Stock Market Crash?”
I know I sound alarmist, but believe me I'm not saying this without reason.
See, to become really wealthy by investing in stocks, you basically need to do just two things:
One is something you already know very well - identify and invest in stocks that are set to do well much ahead of others.
And two, avoid investing in companies that are set to crash or enter a long phase of correction and subsequently lose a lot of money for investors.
Now what most people don't realize is that "avoiding bad stocks" is as important as "picking winners", if not more.
But at the same time, we also understand that avoiding bad stocks is easier said than done.
So if you give me a few minutes, I'd like to reveal to you a sure shot way to do both successfully -- identify great stocks, and avoid the duds.
You see, without a doubt, identifying good stocks to invest in is the relatively easier part. It is at recognizing bad stocks or situations early that most investors botch up.
However this is not entirely their fault either.
The truth is most stock brokerage and research firms out there boast of being really good at picking high-return stocks.
But when it comes down to helping their clients protect their stock investments, well that's a totally different story.
Just think back to what happened in early 2008 when most of these firms were churning out one "buy" report after another.
These firms completely missed the warning signals.
In fact, I personally know of one retired gentleman who lost Rs 8 lakhs in the January 2008 crash because his stock broker was adamant that he keep the stocks for a couple more months when he wanted to sell them.
And the result? When the market had done crashing, his portfolio value had fallen by 70%!
This is where we're different...
We at Equitymaster believe that it's our responsibility to not just help our subscribers make money but also avoid losing money in the market.
And this is so important because stock market crashes do happen from time to time. I cannot tell you when the next crash will happen, but I can guarantee you that there will be one sooner or later.
Therefore it is absolutely essential that you, as a smart investor, have a portfolio that is geared for such an eventuality.
That's why at Equitymaster we don't just recommend some stocks and forget about them. We also constantly monitor those stocks and inform our subscribers of any adverse developments instantly.
But here's the kicker...
During all these years of helping people make and save money, we've devised a process that helps us identify fantastic money-making opportunities as well as risky scenarios with great accuracy.
And now the investment research team that is behind this process is offering it to you at just Rs 455 per month.
Full details below...
I will come to that in a moment, but before that here's a story...
Back in 2002 we had conducted an informal survey.
This survey revealed to us the need for a new kind of service...
See, most stock brokers and research outfits out there peddle stocks which are in the news from time to time, and then shift coverage to those stocks which take their place.
Once a certain stock falls out of favor with investors, they stop tracking it and stop publishing information on it.
So there was literally no way for an investor to stay updated with the progress of a company he was interested in THROUGHOUT THE YEAR.
That's what led to the launching of a new service called 'ResearchPro'.
ResearchPro does what no other service does -- it shortlists a group of leading Indian companies and provides ongoing and continuous research on them throughout the year.
And, it monitors and publishes research on them regardless of how well or how bad these companies are doing!
Now why would anybody need this kind of information?
There are actually 3 reasons for that...
So ResearchPro was started as a service that would provide ongoing research on certain leading companies instead of one-time stock recommendations.
However we soon found that ResearchPro could actually help investors in more ways than we thought...
Just by following companies closely - ResearchPro could tell its subscribers which way a stock was possibly going to turn.
You see, ResearchPro is all about 'Common sense backed by exhaustive research'.
Our intention here is not to find something that nobody else knows, but to take a whole lot of known facts and compile all of them to uncover the MOST PROBABLE OUTCOME in advance.
So we basically just watch these companies with a hawk-eye all through the year... and try to see things that other people don't...
Which in turn helps you make the most of opportunities as and when they arise.
Here's an example. . .
We discovered that quite a lot of them presented a HUGE profit potential for investors.
And so we advised our subscribers about the same...
On October 8th, 2009 we sent out a special message to our subscribers discussing Pharmaceutical companies that were looking very attractive during that quarter.
Plus, we also gave them a list of Pharma stocks that could generate good returns for them.
And today... just six months later... 4 Pharma stocks that we had recommended then have generated pretty good returns for subscribers who took us up on our suggestion and bought those stocks.
