May 2, 2010

37 Money Quotes




1."Money is something you have to make in case you don't die."
-Max Asnas

2."A bargain is something you can't use at a price you can't resist."
-Franklin Jones

3."Whoever said money can't buy happiness simply didn't know where to go shopping."
-Bo Derek

4."Money can't buy you happiness but it does bring you a more pleasant form of misery."
-Spike Milligan

5."Money is better than poverty, if only for financial reasons."
-Woody Allen

6."A bank is a place that will lend you money if you prove that you don't need it."
-Bob Hope

7."When I was young I used to think that money was the most important thing in life and now that I am old, I know it is."
-Oscar Wilde

8."I've been rich and I've been poor: Rich is better."
-Sophie Tucker

May 1, 2010

StopLoss

We receive a lot of emails questions regarding stoploss. It is a universal fact of trading that stoploss are compulsory and they command a significant weight age in your overall trading strategy. It is an almost compulsory ingredient in the trading recipe.
Why put a stoploss to any trade?
  1.  To keep moving in your trading activity.
  2. To keep trading stocks turning into investment stocks.
  3. To limit your loss per trade.
  4. To make sure you are able to go to market next day.
  5. To remain devoid of loss-aversion bias.
  6. To experience the real joy of getting a profit at target.
  7. To develop confidence. And By Swear, confidence and courage is developed taking a loss. Only profits makes a trader arrogant, and overconfident.
  8. To make sure you give least fee to learn in the market.
  9. It is called a ‘stoploss’ because it is meant to ‘stop’ loss. Won’t you want to ‘stop’ loss or ‘continue’ loss?
  10. Many fear from stoploss. Many don’t keep one even if given. Such traders are bound to LOSE and be expelled from market sooner or later.
  11. Many times markets and prices Spike. This Spike can kill a trader. It can wipe you out and throw you away of market. Stoploss limits are most useful at such instances when even a trader sitting in front of screen cannot execute a trade at his desired price. In trading Black swan events happen frequently. If we have accustomed ourselves to see an XYZ stock rise or fall within 2% range daily, we tend to believe it to be its skintight range forgetting that it could spike 10-20 %up or down any time. This type of bias also keeps one from putting a stoploss limit. They think ‘they know the price-range’.
  12. The rule is simple. ‘Continue’ the profit, ‘Stop’ the loss.
Later on we will go into some Specific Points such as,
1.    How to put a primary SL?
2.    How to put a trailing SL?
3.    What should be the ratio of SL limit to TGT limits.
4.    How much profit to book at 1 st TGT?
5.    How much profit to book at 2 nd TGT?
There is also another interesting debate regarding “Keeping stoploss limit in investments.” I am doing my homework and trying to find references, and experimenting practical and putting in place empirical studies to try to figure out the ‘SL for investors’ thing.

Apr 30, 2010

"Nevers" In the Market

Never panick. Never Fear. Never worry. You can be cautious.
Never show over-exuberance.
Never become crazy.
Never add to a losing position.
Never go on telling your neighbor about your open positions.
Never keep staring blue biz Channel.
Never repeat a mistake.
Never learn a lesson Twice. If do, then not Thrice.
Never become bullish or bearish. Remain a rational. Being bullish or bearish on markets is an emotion. If you want to trade. Get in Get out. If you are investor, make value investing your maxim.
Never spread rumours, never believe in rumours. It mostly benefits the originator.
Never be overconfidence. Because overconfidence kills. In markets, surely.
Never try to time the market. Time yourself. Time your entry, exit. Time your caliber. Time your trades. Time your profits. Time Your Time.
Never over-trade.
Never think, trading is a job. It’s a business.

Buy Geodesic Ltd.-Intraday, BTST, Short Term

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Your www.MoneyControl.com Data Services are run by...








Geodesic Ltd.
CMP-118.
Intraday TGT-121, 126.
BTST TGT-126, 131..
Short Term TGT-136, 148, 156.

