Tuesday, January 3, 2012

2012 - What would be My Picks

1.  When you do an analysis and put it on a public space such as this blog, there is always a fear of being caught on the wrong foot.  Graham had written in his book about two traits that an investor must have - Timing and Pricing. I am poor at the former..... The latter ... I am still finding out.


2.  Stocks I will be tracking this year with reasons. I have aimed to limit my area of coverage to 20 stocks and I am listing the few stocks I believe are available at compelling valuations with reasons. Detailed analysis will follow in the subsequent posts.


3.   Smartlink Network.  The stock is available at 48. I had recommended this stock earlier (sometime in October and later in November  ) at Rs 38 . The reasons are as follows:-


      (a)   The company even after paying a dividend of Rs 32 last year is  
       sitting on approximately 300 crores cash ( 3 cr shares - 100 Rs / share).


      (b)    The promoters are buying aggressively from the secondary market     
       inspite of having a stake in excess of 67 %. That for me is a very   
        positive        point


       (c)   They have the experience of  manufacturing more than 8 million
      motherboards units at their  Goa facility which  is being upgraded to  
      undertake the manufacturing of IT products which will also be capable of 
      doing OEM/ODM manufacturing.


      (d)   The promoters have been relatively clean, forward looking and    
       successful in their ventures.


So in all, this company is trading below its real value. In addition, the other businesses like Digilite motherboards, Digisol(which they claim is now 2 in its area of expertise in the Indian market) is valued at Nil by the Market. This is a " Period of Sale"  ..... " Invest 38... Get 100 ". 

No comments: