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Monday, July 26, 2010

The Quiet before the storm!!


Is this the quiet before the storm?..
- Market place/Index is at its peak and the question is about tightening of credit in US (various support mechanism / schemes for housing sector have been discontinued)
- In India (3 G license out flows to the govt and Income tax outflows..)
- Inflation still rising but govt is assuring that industry that liquidity will be maintained at adequate levels..

Generally after recession when the credit tightening happens the first time fear is ..
- Is the money going to move out into safe havens like Govt bonds from stock and commodities??
- Are the stocks overpriced??

I get the inkling that we are just at the cusp of a rally.. there is going to be a rally from these levels.. there is bound to be sectoral rotation but value stocks both at the index level and at the small/mid cap levels will move upwards.. so GAEL, Jayant Agro, NHPC, Pitti Laminations should gain from these levels in a rising market and hold on to their gains in a falling market. Best of Luck!!

5 comments:

Jaya said...

Thanks WhatsUp, your steadfast conviction for GAEL is something to appreciate.

in this way, u are helping thousands, even more small investors who do not have time for study and research...

One important thing, you have to still do and that is tell us before and when you start selling your shares...

tks and hope u discover more gems like this.

What'sUp Prahalad said...

Jaya:

The most important thing in life in general is
"NOT TO DO ANYTHING OUT OF FEAR!!"

As they say ...

"FEAR LEADS TO THE DARK SIDE!!"

So you donot have to be fearfull that I will sell and then you will be stuck with GAEL..

You have to overcome the fear by understanding the company valuations (knowledge).. and "Set your Own Targets!!"

As for my targets.
1. At 40 I will sell some shares and reduce my cost of holding to Zero..
2. I see 60-80-100 as targets that can be reached within a year or two..

I have sold GAEL at 80-90 levels before so .. I am certain you can reach those levels again..
==============================

The most important take from this comment is "Do not be Fearfull.. Be mindfull of the future.."

Also if you feel you are doing something wrong.. (everyone does wrong things..)
if you do some introspection (be mindfull) you will see that it is fear of "something" which is driving the wrong action..

Tackle the fear .. and you will do well .. just like right now .. you had fear about my selling which you did tackle in a good way by addressing it.. (instead of selling your stock.. because of fear => which would be a foolish act!)
========================

NHPC is also a best buy and will easily double from these levels..
It might take some time for NHPC stock to fly and I am hoping that GAEL will double before NHPC starts moving.. (so that I can shift my earnings.. into NHPC)

=happy investing
whatsup-indianstockideas.blogspot.com

Jaya said...

Hi WhatsUP,

Very well answered and yeah, i acknowledge FEAR is why i asked you to tell us when u would be selling.

I like the biz of GAEL, so i guess i shall remain a long term investor and like u try to get to reduce the capital invested.

yes, i also reciprocate your wish on NHPC, my original holding comes at IPO price, and i shall be averaging down soon.

the name of the company that i owe you (sorry for the delay) is HITECH plast, QUOTED ON BOTH BSE AND NSE, ON BSE: 526217.

i also have another growth stock and its WIM Plast - take ur time and let me know.

rgds

What'sUp Prahalad said...

Jaya:

Congrats on both the picks they have done well..
Hitech is worth booking profits in..
Wimplast is also fairy priced..

=happy investing
whatsup-indianstockideas.blogspot.com

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