Apr 29, 2010

Banking Bulls and Bull Market Biases

                          Many analysts have a tendency to express view contrary to the markets trend. Many times this is only to get attention, show that they are different and are not amongst crowd. OR many times it is because they tend to believe certain sectors, stocks or markets have had 'too much' run up and that's why they tell that it's time certain sector/markets are going to make reversal and so on. Yes when it comes to investing this approach should be given a try but in trading when it is all about making the best of the bull market; people don't benefit from the moves. This happens also due to typical fear of correction in a bull market and fear of buying at 52 week or life time highs. Also when technical analysts start to look at PEs; they tend to fear the further run up and getting long into it.
             Banking space is also the victim of similar attitude amongst some analysts. While many banking stock continue to outperform and make new highs. Our technical team and market circles have identified some banking stocks still looking to have too much steam and virgin for long traders.

Andhra Bank:

CMP-127.
United Bank:

CMP-82

South Indian Bank:

CMP-175.

DCB Bank:

CMP-44
SBI of Bikaner and Jaipur:

CMP-486.

Karnataka Bank:

CMP-136

Vijaya Bank:

CMP-52.

Dena Bank:

CMP-86.90

Syndicate Bank:

CMP-93

Bank of Maharashtra:

CMP-55.50.



Yes Bank:
CMP-293
City Union Bank:

CMP-33.50

While from the smaller private sector banks Yes Bank, ING Vysya bank, Bank of Rajasthan, City Union Bank, 

Our team also expects that the largecap and sector leaders such as SBI, ICICI BANK, HDFC Bank etc. continue to lead and others follow. The party would be joined by other financial stocks.
         We suggest readers to visit our blog and subscribe to free service and even better paid service to get updates on our research and analysis. Every thing we upload is not possible to give update of because of lack of time and free communication resources. Fundamentals doesn't change overnight but technical, short term market conditions, and news factors change. So anything based on those underlying logics should also change. In the short run it is all about update. To put is shortly short term and recommendations and views are subject to change in technicals, and other short run factors. For joining Premium Paid service @ affordable rates Please Dial-9377008708.

Investing and Dividends: A forgotten Basic


               Why invest in equity shares? Why do we become investors? It is return. Return on our capital. The return while investing into any company is dividend. We get return from or in the form of dividends. But how many people investing today think about dividend? There is an ill-awareness and mis-education going on in markets. Most analyst or investment manager does not emphasize this point. All give targets and calculate the percentage rise. While real investing is aimed at earning dividends and ofcourse the capital appreciation in terms of bonus issues and rise in the share’s quoted price in addition. The return counted by the buy-price and target price is practicable only when the shares are actually sold and till it is only on papers.

Earn RATING GAINS: Buy ICRA for TGT of 1095-1255

Some of the Mumbai based HNI portfolio managers have started accumulating this counter from around 870 levels. 
While also the investors looking for cash flow and such business model as CRISIL LTD. are not betting on this stock. 
The fundamentals, business model, and financial are quite sound. The PE expansion in CRISIL LTD. will also result in PE expansion of ICRA from current levels.
 This could not be pure value buying but is as We mentioned a Portfolio Managers' Pick. 

Buy ICRA with A TGT of Rs.1095, and 1255.

Disclaimer: We have this stock in our Quarterly PMS Members' Accounts.
Posted on Thursday, April 29, 2010 | Categories:

Apr 28, 2010

Volatility Measures suggests Spikes in NG while Steadiness in Crude Oil:

Crude oil volatility fell to the lowest level in almost three years. The reasons are stated such as brimming stockpiles and rising OPEC investment in production capacity which expectedly eased concern of shortages. This measure of Volatile in crude oil is oil’s 50-day historic volatility. It has declined to 23 percent presently. This is the lowest mark since July 2007. This measure peaked to 108 percent in the beginning of 2009 when the crude oil prices tanked due to subprime led crisis and Lehman brothers fall. Recently the OPEC countries (Organization of Petroleum Exporting Countries) said they are planning 140 oil projects over the next five years and that its 6 million barrels a da of unused production is enough to meet demand.
If we look at the inventory situation then the US crude stock pile rose to 356 million barrel recently which is biggest since June. Even the inventories held on ships are climbing. However recently the crude oil prices are making fresh yr tops and not receding as should be suggested by the above facts. While it is also a fact that declining crude oil volatility means lower margins from trading operations for global oil giants.
The crude toped all-time high of 147 in July 2008 and made low of $32 in December 2008.
However we at MEGHA INVESTMENTS AND RESEARCH believe that the prices of crude oil should continue to strengthen further despite declining VIX in crude oil however the trade range is likely to remain narrow. The arguments of newspapers and reporters are self-appraising and oversimplifications. There is no proof that the Greece crisis bring crude oil price down. The dollar is strengthen against euro then why the gold prices continue to remain firm? Anyway, reporters have to report and to report (they) have to over simplify, correlate, show reasons, cause-effect relationships, explanations and so on.
The decline in volatile is many times an occurrence of increased liquidity and trading volume which is common across all asset classes. But however we don’t completely agree with this maxim. Many times we have witnessed rise in volatility with rising volumes. The new highs and lows are also typically recorded with record volumes.
While looking at the natural gas, the volatility is rising. The measure increased to 41.7 percent which was at 35.3 percent in march which was 8 month low. 

