Saturday, January 30, 2010

Why did I take entry in Stock Market: My Philosophy and Guidelines

I entered in the stock market in the year of 2003.I wanted to become a doctor as I was a good student once in my childhood.I never stood second in my class and I was so fascinated towards my career. My parents are very conservative, traditional and disciplined. I started to read Economic Times, Times of India, Statesman, and Ananda Bazar Patrika from my early age i.e. 14 yrs.
I was unable to understand the happenings in the industries’ thought stock market, a gambling station where people earn some money. The first stock I was interested US 64/Unit Trust mutual fund as my dad was holding that stock. Unfortunately he couldn't materialize profits from it. I was not happy from that incidence. Then suddenly I got busy in establishing my career in JEE/AIJEE etc and I took admission in engineering college. Why did I do so many degrees, PG degree, and certification? Is it to prove myself a good Engineer? I must say this is not true. Actually I wanted to develop some logic and my own philosophy in conjuction with some guidelines to establish myself at comfort zone.
Anyhow I got entry first time in the stock market in mid of 2003.I never wanted to be a broker, rather I wanted to be a business analyst. I could earn as I can by rolling my stuffs in large scale. But believe me guys I never wanted to earn money in wrong way. I wanted to judge my own philosophy and to execute my own innovation in correct way. I learnt so many things from the stock market which I can’t express in short duration. I saw ups and downs across the market." Earning money is not the only motto, judge yourself and confirm you earn money by virtue of your knowledge".
Still on today I don't expect single penny coming to my pocket without any efforts. I recommended lots of company which gave average 15 times return over the period of time.
My recommended almost 20 Multibagger Stocks as on today. Here is tow examples for the same.
Mukesh Babu....from Rs 2 to Rs 55
Core Projects & technologies: from Rs 0.75 to Rs 300.

My philosophy and fundamental suggest me to guide people and make them literate in market and establish my own guidelines for the same. I always prefer small cap and penny stocks rather than Large Cap. Why so?
I like to admire some one's capability and I always pay respect irrespective of their age and family background. I like innovative and hard work people. Street Cleaner is more respectable than a lazy architect. Isn't it guys? Like that way I respect true company irrespective of their CMP and market capital.
It's very simple to find out a true company as to find out a real life partner.
If anyone can find a real life partner he/she has the capacity to select a strong company for future. Following are the things that decide while you are choosing a company.
Company's fundamentals
Business Approach
Aggressiveness towards customer> Customer focus.
Mission and Vision.
Result oriented.
Management profile.
Past records.
Share holding pattern etc..........
There are following advantages on investing in small cap stock:
1. Higher Growth
2. Greater universe of opportunities
3. Inefficient market
4. In-Depth Research can make the difference


When looking at investment options, I find it most helpful to first determine what your objectives are. Dependent on your objectives, small cap stocks could be ideal, but they also could be counter to your goals. Diversification is paramount to protect yourself against potential market volatility, but I would suggest first figuring out what your goals are, what your comfort with risk is, the time-frame you're looking at as far as needing access to the investment and then figuring out what investment strategies match well with your set of parameters.


My story will be continued for next month....

Why do I like SMALL CAP & MID CAP rather than LARGE CAP: Investing in Small Cap Stocks for Growth and Return

Investing in Small Cap Stocks for Growth and Return
Small cap (or small capitalization) is a reference to a company’s market size. Small cap stocks are stocks from companies that have market capitalization (the number of shares outstanding multiplied by the price per share) of under $1 billion. Investors may face more risk with small caps, but they also have the chance for greater gains.

Out of all the types of stocks, small cap stocks continue to exhibit the greatest amount of growth. In the same way that a tree planted last year will have more opportunity for growth than a mature 100-year-old redwood, small caps have greater growth potential than established large cap stocks.
Of course, a small cap will not exhibit spectacular growth just because it’s small. It will grow when it does the right things, such as increasing sales and earnings by producing goods and services that customers want. As you consider small caps, keep these things in mind:

•An IPO is not a sure thing.
An initial public offering (IPO) is the first offering to the public of a company’s stock. The IPO is also referred to as “going public.” Because a company that is going public is frequently an unproven enterprise, investing in an IPO can be risky.

