The debt burden on Corporate India…. Role of Saturn

Monetary tightening and hike in interest rates are integral part of India’s macro-economic adjustment process. The pain is likely to be most severe in the sectors like metals, construction, Infra and Engineering, where firms are either over-leveraged or experiencing longer working capital cycle and deepening debt by paying high interest. There are companies who have shown growth in their EBITDA but the profit margins are shrinking down due the interest and debt burden.

While this fact is on every other news channel, what I analyzed is the role of Saturn … the planet related to debts in astrology and its role in this debt crisis that the Corporate India is facing. Honestly… I believe it’s a good time for a long term investor to start nibbling stocks in Metals, Engg., Infra and Construction space. One can systematically start accumulating stocks in these sectors say every month or fortnightly from now on till November 2014, this is the time when Saturn will move out of Libra and transit into Scorpio. Currently Saturn is in the 12^th house from Scorpio and is opposing Aries zodiac. Mars rules Aries and Scorpio zodiacs and influences the Engg., Construction, Infrastructure, Defense  sectors. Metals are the most important raw material inputs to these sectors.

·         12^th house as per astrology is considered as the house of expenses / debts / losses & realization

·         Saturn is opposing Aries and is in the 12^th house from Scorpio in Libra Zodiac, Libra is ruled by Venus

·         Libra is ruled by Venus which is in Cancer Zodiac in the Indian horoscope (1947, Aug 15^th, 00:01 AM, Delhi). This placement astrologically is considered Venus seated in enemy house

·         Saturn is exalted in Libra, Mars and Saturn are enemies

While there are many other factors, one of the prominent factors for the debt issues that are piling up and the delays in decision making, slowdown are all due to the placement of Saturn in 12^th from Scorpio that is influencing the space ruled by Mars. One can argue that mars rules Aries too, but such effects are often not seen the whey Saturn is in pieces i.e.… 12^th from Aries…, and yes, this is true one will not see such effects because Saturn is exalted in Libra and not in Pieces.

I wish to bring back the attention of the readers and reiterate that an intelligent investor will accumulate stocks in bad times and sell them in good times, while the fundamental and technical stock market analysis does not time the market accurately; the astrological angle of analyzing the same will add an edge in the investor’s artillery to help pick the stocks he/she often desires to hold in the portfolio for a long term.

My top 10 picks for a very long term for 7 to 10 years time frame are ...

1. Tata Steel
2. L & T
3. BEML
4. JSW Energy
5. Va Tech Wabag
6. Rel Infra
7. Rel Power
8. Tata Power
9. BHEL and
10. Thermax

One should systematically invest in these stocks and accumulate slowly at every dip till November 2014, as Saturn will move to Mars, it will stop the trouble, as it moves back to Capricorn in 2019 one will start seeing the money invested as a sapling growing into a tree and by 2024 one will see at least 12 to 15 times growth in their portfolio for sure.

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... :-)