Apr 27, 2010

Blog Archieve

Posted on Tuesday, April 27, 2010 | Categories:

ICRA LTD.-Not Competing with CRISIL?



You and We, till date believed ICRA is only peer to/fro CRISIL LTD.
But The BSE Website suggests something else!
BSE's portal suggests BLB, Emkay Glob Fin, and Almondz Global such companies are peers of ICRA. There is no mention of CRISIL LTD.
If the information is incomplete, non-factual, and misleading, than what is the use?
Same case with many other companies where the Exchange fails to provide useful data.
No information is better than Wrong information.
Never mind our visitors, You can always Rely on MEGHA INVESTMENTS AND RESEARCH!
Posted on Tuesday, April 27, 2010 | Categories:

READ TESTIMONIALS

Excellent trading calls! This is what's REAL research. Extremely bold view. I am three times more confidence in markets now in any type of situation.
-Sumit Patel, via email, Rajkot


I have been blindly following your delivery calls.
I had to keep patience in few but most made me extra ordinary profits. This I realize now when I see in hindsight. Thank you. God bless.
-Surjit Singhania, via SMS


Good service, continue the same.
thank your very much.
good job done.
extensive research.
thanking your once again.
-Bhupendra, Trivendram, via Contact Form

Hats off to the MEGHA INVESTMENTS AND RESEARCH TEAM!
-Divyang Vora, Bharuch

Your news letter weekly is very appreciable and is according to market trends. I congratulate for these efforts.
-K Khantwal, Ponta Sahib, H.P



Now that market is on crucial juncture and is about to break up or down (which definitely u will predict and guide the best)—at this point I would like to interact few things from my perspective and for all investors view point.
I remember the time 2 years back when the Bull Run faded and was converted into bear phase—at that time u predicted and analyzed that BANKING AND AUTO SECTOR will be outperformer in the next cycle and that stage has almost come. Irrespective of market making new highs or not—the targets given by u and your team for many of the banking, autos and pharma stocks are already achieved and some running ahead of that also—bonus for those investor who r still holding them.

At this point—my question is to ask u that now which sector will be next churning outperformer in the next cycle(as this ups and downs are going to continue—from 21k  to 10 k—from 10k-21k and again so on).
Sir kindly analyzed and guide the next bull runners—stocks and their targets as a new year bonanza—request from ur paid service member and friend—so that investors like me can be benefitted.

Seeing to the historical highs and lows of many stocks I have seen that there are many stocks which were trading at 10-15 rs 10 years back and now they are trading above 1000 rs price. What a magnificent return on investment?

Seeing to the risk reward ratio I feel that you suggest few such stocks which can give 1000 fold returns to investors in long run—as u r much more experienced and involved in market then many others—I think u can definitely predict whether textile, media, engineering or any other sector will be outperformer in next few years.

That was just a request from your real fan and genuine long term investor and ur follower.

Thanks a lot for what u r doing personally and professionally.
-Dr. Chetan Lalseta, via email

Your trading calls are great, but the way you predict the intermediate and long term trend is excellent…
-Mayapati, Kerala

Keep it up team!
-Babu George, Tamilnadu, via Contact form


Very good analysis.
-Sarish, Karnataka, Via Smsgupshup free groups

Your method is so impressive. I like it very much.
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I think, the assured profit products are best, I am an intraday nifty member continuously for last 3 months.
-Ravi Menon, Mumbai

Megha Investments research team is simply outstanding! They give more than just tips…
-Avadhoot S, India

Sir, I have searched many websites, but your articles are best. I look forward to become paid member in next year.
-Sudhir Shah, Surat

