Dec 22, 2010

New FREE Feature in our INVESTORS SERVICES: Get ALERTS for "Wealth Destroying Stocks"


New FREE Feature in our INVESTORS SERVICES:

Alert for Negative List (Wealth Destroying) Stocks-
             Majority of investors have had the bitter experience of getting stuck into stocks that go down consistently and considerably from their buy price and seldom recover, or recover above their purchase price when it has been so many years that they have already lost on inflation, and interest rates on their capital as well as the opportunity costs that they would have earned out of other investments.
            At MEGHA INVESTMENTS AND RESEARCH, our approach to investing has always given paramount importance to Warren Buffets Philosophy of investing. He said: Rule no.1 is to Never lose money and Rule no.2 is to Never forget rule no.1. Our version of this rule can be: “Return of Capital is important than Return on Capital”.
            Times and again we have always Alerted our visitors about the stocks that destroy their wealth. From now we have made this approach and part of our activity as –A Feature in our “Services for Investors”
            Thus from now on any one activating any of our “Investor based Services” will get this Negative List of WEALTH DESTROYING STOCKS probably with lower targets as well.
            Why Do you at all Need “Alert for Wealth Destroying stocks”?

Dec 14, 2010

About correction and more-2


About correction and more-2
(Please click on below link to Read "correction and more -part 1"
http://www.meghainvestments.com/2010/11/about-market-correction-and-more.html
Many investors complained us that we didn’t throw enough light on ‘correction’ thing in our previous post.
Well, let’s start by defining.
To go further into anything which has attributes of understanding we must define it.
What is the meaning of correction?
{
We take it like this. It says ‘correction’ literally meaning ‘something of a process or act of correcting i.e. making it right which is or was hitherto wrong. But when we apply this definition or meaning to word correction and its use in markets, we do not see integrity.
}
{Because the word is used only for declines in prices and it is never used when prices are rising! (This translates that when markets rise after falling on wrong note, it should be called a correction!)}
……This is interesting with respect to how we want to understand the meaning. Mind it. This is not a time pass or ‘intellectual jargon busting’. We believe this whole contemplation will take us through the understanding of markets and its behaviors…….

So when there is any excess of increase in markets, it is ‘incorrect’ and need to decline i.e correct.

Dec 7, 2010

Rise in Banking Sector: What Next and Performance report of our Banking Sector Report


Lastly, we put up an analysis of rises of banking sector stocks on 22 August giving a follow up of our 1st article on banking sector giving clear cut bullish view on the whole banking sector on 29th April 2010 and repeatedly then after via different media.
We also made a report on banking sector which was on offer for a nominal fee. In this article we are also going to show how hundreds of investors and traders benefited from that report of banking sector. And some excerpts as to the road ahead for the banking sector as a performer in markets.

Click below link for looking our original report of April 2010-
Click below to see our repeated recommendation on 31 May 2010-
and, below at our FREESTOCKIDEA, free sms group, where we continually send sms for same,
and,  another follow up article showing the performance of banking stocks up to 22 august 2010 as well as reinforcing the strength of the movementom in banking stocks and publication of our banking sector report,
and, continual enforcement of our view by putting the links prominently visible on top side home page.

BELOW IS THE TABLE SHOWING THE PRICE AS ON RECOMMENDATION DATE, PRICES AS ON CLOSING DATE, HIGH PRICEC SINCE, AND RETURN IN PERCENTAGE.

Nov 27, 2010

About Market Correction and more

About correction and more-

We were enticed to write this article, by the feeling of amazement the investors were experiencing when they see several stocks making yearly and new lows without making any noise!
They were amazed to see their many of the hi-performer stocks that were analyst favorites and giving them a kick n ride while the hay period of the markets and when it was anything but green on the stock screens.
Correction is a word that is known by all in the market.
You will see any ‘averagely intelligent’ investor saying ‘he will buy in correction’ and that ‘he is waiting’.
But that never happens. Either he jumps at the last movement out of impatience or steers clear by fear of further correction and aversion and pain of notional loss.
Basically, most investors want their stock only to go up from their buy price. Otherwise they will not invest! Or the market is not perfect then!
Why this does happens?
The fact is that they are ignorant and un-knowledgeable. This might sound harsh. But we are not here to please anybody!
Investors simply do not understand when to stay in, when to wait for correction and when to jump in. We will also emphasize the importance of ‘what’ in all these along with ‘how’. Because ‘what’ is what the bottom-line come in the market.
Some of them may know that correction is an opportunity (it is an all-together different subject how to tell a transient correction and a beginning of bear phase. I said ‘beginning’, because as such the bear phase in its form is a boon to investors for a 3 year horizon. We will discuss about it in other article.
So, I believe there are there always a bear phase and correction going on in market! How?
Let’s understand it this way, there are 3 types of correction or bear phases. Any one or more of them is always going on.
  1. For the whole market, which most of us are aware such corrections
The following two might sound unfamiliar to you,
  1. Correction for a particular sector, and
  2. Correction in a particular stock

