You have not missed the bus….

Deciding level was 4667 and Nifty made low of 4770 and bounced back with a bang. Astrologically this was due to the full moon day effect followed with the venus transit. Next Week will be volatile as we have lot of data points the crucial ones are …

                1) 12 June: IIP data for Jan 2012 (Expected 1.5%)

                2) 14 June: Inflation Data (WPI)

                3) 15 June: Advance Tax Payments due for Q1FY13

After Greece its Spain now… all said and done few factors that come to my mind for the next week looking at the starts are as follows…

·         Uranus – Pluto square and Mercury adds in completing a triangle pattern that’s a dicey situation

·         Sun and Saturn looking at each other is also an indication of trouble

·         While these two negatives will make the market volatile

·         By mid of the week there will be some optimism back with Mercury - Venus aspect…

·         Remember my theory … the new moon day will make the markets move up

So this week will end good and early next week will also see a good start and then go short in the markets the June ‘12 series will see a fall back below 4900 levels and we may have to wait till end of July to see something good happening back end.

Eurozone crisis is not going to end and this is a good time to accumulate few real good stocks for a long term investment that will turn out to be real multibaggars if you wish to hold for in the next 10 years in your portfolio… to name a few which I like the most are …

ü  JSW Energy @ CMP 46

ü  Adani Power @ CMP 47

ü  HCC (Hindustan Construction Company) @ CMP 16

ü  Abbot Limited … (the famous health drink Pediasure which every kid drinks) @ CMP 1400

ü  Punj Llyod @ 45

ü  Reliance Capital … accumulate between 250 and 325

ü  Reliance Communication @ CMP 62

ü  Last but not the least… Infy, Reliance, Coal India… evergreen for a life time

I remember the following quote by Peter lynch... " “When stocks are attractive, you buy them. Sure, they can go lower. I’ve bought stocks at $12 that went to $2, but then they later went to $30. You just don’t know when you can find the bottom.”

If you have invested in a fundamentally good stock... and if for some reason it comes down one should buy rather than selling.., dont you see when you are selling the stock there is someone else buying it... :-)

Why this Kolavari … Info worry … Wipro Worry Di…

Turn on any news channel today the only story I here is of Infosys and Wipro results not in line with expectations, the so call analysts talk as though sky is falling down…

For readers of my blog let me share some common sense of the benefits the investors have derived from WIPRO and INFOSYS in the past couple of decades…

While you read further remember investing is for long term… years together and pass on the legacy to your next generations unless you really need some money …

Let’s look at the story below…

In 1981 The Wipro ltd. issued shares @ 100 / share …. So if one purchases 100 Shares at Rs.100 each his initial investment would have been only 10000 Rupees Investment on Wipro Share in 1981, In the same year company issued bonus shares to its Shareholders in the ratio of 1:1 and year after year there were many such bonus issues that the company gave to its shareholders, nevertheless the share price also grew

In 1981 there was 1:1 Bonus that doubled the initial shares from 100 to 200 shares

In 1985,1:1 Bonus =400 shares,

In 1986 split to Rs 10 =4000 shares

In 1987,1 :1 Bonus =8000

In 1989, 1:1 Bonus =16000

In 1992 ,1:1 Bonus =32000

In 1995 ,1:1 Bonus =64000

In 1997 ,2:1 Bonus =1,92,000

In 1999 Split to Rs 2 =9,60,000

In 2004 2:1 Bonus =28,80,000

In 2005 1:1 Bonus =57,60,000

In 2010 3:2 Bonus =96,00,000

Today after the so called poor performance of one quarter the stock price tanked to 400 levels and you still are sitting on a whooping profit of Rs 400+ Crores !!!

Let’s look at the Infosys story… Investment in 1993 Infosys Share 100 @ 95 = 9500/- ( IPO ) price and if you were unable to pick via IPO form the open market the stock you would have picked up paying 14500 on the opening day the stock opened at 145.

In the year 1994 Infy gave first Bonus issue of 1:1 = 100+100 = 200 Shares

In 1996 Bonus 1:1 =200+200 =400 Share

In 1998 Bonus 1:3 =400 + 1200 = 1600 Share

In 2000 Split Face value 10 to 5 = 1600*2 = 3200 Share

In 2004 Bonus 1:1 = 3200+3200 = 6400 Share

In 2006 Bonus 1:1 = 6400 + 6400 = 12800 Shares

One can expect a bonus again in the year 2012/13 ... the bad economic weather and uncertinity will not last for a long time, for sure there will be optimism back and one can be rest assured that the S & P ratings will soon turn positive

In 2011 Infosys Share after testing an all time high of Rs. 3475 /- per share today the price is at 2350/- after the so called poor results of a couple of quarters, Investment in 1993 Only 9500 /- investment has filled your pockets currently with a sum more than Rs. 4 Crores

Will any other investment like a Real estate, Gold etc. give such returns, I laugh at the Analysts on the television who comment that one should get out from Infosys and Wipro and park funds in other instruments…

In fact the Opposite should be done…if you have missed the bus earlier it’s time to buy shares like Infosys and Wipro and keep them in your portfolio for ever… from current levels too one can expect multifold returns… What else will you buy if you dont buy Infy, Wipro, TCS, HCL, Mindtree from the IT world and add in to your portfolio...

and so …. Why this Kolavri… Info worry… Wipro Worry di…