Their investors advisory products are best that I got. I lost money on so-called famous websites who advertise on moneycontrol.com etc.and received useless so-called multibagger tips every week 5! Thanks to megha investments team, who discussed with me and got my portfolio right. Thanks..
-Rajnishkumar Surendrakumar, Hariyana

I am satisfied with cash stock fii delivery calls. I want to start your … service. Thanks.
Sunil Nai, Trivendram

Your communication is very good. Your sms are swift and timely. I never had to wait for right update anytime in last one and a half month. I get sms after market close regarding how many points (in nifty fut) I earned or lost and net trading result. I like this system. It is a very good discipline for me. Thanks.
Mr.Senthil, Banguluru

I lost money to a couple of so called advisory/telemarketing companies. Megha research team not only recovered my money but also help me regain my confidence in markets. Thanks a lot.
Bhavesh Shah and Gauresh Shah, Surat

Your research on website is excellent. I will come to you only when I start trading and investing in markets.
Krupalesh TN, Haridwar, via phone

I have not traded much.  But as an investor I saved ** lakh rupees, selling some stocks given alert by megha investment team. The money I saved was more than what I paid for their advice.
Chandrasekshar, Andhra/Mumbai

I became a loser intraday stock trader to a pro nifty intraday trader. All credit goes to megha investments guys!!
Saurabh Jain, Faridabad

Their assured profits commodity advice service is unmatchable. I was earlier a desperate trader who liked to remain on the phone with my advisory throughout the day. But megha inv team made me a cool and calm trader. Now I simply follow their message for trades and strategy as explained by them. I make 50% more than earlier. Thanks to megha investments team.
Kishorbhai, Patan/Jalna


Thanks to all who bothered to send testimonials.
Please note: Testimonials are edited for brevity and grammatical properties.
To write your testimonial, please click here.
Posted on Tuesday, April 27, 2010 | Categories:

KEW INDUSTRIES LTD.-Technical and Insider Recipe

Enjoying shalibhadra finance or not from 23 to 29 -upper freezeeez! 
Now buy KEW INDUSTRIES LTD.
It's presently trading in seller freeze, my target 30 just click on the chart below and look cup and handle formation.
Moreover, insider says Larson and Tubro is planning to take over the company...


Posted on Tuesday, April 27, 2010 | Categories:

Difference between Winners and Losers in Trading

  • Winners come for long-term career; losers come for short term bull market gains and fast money.
  • Winners have adequate capital, losers are generally undercapitalized.
  • Winners are always preparing for the best and prepared for the worst, whereas losers learns nothing and forgets everything.
  • Winners never repeat a mistake or if does then very less compared to the previous time they made similar mistake. While losers repeat mistake, even worse than that that they lose bigger than the previous time they made the mistake.
  • Winners trade/work in up and down and sideways all three types of markets, while losers play on favorites and comfortable side.
  • Winners learn and improve; losers sharpen their ego and continue to lose.
  • Losers think they have to earn a minimum daily, while winners know in trading we don’t earn daily. In fact it is a question of saving capital and safety many times.
  • Winners learn from others mistakes while losers think they know how to play the market and that luck is all they need.

Fresh n' Fantastic Delivery Stock Picks

Below are some Fresh Delivery Picks. 
No worry investing Calls. 
They are unique in that they are not expensive stocks. 
Companies are doing great. 
They have not have witnessed a run up. 
The volume in these counters are expanding. 
Big investors base are strong.
Some of the counters have consolidated and Ready for upmove.


Rolta India Ltd (CMP-190)
Power Grid Corporatio of India Ltd. (CMP-113)
PTC India Ltd. (CMP-114.50)
MRF Ltd. (CMP-7128)
Bosch Ltd. (CMP-4900)
NMDC Ltd. (CMP-300)
st tgt 332-363.
med term tgt, 416, 545.


We expect 20%-50% return in all the above counters for 1 to3 to 6 months duratoin.




Disclaimer: Our analysts and member have positions in PTC India Ltd., Rolta India Ltd.,

Apr 25, 2010

INDIA'S GROWTH STORY BY 2012: Are you Invested or Not?