Nov 18, 2010

SKS Microfinance debacle- Some contemplations and comprehensions


What happened with sks microfinance stock debacle and investors losing money is nothing new in stock markets.
The basis of such disasters lies in the craze of investors for their constant striving of ‘new’ and ‘fancy’ (so-called) investment ideas.
Always remember, investors who simply jump to grab every ‘new thing’ on markets, WITHOUT UNDERSTANDING THE ECONOMICS OF THE BUSINESS AND LONG-TERM SUSTAINABILITY OF ITS MODEL are bound to lose money. Long term sustainability is very crucial; even for short term performance of the stocks. Because you never know when a smart investor start exiting and a smart trader start shorting. Its just a matter of time. And you can never figure out when.
This has happened with dot coms companies. You can take example of praj which made short term wealth for investors but since has eroded more than similar amount of wealth. We have many similar examples.
“In fact I would go forward and say common investors (including HNIs), to leave this area of investment to ‘hi-fi’ speculators/investors like the VC funds, PE funds, FIIs and such other sophisticated hard-core professional investors and traders.”

Nov 14, 2010

Article on Sugar Sector

SUGAR –
INTRODUCTION TO SUGAR:
Sugar is an informal term for a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose characterized by a sweet flavor. In food, sugar almost exclusively refers to sucrose, which primarily comes from sugar cane and sugar beet.
Other sugars are used in industrial food preparation, but are usually known by more specific names—glucose, fructose or fruit sugar, high fructose corn syrup, etc.

SUGAR PLANTS CULTIVATION:
Sugar cane is a hot weather plant, which is why the largest growing areas are in South Asia, Brazil, the Caribbean Basin and the southern United States. Sugar beets are grown in cool temperate zones such as the northern Great Plains, Germany and France. Both cane and beets must be processed into raw sugar very soon after the plants are harvested or else their sugar content will drop precipitously.

Oct 20, 2010

PORTFOLIO INVESTING: The KEY TO SUPERIOR RETURNS in market

Approach and attitude for PORTFOLIO INVESTING:
The KEY TO SUPERIOR RETURNS with ADEQUATE DIVERSIFICATION:

Don’t think this is some hi-fi, hni type, academic or finance-jargon!
In our view, portfolio investing is simply a strategy, or attitude or approach towards investments. For example, you want to invest. And by that we don’t only mean investment in equities (stock-markets). We mean, with stocks, investment into debt, real estate, mutual funds, commodities, local/indigenous businesses (we will explain this letter on).

MERCK LTD. starts hitting up with a 20% upper Circuit!-Learn to TRADE and INVEST SAFELY

Click the below link to know how, we has strongly recommended MERCK LTD.

Our analysts have sort of specialized in finding SAFE bets such as these. This is what we repeatedly emphasize as SAFE CALLS, or sometimes correction proof stocks as well. They call them so, because they have such character in them.
You may also want to check out our parallel recommendation such as ICRA, AkzoNobel, BASF and so on on this blog site as well as our two FREE SMS GROUPS namely, FREESTOCKIDEA and MARKETNOW.
While you may find mentions of sources and stories in recommendations, our base method remains proprietary. That is our unique style of analysis different stocks, sectors in view of the prevailing trend in the market.

