Penny Stocks

In stock market there are stocks which trade for 70k and there are stocks which trade for 70 paise :-)

Welcome to the world of Penny Stocks also very well known as micro cap. These stocks are mostly priced between 1 and 5 Rupees.

So what is the benefits of Penny Stocks ? Its damn cheap, you have thousand rupees with which you can buy thousand shares. If that one rupee stock moves up to 30 or 40 rs. you get 40,000. These calculations sound really sweet, wow 40 thousand, is it possible ? Yes it is possible. The greedy mind in all of us says "Why just buy 1000 shares? Buy more of it ;-) " Yes you could do that but hold that thought right there, what about the important factor known as "Risk". Yes the more the profitability the higher the risk.

Has anyone been profited ? Yes as usual a reference in history; below is the content i read in Wikipedia.

"Sir John Marks Templeton was an investor and mutual fund pioneer.He is noted for buying 100 shares of each company for less than $1 ($16 in current dollar terms) a share in 1939 and making many times the money back in a 4 year period."
- http://en.wikipedia.org/wiki/John_Templeton

Some may say that this is kind of lottery game/ gambling/ ... fill whatever it is. Even in these penny stocks one could do some fundamental analysis and buy those.

Some would like to know some penny stocks that are being traded currently in the market. Check the below link:
http://nse2rich.com/biggest-list-bse-indian-penny-stocks-between-rs-1-and-rs-5-on-24-02-2010/

After all whats the big deal is betting 1000 bucks in ten shares and wait for 5 years ??? I leave that decision to you, its your hard earned money so you know what to do with it.

Biggest Mistake

Do you know what is the biggest mistake that people do in share market ? Buying a share based on a tip
I have often wondered why majority of the people make heavy loss ? these people want to become rich quick, very quick and end up in big loss.
Some ABC person says stock XYZ is going to go up the next day our intelligent ABC buys that XYZ stock. Even i am posting tips in this blog, these tips should not be taken as they are presented, you can do a little analysis on that and then make your bet. No one can predict whats tomorrow and that holds true for stock market too.

Buy Andhra Bank

Buy Andhra Bank at current levels to expect 5 to 10 percent returns in short term.

Long term buyers can wait a little for the market to get corrected and then accumulate.

UCO Bank - Long Term Buy

Uco Bank, formerly United Commercial Bank, established in 1943 in Kolkata, is one of the oldest and major commercial bank of India. Ghanshyam Das Birla, an eminent Indian industrialist, during the Quit India movement of 1942, had conceived the idea of organizing a commercial bank with Indian capital and management, and the United Commercial Bank Limited was incorporated to give shape to that idea. The bank, along with 13 other major commercial banks of India, was nationalized on 19 July 1969 by the Government of India. Its name was changed to UCO Bank, in 1985, by an act of Indian Parliament. As of 2005[update] the bank had 2000 Service Units spread all over India, with two overseas branches in Singapore and Hong Kong.
[Source: wikipedia]

Recent News: Toyota Kirloskar Motors Signs MoU with UCO Bank for Auto Loans

52 week High: 131

52 Week Low: 47

Current price: 117


Target Price: 200+


Buy for Long Term

Coal India IPO Grading

People who would like to subscribe to Coal India IPO which opens tomorrow could check out the below links which gives lot of information on the IPO and the company's fundamentals.

CRISIL Research have given a IPO Grading of 5/5

For more information check the below link:

http://www.crisil.com/research/research-ipo-grading.htm#

Coal India IPO

This is one of the most expected IPO of the year. It’s a Navratna PSU Company headquartered at Kolkata, West Bengal. They are the producers of coking coal and non-coking coal of various grades for different applications. The government is disinvesting 10 per cent of its stake in Coal India (CIL), the world's largest coal miner, through the IPO. The IPO issue opens on 18th October,2010 and ends on 21st October,2010.
For the year ended March 31, 2010, the company has reported net profit of Rs 9,622.45 crore on total income of Rs 52,592.29 crore.

I heard from lot of people that there could be a market crash because of this IPO, people are selling out their existing stocks and accumulating cash in order to subscribe for this IPO. If you really ask me I would not recommend this strategy, I am not saying the company is not worth it but what I am trying to say is will this stock return the expectations of the investors is a big question. There is always a 52 week high and 52 week low for any stock. Show me one stock which has never fallen down. Patience pays a lot and that’s, my view on this stock. Recently lot of investors are attracted to IPO’s , if you are a big player this IPO is a definite yes, if you are a short term investor then be patient. I have seen lot of IPO’s gone up like a rocket and then went down like titanic ship.

