Wockhardt

Let me start with stating that this one is truly for bravehearts. It was once upon a time 3 years back it was quoting around 400+, now it is battered down to 136, a slight recovery from 115 its 52 week low.

So how did this happen? well, they wanted to grow inorganically so acquired some debt and also hedged against rupee when rupee was strengthening. With the big crash in 2008/09, the growth went for a toss and rupee started declining against $$, so they were stuck with double whammy. Hence the precipitous fall  from 500+ to 70 and it is slowly recovering.

For some of the previous quarters it has been posting loss after loss and paying huge interest. Lenders are lining up to liquidate this company.

So, with all this bad, why am I recommending it? Well, the promoter stake is still 74% and they have been divesting its non core business to reduce its debt, still it will probably take couple of quarters to get back into black. By that time it would have gone higher. Also, there are news that some MNC might take it over in that case it would be really good for share holders. The promoters are trying hard to come out in black and being a branded name globally it can surely do a turn around.

I recommend to open a small position in this stock (I did it already at current price of 136Rs.) with a target of 400+ in couple of years if things go well.

So it is truly braveheart stock, tread with your own risk as risk reward in this share is extremely high.

IDFC to bring global partner aboard

IDFC to bring global partner aboard: "IDFC?s executive director Vikram Limaye told ET the firm was looking at a strategic partnership ?to either manage the fund or advise foreign flow of funds into the Indian equity market?. He declined to give details."

IDFC is a very good long term bet. It would give atleast 10 to 20% annually compounded... If it reaches 140 to 150 again it is good to accumulate. I hold it from when it was in 75Rs mark during 2009 fall... keep buying on dips...

Long time no see...

Long time I have not posted anything as part of recommendation or updates on what I am buying/selling...

Well I have sold out my entire stake in Unitech at good profit of 70%, was hoping it would go higher. But with bad results and losses in telecom business it was not looking attractive. I am also keeping Suzlon on watch list to sell and move out.

The companies I feel look attractive buy right now are JP Associates, Punj Lloyd (have patience in this one) and Bharat Forge. I have around 20 to 25% of my portfolio in these cos and am increasing my position in them as and when I get some chance.

Also, I have opened some position in gold stocks, around 5% of my portfolio. I recommend putting a systematic investment plan in gold and keep holding for couple of years, it will give better returns for sure.


Also keep watching for deccan gold, mining policy is due this session and it can shoot up. I had recommended it at 40, it is now at 26. I have good position in the same around 5% of my portfolio. Expect this lambi race ka ghoda to go great guns when it starts mining (another 1 to 2 years out) but before mining it would be already accumulated and would have gone up. It can potentially give 100 to 500% returns in 2 to 3 years time frame.

So happy investing/trading or whatever...