•If it’s a small cap stock, make sure it’s making money.
When you evaluate a company for stock investing, make sure that the company is established (being in business for at least three years is a good minimum) and that it’s profitable.

•Investing in small cap stocks requires analysis.
You need to do more research on small cap stocks than on large caps. Plenty of information is available on large cap stocks because they’re widely followed. Small cap stocks don’t get as much press, and fewer analysts issue reports on them.

Another Multibagger from my desk in 2010

SBIL Details
Saamya Biotech (India) Limited engages in the manufacture and marketing of various chemicals, pharmaceuticals, drugs, and intermediates in India. It manufactures low volume and high value active bio-pharmaceutical ingredients, including daunomycin and hyaluronic acid–pharma grade and cosmetic grade. Its daunomycin is used for remission induction of acute lymphocytic leukaemia in combination with other drugs. The company’s hyaluronic acid acts as the natural moisturizing factor and used in cosmetics and as indictable in ophthalmic surgery and osteoarthritis treatments. Saamya Biotech (India) Limited was incorporated in 2002 and is based in Hyderabad, India

Saamya Biotech has entered into a joint venture agreement with Perak Bio Corporation Sdn. Bhd. (PBC) to setup a bio-pharmaceutical manufacturing unit in Perak state for Saamya Biotech (Malaysia) Sdn. Bhd, a subsidiary of the Indian company.

PBC is a company owned by state government of Perak in Malaysia. It has allotted 12.63 acres land to Saamya Biotech (Malaysia) Sdn. Bhd, for the said project towards the equity participation of Perak state government.

Saamya Biotech India is a Hyderabad-based company that manufactures and markets biopharmaceuticals and recombinant protein products of medical and industrial importance, and also to discover and develop emerging biotech products of far reaching significance.

Past Key developments for SAAMYA BIOTECH INDIA LTD (SBIL)
Saamya Biotech To Approve Fund Raising Through Postal Ballot
12/30/2009
Saamya Biotech (India) Limited informed the Bombay Stock Exchange that the member of the Company will consider to approve the following resolution by way of Postal Ballot: To create issue, offer and allot (including with provisions for reservation on firm and/or competitive basis, of such part of issue and for such categories of persons including employees of the Company as may be permitted), Equity Shares and/or Equity Shares through depository receipts including American Depository Receipts (ADR), Global Depository Receipts (GDR) and/or Convertible Bonds (CB), Convertible Debentures (CD), fully or partly, and/or other securities convertible into Equity Shares at the option of the Company and/or the holder(s) of such securities, and/or securities linked to Equity Shares and/or securities with or without detachable/non-detachable warrants and/or warrants with a right exercisable by the warrant-holder to subscribe for Equity Shares and/or any instruments or securities representing either Equity Shares, secured premium notes, and/ or any other financial instruments which would be converted into/ exchanged with Equity Shares at a later date (Securities) as the Board at its sole discretion or in consultation with underwriters, merchant bankers, financial advisors or legal advisors may at any time decide, by way of one or more public, follow-on, preferential issues or private offerings in domestic and/or one or more international market(s), with or without a green shoe option, or private placement or issued /allotted through Qualified Institutions Placement in accordance with the Guidelines for Qualified Institutions Placement prescribed under Chapter XIII-A of the SEBI (Disclosure and Investor Protection) Guidelines, 2000, read with SEBI (Issue Of Capital And Disclosure Requirements) Regulations, 2009 as amended, or by any one or more or a combination of the above model/methods or otherwise and at such time or times and in one or more tranches, whether rupee denominated or denominated in foreign currency, to any eligible Qualified Institutional Buyers including Foreign Institutional Investors, resident/ non-resident investors (whether institutions, incorporated bodies, mutual funds, individuals or otherwise), Venture Capital Funds (foreign or Indian), Indian and/or Multilateral Financial Institutions, Mutual Funds, Non-Resident Indians, stabilizing agents and/or any other categories of investors, whether they be holders of shares of the Company or not (collectively called the Investors) whether or not such Investors are members of the Company as may be deemed appropriate by the Board and permitted under applicable laws and regulations, resulting in the issue of an aggregate amount not exceeding $40 Millions or equivalent thereof and on such terms and conditions and timing of the issue(s)/offering(s) including the Investors to whom the Securities are to be issued, issue price, number of Securities to be issued, creation of mortgage/ charge in accordance with Section 293(1)[a) of the Companies Act, 1956 in respect of any Securities as may be required either on pari-passu basis or otherwise, the stock exchanges on which such Securities will be listed, finalization of allotment of the Securities on the basis of the subscriptions received, face value, rate of interest, redemption period, manner of redemption, amount of premium on redemption, the number of equity share to be allotted on redemption/conversion, the ratio, period of conversion, fixing of record date or book closure dates, and any other matter in connection with, or incidental to, the issue, in consultation with the merchant bankers or other advisors or otherwise, as the Board at its sole discretion may decide together with any amendments or modifications thereto, subject to necessary provisions & approvals.