For a glance on latest performance, please click below,

If you are an investor, then you may like to take a look at various PORTFOLIOS we have on offer for investors, according to their requirement for holding duration (lock-in) and objective linked with the objective of investment.
Please click below,

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Posted on Wednesday, October 20, 2010 | Categories:

Oct 13, 2010

Investment Gems from book "Rich Dad's Guide to Investing"


Introduction to a New Initiative from MEGHA INVESTMENTS AND RESEARCH team:
Friends and readers,
I am very glad to present to you the first step towards a new initiative from Megha Investments and Research.
It is in the form of invaluable excerpts from books and personalities of high esteem, knowledge and vision in the world of investing, finances, business and economy.
Many of you have asked us about our secret of success. And here we present one of the very powerful and important facet of it. We do extensive reading and out of it many times there is only a single line of lesson or learning for us from study of a book of a thousand page. While many times we find a well of lessons from a book as tiny as 20 or 50 page. It is not that we have a line of a lesson or learnings of a hundred pages. Because we do not study books to learn from page 1 to page last. It is the extract mainly. It is those few gems, for some books it is those few lines only; that we earn while doing the task of studying a book. Yes, earn is the word we use. Because when you study a book out of seriousness and perseverance, whatever you learn, you’ve earned it.
Any ways, from now on, under this ‘tag’ of ‘book excerpts’, we will present excerpts and comments wherever necessary,  from the books that we study and feel beneficial to the investor community.

Regards,
Yogesh Raval,
Manager


HERE ARE THE EXCERPTS FROM BOOK “RICH DAD’S GUIDE TO INVESTING”
BY ROBERT T KIYOSAKI

Oct 11, 2010

What did we tel about NIRMA LTD. on 28 Aug, before 45 Days from Today?



The Power of OPERATOR SURESHOT CALLS: NIRMA LIMITED- Announces Delisting of Shares. What did we tell on 28 Aug, before 45 Days from Today!
As Nirma Ltd announces delisting of its shares from NSE and BSE, the share has hit a year high of 265 in the early trade.

The decision was taken at the board meeting held on 9 October, 2010.

Now, Just take a look at the print screen image below. It shows how 45 Days (28 August, 2010) from today (11 October, 2010) we gave a hint of the happening in the making to our readers and viewers.
Our, first tgt of 237 was achieved in following 7 days.


Sep 19, 2010

SENSEX hits our Coveted and long popularize SENSEX TARGET of 19013

SENSEX hits our Coveted and long popularize 19013 TARGET:


 Unfortunately the SMS POST on Smsgupshup.com (from our group FREESTOCKIDEA) became a little bit old and now not showing our post on hitting a search for ‘19013’, which it earlier before few months used to.
Neverthless, readers can try and hit “19013” or “sensex 19013” in on www.google.co.in and find out prominent links how only and only MEGHA INVESTMENTS AND RESEARCH gave and boldly, repeatedly and confidently popularized our bullish tgt for SENSEX of 19013, just the way we did before THE BIG BEAR MARKET by promoting downside tgt for SENSEX of 11192.
Below is the SNAPSHOT OF GOOGLE SEARCH RESULT, the document which was published on Scribt site, which you can see at below link:

Below is a simple chart from yahoo finance site. It shows last 1 month Sensex activity. It shows that our said Target for Sensex was hit and crossed on 13, September 2010.

SOME VIEWS AND COMMENTS ON TARGETS and PUBLIC BEHAVIOUR WITH REGARD TO LONG TERM MEMORY OF MARKET EVENTS:

Sep 15, 2010

Claim your Gain from Markets: Gujarat Reclaim gives 75% in less than 3 months

Please Click the link below to read our fundamental recommendation of Gujarat Reclaim and Rubber products Ltd.-

The stock was recommended before less than 3 months and has since risen from Rs.798.35 to 1399 yesterday 14 Sept, 2010. A whopping return of over 75%!

          Please go to bottom of this site and click on ‘Performance’ tag/label to view more on past performance.

we will also put our performance of recommendations on FREESTOCKIDEA, and MARKETNOW, Smsgupshup groups through which we send daily 3-6 SMS, which as absolutely free.

Sep 14, 2010

BASF INDIA LTD- Safe Return of 60% in less than 3 Months

Click on the Link Below to Read Original Recommendation Article-
Then after as well, we have repeatedly recommended on our FREESTOCKIDEA group.
Today, it has hit New high of Rs.676.20.
         We strongly believe, after a rise of as much as 60% rise (from 420 to 676.20), the stock has potential to move further upward to achieve 100%+ return from our recommendation rate.
Our underlying belief in equity research is very simple- Give less recommendation, with strong argument and repeat it.

Aug 31, 2010

Select undervalued stocks for Right and Safe Investing

Click on below link,

You will find out how we recommended AkzoNobel India Ltd., citing its undervaluation amongst the pints industry companies.
It has so far delivered 40% return we estimated in the analysis.
The stock has made high of 952 on 30 July 2010.


