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February 10, 2008

i m impressed by the mail

Dear Friends
We are seeing now a days a lot of cries going on regarding US recession and global meltdown, and our markets dipping daily, giving sleepless nights to traders and investors. Please give some heed to my words,
(a) The main thing of this fall is only due to heavy selling of FII s( Everybody know about it, I know) But what people don't want to think is the same FII's were the heavy buyers during the last few months. We should understand that now the interest rates of US has come down at very attractive levels to this FII's and they dont want to invest @ higher levels so they want emerging markets to come down to invest again(Globaly especially in Asia).
(b) I happened to read a friend's comment regarding that one should not invest now and markets will come down to 10000 levels soon, we can only assume it a fantasy of him and if you wait for that time you will not enter market in your life time.
(c) If market dips that much levels the main looser will be FII's & FII's only because they are the main investor in this market. So understand they are waiting for Mutual Funds to sell their holdings to fulfill their redemption pressures.
(d) So they can invest @ an attractive levels. Now the condition has started(MF Selling).
(e) Please use this opportunity to grab some good fundamentally strong scrips mainly from mid caps & small caps(not penny stocks) for your future and to your children's future. ( I reccommend mid caps & small caps because they can only make small investors like us wealthy)(f) Don't go for unknown scrips tom jerry pumpum stocks. Don't go for scrips with stories with Real Estate / land holdings etc. (As you all know most of the land deals in India is 30% with white & 70%with black and promoters will raise their percentage of holdings by issuing convertible warrants before any Land dealings & dilute the equity)
(e) Invest only in 8 to 12 scrips and concentrate your holdings. ( IF you want to add more above 12 it is better to look for any diversified Mutual fund like HDFC equity , Sundaram select midcap, or anything else )
(f) Dont wait for suitable opportunity, it is the time you are waiting for and nobody announce you to invest when market dips.
(g) Whenever market goes up a lot of fellows will come to tell us that next tgt for Sensex is 25000, 26000, and whenever dips some group will come and tell us the next tgt is 15000, 13000 even 10000.
(h) So Dear Friends, Dont wait for please start investing, whoever struck up with pumpum stocks can exit and invest in good fundamentally strong stocks. I can reccomend some stocks with good reason for investment.
1. Petronet LNG @75 Levels -P/E of just 12 and they are going to double their business by this July and LNG demand in India growing tremendously this profit making subsidary of 4 PSU oil Majors will reap you better returns.
2.Praj Industries @160 Levels- Government policy for blending of ethonal upto 10% in Petrol will give boost to this Ethonal technology company being a provider of Ethonal Plants( It will get most of the orders from Indian Sugar industries & it has already set up its presence globally).
3. Varun Shipping @ 75 Levels - If you are a investor you must add Varun Shipping with your portfolio. This company with P/E ratio of just 5 or 6 is continously giving Divident to its share holders and growing enourmously with strong demand for LPG growing 20% anually in India.
4. JK Laksmi Cement @ 130 Levels- with their net profit for this financial year @270 crores this company's market cap is only 750 crore giving its P/E below 3 and they are going to add new production activity shortly which will create enormous wealth if we enter right now.
5. Tata Chemicals @ 290 Levels - Please add it on your portfolio now and on all dips and see the difference.
Friends If you doubt me please make a mock portfolio of this scrips and see next year and aftr 2 years and aftr 3 years and 5 years.

Ragards

criticchennai

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