Thursday, February 19, 2009

stock market strategy

The criteria for selecting these stocks to accumulate (aimed at long term investers) in the coming months are:-

The value of the stocks has come down to a large extent in the last one year.
The intrinsic value of the company hasn't come down much but is affected by the economy.
The company has sound capital and wont shut down under any circumstances.

With this criteria the stocks that are my favorite are:-

  • Tata Steel :- Comes from the group of tatas, and the entire steel industry is affected by the slowdown of the economy. The price has come down from 1000 last year to 170 now. Probably the best time to accumulate.
  • LNT :- The value of this stock has come down drastically from over 3000 to just above 600 now. The fundamentals of the stock are very good.
  • Arvind Mills :- One from the textile industy which has been affected greatly by the current situation.
  • RNRL :- Probably this shouldnt have been included in this list, since it hasnt started its operations yet but this stock comes from reliance so is bound to give you good returns soon.
Always remember the golden rule. Be greedy when everyone is selfish and be selfish when everyone is greedy. Thats the reason why you see stocks from real estate, steel and textile industries listed when almost everyone is running away from it now.

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