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Thursday, January 1, 2015

Announcing re-opening of paid subscriptions to my Monthly Investment Newsletter

I am pleased to announce the re-opening of paid subscriptions to my monthly investment newsletter for a 3 weeks period from Jan 1-21, 2015. Only a limited number of subscriptions will be offered to blog visitors, followers and subscribers – on a first-come first-served basis – to enable me to provide personalised attention and guidance to each subscriber.

If you are interested in subscribing, please send an email to: mobugobu@yahoo.com at the earliest for details.

The newsletter has completed 60 issues, with its share of hits and misses. 2014 was a good year for the stock market with the Sensex hitting a new lifetime high. Many good mid-cap and small-cap stocks rose 3 or 4 times from their lows. That made stock selection difficult because finding value was a challenge. The sharp correction during Dec ‘14 has brought down several selected stocks from their peaks – affecting year-end performance. It is gratifying that subscribers have kept faith in my stock picking abilities.

Those who have been following my blog posts regularly already know what kind of stocks to select, and what type of stocks to avoid. The guiding principle is to choose well-managed, financially prudent companies that generate cash from operations, have low debt, give steady (rather than spectacular) returns and have growth prospects.

Non-subscribers may be interested to know how recommended stocks have fared during the past 18 months. Without revealing the names of the stocks (it won’t be fair to my subscribers to do so), here is a brief results table with recommended dates and prices, subsequent high and low prices, closing price and gains as on Dec 31, ‘14:

Stock

Date

Price

High

Low

Close

Gain

A

Jul 26 ‘13

93.10

687.40

72.50

675.65

625.7%

B

Aug 27 ‘13

216.55

335.00

206.25

251.50

16.1%

C

Sep 27 ‘13

130.55

211.45

130.30

203.35

55.8%

D

Oct 29 ‘13

98.75

109.00

62.00

67.35

-31.8%

E

Nov 27 ‘13

39.00

146.50

37.40

138.05

254.0%

F

Dec 27 ‘13

128.10

257.45

115.10

201.45

57.2%

G

Jan 28 ‘14

67.00

122.00

66.00

78.95

17.8%

H

Feb 26 ‘14

154.60

159.40

75.30

86.95

-43.7%

I

Mar 28 ‘14

89.00

293.50

84.60

279.40

213.9%

J

Apr 25 ‘14

277.20

458.45

266.00

393.00

41.8%

K

May 27 ‘14

94.10

471.70

93.25

344.75

266.4%

L

Jun 27 ‘14

62.60

88.00

59.00

68.45

9.3%

M

Jul 28 ‘14

206.50

267.90

191.90

242.10

17.2%

N

Aug 28 ‘14

115.50

182.45

113.25

153.65

33.0%

O

Sep 26 ‘14

46.00

52.80

37.50

43.95

-4.4%

P

Oct 27 ‘14

250.10

299.85

248.10

267.90

7.1%

Q

Nov 27 ‘14

231.85

340.00

221.00

319.90

38.0%

R

Dec 26 ‘14

66.60

71.90

66.25

70.00

5.1%

All recommended stocks were small-cap or mid-cap, picked for long-term investment of 2 to 3 years. Several of them (in bold) are already showing excellent gains, including 4 multi-baggers – even after falling from their recent highs – which is a testimony to their underlying strength. Note that three stocks are showing losses (in italics), but the Sep ‘14 stock is undergoing consolidation and is expected to perform better.

A different perspective on the above performance: By blindly investing (not recommended) Rs 10,000 in each stock and holding on till Dec 31 ‘14, a subscriber would be sitting on gains of close to Rs 158,000 (62% annualised) – outperforming the Sensex (31%) and BSE Mid-cap index (50%), and slightly underperforming the BSE Small-cap index (66%).

Note that all 18 stocks touched higher levels after my recommendations. It helped that the Sensex has been in an uptrend since Aug 2013. In a 2-3 years time frame, I expect the laggards to improve their performances.

What is important to understand is that none of these stocks were ‘cheap’ – fundamentally strong stocks rarely are - and some had already run up quite a lot when they were recommended.

Why wait if you wish to add fundamentally strong mid-cap and small-cap stocks with growth potential to your portfolio? Just subscribe to my Monthly Investment newsletter. Send me an email (at mobugobu@yahoo.com) soon – subscriptions will close on Jan 21, 2015.

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