DUSSEHRA WISHES

BASF LTD - UPDATE

BASF LIMITED - recommended @ Rs.510 hits its life time high today @ Rs.1370 .Those with some risk appetite can still HOLD this 73 % subsidiary of world's largest chemical company , for long term.

Recommendation link HERE

NINE BOOKS BILLIONAIRE WARREN BUFFETT THINKS EVERYONE SHOULD READ .....

 COURTESY :BUSINESS INSIDER

When Warren Buffett started his investing career, he would read 600, 750, or 1,000 pages a day.Even now, he still spends about 80% of his day reading."Look, my job is essentially just corralling more and more and more facts and information, and occasionally seeing whether that leads to some action," he once said in an interview."We don't read other people's opinions, “he says. "We want to get the facts, and then think."To help you get into the mind of the billionaire investor, we've rounded up his book recommendations over 20 years of interviews and shareholder letters.

1."THE INTELLIGENT INVESTOR " by Benjamin Graham

When Buffett was 19 years old, he picked up a copy of legendary Wall Streeter Benjamin Graham's "Intelligent Investor."It was the one of the luckiest moments of his life, he said, since it gave him the intellectual framework for investing."To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information," Buffett said. "What's needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework. This book precisely and clearly prescribes the proper framework. You must provide the emotional discipline."

2."SECURITY ANALYSIS" by Benjamin Graham

Another groundbreaking work of Graham's, Buffett said that "Security Analysis" has given him "a road map for investing that I have now been following for 57 years."

The book's core insight: If you do a thorough enough of analysis, you can figure out the value of a company — and if the market knows the same.Buffett has said that Graham was the second most influential figure in his life, only after his father."Ben was this incredible teacher, I mean he was a natural," he said.

3."COMMON STOCKS AND UNCOMMON PROFITS" by Philip Fisher

While investor Philip Fisher — who specialized in investing in innovative companies — didn't shape Buffett in quite the same way as Graham did, he still holds him in the highest regard.

"I am an eager reader of whatever Phil has to say, and I recommend him to you," Buffett said.In "Common Stocks and Uncommon Profits," Fisher emphasizes that fixating on financial statements isn't enough — you also need to evaluate a company's management.

4."STRESS TEST : REFLECTIONS ON FINANCIAL CRISES" by Tim Geithner

Buffett says that the former Secretary of the Treasury's book about the financial crisis is a must-read for any manager.

Lots of books have been written about how to manage an organization through tough times. Almost none are firsthand accounts of steering a wing of government through economic catastrophe.

"This wasn't just a little problem on the fringes of the U.S. mortgage market," Geithner writes. "I had a sick feeling in my stomach. I knew what financial crises felt like, and they felt like this."

5. "THE ESSAYS OF WARREN BUFFETT"

If you want to get to know the way Buffett thinks, go straight to the Sage himself.

In this collection, he keeps it very real — in his signature folksy-intellectual fashion.

"What could be more advantageous in an intellectual contest — whether it be chess, bridge, or stock selection —than to have opponents who have been taught that thinking is a waste of energy?" he asks.

6. "JACK :STRAIGHT FROM THE GUT " by Jack Welch

In his 2001 shareholder letter, Buffett gleefully endorses "Jack: Straight From The Gut," a business memoir of longtime GE exec Jack Welch, who Buffett describes as "smart, energetic, hands-on."In commenting on the book, BloombergBusinessweek wrote that "Welch has had such an impact on modern business that a tour of his personal history offers all managers valuable lessons."

Buffett's advice: "Get a copy!"

7. "THE OUTSIDERS" by William Thorndike, Jr.

In his 2012 shareholder letter Buffett praises "Outsiders" as "an outstanding book about CEOs who excelled at capital allocation."Berkshire Hathaway plays a major role in the book. One chapter is on director Tom Murphy, who Buffett says is "overall the best business manager I’ve ever met."The book — which finds patterns of success from execs at the Washington Post, Ralston Purina, and others — has been praised as "one of the most important business books in America" by Forbes.

8."THE CLASH OF THE CULTURES " by John Bogle

 Bogle's "The Clash of the Cultures" is another recommendation from the 2012 shareholder letter.In it, Bogle — creator of the index fund and founder of the Vanguard Group, now managing $2.0 trillion in assets — argues that long-term investing has been crowded out by short-term speculation.But the book isn't all argument. It finishes with practical tips, like:

a)      Remember reversion to the mean. What's hot today isn't likely to be hot tomorrow. The stock market reverts to fundamental returns over the long run. Don't follow the herd.

b)      Time is your friend, impulse is your enemy. Take advantage of compound interest and don't be captivated by the siren song of the market. That only seduces you into buying after stocks have soared and selling after they plunge.

9. "BUSINESS ADVENTURES :TWELVE CLASSIC TALES FROM THE WORLD OF WALL   STREET" by John BrooksBogle's "

 

The Clash of the Cultures" is another recommendation from the 2012 shareholder letter.

