Stocks With PE Less then Five:
The recent stock market carnage has spared not even fundamentally strong stocks. Thus, some very good stocks are trading at a PE of less then 5. It's true that forward PE always is a better indicator of valuations. But these stocks should not have very significant decline in earnings. So current low PE makes then attractive bets.
1)Financial Technologies (India) Ltd - PE ratio 3.22
2)Ruchi Soya Industries Ltd - PE ratio 3.98
3)Jindal Saw Ltd - PE ratio 2.23
4)Hindustan Zinc Ltd - PE ratio 3.48
5)Sterlite Technologies Ltd - PE ratio 3.81
Attractive Stocks in the Agriculture Sector:
This is one sector which will do very well the next time the markets make a upmove. That might be sometime away but slow accumulation on these stocks can be considered.
1)Jain Irrigation Systems Ltd
2)Kaveri Seed Company Ltd
3)Karuturi Global Ltd
Attractive Stocks in the Water Sector:
Two stocks which might be big companies of the future in the water related sector in my opinion are:
1)Subhash Projects & Marketing Ltd
2)Mount Everest Mineral Water Ltd
Should You buy in big numbers now:
If anyone does plan to buy any stock for long term also then he/she should buy only in small numbers. No one can say for sure that the stock markets have bottomed out or are even close to that. Yes some valuations are very attractive but it might get more attractive. So I would suggest to invest only 10-15% of the money allocated towards investment purpose in stocks now. For now capital preservation is the top priority.
Latest Comments by Merrill Lynch CEO:
Merrill Lynch Chief Executive John Thain said he did not expect the global economy to recover quickly from the credit crisis and that the environment more closely resembled 1929, the advent of the Great Depression, than recent slowdowns.
This maybe sums up the crisis we are in now. So every investment move should be made carefully and only invest money which you would not need in near term. Trying to make quick gains in short term will prove fatal in these market conditions.
Crude Oil falls to 19 month low. Good or Bad News?:
I would regard this fall in crude oil prices to a 19 month low as a bad news more then a good news. The simple reason being that it shows how fast the world economies are slowing down. This in turn has led to the sharp fall in demand and hence the proces for crude oil. So expect 2009 to be one of the worst years in terms of global GDP growth in recent times.
Marc Faber's Latest Comments on the Global Stock Markets and Economy:
Dr. Marc Faber in his latest interview with Bloomberg TV stated that the global stock markets are at historically low levels and can bounce from here. The rally could last from few days to weeks and it all depends on the nature of news inflow. But overall we are in for some stock market bounce back helped by the global money printing.
Marc Faber also said that at this point of time corporate bonds are more attractive then equities. According to him there is a sharp slowdown going on globally and all ompanies will cut on capital expenditure plans in the near future.
The recent stock market carnage has spared not even fundamentally strong stocks. Thus, some very good stocks are trading at a PE of less then 5. It's true that forward PE always is a better indicator of valuations. But these stocks should not have very significant decline in earnings. So current low PE makes then attractive bets.
1)Financial Technologies (India) Ltd - PE ratio 3.22
2)Ruchi Soya Industries Ltd - PE ratio 3.98
3)Jindal Saw Ltd - PE ratio 2.23
4)Hindustan Zinc Ltd - PE ratio 3.48
5)Sterlite Technologies Ltd - PE ratio 3.81
Attractive Stocks in the Agriculture Sector:
This is one sector which will do very well the next time the markets make a upmove. That might be sometime away but slow accumulation on these stocks can be considered.
1)Jain Irrigation Systems Ltd
2)Kaveri Seed Company Ltd
3)Karuturi Global Ltd
Attractive Stocks in the Water Sector:
Two stocks which might be big companies of the future in the water related sector in my opinion are:
1)Subhash Projects & Marketing Ltd
2)Mount Everest Mineral Water Ltd
Should You buy in big numbers now:
If anyone does plan to buy any stock for long term also then he/she should buy only in small numbers. No one can say for sure that the stock markets have bottomed out or are even close to that. Yes some valuations are very attractive but it might get more attractive. So I would suggest to invest only 10-15% of the money allocated towards investment purpose in stocks now. For now capital preservation is the top priority.
Latest Comments by Merrill Lynch CEO:
Merrill Lynch Chief Executive John Thain said he did not expect the global economy to recover quickly from the credit crisis and that the environment more closely resembled 1929, the advent of the Great Depression, than recent slowdowns.
This maybe sums up the crisis we are in now. So every investment move should be made carefully and only invest money which you would not need in near term. Trying to make quick gains in short term will prove fatal in these market conditions.
Crude Oil falls to 19 month low. Good or Bad News?:
I would regard this fall in crude oil prices to a 19 month low as a bad news more then a good news. The simple reason being that it shows how fast the world economies are slowing down. This in turn has led to the sharp fall in demand and hence the proces for crude oil. So expect 2009 to be one of the worst years in terms of global GDP growth in recent times.
Marc Faber's Latest Comments on the Global Stock Markets and Economy:
Dr. Marc Faber in his latest interview with Bloomberg TV stated that the global stock markets are at historically low levels and can bounce from here. The rally could last from few days to weeks and it all depends on the nature of news inflow. But overall we are in for some stock market bounce back helped by the global money printing.
Marc Faber also said that at this point of time corporate bonds are more attractive then equities. According to him there is a sharp slowdown going on globally and all ompanies will cut on capital expenditure plans in the near future.
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