And Google a Run for Their Money
100% returns over the next 2-3 years!
Dear Smart Reader,
Would you believe me if I told you there is an Indian company that has grown faster than global giants like Google, Microsoft and Apple?
And not just that...
Other than Hindustan Lever and ITC, this is the only company in India that is connected closely to the daily lives of almost 15% of the country's population.
The truth is we rarely hold any Indian company in high regard when it comes to innovation or its close connection to the masses.
But this company is different!
It scores pretty high on innovation. And it also has its roots touching the daily lives of a huge mass of Indian population.
The sad part though is that most investors are hesitant to buy this stock, as the public opinion about it is not so good at the moment!
Yes, people don't seem to be aware of this company's long-term growth potential. They're only taking the current state of things into account while coming to a conclusion about it.
But you know what?
This is actually a good thing for you...
Because it allows you to grab a perfectly good stock for dirt-cheap and make 100% returns on your investment over the next 3-4 years.
Over the years, not only has this company grown at a brazen pace in terms of client base, sales and profits... it has also done the same in the most profitable manner.
What else would justify the fact that while its sales have multiplied 8 times over the past six years, its profits have multiplied a whopping 13 times!
It is in recognition of this very performance and the company's usage of technology in an innovative way, that a leading global business magazine recently ranked it 6th worldwide...
Ahead of tens of thousands of publicly traded businesses and leading tech players!
In fact, this company ranked ahead of the maker of Blackberry phones Research In Motion, technology giants Apple and Microsoft, and Internet giant Google in this esteemed list!
I'd love to tell you more, but then everybody will easily know which company this is, buy it quickly and send its price shooting up.
You don't want that, do you?
That's why we have compiled all the details about this stock into a new special report titled "India's Answer to Google: A Bluechip That Will Double Your Money."
We'll give you this report for FREE!
All we ask in return is that you try our large cap recommendation service -- StockSelect -- without risk for 30 days.
The usual price of StockSelect is Rs 5,000 per year.
But for the next 5 days, you can subscribe to StockSelect for Rs 2,950 only.
You can sign up at this highly discount price and test-drive StockSelect for a full 30 days.
If you don't like it, get in touch with us before the 31st day, and we'll refund the entire fee you paid. That's a promise!
But you must act quickly.
This offer will close on 21st May, 2010. After that, you will no longer get the special report plus a lot of other things (details below)...
And the subscription price of StockSelect will also go back to the usual Rs 5,000 after 21st May, 2010.
At this point you may ask...
And why StockSelect?
You see, the truth is way too many people take chances when investing in stocks.
Time and time again, they bet their hard-earned money on little known companies.
And when you ask them why they decided to invest in such risky stocks, the common reply is that they wanted to multiply their money fast... and somebody -- usually a friend or a broker -- told them these stocks could do that for them.
How shocking is that!
History is filled with examples of people who lost everything in the stock market trying to become rich quickly.
You don't want to end up like them, do you?
Leading Automobile company. . . Safely!
Imagine buying for dirt cheap a company which controls 2/3rd of the Indian commercial vehicle market, and has in its stable some of the best selling four wheelers in the country.
If indeed there were just one example of the 'Great Indian Corporate Sale', it would have been difficult to beat Tata Motors.
This company sells about three hundred thousand commercial vehicles and more than two hundred thousand passenger vehicles every year.
Therefore, in view of the attractive valuations, we asked our investors to take advantage of the sale.
Those who have are currently sitting on an impressive 486% gain. And there could be lot more to come.
Though Tata Motors is a good company with strong fundamentals, it ran into some pretty turbulent weather at the time... and that led many people to believe the company was about to go bankrupt.
In fact, when we zeroed in on Tata Motors, its stock value had fallen about 75% from its highest levels in 2008.
But we saw the future prospects for the company to be extremely good.
So while everybody else was recommending a SELL on this stock, we suggested to our subscribers that they buy it instead.
And the stock is up 486% since then.
on India's largest oil company. . .
Again without any risk!
There's no way that international crude oil prices would have remained in the mid 30s per barrel which they had touched during the depths of the bear market.
Everyone believed the prices will go lower still. We believed otherwise and went about looking for investment opportunities in oil.
The best thing, of course would have been to play in the crude oil futures market. However, we have no expertise in that.
So we did the next best thing instead.
We recommended ONGC, India's largest public oil exploration company.
What's more, we also got access to a management with a wealth of experience in the field and a balance sheet that was rock solid.
And when oil prices started to look up as we had anticipated, our recommendation was rewarded with 64% gains in a matter of few months.
You Don't Have To Invest In Risky Stocks
To Become Rich
Let me repeat it one more time so that it's absolutely clear...