Back in 1991, Bill Gates asked Buffett what his favorite book was.To reply, Buffett sent the Microsoft founder his personal copy of "Business Adventures," a collection of New Yorker stories by John Brooks.Gates says that the book serves as a reminder that the principles for building a winning business stay constant. He writes:  For one thing, there's an essential human factor in every business endeavor. It doesn't matter if you have a perfect product, production plan and marketing pitch; you'll still need the right people to lead and implement those plans.The book has become a media darling as of late; Slate wrote that it's "catnip for billionaires."

ARROW COATED PRODUCTS / AIMCO PESTICIDES - UPDATES

 ARROW COATED PRODUCTS  LTD

Arrow Coated Products is one stock I introduced to my readers through GTS -3 @ Rs.12 . Today stock hits its life time high @ Rs.225 .Stock already turned as a 17 bagger for investors with patience, within  one year itself. Still recommending to Hold it .

Recommendation Link HERE

 AIMCO PESTICIDES LTD

Aimco Pesticides is one recent recommendation ( GTS -6) around Rs.40 . While recommending this stock , I mentioned  about the promoter purchase up to a rate of Rs.35 .As per today's disclosure to stock exchange ,promoters again purchased shares even at a price of Rs.73 . I believe , it is an extremely positive development which indicating promoter's  confidence about the future of their company. Still recommending to Hold it.

Disclosure Links HERE and HERE

SMS PHARMACEUTICALS LTD - UPDATE

SMS PHARMACEUTICALS LTD recommended @ Rs.240 about six months back hits its 52 week high Yesterday @Rs.585 .Those with some risk appetite may still HOLD this stock for long term

Link to old posting HERE

LA-OPALA RG LTD - UPDATE

LA-OPALA RG  initially recommended @ Rs.66  hits its life time high today @ Rs.1668.Company decided to split the face value of its shares from Rs.10 to Rs.2 . September 25, 2014 has been fixed as a Record Date for the purpose of Sub- Division.

Old Recommendation HERE

HINDUSTAN TIN WORKS LTD - POWER PACKED

     

Recently  we discussed two stocks from different verticals in packaging Industry. Polyplex from Polyester film based and Mold Teck Packaging from IML packaging sector . This week let us look into another company from a related sub sector – Metal packaging .Even though plastic packaging is gaining more acceptance ,some products still need metal packaging due to  special characteristic of products to be packed. Chemical reactions, keeping right nutritional / aesthetic values, requirement of extended shelf life ..etc compelling the producers of certain products to prefer metal packaging.This  situation ensures  enough room for metal packaging majors to grow though the chances for new entrants are bleak. At present, metal packaging commanding a 10 % market share of  total consumer packaging market. In this background, let us look into Hindustan Tin Works Ltd which  commanding  20 % of metal packaging market in India. HTWL manufacturing tin/metal cans and closures used in packaging of baby foods, edible oils,paints, ghee, canned food items, fruit pulp,juice,protein powder, shoe polish  etc. Company mastered in Aerosol cans and Beverage Cans . Aerosol cans are mainly used to pack Deodorants, Room Fresheners,Pesticides,paints and industrial products .Beverage cans are used to pack Juices,Flavoured milk and other beverages.Longer shelf life without refrigeration and leakage is an added advantage of beverage cans .Company’s major consumers includes the who is who of FMCG  and Food Industry like GSK consumer, Nestle, Britannia, Del-Monte Foods , Asian Paints,Reebok ..etc.

Company reported a top line of Rs.314 Cr , bottom line of Rs.8.5 Cr and an EPS of Rs.8 in last FY .Current book value of company is over Rs.100.Promoters holding 40 % stake and world’s largest steel trading group Switzerland based Stemcor A G holding another 10 % stake in this company.Now,  management  aggressively tapping emerging  opportunities by developing new products and entering into more overseas markets. The potential of Indian food processing Industry , softening of metal prices,revival of economies and company’s new initiatives are expected to drive the growth momentum forward.This market leading can maker is currently trading with a market cap of less than Rs.70 Cr and a P/E multiple of  8 .Stock is currently trading 30 % discount to its book value of Rs.100 . I believe ,it is one good stock which listed only in BSE and CMP around Rs.70


Link to Company Website HERE 

Disc: It is safe to assume that I have vested interest in HTW

 

   
 

CENTUM ELECTRONICS - UPDATE

  

CENTUM ELECTRONICS  recommended  @ Rs.88 .Yesterday stock hits its 52 week high @Rs.474 .Still recommending to HOLD this stock for long term.

Recommendation Link HERE

ALPHAGEO INDIA - UPDATE

This stock recommended @ Rs.38  is currently trading  at its 52 week high @ Rs.526 .Stock already multiplied by 12 times in 11 months . Those with  low risk appetite may sell 25 % of remaining holding and keep the rest .

Link to Recommendation HERE