Tuesday, May 22, 2018

The shares of Bhusan Steel Ltd hit another buyer freeze at around Rs.29 yesterday. The stock was recommended to the Premium Members at Rs.22.65 and in this blog at around Rs.24. The scrip has moved a long way from there, giving decent returns to the Patient investors. Where is the stock heading? To know, join the Premium Services.

The shares of HDIL (Rs.26.30)has been moving down, due to negativity in the real estate sector, especially in Mumbai Metropolitan Region, where only around one third of the property buyers are end users. This makes the property prices highly leveraged, against the real prices. 
Moreover, when the flats are available at cut off prices of only around Rs.50 lakhs in Matunga and Malad, then we can roughly conclude that the market is slowly heading for a crash. Now since, the real estate market in Mumbai is mainly controlled by the "Dalals" or Real Estate agents who jack up the prices showing carrot to the investors, if there is a CRASH, then its cascading effect could be tremendous like we saw in mid-1990s. In such circumstances, I would suggest you to either average the scrip of HDIL and exit around Rs.38-40 or put a SL at Rs.22 and hold without putting fresh capitial, considering that Housing Development and Infrastructure Ltd is a Mumbai based real estate developer.. I had suggested the former to the Premium Members in my yesterday's post. I do not see any hope of the real estate market in Mumbai improving in the next one year. I earlier mentioned that the company is not able to sell its land holdings, as they were purchased at high price, during the real estate boom. Therefore, I do not see a significant reduction of debt in the next 12-18 months.

Yesterday, the shares of Gitanjali Gems Ltd were given a buy to the Premium Member at around Rs.4.65, the stock hit the buyer freeze yesterday at around Rs.5.11 in the BSE. What the targets for the scrip? To know, trade through my recommended brokerage house with a minimum portfolio size of Rs.2 lakhs.

What to do with the shares of 3i Infotech Ltd (Rs.4.57) and MBL Infrastructure Ltd (CMP: Rs.17.75; for those who did not book profits at around Rs.29-31)? What is the lastest on MBL Infrastructure Ltd and Sri Adhikar Brothers' shares?

My earlier Premium Members, would get a flat discount of 35% on the current price tag  (of subscription fees). So, if you were associated with my Premium Service, at any time  during the last 10-12 years, you can avail of this "Dhamaka Scheme". Also, small investors would get some discounts on the current subscription fees. 
Also, I was down with Malaria since sometime, so I could not update the blog on regular basis during the last few days. Though I have recovered from illness but the weakness still persists and hence the activities in this blog might get affected. However, the Premium Members, would continue to get my inputs from time to time.

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