Golden rules and sayings .

1. "The  rule no 1 is not to lose money and the rule no 2 is not to forget rule no 1." 
                                                                                              - Warren Buffet.

MULTIBAGGER STOCKS TO BUY IN 2011

Depending upon the financial health of the company & after doing in depth analysis i have selected several stocks which can zoom ur money in 2011 and years to come. All these stocks are for long term investors only.
1. ALLIED DIGITAL SERVICES ( CMP 185 )
2. TRANSFORMERS AND RECTIFIERS INDIA LIMITED ( CMP 362 )
3. LINC PEN & PLASTICS LTD ( CMP 82 )
4. MIC ELECTRONICS ( CMP 34)
5. GUJARAT STATE PETRONET LTD ( CMP 119)
6. BS TRANSCOMM LTD ( CMP 146 )
7. ADF FOODS LTD ( CMP 66)
8. BIOCON ( CMP 418 )


ALLIED DIGITAL SERVICES ( CMP 185 )

Market cap of 864 cr, Equity share capital 23.24 cr, Cash and Bank balance 30 cr, PE 7.3, P/BV 1.36, BV/SHARE 136.6, FV 5, Indusry PE 28, OPM 26.4%, NPM 20.4%, GPM 25%, ROE 15.21, DEBT/EQUITY RATIO 0.10, No long term Debt, Current ratio 9,  Quick ratio 8.76, RONW 15%,  Sales increased in 2006-07 by 76%,2007-08 by 90%,2008-09 by 44%,2009-10 by 21%. profit increased in 2006-07 by 90%,2007-08 by 89.96%,2008-09 by 82.62%,2009-10 by 21.50%.Promoters  holding about 43.4% shares consistently. FII holding 24.6%.

 ADSL has also received the prestigious CRN Excellence award as Best Managed
 Services Provider (2009). Forbes also felicitated the Company with an
 award for being among Best under a Billion Dollar Companies in 2008
 The last fiscal year ADSL had  two successful acquisitions, with the acquisition 

of En Pointe Global  Services, LLC (EPGS) and Bangalore based Digicomp Complete

 Solutions Limited.(Digicomp). EPGS as a pure services Company has given a

 great direct access into the US market. EPGS offers Remote
 Infrastructure Managements Services (RIMS) to large enterprise clients
 in USA which is delivered from our Global Command Centre in India.
 the company has recently conducted massive infrastructure expansion with a

state of the art Repairs centre in Bangalore rated as the Best of its

 kind in India. Digicomp has been rated as the leader in mother board
 and PCBA repairs and has currently acquired contracts with several top
 companies including the Global # 1 and #2 notebook manufacturing
 companies and among the top American PC brands in India. Digicomp also
 conducts large scale IT Asset Recovery management working with almost
 every single PC brand in India.

Hence after analyzing the financials  and credentials this company is all set 

to go miles.TARGET more than 300 in one year.

FIVE ETERNAL RULES OF INVESTING

Five Eternal Rules

Five things that you must remember while investing in 2011

I will write about five things that you must remember while investing in 2011, but in keeping with the spirit of the times. Everything I tell you was just as relevant in 2010 or 2009, and will be just as relevant in 2012 and beyond. So here goes.

1. Don’t try to time the market. There’s something irresistibly obvious about the idea of trying to time the movement of stocks. After all, isn’t the old adage, ‘buy low, sell high’? This must be the most misunderstood advice that investors receive. It seemingly implies — in fact, it practically requires — investors to try and anticipate the highs and lows, and time their investments accordingly. It would be better if this was changed to ‘buy continuously, sell whenever you actually need the money’. In an economy that is generally trending upwards but which has volatile markets, this offers the best combination of high returns with low effort.

2. Figure out whether you are a trader or an investor, and stick to it. Investors and traders superficially appear to be the same thing, but the purpose and method is different. Investors put away their savings in investments, and look upon this as a way of getting something extra from their savings. Traders, on the other hand, are people who trade in investments. They expect investments to be their actual income. Investors are likely to salt away the money and use it only when they need it, but traders buy and sell based on their expectation of how the markets are doing. But as the equity markets do better, more and more investors try their hand at trading, convinced that this activity is just a variation of what they do anyway. It isn’t, and they discover it the hard way.

