Share Trading Tips

Sunday, January 30, 2011

Last Chance To Crash Proof Your Portfolio

Equitymaster - ResearchPro
Dear Reader:

Are you ready for a stock market crash?

Do you have the list of stocks you should get rid of right away?

Well, you can get immediate access to this list… provided you respond before 5 PM today.

Quick! Read on for full details...

Warm regards,

Rahul Goel
CEO, Equitymaster.com


"5 Stocks You Should
Throw Out Right Now!"

Many investors are buying these stocks even today
expecting to earn big returns

Are YOU making the same mistake too?


Dear Reader,

My research team has just forwarded to me a long list of stocks that could crash over the next 2 years...

And of these, 5 stocks are almost certain to be the worst hit!

Which 5? How do we know?

Just keep reading...

Look, every time the stock market crashes, millions of investors lose their hard earned money.

People will tell you these things are unavoidable. They will tell you that losing money is a part and parcel of investing in stocks.

But that's just what THEY think!

Now imagine there was a service that would warn you of impending dangers in advance.

A service that would tell you which stocks have the possibility of crashing beforehand so that you can get rid of them quickly and avoid courting huge losses.

Believe it or not, such a service really does exist.

And what you read up to now is only a small sample of what this service can actually do for you.

Here's more on it . . .

You see, without a doubt, identifying good stocks to invest in is the relatively easier part. It is at recognizing bad stocks early that most investors go wrong.

However, this is not the investors' fault either.

Almost all stock brokers and research firms out there boast of being really good at picking high-return stocks.

But when it comes down to helping their clients protect their stock investments, well that's a totally different story.

Just think back to what happened in early 2008 when most of these firms were churning out one "buy" report after another.

These firms completely missed the warning signals.

In fact, I personally know of one retired gentleman who lost Rs 8 lakhs in the January 2008 crash because his stock broker was adamant that he hold on to the stocks for a few more months.

And the result? When the market had done crashing, his portfolio value had fallen by 70%!

This is where we're different...

We at Equitymaster believe that it's our responsibility to help our subscribers make money and also avoid losses.

That's why we don't just recommend stocks and forget about them. We constantly monitor stocks we recommend and inform our subscribers if it's time to pull out from a stock.

But here's the kicker...

During all these years of helping investors make and save money, we've devised a process that helps us identify not just money-making opportunities but also risky scenarios with great accuracy.

And now, we want to put this process to work for YOU... and help you avoid huge losses in the stock market.

Here's the full story. . .

Back in 2002 we had conducted an informal survey.

This survey revealed to us the need for a new kind of service...

See, most stock brokers and research outfits out there peddle stocks which are in the news from time to time, and then shift coverage to those stocks which take their place.

Once a certain stock falls out of favor with investors, they stop tracking it and stop publishing information on it.

So there was literally no way for an investor to stay updated with the progress of a company he was interested in THROUGHOUT THE YEAR.

That's what led to the launching of a new service called 'ResearchPro'.

ResearchPro does what no other service does -- it shortlists a group of leading Indian companies and provides ongoing and continuous research on them throughout the year.

And, it monitors and publishes research on them regardless of how well or how bad these companies are doing!

Now why would anybody need this kind of information?

There are actually 3 reasons for that...
  • If the stock market was to crash again - and it does crash frequently - you'd want to know... with as much certainty as possible... which stocks to keep and which to sell away immediately.

  • By tracking good companies continuously, you will know when the prices of their shares drop... making it possible for you to grab them at discount prices.

  • Finally, if some important event is going to take place in the company that could result in a surge in its stock price, you'll know about it early and get a chance to make full use of that also.
But wait, this is where it gets even better...

So ResearchPro was started as a service that would provide ongoing research on certain leading companies instead of one-time stock recommendations.

However we soon found that ResearchPro could actually help investors in more ways than we first thought...

Yes, just by following companies closely, ResearchPro could tell its subscribers if a stock was going to crash. How?

You see, ResearchPro is all about 'Common sense backed by exhaustive research'.

Our intention here is not to find something that nobody else knows, but to take a whole lot of known facts and compile all of them to uncover the MOST PROBABLE OUTCOME in advance.

So we basically just watch these companies with a hawk-eye all through the year... and try to see things that other people don't...

Which in turn helps you exit stocks early and save money in the case of any adversity.

