Tuesday, August 3, 2010

Fabulous-15 Tracker

FABULOUS-15 is up 5.21% (annualized) and results season is almost over. This result season has been bad for India Inc as we had seen a dip in Net Profits of 11% while Net Sales have grown by 20% (for 1656 companies announcing results so far). BSE500 trades above 21 P/E multiple and our market is overvalued more than its emerging peers. India PMI has rose to 57.6 in July from 57.3 in June and this is a positive data. But all good news looks discounted in markets so we would keep our cash position strong. Nifty as long as trades above 5350 the trend is up and higher targets near 5530 and 5650 are not ruled out if Nifty can sustain its support level.

FABULOUS-15 TRACKER (Prices in Rs)
Stock Name
Reco Price
CMP
Target
% Weight
% Returns
Action
3IINFOTECH
87
63
118
2
-28
Hold
ADHUNIK MET
110
112
152
2
2
Hold
EKC
156
121
189
2
-22
Hold
EMCO
91
67
130
2
-26
Hold
GLENMARK
278
270
350
2
-3
Hold
GSPL
98
108
125
2
10
Hold
GUJ NRE COKE
72
62
110
2
-14
Hold
MRPL
78
77
100
2
-1
Hold
NEYVELILIG
152
157
196
2
3
Hold
POWERGRID
109
100
141
2
-8
Hold
SUZLON
75
57
140
4
-23
Hold
JUBILANT
325
349
450
2
7
Hold
FSL
30
25
38
2
-17
Hold
IFCI
54
62
75
2
15
BP
GIC HOUSING
88
122
150
2
39
BP
GREAVES COT
286
338
352
2
18
BP
SKUMAR
41
49
70
2
20
BP
ABG SHIP
210
270
270
2
29
BP
Total



28
-0.46

Add:

Interest @ 6% for 7 months
3.50
Total % Returns
3.04
Annualized Returns %
5.21


  • This is just a model portfolio.
  • Be just 28% invested and don't do averaging for the sake of that.
  • Do not 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 28% so that in case of market rally we don't miss the opportunities.


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