Scared to start?

Let’s assume that we have all the skills that are required for investing in share market but what if we are wrong? What is something goes wrong? What if the stock I buy goes down? What if, what if, lots and loads of what if’s arises in our minds. The fear is reasonable because it’s your hard earned money you can’t afford to risk it, so what shall we do? There are certain ways in which you can double check whether you have got all the skills that you need to have in order to be a successful investor, trader in the stock market. So how do we do it?
There are websites like moneycontrol.com, money.rediff which helps you to mange your portfolio (portfolio is nothing but the stocks that you have invested in). All you need to do is signup for free, assume that you have $$$ cash and buy some XYZ company on a specified date. Monitor how the stock that you have bought performs in next few days. Make a note of the date on which you bought the stock and the price, sell the stock at a price that is rewarding to you. Calculate the profit; don’t forget to send me the share :-).
Though the entire process is virtual, it helps to assess your capability, knowledge in stock market and tells you whether the equity you have picked is of value or not.
Theses websites even send you the status of your portfolio to your email id.

So what else do you need? Start learning by playing.

Do you know?

Have you heard about a stock which is trading at 50,000 levels? One stock valued at 50,000 Rupees? Yes it’s true. The first company that I am going to introduce you to is MMTC (Minerals and Metals Corporation); the BSE scrip code is 513377. This company is the foremost player in Trading in Asia. The company evolved based on the bifurcation from STC (State Trading Corporation of India). The company’s business area involves minerals, precious metals, fertilizers, agro products and many more. I don’t have exact date when this stock came into existence in BSE/NSE but with the data I have in 1999 the opening price of the stock was 10 rupees. In the year 2007 the price of the stock went up to an all time high of 56000. Right now recently the stock’s face value has changed from 10 to 1. The stock is currently trading at 1300 levels.

The second company that I am going to introduce you to is OMDC (Orissa Minerals Development Company), the BSE scrip code is 590086. This company was listed in BSE only in August, 2010 before that it was being traded in CSE (Calcutta Stock Exchange). The open price was around 20,000 and currently it’s trading at 50,000 levels.
The most surprising factor is that both are PSU (Public Sector Unit) stocks and the price at which it is trading is unbelievable. But its true that people are trading stocks like these too. If one masters the art of identifying hidden values in stocks like these ;-) guess what we would be millionaires.

I don't know how many more hidden treasures are out there in the heap of stocks, but one thing is for sure, one day i am going to hold one of those treasures in my hand ;-)

Looking for a Reference

I have met several people or to be more precise i have heard about many people who trade/invest/speculate in Stock Market don't have proper basics about what they are actually dealing, that includes me :-) i am still learning. The reason that many people often say for not (knot) getting exposed or acquainted to these kinds of financial terms is time. Money is hard earned so it requires some time as investment. You might have heard about terms like "Insider Trading", "Circular Trading", "IPO", "Dividend", etc you might be wondering - "Blistering Bernacles what are these stuff ??? ". Though these terms are very basic and look like child's language to some many do not have clear idea about these terms. For those who want to start learning you can refer the below mentioned site which is a dictionary or online encyclopedia for beginners/learners/experts whatever you are, but just peep in once, explore it and you will find more than what i say.

http://www.investopedia.com/

BrandHouse Retail

The stock was listed in 2009 March 27th, the opening price was at 99 but unfortunately went down very low on the same day at 17.50 and closed at 19.15. In April 2010 the stock again reached 59.40 and again slowly the stock fell back around 40-30 levels. The stock has strong support at 30 levels and currently the stock is trading at 37.65.

The Net profit for the year 2008-2009 was around 13 crores and has shown increase, net profit for the year 2009-2010 was around 16 crores. The company's reserves also have increased.

The company has 784 stores as of December 2009, In February, the company floated JV with Italy`s high-street brand Oviesse to set up 190 centres in next 5 years across metro, Tier 1.

Based on the above information and other financial data the stock looks attractive at current prices.

Current Price : 37.65
Target Price: 50