I Trust Tanushree to Pick India's Best Defence Stock for You

Nov 20, 2020

Rahul Shah, Editor, Profit Hunter

Across most of my recommendations, I am the classic Ben Graham BUY and SELL guy.

For us Grahmians, the intrinsic value of a company is mostly static. It does not grow with time.

So, we buy a stock whose intrinsic value we figure out to be Rs 100 at a discount of 35%-40% and then sell as soon as the stock reaches intrinsic value.

Put differently, buying at Rs 60 to Rs 65 and selling when the price reaches Rs 100.

We are usually happy with our gains and once we book our profits, we move on to other stocks with similar characteristics.

I like to call the money made from such stocks as the more CERTAIN money.

As long as the fundamentals of the company are expected to remain sound, your returns are more or less certain.

However, CERTAIN money usually does not go hand in hand with BIG money.

It is difficult if not impossible, to make both CERTAIN money as well as BIG money on the same stock using the Graham philosophy.

--- Advertisement ---
These 3 Stocks are the Dark Horses of the Stock Market

The mainstream media mostly ignores them.

Mutual funds and hedge funds can't buy them in bulk.

Stock brokers rarely cover them.

These stocks are the dark horses of the stock market.

They only come in limelight after they have rallied by hundreads of even thousands of percent.

Our head of smallcap research, Richa Agarwal, has a knack for identifying such stocks before they begin their rally.

Over the years, she has spotted such stocks which have gone on to offer triple and even quadruple digit gains for investors. (* Past performance is no guarantee of future results)

Today, when the markets are near all-time high... and some investors are thinking of booking profits... Richa has spotted 3 such stocks which are set for a massive rally.

She will reveal the details of these 3 stocks on 28th January at her free online summit.

Click here to sign-up instantly. It's free.
------------------------------

In order to make the BIG money, you need a different strategy.

The really big gains i.e. 500%, 1,000% or even 2,000% are made when you buy like Ben Graham and sell like Jim Rogers.

Wait, did I say Jim Rogers?

Yes, I did.

The following story will tell you why.

The story dates back to the year 1967.

It was the initial days of the famous Arab-Israeli war. The Arabs, led by Egyptians, were fighting with a lot of Russia made weapons while the US was a strong ally of Israel.

The first few days of the war left Jim Rogers baffled. He was surprised by how the Egyptian air force was shooting Israeli jets out of the sky.

On learning that Egyptians had deployed advanced electronic warfare equipment received from the Soviets, he immediately hopped onto a plane and started visiting US defence contractors.

BREAKING: Full Details of the #1 Investment of the Decade...

Lockheed, a company flirting with bankruptcy caught his attention. The troubled company had an advanced projects division that had come up with just the kind of sophisticated weaponry that the US needed to close the gap with the Russians.

Rogers investigated other companies like Northrop and then made his next big discovery in the US capital of Washington.

He discovered that even the Doves in the congress - the so-called peace makers - were in favour of the US Government spending on advanced electronic warfare.

Popular opinion at the time was that the US defense spending would be curtailed due to the end of Vietnam war and that defense firms were not on a solid ground. Therefore, there weren't many takers for defense stocks.

However, Rogers' meticulous research suggested otherwise. He was aware of big, fat contracts of defense companies that if renewed, could provide new earnings to these companies.

He was also aware of the changing nature of the modern battlefield. Rogers was convinced that a lot of the incremental US defense spending would fall in the laps of companies like Lockheed to help it achieve superiority over the Russians.

Thus, this high priority insight convinced Rogers and his partner to go big on defense stocks and which is exactly what they did.

It was a classic BUY at Ben Graham prices manoeuvre where the valuations were depressed but the upside was not Rs 60 going to Rs 100.

The upside was Rs 60 going to Rs 600 or even Rs 1,000.

Guess how well did Lockheed perform over the next 8-10 years?

Well, it blew even the most optimistic projections out of the water. Lockheed went up a hundred times over the next few years.

It is a classic case study on what happens when a Ben Graham bottom up approach is mixed with a high probability top-down insight that Rogers was able to zero in on.

Are there any such opportunities in India currently?

Well, you have to look no further than my colleague Tanushree and her high probability insight on India's defense sector.

Yes, the same sector that landed Jim Rogers a huge 100-bagger.

Please note Tanushree is in no way implying that India is going to war anytime soon.

However, the truth remains that we have two increasingly belligerent neighbours breathing down our necks. We thus need to spruce up our defense capabilities to teach them a strong lesson should the need arise.

And this means no longer relying heavily on arms imports.

Tanushree believes that India's decision to ban imports of foreign weapons will lead to billions of dollars flowing to Indian companies.

In fact, she won't be surprised if few years from now, India boasts of its own home-grown Lockheed or even Boeing for that matter.

The opportunity is huge. We are talking of numbers of the size of 4 lakh crores over the next 5-7 years itself.

Tanushree believes that a handful of companies could reap solid profits from this opportunity and could see their stock prices rise exponentially.

--- Advertisement ---
Top 3 Stocks for 2020 and Beyond

We've uncovered 3 high-potential tech stocks after years of research.

These 3 cutting edge tech stocks could potentially create a wave of Indian millionaires.

First one is present in the sector which is expected to GROW over 300 times by 2030.

Second one is one of the leading players in Artificial Intelligence technology.

And the third one is involved in putting up a global safety net to save the world from cyber criminals.

These 3 tech stocks have the potential to offer life-changing gains in the long run.

Click here to get the details...
------------------------------

Thus, even stocks that had more or less a static valuation of a few billion rupees could witness their earnings and therefore, valuations jump manifold due to the fresh defense earnings stream.

It is a rare opportunity for you to get in on the ground floor of one of the biggest megatrends to unfold in India over the next few years. So, please hurry and grab this opportunity now.

At an exclusive online webinar, on 1st December, Tanushree will reveal details of her #1 defence stock to own right now!

The webinar is free, and I recommend you block your calendar right away.

Book your free seat here.

Warm regards,

Rahul Shah
Rahul Shah
Editor and Research Analyst, Profit Hunter

PS: In India's defence space there is a potential 10X profit opportunity. Tanushree will tell you all about it at the Explosive Profits Summit on 1st December. Book your free seat.

Recent Articles

Is the Tata Motors Stock Running Out of Juice? January 25, 2021
Is the valuation for this 5-bagger running ahead of its fundamentals?
How to Invest in Smallcap Stocks in 2021 and Beyond January 22, 2021
Here's why I believe there is a lot more steam is left in the smallcap rally.
Invest in the Multibaggers of 2021 and Beyond January 21, 2021
Our ace stock picker is ready to capitalise on a big growth opportunity.
You Could Be the Best Fund Manager of the Decade January 20, 2021
Turning Rs 1 lakh into Rs 14 lakh is not impossible.

Equitymaster requests your view! Post a comment on "I Trust Tanushree to Pick India's Best Defence Stock for You". Click here!