3. Don’t chase past performance. The worst way to invest is to mechanically choose the investment that has been doing well in the immediate past without understanding the reasons. There is a saying that every complex problem in the world has a solution that is simple, easy to understand, and wrong. Doing ‘investment research’ by extrapolating the past into the future is an example of such a solution. Sure, there are many trends that will continue into the future, but many others won’t. Unfortunately, it is tempting to assume otherwise. In fact, given reversion to the mean, investments that have done better than their peers in the recent past are more likely to do worse in the immediate future. Investors ignore this at their own peril.

4. Have overall financial goals that your investments will serve. It is difficult to figure out which way to turn unless you know what your final destination is. A goal is something like ‘make a down payment for a bigger house in three years’, or ‘chuck my job and start a business in five years’. It could even be something like ‘make as much money as possible very quickly’. Each of these will lead you to choose very different investments. There are few investments that are appropriate for everyone in all situations. But most of the time, we follow a sort of a hunter-gatherer approach to choosing investments. We tend to reach out and grab whatever looks tempting at the moment. This approach results in investments that may not serve an investor’s purpose, even if they work out as expected.

5. Don’t trust anyone, especially the bigger outfits. Most financial advice is not trustworthy if it is being given by someone who earns from the resulting transaction. I know this sounds like a sweeping generalisation, but it’s largely true. There are exceptions, but mostly at the smaller end — the big institutionalised advice-givers optimise their advice for their own profitability. This is an inevitable result of their business model, so don’t fret about it. In personal finance, there is no substitute for educating yourself enough to be able to take your own decisions. If you depend on the seller’s advice, then you are basically going to be taken to the cleaners. This is not going to change, so better find your own way around it.

IT SECTOR ANALYSIS

STOCKS	CMP	MKT CAP	PE	EPS	P/BOOK	DY	BV	DEBT
ALLIES DIG SERVICE	169.70	789	6.65	25.65	1.24	0.59	136	66
GLODYNE	700.25	1689	13.44	51.67	11.40	0.60	60.95	67
CORE PROJECTS	264.25	2739	26.06	10.14	3.75	0.23	70.49	287
E CLERX	728.50	2079	20.58	35.50	8.77	2.40	83.32	00
FIRST SOURCE	20.45	879	14.30	1.43	0.89	-	23.02	1205

Amongst the IT stocks allied digital service is the cheapest with PE of 6.65 and Price to book ratio of 1.24, OPM of 26%, net operating profit per share is 101, GPM is 25%, NPM is 20.35, current ratio is 9.02, quick ratio is 8.76, debt to equity is 0.10, total debt to owners ratio is 0.10. so the company looks financially sound & stable  with healthy balance sheet, profitability and nice order book.

BANKING STOCKS - ANALYSIS

ANALYSIS OF BANKING STOCKS “WATCH AND KEEP FOR LONG TERM”

	CMP	MKT CAP	BV	PE	EPS	BV/SHARE	P/BV	DY%
SBI	2885	183324	1038	20.45	144	1038	2.78	1.04
ICICI	1109	127661	448	29.22	37.9	463	2.47	1.08
HDFC	2345	10861	464	32	72.95	470	5.05	0.51
AXIS	1319	54060	391	18.66	70.73	396	3.38	0.91
PNB	1197	37757	514	8.80	136	514	2.33	1.84
BARODA	901	32952	413	9.11	98	414	2.18	1.66
UCO	129	7116	65	7.08	18.3	65	1.97	1.16
VIJAYA	98	4248	61	7.41	13.22	61.44	1.60	2.55
ALLAHABAD	220	9827	131	7.45	29.5	131	1.67	2.50
UBI	111	3532	91	9.16	12.2	91.69	1.22	1.79
ANDHRA	151	7359	90.93	6.46	23.49	90.93	1.67	3.3
IDBI	161	15873	86.21	12.35	13.06	113.5	1.87	1.86
CUB	49	1972	20.64	10.86	4.54	20.7	2.39	1.52

if u analyse the above comparative table you will find UCO,ANDHRA,ALLAHABAD AND VIJAYA BANK are cheapest in terms of PE multiples....and these are the stocks u have to keep for long term because growth wise if you see the income and profit chart all the above banks had CAGR of 15-20%.