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Charts & Analysis

Virtual Portfolio: Adding Hero Honda, Gold, Aftek Infosys

So into the 5L virtual portfolio come three stocks:

Hero Honda: Strength in auto is evident in this counter. This is largely a technical buy of a strong stock in a beaten down sector: Auto. I have strong hopes for rural auto buys, especially with dropping fuel prices, better roads and lowered interest rates. Hero Honda is a strong stock, and while the fundamental reason for the strength isn’t evident, I’m listening to the price. 10% on this stock at 792.

Gold Bees: I’m just a sucker for this commodity – 10% exposure at 1339.

Aftek Infosys: This company trades at half its cash. With Rs. 30 of cash in the bank, and half yearly EPS of Rs. 9, it’s tough to imagine the worst is yet to come. Still, the cash is parked in Portugal (of all places) and there is the danger of a shady past (involving Ketan Parekh and all). So, let’s do a 2% bet on this stock at 14.20, with plans to scale in as we cross 16, 18, 20.

Yeah, this is a little unfair coming a day after a stimulus package and all. But I’ve actually bought these myself, and I have suggested them for accounts where I consult, and we’ve been buying for the last few weeks. So huge-ass disclosure: I’m quite hugely invested in these stocks.

Disclaimer: Do not follow this portfolio – it is virtual and while I do have positions, they do not reflect proportions I mention here. This is not advice. This is not meant to be for you – it is only an expression of my opinion for me. I know you already know this, but it’s the legally correct thing to do.

  • Anonymous says:

    >Hi,
    Do you happen to know the best ways to invest in silver and platinum?

  • Mediocre says:

    >Do you think Aftek’s shareholders will ever get that cash you’re talking about.
    The company should be buying back shares if it has cash.
    I heard the cash is lying in Portugal.
    And with this Satyam saga investors will be even more suspicious.

  • rapidriser says:

    >Hope the Satyam case has convinced you that cash on books is not the same as cash in bank. My suggestion is get out of Aftek now while the losses are still minimal.

  • Deepak Shenoy says:

    >You guys are right. I need to get that out of the portfolio.

  • N Mehta says:

    >Hi! ONE JYOTISH HAS MENTIONED….
    1. DON'T BUY GOLD OR SELL GOLD THROUGH PAPER MODE EVER IN LIFE. USE IT TO HEDGE IF PHYSICAL HOLDINGS IF U LIKE FOR BUSINESS PURPOSES IN SOME CASES.
    2. AFTEK INFOSYS
    LETS IMAGINE THE CASH IS NOT THERE OR NOTHING IS THERE IN THE CO. BUT WHAT IS THE REAL ESTATE VALUE ALL IN ALL & FUND RAISING CAPACITY & PUT A NUMBER TO IT IN A SLIDE SHO.
    3. HERO HONDA
    I LIKE THE BIKES. BUT THE STOCK A NO NO. HELMET PRICES ARE STILL WAY TOO HIGH & BIKE RIDING DISCIPLINE IS A BIG CONCERN TOO.

  • Deepak Shenoy says:

    >Don’t bother trusting the sages – they are just as fallible as you and me; assuming this is just another bloke speaking:

    1) You give no reasons, so sorry, paper mode it has to be.

    2) Aftek: No slideshows – please pay your local broker for that kind of info. There’s no need for fundamental analysis – as I have realised – price dictates everything.

    3) Hero Honda: NOte that it has gone up 5% when the market has tanked 10%. In fact it’s been stable when the market has fallen 60% since Jan 08. Of course, like always, a strong stop loss adherance is necessary.

  • N Mehta says:

    >1. Gold in paper mode is dangerous. Since it falls under government OR corporate paper norms.
    Governments tend to manipulate currencies & so Gold in physical form in hand ONLY has true value. The home maker can be the vault for ever.

    2. Aftek Ltd. is too cheap & so I shall doubt it, unless I come across a report of its real estate intrinsic value going ahead.

    3. Hero Honda : I strongly recommend shorting the co. Risks being. (i) China competition can flow into India in the bikes segments. (ii) Auto indust. needs room for disciplined growth. (iii) RTO's are lax. Better riding days can come but this is not the right time.

  • Deepak Shenoy says:

    >N Mehta: I don’t believe Gold in paper mode is bad; there’s no such “government or corporate paper” norms you talk about.

    Aftek – I’m already out of it mate, if you noticed.

    Hero Honda: Tell you what, why don’t you short, I’m long…I don’t agree with any of the arguments (Chinese bikes are already here, but they’ve made no dent in anything. HH hasn’t grown wildly ever, and RTO?)