42% Gain in Two Months is Just the Start for this Stock

Jul 30, 2020

How do you make 10 or even 100 times on a stock?

In the investing world, we call them multibagger stocks.

First, you need to identify the right stock.

How do you do that?

You should check the company's track record. Has the business done well in the past? Do the fundamental numbers stand out?

If yes, you move ahead. The past looks good. What about the present and the future?

Is the business sustainable? For you to make 10 or 100 times your money in say, 10 years, the business should be relevant for the next 10 years.

--- Advertisement ---
You Missed This Yesterday

Our urgent mega summit 'Rebound Riches' went LIVE yesterday.

For those who missed the summit, we've made the replay available for a limited time.

Watch as we reveal the details of 3 high potential stocks to buy for exponential gains.

Potentially 200%, 400%, or even 900% in the coming years.

Click here to watch now...
------------------------------

It should have a product that you know will be in demand for years. It is something 'essential' that a customer will always want.

Ok, the future looks good too. What next?

Check the management behind the company. Are they competent enough to grow the company for years to come? Is it capable of surviving tough times?

If the answer is yes here too, you might be on to a good thing.

But what about the stock's valuations?

If you buy a good business with a good management, at expensive valuations, you won't get great returns.

Only a combination of a re-rating in the valuation multiple along with earnings growth will give you that 10 or 100 bagger.

And you only get that if you buy an excellent business at bargain prices.

--- Advertisement ---
Want to Make Big Money? Then Follow Actions of Oil Giants

Do you know what giant oil companies are doing these days?

They are chasing a new opportunity... a new technology... where they see exponential growth for years ahead.

Everyone is in the race... Royal Dutch Shell, France's Total, British Petroleum, America's ExxonMobil.

Here in India, one tech company is smartly tapping into this multi-billion dollar opportunity.

Today, very few people know about the potential of this company.

But once the broader market gets a whiff of it... there is no limit to how high the stock price of this company may rise.

Click here for the full details...
------------------------------

Typically, you get these bargain prices in times of distress. The kind that we are seeing now due to Covid-19.

In my YouTube video, I talked about the kind of stocks investors should buy, sell, and hold in greater detail.

Okay, let's say you've bought an excellent stock at bargain prices.

Is your work done? Are you assured of that 100 bagger?

Not by a long way.

In fact, picking the right stock at the right price is only half the work done. The difficult part is in holding on to that stock. Once you have a potential winner, you have to hold it in good and bad times.

The journey towards a 10 or 100 bagger won't be straightforward. There will be bad news coming your way. It can be due to some short-term issues at the company level or a macro event like Covid-19.

--- Advertisement ---
Buying this stock today is like buying HCL Tech in 2003

Do you know what was the price of HCL Tech in 2003?

Just Rs 20...

And today, it's trading at Rs 556.

A mind-blowing return of 2,680%.

Now we can't go back in time to get these massive returns. But markets keep throwing such mega opportunities from time to time.

All you need to do is identify them and act on them at the right time.

And one such rare opportunity exists today...

This company is tapping aggressively into a futuristic industry. And this is likely to propel its stock price to crazy heights.

If you'd like to make a potential fortune in the years ahead, you need to act now.

Go here for more details on this stock.
------------------------------

Sometimes, you will get the urge to sell even on good news. The stock will be up 20-30% in a short span of time. The urge to cash in on the gains will be tempting.

Someone will tell you he booked profits on the stock and will give you a sound rationale. You might say, there's no harm in taking profits right?

And you sell it for 20-30% profit.

There goes your potential 10 or 100 bagger!

This is exactly what we are seeing in one of our 5 essential stocks. This stock satisfies all the criteria I've mentioned above.

It is a strong brand and market leader in its segment. It's backed by an able management.

The stock has seen wild fluctuations in recently but importantly, it had nothing to do with the business. We recommended the stock when the Covid-19 pandemic had just started in March.

Hidden Treasure subscribers can access the recommendation report here.

Like my colleague Richa mentioned recently, this stock like our 5 essential recommended stocks, has had a great two months.

It is up 42% in just over two months.

Some investors might be tempted to cash in on the quick gains but I strongly believe, you should stay put. The long-term story is still intact and will play out in the long term.

And if the story plays out as expected, this wealth creation opportunity will be huge.

Warm regards,

Girish Shetty
Girish Shetty
Research Analyst, Hidden Treasure
Equitymaster Agora Research Private Limited (Research Analyst)

PS: Get our top 5 essential stocks recommendation report by signing up here.

Recent Articles

Banking Stocks Are in a Sweet Spot Again August 7, 2020
The RBI's policy decisions yesterday will give a big boost to banking stocks.
Forget the Nifty and Sensex for the Next 1 or 2 Years and Focus on These Stocks August 6, 2020
Stocks from the essential small cap space are likely to be outperformers over the next 1 or 2 years.
The Best Performing Portfolios Typically Share this One Trait August 5, 2020
This trait is evident in stocks that gained in excess of 300% from the lows of March 2020.
Of the Smallcap Rebound and 10 Crucial Days that Could Influence 70% of Your Returns August 4, 2020
After a lag of over 2 years, the smallcap index is beating the Sensex in the post Covid rally...but only a few smallcaps will sustain this rebound.

Equitymaster requests your view! Post a comment on "42% Gain in Two Months is Just the Start for this Stock". Click here!