Don't believe me?
Here's an example. . .

In July last year we did a review of all stocks from the Banking sector.

We discovered that quite a lot of them presented a HUGE profit potential for investors.

And so we advised our subscribers about the same...

On July 8th, 2010 we sent out a special message to our subscribers discussing Banking companies that were looking very attractive during that quarter.

Plus, we also gave them a list of Banking stocks that could generate good returns for them.

And today... just six months later... 4 Banking stocks that we had recommended then have generated pretty good returns for subscribers who took us up on our suggestion and bought those stocks.

Following are the details of the stocks and returns generated so far:
IDBI Bank: 33.9%
Bank of Baroda: 24.9%
Corporation Bank: 20.9%
HDFC Bank: 20.8%

In the same way, if we find that investing in stocks belonging to a certain sector can be risky, we also warn our subscribers about that.

For instance, this month we advised our subscribers to be cautious about a certain sector (sorry, details only to subscribers). And we also gave them a list of stocks from that sector that could fall soon.

So, you see, we really help you do both:
        1) Grow rich by investing in good stocks
        2) Minimize the chances of investing in bad stocks


This is the kind of information most investors lack . . .
And that's what Equitymaster wants to provide you now

The problem basically is that while the facts are there for everybody to see, not many investors know how to decipher all that data and convert it into actionable information.

This is where Equitymaster comes in.

We're a Stock Research & Recommendation Company that has been around for more than 10 years now.

So we understand what kind of impact a certain development could produce on a company's stock.

Plus, we've got the required manpower and resources to keep monitoring these companies all round the year.

So we're now giving you an opportunity to get UNRESTRICTED and FULL access to our monitoring reports (ongoing research reports), produced by a team of honest and competent analysts, on more than 100 leading companies in India.

You can now obtain ownership rights to our entire research team... and whatever research we produce on these 100 plus companies, we will send it to you right away - Without holding anything back!

Notification of risks is undoubtedly a big benefit of subscribing to a service like this, but there are many more advantages too:
  • Unbiased research view - as we are not stock brokers and we don't gain anything even if you buy the stocks we recommend

  • Access to managements - we have access to managements which gives a better understanding of the companies under coverage

  • 24X7 Easy Access, anywhere, anytime - the entire ResearchPro service is accessible over the internet, in a password protected section on Equitymaster.com

  • Exclusive source of research on the companies under coverage - you save time as you no longer have to hunt for information and then analyze it

  • Notification of profitable opportunities - If there is something you could benefit from, we will alert you of any developments with regards to that company right away

  • Effectively own a research team - We go out and meet companies, and get accurate information for YOU. You just have to put it to good use
And probably the biggest advantage of ResearchPro...

No more waiting for weekly, bi-weekly
or monthly reports . . .

We will track these companies throughout the year... and whenever there's some important news about a company which we feel could affect your investment in it, we will inform you about it RIGHT AWAY.

If we find out something bad about a company, you will hear about that instantly.

If we hear something good about a company... like maybe an opportunity to make big returns in quick time... we will notify you about it right away too.

And like I said before, there's also no work involved on your end. All you need to do is take a few minutes and read what has been compiled for you.

Our senior analysts by themselves are very experienced and qualified, with a cumulative experience of almost 50 years.

And now you can have not just them, but the ENTIRE TEAM go out and produce up-to-date research for YOU, on more than 100 companies!

Keep reading for full details...

How various companies are shortlisted
For inclusion into ResearchPro . . .

Through ResearchPro, you get on-going research on more than 100 of India's leading companies...about 89 large cap and 19 mid cap stocks, covering 24 different sectors.

Introducing a company as part of ResearchPro is based on several criteria. Some of them include:
  • Company's leadership position in the industry

  • Company's strong past performance and expectations of bright future growth

  • Broader positive outlook on the sector

  • Stock's rising weight in a particular index
Simply put...

If we've added a particular company to ResearchPro, then that means you want to keep a close watch on it.

Look, we are not stock brokers. We don't have to unnecessarily make you buy or sell a stock just to earn a commission.

We have a single minded focus - to help you identify the most profitable investment opportunities out there.

Because if we can't help you do that, you will simply not subscribe to our services again. Correct?

Coming back to ResearchPro...

We provide you ongoing research coverage on these 100 plus companies even if the market sentiment for them is bad.

