Fabulous-15 has closed negative with 1.11% loss and our markets are shivering as every day new information hits about Europe problems. This list was prepared keeping bear market situation in mind and so far losses have been minimal. But going ahead they may rise as valuations take a dip given global impact. This list is for an investor with 2-3 year perspective and we already hold a view that 2010 would be a year of negative where Sensex may reach below 13000 levels so we are just 30% invested and averaging is so far avoided to negate further trap. Cash is King in such market as pain is here to stay and traders would find this market as a nightmare. SUZLON has remained top underperformer with nearly 30% erosion while EKC is 2ndbut now has started recovering slowly and the cash we maintain can be used later to average such underperformers. In a bear market Rs 100 stock becomes Rs 50 and after that too it can become Rs 25 and after that bull market follows which makes the same stock Rs 50 and then Rs 100, after that it can become Rs 200 also in 2-3 year time so mantra for investors is “No Pain, No Gain!”
| FABULOUS-15 TRACKER (Prices in Rs) | |||||
| Stock Name | Reco Price | CMP | Target | % Returns | Action |
| 3IINFOTECH | 87 | 72 | 118 | -17 | Hold |
| ADHUNIK MET | 110 | 111 | 152 | 1 | Hold |
| EKC | 156 | 135 | 189 | -13 | Hold |
| EMCO | 91 | 84 | 130 | -8 | Hold |
| GIC HOUSING | 92 | 96 | 150 | 4 | Hold |
| GLENMARK | 278 | 277 | 350 | 0 | Hold |
| GSPL | 98 | 90 | 125 | -8 | Hold |
| GUJ NRE COKE | 72 | 73 | 110 | 1 | Hold |
| IFCI | 54 | 51 | 75 | -6 | Hold |
| MRPL | 78 | 71 | 100 | -9 | Hold |
| NEYVELILIG | 152 | 148 | 196 | -3 | Hold |
| POWERGRID | 109 | 106 | 141 | -3 | Hold |
| SUZLON | 91 | 65 | 140 | -29 | Hold |
| JUBILANT | 325 | 346 | 450 | 6 | Hold |
| FSL | 30 | 29 | 38 | -3 | Hold |
| GREAVES COT | 286 | 338 | 352 | 18 | BP |
| SKUMAR | 41 | 49 | 70 | 20 | BP |
| ABG SHIP | 210 | 270 | 270 | 29 | BP |
| Total Returns (%) | | | | -1.11 | |
*Be just 30% invested and don't do averaging for the sake of that.
*Don't average if 30% dip is not seen after your purchase, averaging should be considered time-wise also. At least 2-3 months must pass before you buy again in a dip.
*As we hold a view that Sensex below 13000 in 2010 can be possible so avoid aggressively and leveraged positions. This market is a bear market which can cut both ways, it is always difficult to mint money in such market and it is better to be an investor and accumulate. Being correct in market is difficult so we have invested 30% so that in case of market rally we don’t miss the opportunities.
