1. Even bad results can not call for a huge sell off because hardly 23 lacs shares are with public. Watch close, More than 8 lac shares are held by LIC, oriental insurance etc. Real floating stocks are really limited.
   
   

2. When a good result come, the demand can be unlimited. Supply will be only these 15 lac or less shares.
   
   

3. Even with bad results, TTM EPS is Rs. 6.5 which is discounted just 13 times. A good quartely result will take this EPS to Rs. 10 and the stock may fall to 70 levels again with a potential to climb to 150 in couple of years.
   
   

4. A consistent dividend track of Rs. 3 per share over last 4-5 years.
   
   

5. Kirloskar back ground.
   
   

6. A sure shot to climb back when the markets fall.
   
   

Reasons are many. But the above give me a solid base to start analyzing a small cap for investment.

Disclosure: I do not hold this stock as of today. But may buy back the sold shares ( done few yesterday at 91, if falls to my set levels in coming days. Many members may still own this stock as part of the SIP.



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Dear Mr Anand,

Kudos to your goodself for such a simple way of putting things.This may be the reason why you are so clear on such things.

Finally any of these stocks you recommend on a long term basis.

My confidence in you people has really soared up and so is mine.

Best wishes to you and team Mumbai Bulls.

U.V.Ramana

Its a really nice suggestion.. thanks buddy..

Few things which made me think positive on Tera soft

1. High EPS

2. Promoters increasing the stake slowely.

3. 5% FII holding

4. and most important, Rs. 2 per share dividend continuously from last 4-5 years.

Dear Mr Anand,

These are my thoughts or rather doubts which have risen,kindly enlighten me.

Tera software -Public stake is bit high compared to companies like Nucleus software and Saksoft.Turnover wise it is lagging behind.

Sir,I am not questioning your choice of scrips merely asking the rationale behind it.

U.V.Ramana

This is Kabra extru recommended actually on 16th October at 101 when Sensex was at 19000+ levels.

The stock is giving 131% returns against sensex negative 11%

Note: This is not a fresh call and old members can book 50% so that remaining shares become free to them.

Anand

Which stock is this??

Update 06-Jun-2008: Stock has fallen to Rs. 125 mark. Cover back the sold shares at 125. Those willing to make a fresh entry can do so now as A grade stock. That is 4% weitage of your investment portfolio. 

This was a call given in www.winfromus.com almost 1 year and 9 months back.

Sensex was at 15900 level.

Today sensex closed at 16997 that is up less than 7%.

This stock is at 232 today giving 85% returns. 

I constantly recommended this stock also for SIP.

This should explain you why I love small caps and why I love SIP.

Note: This is not a fresh buy. One can book 50% profits at these rates. Rest of your holding will be almos free.

Hi Anand,

The way you analysed g g Dandekar is very informative.

Hi Anand & Dakash

Aap dono ko Nav Varsh Ke Subh Kamnaye. I hope that you both will keep alive the Mumbaibull thread. I am eagerly waiting for your small forum. Happy New Year to both of your.

Madan Verma, Shimla.

Happy New Year

Hi Deva,

Most of my calls are from small cap space.

Check under recommendations.