Following are the details of the stocks and returns generated so far:
In the same way, if we find that investing in stocks belonging to a certain sector can be risky, we also warn our subscribers about that.
For instance, during the present quarter we advised our subscribers to stay away from a certain sector (sorry, details only to subscribers). And we also gave them a list of stocks from that sector that could fall soon.
So, you see, we really help you do both:
1) Grow rich by investing in good stocks:
2) Minimize the chances of investing in bad stocks
And that's what Equitymaster wants to provide you now
The truth is most companies -- even the good reputed ones -- don't always tell you the complete facts. But if you, as an individual investor, ask companies for the information, they won't give it to you.
To add to this, you also may not know what to ask for and how to interpret all the different data.
This is where Equitymaster comes in...
We're a independent Stock Research Company that has been around for more than 10 years now.
So when we ask companies for some information, it is in THEIR best interest to give it to us.
For they don't want us throwing up red flags against their company, as that would harm them even more.
Plus, we've got the required manpower and resources to keep monitoring these companies all round the year.
So we're now giving you an opportunity to get UNRESTRICTED and FULL access to our monitoring reports (ongoing research reports), produced by a team of honest and competent analysts, on 100 leading companies in India.
For just Rs 455 a month, you can effectively obtain ownership rights to our entire research team... and whatever research we produce on these 100 companies we will send it to you right away, without concealing anything!
Any serious investor would be willing to pay tens of thousands of rupees every month for this kind of research. But at just Rs 455 a month, this is a steal!
Just look at all the advantages you get by subscribing to ResearchPro:
or monthly reports . . .
We will track these companies throughout the year... and whenever there's some important news about a company which we feel could affect your investment in it, we will inform you about it RIGHT AWAY.
If we hear something good about a company... like maybe an opportunity to make big returns in quick time... we will notify you about it right away.
If we find out something bad about a company, you will hear about that instantly too.
And like I said before, there's also no work involved on your end. All you need to do is take a few minutes and read what has been compiled for you.
Our senior analysts by themselves are very experienced and qualified, with a cumulative experience of almost 27 years.
And now you can have not just them, but the ENTIRE TEAM go out and produce up-to-date research for YOU, on 100 companies!
Keep reading for full details...
For inclusion into ResearchPro . . .
Through ResearchPro, you get on-going research on India's leading 100 companies...about 80 large cap and 20 mid cap stocks, covering 24 different sectors.
Introducing a company as part of ResearchPro is based on several criteria. Some of them include:
If we've added a particular company to ResearchPro, then that means you want to keep a close watch on it.
Look, we are not stock brokers. We don't have to unnecessarily make you buy or sell a stock just to earn a commission.
We have a single minded focus - to help you identify the most profitable investment opportunities out there.
Because if we can't help you do that, you will simply not subscribe to our services again. Correct?
Coming back to ResearchPro...
We provide you ongoing research coverage on these 100 companies even if the market sentiment for them is bad.
So with access to ResearchPro, you will no longer fall prey to the swings in sentiment. On the contrary, you'll be positioned to profit from them whenever an opportunity arises!
As a ResearchPro subscriber. . .
On all companies under our coverage you get detailed research reports which are updated at least 4 times a year, usually post the quarterly result announcements.
For each company under coverage there are -
If there's a development in any of these companies that would have a material impact on our forecast, we update the report of that company and notify you right away.
And because we monitor each of these companies with such diligence, we are also able to alert you of 'BUY' or 'SELL' opportunities that may arise from time to time.
And we're only just getting started...
As you may know already, the most expensive stocks are the ones highly prone to downturns.
ResearchPro comes with an advanced *Query Module* to help you select and compare stocks on various parameters of your choice...
So if you want to know 'The Most Expensive Stocks' in this market, you can get that information in a few clicks!
Similarly, the Query Module also helps you identify opportunities that could make you a lot of money by simply throwing up a list of 'The Most Undervalued Stocks'.