Aug 30, 2010

Aug 22, 2010

Performance Report on our BANKING SECTOR BUY REPORT- Also more view on Market



Dear visitors,
This goes with our repeated recommendation on Banking Sector stocks rally, starting with aggressive and ironic satiring comments on operandi of market mis-understandings.

Click below link for looking our original report of April 2010-
Click below to see our repeated recommendation on 31 May 2010-
and, below at our FREESTOCKIDEA, free sms group, where we continually send sms for same,
and, continual enforcement of our view by putting the links prominently visible on top side home page.

BELOW IS THE TABLE SHOWING THE PRICE AS ON RECOMMENDATION DATE, PRICES AS ON CLOSING DATE, HIGH PRICEC SINCE, AND RETURN IN PERCENTAGE.

Aug 12, 2010

COMMON AND MUST TO KNOW RULES FOR INVESTORS

  • Grab stocks when good companies post bad subdued or less than expected quarterly numbers. This could be a good opportunity to buy at discounted price.
  • Always keep a list of good companies ready with the price at which you want to buy their stocks and keep checking their prices. This practice gives excellent exercise to individual investors.
  • Always remember that acquisition price will determine your retrun first of all and other variable more so later.
  • Keep your investment broking and demat account different from trading account.
  • Write this on stone that a Bear market is the BEST time to go on hunting for investors.
  • Never work on rumours. That’s traders’ recipe.

Aug 11, 2010

QUALITY STATEMENT of Megha Investments and Research

QUALITY STATEMENT
Of MEGHA INVESTMENTS AND RESEARCH

We believe, in our activity, there are two aspects,
  1. The quality of Analysis, and
  2. The quality of Delivery of service
We strive to remain best in both of these aspects.
Our MAIN FOCUS remains on highering our existing CUSTOMER RENEWAL RATIO than ACQUISITION OF NEW CUSTOMERS.
And that also explains our No Sample Trial culture followed since beginning of fee based services.

  1. THE QUALITY OF ANALYSIS:
To take care of this important aspect, we follow top-down as well as bottom-up approach.
We have team of experienced, qualified and MOST IMPORTANLY those fellows who have ability to imagine, work with and deliver through THE MOST OBVIOUS to MOST ADVANCED AND INNOVATIVE in these subjective field of market research and analysis.
We encourage and entertain such study people in our organization, who can imagine of flying in skies while their feet firmly on the ground.
We believe in concept of internationalization and inter-market analysis, i.e. all markets classified into asset-class, locations, and so on are interconnected and increasingly doing so. However, the magnitude and frequency of co-relation keeps changing with times.
We suggest to read 'About Us' page for more views on research and analysis.

  1. THE QUALITY OF DELIVERY OF SERVICE:
To take care of this aspect we have put down in place robust systems that ensures,
1.    Prompt receipt of new customer queries and response to it via phone call, SMS, email, contact form.
2.    Priority of task mentioned in 1st point above for EXISTING CUSTOMERS than new prospects.
3.    Regularity of respective services, and informative SMS when services are disrupted of for other reasons.
4.    Specificity of all the services. This goes with our hard-core approach that we must know what we are offering PRECISELY, and the investor/trader must know what he is BUYING IN THE FORM OF OUR SERVICE.
Many times we help prospects to identify their need and choose right service from our basket of useful services.
We happily apologize for our customer care executives’ rigid behavior in explaining and getting too specific!

Posted on Wednesday, August 11, 2010 | Categories:

Aug 8, 2010

Diversification in Investment

Diversification in investments:

      It is literal and clear that diversification has all to do with reducing risk. You may also want to fancy-name it ‘asset-allocation’. Why would one ‘allocate’ to multiple asset classes or ‘diversify’ if one is safely sure about one asset class, and the return on would get, one would never think of any sort of allocating or diversification. Yes it also has to do with the advent of the ‘financial industry’. Recently we see in indian markets the launch of, simultaneously, gold etf and hybrid mf schemes involving equity, debt as well as gold etf investment. Why? They have launched only now? Wasn’t there as need of ‘gold-touch’ earlier? Or in one year only gold has become ‘investible’ or worth giving ‘allocation’? thus most of us do/or should understand, this is about business and they have to sell financial products, any for that matter.
Well, coming to the main topic, lets’ see some expert thoughts on diversification in investing:

Legendary investor Warren Bufferr has said for diversification,
“Diversification is protection against ignorance; it makes very little sense if you know what you are doing.”
He also says,

Jul 22, 2010

IPOs-Some Most Important Things to know about


WHEN ITS HOT AND FIREY!
IPOs only and only come in hot and bull market. Why? So that they can obtain the highest price.

