Its FII fav. stock....Kindly give me ur view and light on the same for (Sujana Towers, Indowind Energy)

Unknown said...

one more quite good script i feel super star : Unichem labs (pharma sector)
Please have a look. I feel this should also double in another 1 yr if gets approval of ANDA.

Unknown said...

As far as FCS Software is concerned, currently its quite good buy as very much under-rated, but wat about other IT stocks as TCS, Infosys, Wipro. I think atleast for current 1 yr, it will be quite good. In budget, the govt will surely extend the tax exemption for another 2 yrs or so. Also, SEZ benefits will be provided. And if dollar is trading above 45 mark for 1 yr, it will be good for IT scripts.
Your inputs for same is needed Super star.

Superstar said...

FCS Software is trading at a ridiculously low price at the moment. Trading at a PE of below 3 when its peer companies are trading at PE ratios ranging between 10-20. So you can well imagine the room for upside in this stock. The company has also given generous dividends in the past. It's an excellent BUY.

Cheers!

Unknown said...

gsfc another golden script i think

Unknown said...

Sirji.. Looking for your comments on two low cost counter 1> Birla Power and 2> Nandan Exim Ltd. Plz suggest if I cab go for it.

Superstar said...

Somen, Birla Power is a much better stock than Nandan, if you compare the two. But I would suggest you go with safer and fundamentally strong stocks like FCS Software.

Cheers!

Ravi said...

Hi,

Whats you view on
Su-raj Diamonds and Jewellery
Shri Lakshmi cotsyn
PHOENIX
iolnetcom
Madhav Marbles and Granites
vardhman

Thanks
Ravindra

Unknown said...

Thanks Navin sir. I will do that.
On your last suggession I have taken Balaji Telefilms @ 65. What will be the target to quit..

Superstar said...

Ravi,
Out of the stocks mentioned by you, Su-raj Diamonds and Shri Lakshmi Cotsyn are my old favorites. Can be picked up on dips for investment. I haven't checked the fundamentals of the rest of the stocks on your list lately.

Somen,
I had suggested Balaji Tele at 32. You picked it up rather late at 65, but you could have still made handsome profits as it recently went to highs of 79 also just two days back. It is quite a big mover stock and can make big moves from here on either side, depending upon the overall market.

I would still rate FCS Sofware as the BEST BUY because it has just started to move up and is a great value buy.

Unknown said...

Superstar,

I have been following your recommendations for quite some time now and must say that most of them have clicked. The no of visits to your blog is a testimony to this

I would like to start trading with a small amount and a short term goal. Can you please recommend few stock options that I can pick.

Thanks in advance

MohammedP.

Unknown said...

Superstar,

I have been following your blog for some time now and most of your recommendations have fared well. The no of visitors to your blog is a testimony to this fact.


I would like to start investing with a short term goal of 3-4 months. Can you please sugget me some stock options to pick up.

Appreciate your help!!!

MohammedP

Unknown said...

Thanks sirji taken FCS SW.
Also I had Anu Lads from 23 level. currently its said bonus has issued. what is your view on that. Shall I quit or hold??

Superstar said...

Thanks, Mohammed, for your kind words. Right now you can pick up FCS Software. It's a dividend paying company available at a very cheap price. Can give good returns in short, medium and long term.

Thanks to all the others also who've commented on this page, can't address each post individually due to paucity of time.

Happy investing, all of you.

Cheers!

Unknown said...

Sir,
I had Anu Labs from 23 level. currently its said bonus has issued. what is your view on that. Shall I quit or hold??

plz suggest as i need ur suggession only

Superstar said...

Somen,
Your stock in question, Anulabs has recently split its 10FV share into Re1 and also given a 1:1 bonus. It becomes difficult to compare results with previous year after such corporate action and the 4th qtr results are not declared yet. Since you purchased it at 23, you are sitting on good profits at the moment. I would protect my profits by keeping a Stop Loss in this share of Rs.30 and ride the upside till it moves up. Be cautious.

Cheers!

Unknown said...

Thanks Sir

Mithun said...

Hello Navin sir.... I have been your ardent follower for some time... Based on your suggestion i have picked JK Lakshmi cement @ avg price of 108rs... Currently it has reached these levels... Can u suggest me as to what should i do...Hold/Sell... i can hold for another 5 months...

Superstar said...

Hi Mithun,
JK Lakshmi has done very well in the last few months along with some other cement companies. I think you can book your profits around 120-124 levels and maintain a tight Stop Loss at 100 levels in this stock.

Meanwhile, FCS Software is presenting a good Opportunity to buy. The board meeting of the company is scheduled for 22nd June and a Dividend may also be declared.

Cheers!

Mithun said...

Thanks a lot...

Ravi said...

Hi Navin,

can you tell us on below stocks for long term view.

Camson bio
SRM energy
hindalco
gipco

Thanks
Ravindra

AK said...

Hi Superstar..the stock was arnd 48 when u had recommended it and i bought it at that level..however it is declining regularly..any short term triggers in the stock..i know the results are coming on 22nd..would that make a difference or have they been factored into the price already..

Superstar said...

AK,
It was at 46 when I posted and the current price is around 43-44. The decline is negligble when compared to the rest of the market stocks which have corrected by nearly 30% in the last two weeks. The PE of the stock is just 2.5 right now, which is by all means VERY UNDERVALUED. I would call it a normal mkt correction and ACCUMULATE this stock on every decline. The further course of action will be decided after the results are declared. The Board is will also consider declaring a DIVIDEND in the forthcoming Board Meeting.