Apart from these two, there is also a list of 'Stocks You Should Throw Out / Buy Now!' which alerts you of stocks requiring your immediate attention.
And these are just 3 of the many parameters on which you can generate information you could profit from.
The Portfolio Tracker is an online utility to help you track all your equity and mutual fund investments in one place!
It's online, and is available to you 24 hrs a day.
Let me tell you some of the amazing things you can do with this tool...
We also provide you intelligent reports to help you understand Portfolio Tracker better. You can go through them to learn how to make best use of Portfolio Tracker.
The Portfolio Tracker usually costs Rs 330 for a year. But by subscribing to ResearchPro, you get it absolutely FREE.
And the important thing here is that the Portfolio Tracker has been updated recently... and the new and improved tracker is even better than the old one!
While Portfolio Tracker keeps lets you track the past performance and current value of your portfolio, the Stock Screener... a recently launched service of ours... can be used to find stocks with the maximum upside over 2-3 years.
Let me explain how this works...
You see, the Stock Screener is again a part of the Query Module which enables subscribers to compare companies on various fundamental parameters.
Some of these parameters include Sales Growth %, Profit Growth %, P/E, Return on Net Worth, and so on.
Here's what the Stock Screener module looks like basically:
Apart from this, you can directly find out the top 10 companies among:
These are articles and reports that are available to our premium subscribers only.
We release over 800 of them every year.
You might understand that there are a lot of factors influencing the stock price, most of which need to be monitored regularly. So from time to time, we release instant reports and updates on various companies.
These reports include excerpts of management meetings, extracts of conference calls, updates on the happenings in a company that we monitor and our personal views on it.
But it could also be an update on a sector or a company that we like but are not yet covering.
All these are made available to you via a feature called the 'S-Features'.
This is all "unadulterated" information and it will serve as a valuable input for your investment decision.
Our Recently Released Asset Allocation Guide
Let's face it - the more money you make from your stocks, the merrier. I don't know of any investor who would say no to this.
But at the same time, you don't want to lose your shirt in the process... and we of all understand that.
Therefore our intention through this guide is to help you allocate your investments properly... so as to not just give you a chance of maximizing your stock market returns, but also keep the risk involved to a minimum.
So after reading this guide, you will FINALLY know how to distribute your investments between large, mid and small caps stock... apart from a lot of other things.
And this guide, too, will be available to you FREE when you subscribe to ResearchPro.
This is another new initiative started by Equitymaster recently.
Every quarter, we send out to our ResearchPro subscribers a note on the sector and stocks to give higher priority... or the sector and stocks to avoid... while making investments during that quarter.
In each case, we clearly explain our reasons for coming to the conclusion we have.
So how does this help our subscribers?
Let's assume we suggested that you stay away from the manufacturing sector. Then if you come across a manufacturing stock that looks attractive, you will instantly know that you need to do some more research before investing in it.
We also notify you of high-risk stocks from the sector, so that keeps you from acting on impulse and making hasty investment decisions.
Likewise, if we say the prospects for Retail sector look good in that quarter, you can be on the lookout for opportunities to grab Retail stocks cheap from the word go.
We also notify you of the attractive stocks you can consider for buying in that sector, and the buy/sell limits for each.
And this initiative too is available to ResearchPro subscribers only.
Finally, the research alert is an email alert that we send out to those ResearchPro users who 'opt in' to receive it.
Simply stated, it as an update on all the new research published.
It has info on the latest research that we have posted, and also tells the subscriber which research reports have been updated.
Since ResearchPro is a service that provides new information to its subscribers on a frequent basis, it can be difficult for users to keep track of what was published when and if they've seen it all or not.
That's why we're making things easy for you... by sending you frequent emails informing you of all the recent research published.
Now, this service is completely optional and customizable.
So if you don't want to receive these alerts, you can just turn them off...
Or, you can select which companies you want to receive the research alerts for so that you're not bothered about changes in the other companies.
The choice is yours!