Saamya Biotech Mulls Raising $40 Million
12/17/2009
Saamya Biotech (India) Limited informed the Bombay Stock Exchange that the company on its meeting on December 17, 2009 has decided to issue, offer and allot further shares in all or any one or in combination of Equity Shares, GDR, ADR, Convertible Bonds / Debentures and / or other securities to the extent of $40 millions subject to approval of the members of the Company, to issue equity shares / warrants on preferential basis and to conduct postal ballot to accord consent of the Members of the Company for the aforesaid business.

Saamya Biotech To Mull Funding Options
12/14/2009
Saamya Biotech (India) Ltd. will be meeting on December 17, 2009 to consider issue further shares under GDR mechanism/ Preferential Allotment / QIB, etc., subject to approval of the members of the Company.


Stock History:

Volume 26,345
Prev Close 10.04
Day's H/L (Rs) 10.49 - 9.54
52wk H/L (Rs) 14.10 - 3.57
Mkt Cap (Rs Cr) 24.23

Project Progress:
Kedah Govt. of Malaysia agreed to provide 10 acre land in the Biotechnology park. A joint venture agreement with the Kedah state Govt. has been entered by the main promoter and collaborator, M/s Saamya Biotech (India) limited, in respect of land and equity participation. Govt. incentives for tax exemptions, Research grants, personnel training grant and permission for expatriate posts have also been obtained. Funding approvals from Federal Govt. and financial institutions are awaited.
The company entered into Technology transfer agreement with Saamya Biotech (India) Ltd., the main promoter company.


The parent and main promoter company, Saamya Biotech (India) Ltd. has entered into marketing agreement with Arch Pharmalabs Ltd., Mumbai, India for 100% marketing of the products that are manufactured by Saamya Biotech (Malaysia) Sdn. Bhd.


Saamya Biotech (India) Ltd., the parent and main promoter company, has signed an agreement with M/s Shapoorji Pallonji & Co. Ltd., Mumbai, India for execution of the project (construction/ basic and detailed engineering etc) on turnkey basis.


NOC from Pollution Control Board for establishing the facility, being planned.


Necessary statutory permissions from Malaysian Govt. will be obtained.

Conclusion:

Saamya Biotech is looking very attractive at this level.Guys pls keep your eyes open for this stock.I am very confident and optimistic this is one the way to become a multibagger in comming days. If thing goes in proper direction then I want to see Saamya Biotech at Rs 50-60 level within a year.
Currently it is trading at Rs 10.00. Go for it guys and it will enrich your portfolio.It can gives you atleast 10-15 times return in 2-3 years.