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About our recommendations |
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There are websites and websites and websites that offer you investment ideas, then there is Bsplindia.com ! Our trading and investment recommendations are backed by careful thought processes that go beyond the routine. We firmly believe that buying stocks based on analysis means going beyond armchair analysis. You cannot afford to sit with the last 5 years balance sheets, profit and loss accounts and fund flow statements and decide to buy / sell a stock. Remember, these documents are provided by the company managements and may or may not be true !! We put these claims to the test, in fact many tests. Also, we do not just depend on technicals to generate buy / sell signals for you. We try to take into consideration as many factors as possible to insulate your money from unpleasant surprises. Example # 1 Our readers will remember how we had recommended a short sale view on Hind Lever since February 2001 on the basis of a market sampling survey. Six of the top clubs, supermarkets or department stores were chosen for this study, the object being to chose affluent localities where price barriers would be completely irrelevant. We noticed that HLL products were not selling, people at the point-of-sale - cashiers, stockists and like were very clear that HLL was taking a drubbing from it's competitors. That convinced us that HLL was likely to under-perform the markets. We then counter checked with technical charts, fundamental analysts and fund managers. We found that they had concerns about the company's top-line growth too. It was then that we put a short sale at a price of 245. The rest is history ! The stock fell Rs 100 ( 40 % ) since then, and gave you opportunities to deploy funds elsewhere. Example # 2 We were watching the domestic pharmaceutical stocks perform in a lethargic fashion of late and decided to look up the competition. We found that India follows the process patent route, wherein, a manufacturing process is patented by drug companies. It leaves the door open for competitors to modify the process a little and skirt around the patent and manufacture cheaper replicas. MNC pharma players therefore did not launch their latest drugs in India. The country is a signatory to the WTO's IPR / EMR regime which will be implemented in 2005. It was obvious that MNC pharma companies would make windfall gains. We chose Glaxo Pharmaceuticals as it had the largest product portfolio, was re-structuring aggressively and cutting costs. The Bombay property was on the chopping block and was expected to fetch approx Rs 80 crs, a successful VRS was implemented and tail ended brands were hived off. We put a buy on the counter at Rs 260 and the stock never looked back. Example # 3 In the first week of May 2003, we noticed an usual rise in MTNL, newspapers reported leading FII investors as buyers on various grounds like dividend play, better business prospects, higher revenue streams on account of tariff hikes. We decided to take a closer look. We found that perceptions were misguided, MTNL was unlikely to hike tariffs sharply, especially before general elections, AND risk losing customers to private players like Tata Indicom ( Hughes ), Bharti and Reliance. Though the broader perception was that of bullishness, we did not put out a buy recommendation but advocated that our clients short sell at 99 levels. Within 7 working days, the price collapsed after great volatility and futures traders reaped a windfall !!! These are but a few examples of our advisory services. Our satisfied customers are a living testimony of our services ! Your feedback is important ! Please click here to let us know your views. Click here to inform a friend about this page on our website. |
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