With Ajit Dayal and Bill Bonner
For instance, in the past one year, we've had webinars wherein Ramesh Damani, Ajit Dayal and Addison Wiggin (the man who predicted the US financial crisis) gave our subscribers insights into investing smartly.
But our high point was when we recently got Ajit Dayal, President & Director, Quantum Asset Management Co., and Bill Bonner, President & Founder, Agora Inc., to share the dais together and present to our subscribers, investment ideas worth their weight in gold and blue chips.
Here are some of the topics that were covered at 'The Equitymaster Investment Summit 2010':
We have a limited edition twin CD pack with the complete proceedings of The Equitymaster Investment Summit 2010.
The pack includes PDF presentations by Ajit and Bill, a video recording of the event and a part recording of the Q&A session.
Ajit's presentation is titled, 400% in 10 years - Why the BSE Index 30 will keep rising?
Bill's presentation is, The Depression 2008...?
The cost of the twin CD pack is Rs 1,450 (the actual value: immeasurable), but if you subscribe to ResearchPro right away, it is yours FREE!
Note: The twin CD pack will be mailed only to addresses in India. So if you happen to be an NRI residing outside
India, you could instead have the CDs sent to a friend or relative's address in India and then relayed to you from there.
But hold on, this is where the deal gets even sweeter...
FREE Subscription to our large cap
Recommendation Service, StockSelect!
Look, we really want to make this absolutely special for you.
So when you subscribe to ResearchPro, you will also get a year’s subscription to our large cap recommendation service, StockSelect, free!
So what is StockSelect?
If you're looking at building a portfolio of blue-chip stocks that will deliver steady returns over the long term, then StockSelect is the service you need to be subscribed to.
StockSelect tells you which big companies are a "must-have" for your portfolio... and more importantly, it notifies you as and when they're available at attractive valuations.
It works on a simple principle — buying great companies at bargain prices and making staggering returns on them when the company grows rapidly in a few years.
Here are some of our recent recommendations and how they’ve done:
And the important thing to note here is that all these returns were generated well within 2 years from the date of recommendation.
Look, even though large cap companies are a dime a dozen, it's still important to know which stocks are the right stocks and what is the right price to buy these stocks.
StockSelect tells you just that!
By subscribing to StockSelect, you'll be notified of 52 blue-chip Buy/Sell opportunities AT THE RIGHT TIME.
In addition to these, we also release special reports from time to time on attractive large caps opportunities. Fast action takers will benefit from these reports also.
And the main benefit of getting ResearchPro and StockSelect together is that many of the companies we track constantly through ResearchPro are large cap. So now we not only recommend good large cap companies through StockSelect, but also help you track them through ResearchPro!
A year's subscription to StockSelect usually costs Rs 5,000. But through this offer you get it absolutely FREE!
2 Stocks that could double your money
In the next 3-4 years
Our research team has uncovered two extremely attractive stocks that could double in the next 3-4 years.
Here's a brief preview of them:
During times of uncertainties, fear is undoubtedly the usual emotion expressed by all. And the company in focus is definitely a victim of the same.
Mr. Market seems to have attached the uncertainties surrounding the industry and the company to the price of this stock.
However, we think this is the perfect time for investors to get a hold of this stock because it's available at a fabulous price.
The company is well positioned to wriggle through these uncertain times and emerge as an even stronger player once everything returns back to normal.
We believe that this indirectly emerges as a brilliant opportunity for long term value investors to get a hold of and double their money over the next 3 to 4 years.
What gives us so much faith in the company, you may ask.
This company is the largest of its kind in the country. And despite its size, it is amongst the fastest growing within the industry.
To put the icing on the cake, it is a very well run unit. The most profitable of its kind in the nation! And probably in the world as well! Further, this company touches the lives of over 10% of India's population and has a brand that definitely is unlikely to be unheard of.
In the last five years, this company has grown its revenues more than seven times; but note this -- in the same time period it has grown its profits by over 11 times! And in the process it has left its peer group way behind. This is in terms of both - size and profitability.
But the point that excites us the most is that over the next 3 to 4 years, we expect the company to far outperform its peers.
Do you feel left out when you see the hefty profits your colleague has made by investing in IT stocks when they were really cheap?
The Indian IT industry has been the poster boy of India's emergence to the forefront in the global business landscape. No doubt, this sector grew at a stellar rate of around 30% for nearly a decade till 2008. Even when the global MNCs writhed in discomfort on account of the meltdown, our homegrown IT players managed to put up a decent show.
The result: Stocks of IT companies gained 127% in 2009, outperforming the BSE-Sensex by a decent margin. All this looks like a fairytale, doesn't it? Ever wondered how it would have been if you had bought some good IT stocks at the right time?
Don't fret, all's not gone. There is still this company that has great potential and is trading at surprisingly attractive valuations.
Yes, this company whose, topline and operating profits grew at 68% and 73% respectively over the last 5 years, is available at a price to earnings multiple of one-fifth times the Indian IT giants.
What excites us about the company is not just an attractive price but also its improvised business model.
Unlike most of the Indian IT companies which are primarily pure play IT service providers, this company also deals significantly in IT products. It has a well-diversified clientele and a kitty of value-adding subsidiaries. What is more, the company has already made some significant and successful efforts in reducing debt.
And the superb returns that the stock is expected to generate over the next 3 years makes it an opportunity too attractive to ignore!
Full details of these two opportunities will be available in a report titled "An Opportunity to Benefit from These Most Undervalued Stocks" which you will get free of cost when you subscribe to ResearchPro.
A year's subscription to ResearchPro usually costs Rs 10,000.
But if you sign up now, through this offer, you can get ResearchPro for Rs 5,450 only.
That's INSTANT SAVINGS for Rs 4,550 for you.
Plus, if we also take into account all the other things you'll be getting (free subscription to StockSelect, free Investment Summit CDs, etc.) the real price you'll be paying is actually zero!
Not to forget all the money you could make using ResearchPro and StockSelect.
However, if you're still in two minds about signing up, let me just give you 4 perfectly good reasons to do so right away:
Rs 455 a Month . . .
Rs 5,450 per year comes down to just Rs 455 per month.
That's definitely a lot less than the money 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 do any good to your stock portfolio.
But now, for all of Rs 455 a month, you can actually get honest, competent research, which will make you a lot of money.
Look, I'm certain that at least one in a while you must be going through that worrisome thought of how your stocks will turn out in the years to come.
Sure, you must have picked all your stocks after researching them thoroughly... but both you and I know that just about anything is possible when it comes to stocks (remember Satyam?).
By subscribing to ResearchPro you can leave the tracking part entirely to us, and obtain the peace of mind that most investors badly crave for.
If there's any problem with one of these 100 stocks, we will inform you right away.
If there's an opportunity to make money from any of them, we'll tell you about that also immediately!
In addition, there's also no risk . . .
This subscription to ResearchPro comes with a 30-day money back guarantee.
So you can test-drive ResearchPro (and StockSelect) for 30 days... without risking anything!
And then, if you feel that ResearchPro is not for you, just get in touch with us before the 31st day and we will refund the full fee you paid. And you get to keep the Investment Summit Twin CD Pack as a thank you from our side for trying our service.
Look, we consider this a really great deal because you're getting both ResearchPro and StockSelect together, along with a lot of other stuff, for a single low price...
Whereas there are some people who are paying Rs 5,000 a year just for StockSelect.
So why hesitate any longer?
Chief Executive Officer
P.S.: By signing up for ResearchPro through this offer, you get:
P.P.S.: There's a 30-day money back guarantee on this offer, so sign up and at least see what ResearchPro is all about. If it turns out that you don't like ResearchPro, we'll gladly give back your money. Agreed?
P.P.P.S.: If you have any queries, please do not hesitate to contact us at +91-22-61434055 or Write in to us.
Equitymaster Agora Research Private Limited
103, Regent Chambers,
Above Status Restaurant,
Nariman Point, Mumbai - 400 021. India.
Telephone: 91-22-6143 4055