You don't have to invest in risky stocks to become rich.
In contrast, you can get rich without taking any risk at all... by investing in the safest and sturdiest of all stocks - the Blue-chip stocks.
There are two major misconceptions people have when it comes to blue-chip stocks:
a) You cannot get them dirt-cheapWrong!
Take Zee Entertainment for example...
We recommended this media company when there was a general pessimism towards Indian equities.
Investors were dumping stocks left, right and center. They failed to realize that this company belongs to a sector where a slowdown is going to have minimal impact, not to mention that the company continued to hold promise from a long term perspective.
This brought down the price of the stock greatly and made it attractive for investors.
Furthermore, what made the case for Zee entertainment even more compelling was its firmly established position in the entertainment and broadcasting space.
Hence, we recommended it to our subscribers...
And when market came back to its senses, the stock had a fantastic run... going up by more than 143% in a span of few months.
from blue-chip stocks!
Like in the case of Maruti Suzuki...
A strong balance sheet with virtually no debt, a formidable market reputation and a presence in a market where car penetration is woefully low were not enough reasons for investors to realize the long-term potential of this stock.
But we're not complaining.
When a mass exodus from the counter began, we knew we had a winner on our hands and if we sit patient for 2-3 years, attractive returns will follow.
Luckily, it took markets a lot less than that to figure out the true potential of the company and there has been no looking back since.
And it is now up a handsome 132% since our recommendation.
So what was the common thing in all these cases that made investing in these stocks so profitable, and so non-risky?
2) They were all blue-chip companies IN DISTRESS
Maybe you've wondered why so many people prefer blue-chips to other stock investments.
Because blue-chips are all well-established companies with stable earnings and no extensive liabilities.
So the risk associated with blue-chips is very low, and you can be assured of steady returns and dividends from them year after year.
And then, there's also a strong belief among investors that blue-chips are virtually immune to any and all kinds of problems.
That's not really the case.
The truth actually is that...
From Time To Time
The reasons could be anything like...
When things like that happen, the demand for the blue-chip stock falls temporarily... bringing its price down and making it available to you at a discount!
This is when you need to act fast and grab the stock.
If you manage to do that, you can assure yourself of big returns from blue-chip stocks also.
Let me give you just two more examples...
Top Public Sector Bank
Yes, I'm talking about SBI...
We recommended this banking behemoth at a time when some of the largest banking companies globally had succumbed to the credit crisis or had been at the mercy of bailouts, making the case for large institutions weak.
However, SBI had more to it than its limited exposure to global markets, mark to market losses on its investment book and possibility of default in mortgage loans.
It had 20% share of the Indian banking system's deposits and advances and was the only one to grow its share in FY09 with the help of its franchise that is the largest in the sector.
Thus, when investors failed to realize this and dumped the stock, we whole heartedly recommended it to our subscribers... making them party to an impressive 95% gains.
147% in 15 months from
a cement major. . .
Agreed that the cement sector is going to witness some sort of capacity glut in the medium term.
Also agreed that there was so much fear all around, especially towards the end of 2008 that it was difficult to believe that infrastructure and construction activity will not go into a sound sleep for quite some time to come.
But if valuations get beaten down to levels when cement capacities are available at half the replacement cost - especially those of a strong player like Ultra Tech in an economy like India where growth will suffer cyclical but not structural blips - such opportunities need to be seized and seized big time.
This is exactly what we did and the 147% returns since our recommendation eventually proved us right.
Hence the secret to getting rich in the stock market SAFELY is...
And making huge returns on them when they
Grow rapidly in a few years
If you've been in the stock market long enough, you'll know about the fascination investors had for small caps until about 20 months ago when the bull market was at its peak.
At that time, spending as much money as you can on Small Caps was a fad among investors.
Many "Small Cap Millionaires" sprung up quickly as a result of that.
However, when the stock market crashed in January 08, many of these small companies got wiped out completely.
Suddenly, nobody was talking about small caps so much anymore.
Well, that's the thing about all the companies that are not Blue-chip -- one day they're there, and the next...
Of course, no investment is 100% guaranteed. Not even Blue-chips!
But with the BIG companies, you can be confident that they will not disappear overnight and take your investments with them.
I don't know about you, but I'd prefer grabbing a safe 100% return in 3-4 years anytime...
Rather than invest my money on some hyped-up small company, never knowing when my gains would be wiped out.
Can Give You Amazing Returns
You need to know exactly which big companies are likely to make bigger returns for you and of course, when is the right time to buy them.
And this is where Equitymaster comes in...
You see, we've got this Premium research service called StockSelect.
If you're looking at building a portfolio of blue-chip stocks that could 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.
