How to be a Smart Investor ?

For starters, to be one you might want to try and keep track of the company's products, management, growth prospects, bottom-line, acquisitions, mergers, buy-backs, government policies, regulations, taxes, world/local economy, international demand/supply, world commodities/stock markets, other asset-classes, seasonal factors, calendar events, geo-political factors, currency & interest rate movements, FII/Mutual fund data, technicals/fundamentals, insider news, sentiments, perceptions et al. Easy isn't it? So, what are the canons of successful investing in stock markets? This is a question which many of us ask when faced with a particular market scenario. Not suprisingly, we come accross different answers each time notwithstanding being bombarded with informations and conjectures as soon as we come alive each morning. Don't you think that that day is not far when they'd have invented a technology that enables exchange of SMSs even while sleeping. Curiously enough, if that be the case, you and I will still rush-in to take the prime-mover advantage in the race for more - or some bloke would be smart enough to sell it to us anyways. When we perpetually keep all doors and windows open to the vagaries of the weather, for sure we will enjoy the breeze but can we weather the ominous storm that will suddenly threatens us from time to time? Given the fact that one needs to be invested in the stock markets or any asset class over time, funnelling vital clues into meaningful decisions is more important than shutting yourselves from the data deluge. Differentiating between a breeze and a storm is as important as clocking a profit or loss situation. Else, find an insurance company to possibly cover against the risk of literally loosing your shirt due to an information overload?

PNB (508) at very attractive valuation

Punjab National Bank (PNB) is quoting at around a historically low valuation of around 8. With a risk of 5-7% on this stock it looks good to attain Rs.590-600 in the medium term. Being that it is among the largest banks in India and with strong recoveries - the amounts the company so recovered will directly add to its bottomline.

GTL (248) - Telecom Infrastructure play

GTL with with an almost 97% growth in net profit in the year ended 2007-08 is poised for continued growth with the growth of the mobile telephony sector. It is in the telecom tower space which can piggy back on the telecom growth with a medium term target of Rs.280-300.

Power on with CESC around Rs.474

CESC's a very good bet on the ever-growing demand for power. Clubbed with the prospects of its retail foray flagship 'Spencers' it could see muliple profit streams in the days ahead. A medium term target of Rs.525 - 550 looks imminent.

Focus: Indian Stocks International Plays

Fertilizers & Chemicals : Chambal Fertilisers, Coromandal Fertilisers, Tata Chemicals, Basant Agro. Alternate Energy : Suzlon, XL Telecom & Energy Power Generation: NTPC, CESC, Tata Power Mining : Sesa Goa, Gujarat NRE Coke Metals : Hindustan Zinc, Hindalco, Nalco Energy Equipments : Praj

Sterlite Tech recommended on May 2 at Rs.215 touches Rs.248 on May 8

Sterlite Tech recommended on May 2 at Rs.215 touches Rs.248 on May 8 despite the fact that Sensex has slipped down from 17,600 on May 2 to around 17,000 on May 8. Way to go still.

World's largest insurer AIG's Losses - Should policy holders of Indian Private Life Insurers with MNC partners be worried?

American International Group Inc - the world's largest insurer, posted its largest ever quarterly loss on Thursday - the second consecutive quarter that AIG had posted record losses, hurt by a write-down of derivatives exposed to bad mortgage investments. AIG's first-quarter net loss was $7.81 billion compared with net income of $4.13 billion a year earlier. This brings us to the pertinent question - Should policy holders of Indian Private Life Insurers with MNC partners be worried?

Sterlite Technologies (215)- Market Leader in product & performance

Stupendous performance from Sterlite Technologies (214) with the bottomline up almost up 80% for the year will be a multi-bagger since it is one the leaders in the optical cables market of the world and has also delivered consistent growth.

Bharti (904) will outperform from these levels

Bharti (904) will outperform from these levels because of its relative strength in the otherwise turbulent past months for the market and also because of its fundamental strength. Accumulate aggresively since the low appears to be around 825-850.

Federal Bank (243) and Corporation Bank (340) at attractive valuations

Both are quoting at near all-time low valuations with limited downside and therefore, can be bought and accumulated for handsome gains.

Dena Bank, Indian Bank & PSU Navratnas

Dena Bank (61) and Indian Bank (140) among PSU banks look good for 10%-15% upsurge in the short term. Accumulate PSU Navratnas and MiniRatnas for the medium term for good returns including bonuses etc.