Cheers!

Unknown said...

Navin - Any thoughts on the Pyramid Saimira stock. Given that there's a lot of news this year on this company, do you have any insights on whether it can a multibagger in future? Is currently down more than 95%, compared to its lifetime highs.Any exposure recommended at the current price?

Unknown said...

Navin - Any thoughts on the Pyramid Saimira stock. Given that there's a lot of news this year on this company, do you have any insights on whether it can a multibagger in future? Is currently down more than 95%, compared to its lifetime highs.Any exposure recommended at the current price?

Unknown said...

Sir ji,
How r u? waiting for your jackpot tips after budget,,

Unknown said...

Dear Sir,
I have some Satyam Shares at 42 level. As you know Tech Mahindra has issued letter to Satyam shareholders for an open offer of rs 58/- to acquire their stock.. same invitation letter I have also received. Now If I dont agree to sell of my stock.. Is there any right to that company that they can forcefully take over the stocks from shareholders? plz suggest in detail as I am confused.

Superstar said...

Somen, Satyam Comp is now called Mahindra Satyam. No, the company cannot take your shares forcibly in case you don't accept their open offer. As you are aware, the price of that stock is much above the open offer price. Cmp is around 70. You did have the opportunity of selling this stock around 100 levels also after the results came out. You can sell your shares at any time in the open market, you don't have to accept their offer.

Cheers!

Unknown said...

Thanks a lot Sir. U r my real Big Boss

Unknown said...

FCS is sliding down sir what is your advice?

Superstar said...

Hi Manu,

The market has gone thru a major correction since the Budget. FCS Software has gone down with the market, but the valuations of the stock are very attractive at current levels and we will see a bounce back soon. The budget has been good to the IT industry, and after this technical correction we'll see buying emerge soon. Long term investors can buy more at current levels to average their cost price.

Cheers!

Unknown said...

Dear Navin Sir. Tomorrow Mahindra Holidays will list. in CNBC it is saying expected listing value is 350. What do you think for short term or Intraday..

Unknown said...

Navin Sir, Can we buy RNRL now for next 2/ 3 days. Today FIIs buying the stock. Also Monday Supreme Courte will take over RIL RNRL case. As Mumbai High Court given some pref to RNRL I think SC will also not decline. And it can give a good move from Monday tuesday for short time. What u think?

imbull said...

FCS rocks today for splitting news! Superstar is real Superstar! Hope, now CDIL too will rock.

Superstar said...

Thanks, Imbull. CDIL will also rock sooner or later.

Cheers!

Unknown said...

your views superstar on unichem labs too.

Superstar said...

Ambrish,

Just posted my view on Unichem on the latest topic of CDIL.

Cheers!

Unknown said...

Hello Sir,

Im holding around 1500 FCS from 47/-. What is your suggestion? Shall i hold it for some time (after split) or shal i buy it more? If i hold wht would be your target for 2months? Thanks for your help....
I am following you from Jayaswal Neco Industries Ltd recommendation.
your are doing great job and helping lots to other....

Sted said...

With regard to the latest developments in this stock(gdr issue etc) is it a good time to re-enter this stock again. I have sold all my positions at Rs 12 and waited for lower price on this stock to re-enter but did not go below Rs 10.

Please present your views on long term prospects of this company? Could this become an Infosys :)

Deepak Nagaraj said...

Dear sir, FCS is trading at 3.70 rupees now, whoever heard your "expert advice" and bought it at Rs 45 ... should go to Tirupati now! :-D

If they had put 4500 rupees, it would have become 370 rupees! ROTFL!

Superstar said...

Dear Deepak,

Are you a Fool or a Bloody Fool? Did you care to check the Face Value of the share when I recommended FCS Software at 45 and the FV now? The FV at that time was rs. 10 and now it has been split into 10 shares of Re.1 each. Then there was a 1:1 Bonus given after I recommended. And there was also a 50 paise dividend given by the company. So the current value of FCS share if you had bought it at 45 works out to be 74.5, even after the recent market sell-off. And this share has seen highs of 176.5 in December, 2009 where I had recommended to book profits. So if you had followed my advice and bought this share at 45, then you would have multiplied your capital by approx. 4 times within 7 months at the peak value.

MORONS like you who do not understand the A B C of the stock markets should stay away from it. The stock market is not meant for Bloody fools like you :)

Cheers!

Superstar said...

Hi Siva & Sted,

FCS Software has given fantastic returns last year. It has now corrected somewhat with the recent market sell-off. It would be a good idea to pick this stock if it falls further early next week due to the weakness in the global markets. This is a fundamentally good stock and can be held for long term also.

Cheers!

imbull said...

LOL @ Deepak!!! All are very very "INTELLIGENT" today in the market, and @Superstar, each of them thinks they know the A B C of market!!! Funny enough ;-) if Deepak listened to our Superstar, then he, @investment of 4500, should atleast avail a flight trip to Andaman and Nicobar to get fresh air and to be more "INTELLIGENT", heheeeeee.....

Unknown said...

Hello sir,

Whats your view on FCS. I have huge quantity at average of 3 RS. I can wait for 6 months. Please advice

Superstar said...

Hi Tilak,
FCS is a hold at present, to my mind. In the past one year there have been a slew of corporate announcements from this company like bonus issues, stock splits & what have you, which has left the average investor slightly confused. If I was in your place I would wait for a bounce in the stock to exit near my buy price.

Cheers!