Consider GAIL for example...
GAIL is to India's gas transportation sector what SBI is to the Indian banking system... and infact, a little more.
When we recommended the stock, it was yet another compelling growth story available at great valuations.
And the stock has not disappointed, rising an impressive 116% from the time we recommended the stock in January 2009.
Not a bad return at all in just 15 months.
Great companies always recover when the storm passes.
So if you buy the blue-chip stocks at the right time, you could easily make attractive returns over 3-4 years.
52 Blue-chip Recommendations. . .
Every Saturday, we'll send you a StockSelect report recommending a Buy/Hold/Sell on one large cap company.
In this report, we will provide you detailed and extensive analysis of the company along with our expert opinions.
The important things to note here are...
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 and time to buy these stocks.
StockSelect tells you just that! Take Marico for instance...
Marico is yet another example of a good quality stock getting beaten down due to the overall negative sentiment prevailing in the stock market.
Not only did the valuations start looking attractive when they suffered a hammering but the company's business model was also undergoing a transformation for the better.
From just coconut oils, the company had extended its portfolio to cover the entire gamut of hair care segments, edible oils, jams, soaps and skin products, growing its topline at a compounded annual rate of 20% over the past 5 years.
The remarkable aspect of the company's performance was its dominant market share in each of the categories it operated in.
You tell me - how can one not scoop up such companies especially when the market has lost its rationality?
Echoing our predictions, the stock has returned a cool 118% from the time we recommended it to our subscribers.
By subscribing to StockSelect, you'll be notified of 52 exciting Blue-chip Buy/Sell opportunities at the right time.
You can then explore the opportunities further if you like, and pick a final list of blue-chip stocks to invest in.
In addition to these, we also release special reports from time to time on attractive large caps opportunities (like the Tata Motors example we discussed above).
Fast action takers will benefit from these reports also.
The Companies Recommended. . .
Also, we don't just recommend some companies and forget about them.
At the end of each quarter we review all the stocks that we recommended during the six month period prior to that.
We provide subscribers our latest analysis on all those recommendations... and whether we maintain our views on them or have changed the same.
We illustrate in detail our reasons for maintaining the stance or change in stance, and finally summarize all of those into a table as you can see below:
Apart from these quarterly reviews, another thing that forms part of the "ongoing coverage" is the Quarterly Result Analysis that we write for all companies under coverage... wherein we also mention whether the results are in line with our estimates or not, and whether we maintain our view on the stock or not.
Given that the markets are likely to remain bumpy for some more time, this kind of information can come in very handy.
Here's what one subscriber had to say about our review reports...
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 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 articles include excerpts of management meetings, extracts of conference calls, updates on the happenings in a company and our personal views on it, and so on.
This is all "unadulterated" information and it will serve as a valuable input for your investment decision.
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 some 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 StockSelect, you get it absolutely FREE.
And the important thing here is that the Portfolio Tracker has been updated recently...
So I was talking about the NEW Portfolio Tracker above, and the new and improved tracker is even better than the old one!
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 StockSelect.
With Ajit Dayal and Bill Bonner
At Equitymaster, we believe in regularly giving our subscribers the opportunity to meet and get their queries answered by some of the sharpest minds in the world of investing.
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.
"Straight from the Hip" is our weekly stockmarket column that has run for over 18 years now on various platforms.
This column is written by J Mulraj, an MBA from IIM, Kolkata and an observer of long standing. He is now India Representative for Institutional Investor. A keen observer of events and trends, he writes in a lucid yet readable style and takes up issues on behalf of the individual investor.
You will get this exclusive column delivered to your mailbox, every Saturday, absolutely free of charge!
That means you now have at least 3 very good reasons to subscribe to StockSelect RIGHT AWAY:
This offer will be available till 21st May, 2010 only, and we really don't want you to miss out.
If you make use of this offer, you can subscribe to StockSelect at a highly discounted price and try the service for 30 days without risk.
During this one month, you'll get 4 current issues of StockSelect... plus access to archives of all the previous issues.
After going through the current and past issues, you should have a good idea of whether StockSelect is for you or not.
If you don't like what you see, just let us know before the 31st day and we will refund the entire price - no questions asked.
Chief Executive Officer
P.S.:This offer closes on 21st May, 2010. So sign up before then and also get...
P.P.S.: There's a 30-day money back guarantee on this offer. So sign up and at least see what StockSelect is all about. If you don't like it, we'll give you a refund anyway.
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. We will be delighted to assist you!
Equitymaster Agora Research Pvt Ltd
15, Khetan Bhavan, 3rd Floor, 198 J Tata Road,
Churchgate, Mumbai - 20.