MERCHANT BANKERS AIN’T YOUR FRIEND
Investors forget that Merchant Bankers are selling agents of the issuers. And many times they are also given extra fee for performance selling over and above fixed fee.
Merchant/Investment banking is a cream business. So many are in race to get mandates for IPOs from issuer companies. They will do everything to please the company.

SELL ON LISTING? If you’re lucky enough.
Most investors have only one funda for investing in IPOs.
To sell on listing!
They all think that they will be able to sell and outsmart everyone else.
They all feel so because of psychology. They have seen some issues listing at high premium and their listing premiums quoting in so called ‘gray-market’; and this brings the representative bias. The availability bias makes him confront only good and positive news and information. They ignore the discounted/failed listed IPOs. And in hot market there is all news of economic growth as well.

New sectors are not invented every now and then: The fad and fancy for ‘new’ in markets:
Many IPOs come which are highly pricey and shares of some peer company are already available in secondary market. Still

Jul 19, 2010

COMMON AND MUST TO KNOW TRADING RULES

  • Always have a trading plan. Never trade without a trading plan (a trading plan consists of a trading system which is made of few components)
  • Never trade without a StopLoss (Repeat 10 times).
  • Never ever hold on to a losing position. Never average/add to a losing position. (Repeat 10 times).
  • Let your profits growing. Add to your winning trades.
  • Trade on Rumors and Exit at news. But be care ful while following this strategy.
  • Never discuss your

Jul 15, 2010

HOusing Finance Counters: Update on Recommendation given on Behavioral Finance principles

Behavioral finance has just evolved in earlier part of this decade.
Understanding of behavioral finance can help tremendously in investing; and so in trading and speculation as well.
On 13 May, we reported in brief about the application of rule of behavioral finance in housing finance sector stocks. We talked about the ‘representative’ and ‘leadership’ bias. How small companies tend to follow the sector leader. We covered a sector with fewer listed companies.
The LIC Housing is listed industry leader and after it Dewan Housing, Gruh Finance, Ind Bank Housing, Can Fin Homes can be listed amongst the housing finance specific companies.

DEWAN HOUSING has since shot up to new high of 260 from 230 levels.
While GRUH FINANCE has since shot up to new high of 351 from 290 levels.
Can Fin Homes hit new high of 140 today, while Gruh Finance, and Dewan Housing also hit highs in this month. while Ind Bank Housing is trading firmly above 20.
We still recommend both of this stocks for fresh buys.
Click below link to Read the Earlier Article:


Posted on Thursday, July 15, 2010 | Categories:

Jun 30, 2010

Rock-Solid Picks


GEOJIT BNP PARIBAS FINANCIAL SERVICES LTD.
CMP-34.50
The takeover by the old French financial giant BNP will give it the expertise and experience of international operations of BNP.
The company insiders are saying the firm has huge expansion plans in year 2011.
Various fund managers have started taking coverage on the stock and will add in their portfolio before giving public reports and recommendations.
One looking at investing into finance stocks can invest with a view of mid to long term.
The company has managed to post profit for the quarter ending March. This is commendable since the leading brokerage house had posted a loss for the same period last year. It recorded a profit of Rs. 7.07 crore for the above mentioned period as against Rs. 10.93 crore loss last year. The firm showed its consolidated income to be Rs. 62.09 crore for the March quarter. This is an increase over last year when the figure was Rs. 43.74 crore

MARICO LTD.
CMP-125
Accumulation going on between 115-125 levels.
Now sustaninig above 115 levels.
To cross 150 in short term.
Our clients hold position.
Marico is a leading Indian Group in Consumer Products & Services in the Global Beauty 
and Wellness space. Marico's Products and Services in Hair care, Skin Care and Healthy Foods generated 
a Turnover of about Rs. 26.6 billion (about USD 600 Million) during 2009-10. Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya, Aromatic, Fiancee, HairCode, Caivil, Code 10 and Black Chic.

Posted on Wednesday, June 30, 2010 | Categories: