IMPORTANT NOTE FOR TODAY

AS MARKETS HAVE COME DOWN SHARPLY SINCE LAST YEAR, SO THERE ARE A LOTS OF STOCKS AVAILABLE AT THROW AWAY PRICES FROM DIFFERENT SECTORS. A NUMBER OF STOCKS ARE AVAILABLE AT 80% TO 90% DISCOUNT FROM THEIR 52 WEEK HIGH PRICE. FOR EXAMPLE, THERE ARE SO MANY STOCKS AVAILABLE AT A PRICE OF RS.10 TO RS.20 NOW A DAYS WHEREAS THEIR 52 WEEK HIGH PRICE IS AROUND RS.100.

AFTER 3RD QUARTER RESULTS, WE HAVE SEEN THAT A NUMBER OF STOCKS ARE AVAILABLE AT A DISCOUNT OF 80% APPROXIMATELY FROM THEIR 52-WEEK HIGH PRICE INSPITE OF ALMOST SAME TOPLINE (SALES) AND BOTTOMLINE (NET PROFIT) OR EVEN MORE THAN PREVIOUS QUARTER TOO IN SOME STOCKS.SHAREHOLDING PATTERN IS ALMOST SAME OR EVEN PROMOTERS HOLDING IS SAME OR HAVE INCREASED TOO. CURRENT MARKET PRICE IS LESS THAN BOOK VALUE TOO IN MANY STOCKS. EVEN DIVIDEND PAYING STOCKS SINCE 3-5 YEARS ARE ALSO RULING AT THROW AWAY PRICES.

AS INFLATION HAS COME DOWN TO APPROX 5% FROM APPROX 13% HIGH IN LAST YEAR AND CRUDE PRICE IS ALSO AROUND 40$ SINCE 140$ HIGH IN LAST YEAR SO THOSE STOCKS, WHICH ARE AVAILABLE AT THROW AWAY PRICES AND HAVING VERY GOOD FUNDAMENTALS, CAN BE BOUGHT AT CURRENT PRICES. IT SEEMS TO BE RIGHT TIME TO INVEST FOR THOSE, WHO ARE ENTERING FIRST TIME OR HAVING NO HOLDING IN STOCKS NOW A DAYS AND ALSO FOR THOSE WHO HAVE INVESTED AT VERY HIGH PRICES AND NOW AVERAGE THEIR HOLDING BY INVESTING JUST 15% TO 20% OF THEIR PREVIOUS INVESTMENT.