POWER GENERATION AND CAPITAL GOODS (power equipments)
India needs total 220 GW electricity by 2012 from currently installed of 139 GW.
So we need another 81 GW of electricity.
(1000 megawatt=1gw)
As per roughly figure we need total investments of 11.35lakh crores for this. It could be classified as below,
Rs.4.95 lakh crores for power generation.
Rs. 2 lakh crores for transmission.
Rs.4 lakh crores for distribution.
Rising demand for power will boost demand of power equipments and transmission and distribution plus coal and gas.
Companies to benefit are Reliance Infrastructure Ltd for power generation and power related projects.
Kalpatru Power Transmission Ltd. for transmission and distribution lines etc.
Eimco Elecon Ltd. for earth mover equipments etc.

PORTS:
India is targeting to increase its port handling capacity  from 575 million tones to 1000 million tones by 2012.
For this we need 55000 crores roughly.
Mundra Port and SEZ Ltd., Pipavav Shipyard Ltd., Sical Logistics Ltd. and such other companies will benefit for this investments.

ROAD AND HIGHWAYS
As per roughly and official figure there are 41 project with estimate of 41000 crores will be awarded.
The companies to benefit are Noida toll, IRB Infra, Roman Tarmat, TIL, Gujarat Apollo, Jkumar Infra, Gayatri Projects Ltd. etc.

RETAIL
Rising disposable income, young population and income growth in rural areas is boosting the retail growth.
Retail players are set to open stores in Tier 1,2,3,4 cites which will drive the growth in future.
The companies to benefit from this will be Pantaloon Retail Ltd., Shoppers Stop Ltd., Tren Ltd. and such other companies. (Please be selective while choosing investment options from this sector as not all companies’ financials are sound)

REAL ESTATE
Rising disposable income, young population and income growth in rural areas is boosting the real estate sector’s growth.
The companies to benefit are Unitech Ltd, Shobha Developers, DLF Ltd., Ganesh Housing Ltd., HDIL and other companies from real estate sector selected one to one.
Note:
There are many other areas where a huge amount of domestic and foreign investment is committed and going to happen. There are railways, automobile, pharmaceuticals, banking and financials etc. areas will also witness huge growth. Due to increasing link to rural areas rural is also going to be an attractive sector.
Further Note:
              But this all doesn't mean investment in any sector or any company will earn a good return if not multibagger. Some rules for investment are always static and apply to all business and economic and market conditions. Buy a company's share offering a good margin of safety, and whose fundamentals have power to beat the expectations built into the share price of the company. You can choose to hire or consult a Portfolio Manager for this. Investing money is not opening a demate account of playing the Bull market or betting on tips. If you have a lot of money to waste then it's fine. But if your money is hard earned and you respect it then MAKE INVESTING ONE OF THE MOST SERIOUS AND TOP PRIORITY AFFAIR OF YOUR LIFE or else Don't invest Only To Later fret, repent, and blame!

At Megha Investments and Research, we have these STANDARD Ready-To-Invest Portfolios. We have SIP PMS for Then we also have advisory service for Mutual Fund investors. We also do PMS i.e Portfolio Management Service where we manage your investments. Two options viz. 3 monthly and 12 monthly are available. We also do Customized-PMS which will be based on the need and preference of the investor.

For Subscribing and more details DIAL-09377008708. or Write our PMS team on profit.megha@gmail.com.
You will soon find details of all on our website and in your inbox.

Short-Term Delivery Trading Calls

Cairn India Ltd:
This counter is trading at around 297 levels. We recommend a buy call with a target of Rs.372. 


Biocon Ltd.:
Short term traders and investors are advised to buy and hold for a target of Rs.350. Strong fundamental and business arguments, competition scenario favours the company.


Fortis Healthcare Ltd.:
After its recent acquisition in Singapore, this company will become Asia's second largest hospital chain. Moreover Ranbaxy Group promoters at helm will drive PE expansion by big investors wanting to invest with such a promoter leadership business.
Buy for a target of 173-178 for short term and 212+ for mid term. Purely Bull market call.


Tata Power Company Ltd:
This is comparatively a low volatility counter. Sudden 2-3 consecutive days spurt make it rise 10-15%. Also slides with same frequency. Seems to be building a strong base and narrowing consolidation range and giving way to technical break outs. 
Buy with a target price of Rs.1395 and 1440.
All calls are based on fundamental, technical and other factoral analysis.
For more and regular calls Contact our Research Team on 09377008708.

Apr 22, 2010