As I promised in my last post that will say my reviews on stocks, Today is the best time to talk about stocks as investment option being long term investor.
Why today is best day?
yesterday was this years first highest gain for Indian stock market and ie the trigger for second highest gain, which may happen today or tomorrow.
All blue chip stocks are trading at 20-25% less than their peak values.
One can except a good returns over next 18-20 months. please visit my views about investment and insurance in my previous post. Insurance and investment are different posted at My first blog
For example take SAIL – The present market capitalization of the company is close to Rs.80,000 cores at current market price of Rs.190 per share. The present debt of the company at Rs.2,500 cores makes company virtually debt free, net off, net current assets. Share is presently ruling at Rs.190, which discounts its FY 09 EPS by about 8 times. The steel sector is likely to remain attractive at the current levels, as all the stocks have corrected by about 30% to 35% in the last couple of months, which indicates 50% return in next 12 months. No one can bet on this.
Another example could be GMDC – Gujarat Mineral Development Corporation Ltd. (GMDC) is a Gujarat State government undertaking engaged in the business of lignite, bauxite and fluorspar mining as also power generation units based on Lignite, and market capitalization of close to Rs.5,000 cores for the company. The share which is now ruling at Rs.308, would go ex-bonus by the end of April at Rs.155. The stock at this rate is quite cheap, which can give a conservative return of close to 50% per annum over the next two years excellent bet on cum bonus basis.
These are just two example analysis and other include list I have mentioned above.
If you are long term investor like holding stocks for more than a year then you are exempted from capital gain tax. No need to pay tax after one year withdrawal, Think.
Before market opening .. Here we go..
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