Update - 28 Oct 2007

Friends,

Hope you are enjoying the party.
Our stocks are doing very well.

Returns Update


















General Update
FII Money outflow should happen before 15 Dec and hence markets will take a dip. ISPAT is coming out with last Quarter results on 30th Oct. There will be a parliament session on the nuke deal, sometime soon. It is hotter than expected in Delhi. Powergrid still a BUY level, target above INR 200 levels in 2008. Lots of other stuff going on as well, still trying to catch my breath with the pace with which the Corporate India has changed/is changing.

Recommendation
Book some profits in Mercator Lines at these levels 118 range. Selling about 45% of your holding in MLL will get all your investment amount back.

More later (this is being sent out in a haste).

Cheers
Tarun

India - Here I come!

Friends,

Finally it is time for me to visit India. I arrive on 20 Oct 2007 for 3 weeks.

Over these I would like to do a long train journey, walk in the hills, have Indian delicacies, make my 5% profit work for someone, visit Bangalore, do the Konkan railway trip from Belgaum to Mangalore, shop in Delhi, meet friends, eat out at a dhaba, read at least 20 business magazines and an endless list of other things to do. :)

I have been waiting to come back to India for a year now and hope that this will be a happy visit.

Cheers
Tarun

It's a BLOODBATH out there - 18 Oct 2007

Friends,

This is an insane way to return to sanity (SENSEX down 937 points in one day).

It's almost a bloodbath out there, the way the markets are behaving. These are very difficult times and where we are expected to watch from the shore since most of our stocks are doing very well (except Fortis).

I hope you did not get too greedy and not sell 25% of your portfolio on my previous recommendation. If you did not then you have yourself to blame for. If you did then you are sitting pretty on a few thousands in profit.

Strategy Ahead
Wait and watch tomorrow. If the markets are in RED then invest at least 10,000 each in Principal Personal Tax Saver and ICICI Pru Infrastructure (G) mutual funds before 1330 Hrs (place this order online).

This will keep you away from the volatility of the markets and yet allow you to enter MF portfolio that has been performing very well. The Tax Saver will have a lock-in of 3 years and will easily return you a 300% return in that time.

Although some of you came back saying that the 5% profit sharing was a good idea, no one came back with details if any one did book profits/did anything with the 5% profits.

Finally, I have added Powergrid to the Return Check List@ 98 (first day closing price) and am happy to note that some of you did pick it up on that day.

Returns Update
















Happy Dusshera.

Cheers
Tarun

Important Update - 11 Oct 2007

Friends,

These are times to keep away from the volatile markets. There is just too much happening on Dalal Street. I am quite worried with this fizzy bubble building up and am sure that this will burst soon (hopefully between late October and mid November).

What this basically means is that this is not the time for investing big time, although certain carefully measured investments can still be made.

This is my strategy until mid November.

1. Reduce your portfolio by 25% (sell 25% of your portfolio).

2. Keep the cash for a while and invest this 25% into Power Grid if it goes above 120 levels or falls below 100 levels.

3. It seems that the money parked in FORTIS is proving to be dormant to me as I also look at short-term opportunities. "FORTIS is still a good stock for 2-3 yrs horizon". I will reduce my holdings in FORTIS and move that money to Power Grid for the short/long term.

4. Another stock that I have recently bought but not advised anyone of buying is 'Supreme Petrochemicals' as it is a HIGH RISK HIGH RETURN stock, not many big players are looking at it and the stock is a good fundamental story.

The Quarterly earnings are about to kick in. Infosys has already taken the IT stocks down. The new 22 Oct date for discussions on the nuke deal between the left and UPA is like a hanging dagger. Retail is facing stiff resistance in various states. Indian team fell like a pack of cards today. The input cost for businesses in India is going up. More and more people are moving up the ladder and demanding more salaries while the exports are getting cheaper owing to the appreciating rupee, which is expected to continue strengthening in the future.

All that is required is that for us to be ambitious, to rise higher, probably another course/MBA/business, etc.

Anyway that does not mean that there aren't positive things happening. There are a lot of opportunities around. One good article that I recently read and would suggest reading is http://www.businessweek.com/magazine/content/07_12/b4026001.htm

Returns Update

Happy festive season ahead.

Cheers
Tarun

Important - Returns Update/Sell Trigger - 01 Oct 2007

Friends,

Here comes the awaited update and an important one.

Returns Update
I can now demand the 5% as my share :)

ISPAT has crossed 100% return.
Can you believe it that you just made a 100% return in under 7 weeks?



Sell Advise
I would recommend selling 40% of your ISPAT holdings at this level. So if the current value of your ISPAT holdings is INR 20,000 then go ahead and sell shares worth INR 8,000.

There is a quite a lot of activity going on in the country like the fate of the nuke deal, real estate companies running for Telecom licenses, retail ventures on the flourish, UP/Bengal revolting against reliance, Google looking at a JV with Reliance's Flag telecom, ADAG companies going full throttle, cement sector looking up, dollar remaining sub 40 levels, IT manufacturing on the up, politicians playing the religion card (ram sethu)
, cricket playing it's own role, festive season already here, marriages season on the anvil and everything else.

Well in short, time to keep your sense sensitive and open your mind to the world of managing your money and possibly making a difference to someone's lives this year.

Cheers,
Tarun

P.S - Do write back to let me know if you have booked profit and have kept my 5% aside.