STOCK INVENTOR: 8/1/07

Monday, August 27, 2007

INVESTMENT IDEA S-Peter Lynch

Peter Lynch investment philosophy for selecting a company

Invest in What You Know (The return expectations are derived from the company’s "story")

Bottom-up approach (prospective stocks must be picked one-by-one and then thoroughly investigated)

Examine the company’s plans (how does it intend to increase its earnings, and how are those intentions actually being fulfilled)

Peter Lynch on companies to avoid

Hot stocks in hot industries.

Companies (particularly small firms) with big plans that have not yet been proven.
Profitable companies engaged in diversifying acquisitions. Lynch terms these "diworseifications."

Companies in which one customer accounts for 25% to 50% of their sales

Rakesh Jhunjhunwala

Rakesh Jhunjhunwala

Investment is not number crunching (it’s not only about the numbers it’s a variety of factors including economic conditions).

The markets teach you to be down to earth (learn from your mistakes and try not to make them again).

Investment requires all senses and Common sense (investors must learn to recognize political, psychological and economic change and make common sense decisions based on that information).

Invest in good scalable businesses / companies (invest in companies with large growth potential)

Leverage to the hilt when tailwinds are favorable (a rising tide floats all boats)

Warren Buffett’s criteria for investing or buying a business:

Warren Buffett’s criteria for investing or buying a business:
(1) Large purchases (at least $75 million of pre-tax earnings unless the business will fit into one of our existing units

(2) Demonstrated consistent earning power (proforma or future projections are of no interest to us, nor are “turnaround” situations

(3) Businesses earning good returns on equity while employing little or no debt

(4) Management in place (we don’t want to supply it)

(5) Simple businesses (if there’s lots of technology, we won’t understand it and therefore won’t invest

6) An offering price (we don’t want to waste our time or that of the seller by talking, even preliminarily, about a transaction when price is unknown).

Sunday, August 19, 2007

Autoline Industries - BUY

THIS company is going to post 45rs e.p.s for this year2008

reasons to buy
the Company has executed an agreement with the promoters of Detroit Engineered Products INC. USA to acquire 51% stake in the Company as strategic investor.

managment coments

http://indiaearnings.moneycontrol.com/sub_india/compnews.php?autono=293397

Stocks with Bearish Engulfing Patterns.

Stocks with Bearish Engulfing Patterns.
The following stocks have been trending upward in the short and intermediate terms and have formed a bearish engulfing pattern. The probability of a downward reversal in prices has increased.
Security Name
Close
ADANI ENTERPRISE
327.40
DECCAN CHRONICLE HOLDING
225.20
HITACHI HOME
129.85
INGERSOLL RAND
332.15
JK CEMENT
156.45
PAREKH ALUMINEX
203.95
PRAKASH INDS
72.75
TRICOM (I)
124.60
ZEE NEWS
61.40

Stocks with Bullish Engulfing Patterns.

Stocks with Bullish Engulfing Patterns.
The following stocks have been trending downward in the short and intermediate terms and have formed a bullish engulfing pattern. The probability of an upward reversal in prices has increased.
Security Name
Close
AUTOLINE INDS
200.15
COROMANDEL FERT
83.95
NAHAR EXPORTS
22.05
VISU INTERNATIONAL
14.10