Feb 5, 2010

Its time to re-build the portfolio: Be and Make (05-02-2010)


Another call bang on the target and predictions proved absolutely. In the recent report on market outlook I expected a correction and strongly recommended to be with the cash at least by 30%. Markets already corrected more than 10% from the recent highs and likely to test the 4620-4680 levels where huge support available in the said range.
Previous two calls of be and make on market outlook:
1. http://stockstowin.blogspot.com/2009/11/market-outlook-for-short-term-26-11-09.html
2. http://stockstowin.blogspot.com/2010/01/market-outlook-for-201014-01-2009-be.html
I recommended the stocks for 2010 in that report and the stocks were Suzlon, Punj Lloyd, Reliance Infra, Gammon India, MIC electronics and Adhunik Metalliks. Now, it’s the time to deploy the cash in the above said stocks.
Now, the question is in which stocks we need invest under the current environment? So, one should have the above said same stocks but at what levels we need to enter and what percent should they have in the portfolio? All the above stocks are high beta stocks and now I recommend to go with the MIC electronics, Reliance Inra, Tantia Constructions and finally with the CONCURRENT Infra. The new stocks were added in this portfolio are Tantia and concurrent inra. So, now the levels to be considered for investing:

Scrip
To be entered in the range.
MIC
42-44/-
Reliance Infra
            975-1005/-
Tantia
            113-122/-
Concurrent Infra
12.5-14/-
Suzlon
             61-67/-
Punj Lloyd
144-153/-
The above said are the range to enter and according your risk appetite you can invest either in single lot or in stages. I recommend starting to invest at the upper end of the range and to complete investment at the lower end of the range.
The percentage of allocation is up to your risk appetite. If you wish to take huge risk then you should prefer the Concurrent Infra, Suzlon and Punj Lloyd. If you are the moderate risk taking then consider the MIC electronics, Tantia Constrction and Concurrent in small quantities and you more defensive then opt for the Gammon India, Reliance infra and Tantia Construction. The above stock picking is to give some idea of allocation and in my view one should go with the own risk appetite.

All the best and beat the street
With thanks
Be and Make

13 comments:

Anonymous said...

what is good enter range for Adhunik Metalliks

sudhir raj said...

Hi B&M,

Did u enter the concurrent infra.. I am following ur comments on moneycontrol messege board.they are like gems. i got doubt that this scrip has become operator driven.like Edservesoft systems, Acruti city and austral coke.. Can u plz analyse concurrent in that point of view... If it is really a good multibagger then i want 2 invest in this scrip in big no.

Thanks in Advance.

Sudhir raj

sudhirraj4u@gmail.com

vishnu said...

Dear sir

I have a querry for you
Out of 6 stocks you have mentioned, 5 are in infrastructure field.There are a lot of doubts in that field
about the companies ability to execute the orders,payment delays ...etc,Is it safe to add majority of stocks from one sector?
Please advice.

regards

vishnu raveendran Nair

kalyan (Be and Make) said...

Dear Sudhir raj – Thanks for your good words. Yes, you are right in our markets the speculation is a most worrying factor for the small investor. Operators generally use the low float stocks to operate and trap the small investors. Here, in the case of the concurrent the fundamentals are quite attractive and we need not to worry about the operators move. The fundamentals always stay long when compared to technicals.
With thanks
Be and make

Anonymous said...

Hi Kalyan
Yes-concurrent fundamentals are really good. Only thing can go wrong if the management does not deliver on projects which is inherent to every business model. And absolutely very thin downside.
But with Tantia in my humble opinion...its an existing stock. I do not expect a sharp uprise..bit conservative stock i guess. Would be better to watch March 10 results.
Punj Lloyd: story is big....my confidence got dented when i raised few questions with experts who were absolute negative---will still hold on.
Have a look at Confidence Petroleum---looks like a turn around story.
Also would request to glance at IPTV/Optical fiber cable story as its unfolding...which will replace all existing copper cable with OFC for internet and cable both. I saw Aksh Opticfiber but somehow not very convinced about management to handle suhc boiling point pressure.
Thanks
Suvendu

senthil said...

dear Be and Make, i am admirer of your blogs. they are very useful to the small investors like us.
HATS OFF TO YOU.
take care
- senthil

kalyan (Be and Make) said...

Dear Senthil – Thank you,

Be and make

kalyan (Be and Make) said...

Dear Suvendu – Thanks for your nice views. Yes, I agree with your views.

Thanks for recommending the Aksh, I will surely look in to it.

With thanks
Be and make

Ganapathy said...

Hi,

I have been tracking your blog/post for the past couple of years. To be true, whenver I went against your views I was on the loosing side. Great work. Keep posting.

Request: Can you remove the auto-refresh of the pages. Its kind of diffuclt to post the comment and view the page.

Question: How do you see second half of this year (with % of US spending coming down) compared to first half of this year?

Regards
Ganapathy

vishnu said...

Dear Be and Make

I would like to draw your attension to one script, i was tracking for some time.
"Sel manufacturing".I will give a brief you about this stock:
P/E:3.42(very less)
EPS:26.17(Interesting)
NPM:8.9%(ok)
Sector:Textile
And is trading below book value
I will add one more thing:
this was trading near 680 during the peak of the last bull run
then it fell to Rs 37/-Now trading at Rs89/-
So i request you to have a look at this stock and convey your valuable advice

Regards

Vishnu R Nair

vishnu said...

Dear Be and Make

I would like to draw your attension to one script, i was tracking for some time.
"Sel manufacturing".I will give a brief you about this stock:
P/E:3.42(very less)
EPS:26.17(Interesting)
NPM:8.9%(ok)
Sector:Textile
And is trading below book value
I will add one more thing:
this was trading near 680 during the peak of the last bull run
then it fell to Rs 37/-Now trading at Rs89/-
So i request you to have a look at this stock and convey your valuable advice

Regards

Vishnu R Nair

yes said...

no banking stocks here...the banking sector is going to boom soon with so much money required by industries..please look at yes bank,vijaya bank,syndicate bank,idbi bank..they look attractive as of now

QUALITY STOCKS UNDER 5 DOLLARS said...

Interesting material.