Stocks 20141217

I sold 30% of remaining stocks of NATCO pharma.

The proceeds went to buy following

SEAMEC - looks attractively priced after the deep correction from 140 level to 103. All vessels are deployed so expect a bumper quarter from them. It will shoot up and reach 160+ easily after next quarter result.

SELAN - the woes of falling crude oil price is having its impact on Selan. I feel oil might correct and reach upper 40s, Selan would reach 275 or so. This would be attractively priced and as crude settles around 60, it would give good profits.

Persistent - Next year in May it will complete its 25th anniversary. Company is debt free and making good profits. Expect good dividend/bonus or split.

Force - Expecting the revenues to quadruple in 5 years, price will catch up during that time. Expect it to emulate Eicher Motors and be next multi bagger.

Selan & Seamac

Booked some more partial profit in NATCO. Now all my remaining NATCO shares are grand fathered (AKA free of cost to me so going to hold for very very long term barring some emergency.

The proceed from that is now going to buy some more stocks of Selan Exploration and Seamec.

Selan Exploration

With crude reaching 65$ and OPEC not cutting down on the output, see the crude to stumble more. May be lower 50$/barrel.

Considering this Selan too is falling it has reached 371Rs as of posting now.

Last quarter their profit was 9.57 crore with EPS of 5.84 (data from moneycontrol.com).

With new wells going into production, inspite of the drop in crude, profit could remain the same or marginally better. It is quoting at P/E of 14 against industry PE of 12 (data from moneycontrol.com). There might still be correction of 25 to 50 rupees to make it in line with industry PE.

I think we are seeing bottom of Selan and recommend buying it around 350 or so. If you are having this shares, my advise is to hold on to it. Any increase in crude will ensure that price of Selan too will jump up.

Stocks 20141126

Sorry for posting this late.

I booked partial profits in NATCO pharma and bought the following

50% proceeds went to Persistent Systems
50% proceeds went to Tata Coffee

Both of these stocks can give 20 to 30% returns in couple of months.

Another stock Selan Exploration is reaching sub 400 levels. It can potentially reach 375. If it does it would be a sure shot buy. I might sell my Central Bank Shares and move to Selan. Over 2 to 3 years horizon, it can be potential multi bagger. Central Bank can never be such multi bagger as it is safe stock.

20141119 - Stocks Shuffling

Sold my complete holding in following companies

BHEL
EClerx Services
Unitech

The proceeds went to buy

Wockhartd

you might be surprised as I already have 15% of my portfolio allocated to wockhartd at half the current price. Wockhartd is working hard to get the USFDA approval. With all negatives factored in the price of wockhartd is pretty steady in 800 - 850 region. It is waiting for the USFDA nod after which it will fly of the shelf. Hope to see this trigger sooner rather than later. But don't expect it to be in 2014.

BHEL partial profit booked

BHEL gave another set of bad number. I booked partial profit in it. Sold 75% of my holding in BHEL.

Moved the proceed of the sale to

Central Bank - 25%
Unitech - 50%
Eclerx Services - 25%

Meanwhile Seamec gave its numbers today. Numbers look bad. From profit of 24 cr last quarter a loss of 10 crore this quarter. Only saving grace is there is little dry dock this quarter and YoY loss came down from 64 cr to 10 cr. I expect some correction in the share. Hope to pickup some more if price goes down.

Stocks Reshuffling... 31-Oct-2014

50% holding in BHEL is liquidated

Proceeds from the sale went to

Eclerx Services -25%
IFCI - 20%
Central Bank - 20%
Force Motors - 10%
Persistent system - 25%

out of this bunch, Eclerx and Persistent look attractive.

Bought Following Shares

Bought the following share after booking partial profit in HPCL.

1. Coral Labs (Debt free company with pretty low pe).
2. Ybrant Digital (High risk stock, not recommended for buying)
3. Albert David (Another debt free pharma company wit low pe)
4. Persistent System (Good IT company bought for long term perspective)
5. EClerx services (Good IT company bought from long term perspective)

Keep holding your Wockhartd, Force, Seamac and Deccan gold. The last one can surprise this month. Keep holding.

Force Motors and SeaMac

I bought some stocks of Force Motors and SeaMac today.

SeaMac is in cyclic upturn. Currently quoting at 136. For last two quarters it has given EPS of 7. Industry PE is around 21. Assuming same EPS per quarter, we are looking at 28 annual EPS. With PE of 20, it could easily reach 400+ if not 540 based on simple math. All its vessels are booked for next two years. So, chances of getting EPS of 28 this year looks very high.

Force motors is in auto sector, Earlier known as Bajaj Tempo. Stock price 734. Quaterly EPS 14. Last quarter was 34. Assuming average of 20 quarterly EPS, annual EPS would be 80. PE at current price is 12. Industry PE is 259 (which is way high for my comfort). Conservative PE of 20 to 30 is good for auto sectory. Assuming the same Force can scale 1600 (PE of 20), 2400 (PE of 30).

Keep an eye on NATCO pharma. I have good amount of it and might add more on decline if any.