|
In Unusual and Little Known Small Companies" could TRIPLE your money in the next 4 - 5 years... Small Cap opportunities we wish to reveal to you Over the next one year! Dear Equitymaster Reader, Consider the following investment scenario for a moment... On the 15th of this month, you receive a recommendation from Equitymaster for a literally unknown and unheard of small cap stock. This stock will never have been talked about in the media, your stock broker won't ever mention it to you, and there's no chance whatsoever that you'll come across it during a conversation with a friend. But still, largely because it is Equitymaster that's recommending the company, you decide to play it safe and invest a tiny-winy portion of your money in it. You know, just in case. And then, silently the company continues to grow behind your back. As you grow older, the company also grows old with you... moving up in value and price –- doubling, tripling, and quadrupling during this period. Then one day in the not so distant future, when you've probably even forgotten that you own shares of this "once unknown" company, it surfaces as one of the leaders in its industry... 1,000% or More Effortlessly! Is something like this really possible? Yes, it certainly is! In 1999, Shriram Transport Finance Co. Ltd. was a little known small cap stock available for just Rs 4.50 a share. Not many people expected it to grow the way it has, and therefore not many bothered to invest in it. But by cashing in on the increased need for commercial transportation and coming up with a business model that set it apart from all its competitors, the company succeeded in growing its business rapidly. As a result, its stock price increased from Rs 4.50 in 1999 to Rs 451.30 in 2009. And those who invested in Shriram Transport in 1999 ended up making a whopping 9,929% on it by 2009. And this is not a one-off case either. Take a look at the table below...
that set up huge profit windfalls for their investors? Though not many people knew, all these companies were already leaders in their own sub-niche or the small area of the industry they operated in. And they were much better prepared than their peers for managing explosive growth in the years to come. Hence when the demand for their product grew, they were able to provide a much better service than all of their competitors and quickly established themselves as the go-to guy in their niche. And the rest as they say, is history. It's true! Most of the companies you see in the table above are pretty well known in India today. But at one time they were not so well known. They all started out small, established themselves as the leader in one main area where their expertise lay, and then diversified into other areas. For example, Blue Star is a company that's involved in a lot of things today. But initially, it was just as a 3-member team engaged in reconditioning of airconditioners and refrigerators. And the story of the companies you see above is also more or less similar. Imagine how much you would make if you found out all such high-potential small companies early, and invested in them while they're still in their infancy? Given the uncertain nature of small caps, we cannot and should not expect every small cap stock to be an out-and-out winner. But we know that small caps are fast movers, and that the movement quickly shows in their stock price. So assuming you manage to pick 5 'reliable' small cap stocks, even if just 2 out of the 5 manage to endure the market uncertainties and turn multi-baggers, you will be rich! In fact, one such exciting small company is up for grabs right now... You've probably heard about India's ever-increasing power shortage... If you live in a big city like me, it's just a story you hear about in the news with increasing frequency. But if you live in a small town where power cuts of 3 to 8 hours per day are quite common... then India's national 15% energy deficit is very much real to you. More than 1.6 billion people in the world lack access to electricity – and one out of every four of them lives in our country. Today there is an easy way for you to help India save massive amounts of energy... while keeping the lights on throughout the country 24 hours a day, 7 days a week... And the best thing about it - you can also get paid handsomely for participating in this effort. I'm talking about becoming part owner of an energy-saving technology company whose share price could potentially triple within the next 4 – 5 years. The details on this little-known publicly traded firm -- which we will call 'Company X' for now -- are included in a just-published FREE Special Report titled, Superstar Smallcaps. And here are the full details about it... With Your Lights On India's power-generating capacity is currently 15% below the levels required to provide consistent power to everyone in the country. According to an article in Business Week, the government of Maharashtra, our most industrialized state, has announced it is facing a severe power shortage. And the bad news is this shortage won't be eliminated any time soon. According to a senior government official, India will miss the government's target of adding 78,577MW of power generation capacity by 2012 because of shortage of equipment. Now, Company X's technology doesn't help generate more electricity or help our power plants produce electricity more efficiently. Rather, it makes an energy-efficient light source that reduces electricity usage by 40% to 90% depending on size and model. Instead of using a filament as the lighting source, like in conventional electric bulbs... Or gases, like in halogen and fluorescent light bulbs... This technology shines brighter by using light-emitting diodes or LEDs as the source of illumination. You may think of LEDs as those little digital displays in pocket calculators and on other electronic devices. But large LEDs in fact generate an extremely bright light with minimal energy consumption. To give you an idea of how incredibly efficient Company X's new LED lighting technology is, a conventional 100 Watt incandescent bulb generates around 15 lumens of brightness per Watt of electric current.The greater efficiency of LEDs reduces the energy demand of lighting systems. And in addition, the LED bulbs also have a longer life. So overall, replacing conventional light bulbs with LED lighting can cut energy consumption by as much as 90%:
1The costs are in "street costs," estimated approximately 2 times higher than the original equipment manufacturing costs. The lamp cost represents the cost of the SSL lamp, not including any fixture costs which would be necessary to complete a lighting system. is now available at 80% off. . . Company X is the only company in India to have design-to-manufacture capability for making LED display solutions... which means it has virtually no competition to worry about. Indian Railways is soon expected to float tenders for replacing all of its current displays and lighting with LED-based technology, which could mean a huge potential increase in orders and revenues for Company X. And Company X's products are also sold internationally. The global LED market is expected to continue to grow at an average annual rate of 20% for the next 3 years, which is sure to benefit this company immensely. Company X has formed a joint venture with the Latin American Football Corporation to focus on the lucrative LED display opportunities in sports stadiums across the globe. The bottom line is that the stock could triple within the next 4 – 5 years. And investors who get in now before the price starts to move up will bank the lion's share of the profits. But here's the kicker... The recent decline in small cap stocks caused Company X to lose 80% of its value. So you can scoop up shares of this company at dirt-cheap prices right now. Full details about this are given in our special report titled,Superstar Smallcaps, which you can get absolutely FREE. contained in that report . . . There's more! The report also provides detailed information on two other exciting small cap opportunities. Here's a brief description of them... Opportunity #2: Lending money to risky ventures is something that even the biggest banks are wary of these days. But the key reason why even the largest lender in the world - the World Bank - is willing to offer billions in loans to India is the country's brilliant prospects in the infrastructure sector. The construction sector alone accounts for more than 50% of the total investment in Indian infrastructure. And we're particularly excited about the ability of some Indian companies to fill in the gap in the PPP (public private partnership) space. Imagine the immense opportunities that a company with MNC support, very limited competition, sufficient funding and niche presence can avail of! Yes, we had unearthed one such Hidden Treasure way back in 2008 that has made pioneering efforts in Indian infrastructure. The management's credibility in the space is such that even in the worst of the global financial crisis situation, its MNC partner supported the firm. Thereon, as they say, is history. The company went on focusing on new growth areas in the infrastructure space and has won several mandates. What's more, all the growth has come without any compromise on quality. Also unlike the managements of many small-cap companies, the company's management has come across as very candid with regard to its temporary operational weaknesses. We believe that as India's growth story gets cemented, an investment in the stock at the current levels can return 3 times your money over the next 4 years. Opportunity #3: This small company that few people know is a pioneer in the field of data capture with virtually no competition. Present across the value chain from barcodes to smartcards and RFID (radio frequency identification), it is preferred by the who's who in the areas of retail, logistics, IT and manufacturing. And not just that, this company is expected to be a major beneficiary from the government's Unique Identification Project too. The company has grown at a stupendous rate in the past couple of years, and its strong business model and well established presence in the field of data capture means that it is all set to grow revenues and profits at a healthy rate in the future as well. Currently available at less than 10 times its trailing 12-months earnings, we see this stock multiply almost 3 times over the next 4 to 5 years. Information on this company is also available in our new report. And we'll give you the report for FREE. All we ask in return is that you try our Small Cap recommendation service, Hidden Treasure, WITHOUT RISK for 60 days. But first, what is Hidden Treasure actually? For Ridiculously Low Prices Did you ever find yourself thinking, "I wish I had invested in Pidilite while it was still young?" Or even in Titan for that matter? These were one-unknown-small companies that have grown rapidly in the last decade to become household names in India today. But there was no way you could have known that sooner... until now... Through Hidden Treasure we're providing you opportunities like that today. The stocks we reveal through Hidden Treasure are companies that are either under-researched or not covered by other stock brokers and research firms. There's no other authentic source of LONG-TERM recommendations on such companies. And whatever else is available is biased. I understand that small caps may not comprise a big portion of your portfolio. But that doesn't mean you don't need to think about them at all. This small part of your portfolio does the KEY job of maximizing your returns... In Choosing Your Small Cap Stocks We launched Hidden Treasure in Feb. 2008 with a view to provide profitable Small Cap recommendations. But "profitable" doesn't necessarily mean 327% returns in one week. We have always said and still say that you should look at small caps from the long-term perspective. The stocks we recommend through Hidden Treasure are strong companies and we recommend them not because we believe they will flourish in a month or two, but over a minimum period of 4 to 5 years. We reveal reliable small companies through Hidden Treasure as and when they're available at a bargain... which gives you the opportunity to snap them up early and set yourself up for huge gains when these stocks soar. However, considering the risks that small companies carry, you should realistically not expect each and every recommendation to be an out and out winner. For one, whenever the market crashes, small caps are the first to bear the brunt of it. So risk taking IS required to a certain extent when investing in small caps. I just want to make sure you understand that. By Subscribing to Hidden Treasure. . . For starters, on the 15th of every month we will notify you of an exciting small cap opportunity. The report we send will tell you why we think this stock would be a good buy at that point, and it will also clearly explain the pros and cons of investing in that company. The important things to note here are...
