Top 10 Midcap Value Picks

We are always on the lookout for good companies with a strong growth track record and potential and whose shares are available at attractive valuations. The best case scenario is to find mid-caps which are trading at low valuations or in single-digit price to earnings (PE) multiples on the basis of their trailing one-year earnings. Low valuations mean that the downside is protected while leaving huge scope for appreciation in the stock prices. The factors to look out in finding such good companies are the dividend track record, cash flow from operations, return ratios, management track record and the future prospects.

Educomp Solutions: Learn & Earn!

Educomp reported robust performance recording 37.2% yoy growth in Top-line and a robust 92.3% yoy increase in Bottom-line with EBIDTA Margins expanding by 580bp to 52.4% in 3QFY2010. Strong government backing pertaining to higher budgetary spends to spur growth of the Education and Training Sector across the globe, and particularly in India, is a key positive for companies in this space like Educomp, which has been growing aggressively through its strong execution capabilities. Educomp can be expected to thrive on the upcoming opportunities in Education space and continue to witness strong growth trajectory backed by ongoing investments for newer initiatives with focus on product and content innovation.

Don’t be your own worst enemy!

You gave into your instincts at the market downturn and sold off your shares – what does that teach you? That a knee-jerk reaction to a market collapse is never the solution. Never again should you give into the urge to pull money out of the stock market and put in low-risk investments. Remember low risk means low yield. Instead you can balance the risk of equities by having a balanced portfolio.

Reliance Industries vs. Reliance Natural Resources saga

The judgement of the Bombay High Court on 15th June in the Anil Ambani’s Reliance Natural Resources (RNRL) dispute against elder brother Mukesh Ambani’s Reliance Industries (RIL) brings to an end the second round of the high-stakes legal battle over a gas supply and pricing agreement.

The stock picker who got it wrong!

Ramesh Damani deserves to be applauded. He is a man of scruples. His conscience is in the right place. And he is not afraid of saying “Sorry, I got it wrong this time.” The same cannot be said for all the other dooms day sayers like Shankar Sharma and Devina Mehra who, like Damani, had also predicted a dire future for the market.

LIC Hsg Finance stock = HDFC Jr

LIC Housing Finance Ltd is one of the largest housing finance companies in India having one of the widest networks of 130 marketing offices across the country and representative offices in Dubai & Kuwait. It was promoted by Life Insurance Corporation in 1989 and a public issue was made in 1994. The main objective of the Company is providing long term finance to individuals for purchase / construction / repair and renovation of new / existing flats / houses.

Don’t let your emotions be your enemy.

“Don’t let your emotions be your enemy. Be disciplined! Start investing in the market. Put in a little bit each month.”

This wonderful bit of simple but profound advice comes from Steve Forbes, the Editor in Chief of Forbes magazine. In a chat interview reproduced by Moneycontrol.com, Forbes had a number of impressive things to say about India.

History on the Stock Exchanges!!

History was made on the stock markets on Monday, the 18th May 2009. Immediately on opening, the Sensex surged 1,305 points and touched 13,479. This triggered the circuit breaker and trading was halted till 11.55a.m. Trading was resumed at 11:55 am after the 2 hour break but a further jump and the breaching of the 20% circuit breaker meant that trading was haled for the day. In all, the sensex gained 2099 points and touched 14,479.

Our Top picks for 2009 – Opto Circuits

In the Hospital and Medical Services sector, Opto Circuits (India) Ltd. is the preferred bet. Historic Prices of Opto Circuits Opto Circuits is a leading manufacturer of healthcare equipments in India. The product profile includes digital thermometers, sensors, probes, pulse oximeters, patient monitoring systems, Stents and Catheters. Other innovative products are in the pipeline.

Cairn India – Power Play for Crude Oil

In the Oil & Gas Sector, we am betting on Cairn in preference to the other players such as ONGC, Aban Offshore and GAIL.

The fortunes of Cairn are directly related to the fortunes of crude oil and in the recent past crude has taken quite a beating. From a high of $145.29 a barrel in July 2008, crude plumetted to a low of $33.87 a barrel in December 2008. Since that low, it is up 37%.