Yes, Equitymaster analysts have to go through many more hoops to find the few small cap gems that exist. And since it's OUR reputation at stake here, we also have to meet with the managements of different companies and organise trips to various cities every month to make sure we're accurate in our predictions. All this takes time, and therefore just the one report per month. Plus, you also get:
Performer #1: One of the biggest reasons for us to recommend this stock was the resilience we thought the company's business model had - to face the economic slowdown. We believed that this resiliency to slowdown, which was on the basis of the important role it plays in its clients' overall scheme of things, gave the company a significant advantage over the long run. We also believed that after a near about 70% fall from its all time high levels, the stock presented itself as a very attractive investment proposition to investors (the stock was then trading at just around 3 times its trailing 12-months earnings). While the company proved our 'resiliency' assumption right in growing its sales and profits by 62% YoY and 39% YoY in a bad year like FY09, the stock multiplied almost 3.6 times since our recommendation in crossing our target price.
Now, while sharp gains like these in such a small time period might make anyone happy, it does not excite us much. Why? For the simple reason that we see such sharp moves as simply aberrations and not a norm. Look, you need to understand that while small caps can make you a lot of money in the short term, they can also lose you a lot in a similar timeframe. Thus the idea is to buy into quality small cap stocks with an aim to hold them for 5 to 10 years. It is in this long timeframe that you really benefit from the growth of small companies that you invest in. Performer #2: We had recommended this small-size IT services and solutions company in November 2008. The company, providing technology solutions to multiple industries like banking, financial services, insurance, telecom, healthcare and retail was doing reasonably well then. One of the foremost reasons this stock appeared as a golden opportunity to us was that it was then trading at 63% of the company's net current asset value, which provided a big margin of safety for investors. Another important reason for us to recommend the stock was the strength of its business model to weather the downturn. The company had been plugging the gaps in its offerings through a string of acquisitions, all at fair valuations. And this stock too has more than tripled since we recommended it!
And what else do you get by subscribing to Hidden Treasure? The Portfolio Tracker is an online utility to help you track your equity and mutual fund investments! It's online, and is available to you 24 hrs a day. It's always updated with the latest stock prices... and you also get a number of reports to help you understand your portfolio better. The Portfolio Tracker usually costs Rs 330 for a year. But if you take us up on this offer, you get it absolutely FREE. At Less Than 60% of the Actual Price A year's subscription to Hidden Treasure usually costs Rs 5,000. But if you act now, and grab your subscription through this offer, you can get Hidden Treasure for Rs 2,950 only! Rs 2,950 equates to about Rs 250 per month or Rs 8 per day. Seriously, this is way less than what you spend on all the phone calls to your broker, the money you pay to watch the noise on your television, and all the newspapers and magazines you buy hoping to find good investment opportunities. And none of these other things can provide you unbiased and reliable small cap recommendations like Hidden Treasure. With a subscription to Hidden Treasure, you can rest assured that whenever we come across little known, high potential small companies, we will notify you of them right away. Here's what two of our subscribers had to say about Hidden Treasure...
Hidden Treasure is not for everybody! For instance, if you're nearing retirement or have already retired, I don't recommend putting all of your retirement money into small caps. Small caps are for those who are ready to take some risk to make big returns. While you can make a lot of money from small caps, you can also lose a lot of it very quickly. Just one good small cap stock could be enough to make you insanely rich. But to find that one small cap stock, you might have to go through a couple of duds first. Therefore every small cap investor needs to understand this and plan his or her small cap investments wisely. And that's what Hidden Treasure can help you with!
Like I already said, you can try Hidden Treasure without risk for a full 60 days. If it turns out that you don't like it, just let us know before the 61st day and we'll refund the entire fee you paid. No questions asked! And, we'll also let you keep the Special report as compliments from Equitymaster for trying Hidden Treasure. Sounds good? In any case, I suggest you act fast because...
Regards, 
Rahul Goel Chief Executive Officer Equitymaster.com P.S.:Through this offer you can subscribe to Hidden Treasure for just Rs 2,950 instead of the usual Rs 5,000. I suggest you seize this opportunity with both hands... while it's still open! P.P.S.: There's a 60-day money back guarantee on this offer. So if it turns out that you don't like Hidden Treasure, we'll gladly give back every single penny you paid. P.P.P.S.:Here's what one Equitymaster subscriber has to say about his experiences with investing BEFORE and AFTER subscribing to Equitymaster premium research services...
P.P.P.P.S.: If you have queries, please be in touch with us at 1800-209-3786 (Toll Free) or +91-22-61434055 or Write in to us. |
|
* Adjusted share prices have been used for Shriram Transport Finance
Please read the Terms of Use. Equitymaster Agora Research Private Limited 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India. Telephone: 91-22-6143 4055 | |