So with access to ResearchPro, you will no longer fall prey to the swings in sentiment. On the contrary, you'll be positioned to profit from them whenever an opportunity arises!

Why our research tends to be accurate
more often than not. . .


You see legendary investors like Benjamin Graham and Warren Buffett have always maintained that 'evaluation of risks' should be given as much importance as 'estimation of returns'.

It is in this direction that our research team has developed the Equitymaster Risk Matrix or ERM which helps quantify the risk attached to a stock. The ERM is an integral part of our stock selection process.

Look, we all know no two companies, even if they are in the same sector have exactly the same degree of risk. Even if they operate in the same sector, their business dynamics, managements and valuations are different.

That's why it is important to evaluate the risk involved in each case separately...because at the end of the day it all comes down to how much price you are willing to pay for how much risk.

And ERM is designed just for that!

The ERM is a matrix designed to evaluate the key risks attached to a business, it financial history and its management. It ranks not just the company but also the sector in which it operates based on its relative risk profile.

If you're not convinced that such an evaluation helps in improving returns from stocks, let me give you an example to prove that it indeed does...and did!

How the ERM made and saved
our subscribers money. . .

When markets were at their nervous best in late 2008, our Buy recommendations on ACC, Tata Steel, Corporation Bank and Maruti Suzuki were backed by our confidence in the low risk profile of these companies as shown by ERM.

As expected, these stocks went on to multiply our subscribers' wealth several times.

And it was THIS risk matrix that helped us by acting as one of the tools used for eliminating the bad stocks, so that we identify and recommend only the best stocks to you.

It did so

But that's not all...

Again, it is the same ERM that we rely on to quantify the risks we believe subscribers need to be cautioned about while recommending a 'Sell'.

"I would want to acknowledge the fact that Equitymaster is ACTUALLY REALLY GENUINE in it's research, SELFLESS and not giving recommendations with a HERD mentality !! Like some magazines and news channels do..."

                                          -- Nishank Mehta, a Lifetime Subscriber

Given the complex operating environment that Indian business are aspiring to be a part of, we believe the ERM can offer immense value to investors seeking to maximize their long term returns without taking on too much risk.

Here's what all you will get
As a ResearchPro subscriber. . .

On all companies under our coverage you get detailed research reports which are updated at least 4 times a year, usually post the quarterly result announcements.

For each company under coverage there are -
  • Detailed "Reasons to Buy"&"Reasons Not to Buy" notes
  • Detailed Financial Models stretching out three years into the past and three years into the future
  • Suggested Buy Price and Sell Price limits for 3 Yrs... i.e. at what price the stock is a buy (the Buy Price) and at what point it becomes a sell (the Sell Price)
In addition to these...

If there's a development in any of these companies that would have a material impact on our forecast, we update the report of that company and notify you right away.

And because we monitor each of these companies with such diligence, we are also able to alert you of 'BUY' or 'SELL' opportunities that may arise from time to time.

Here's what one or our subscribers has to say about it:

"In 2007, Equitymaster was probably the only research house which will give most of HOLD or SELL recommendations rather than BUY reports and everyone knows what happened after that. I feel to be proud subscriber of equitymaster seeing again that you still are not afraid of giving the right opinion irrespective of market moods. Great Job!!!"

                                -- Deepak Aggarwal, a Subscriber since 2007

And we're only just getting started...

The Query Module

ResearchPro comes with an advanced *Query Module* to help you select and compare stocks on various parameters of your choice...

So if you want to know 'The Most Expensive Stocks' in this market, you can get that information in a few clicks!

Similarly, the Query Module also helps you identify opportunities that could make you a lot of money by simply throwing up a list of 'The Most Undervalued Stocks'.

Apart from these two, there is also a list of 'Stocks You Should Throw Out / Buy Now!' I told you about, which alerts you of stocks requiring your immediate attention.

This data is available once you log into your members' area and click on the links.

And these are just 3 of the many parameters on which you can generate information you could profit from.

The Portfolio Tracker

The Portfolio Tracker is an online utility to help you track all your equity and mutual fund investments... in one place!

It's online, and is available to you 24 hours a day.

To begin with, let me tell you some of the amazing things you can do with this tool...
  • First off, the Portfolio Tracker is always up-to-date with the latest stock prices. So you just have to enter the details of stocks or mutual funds owned by you ONCE... and Portfolio Tracker will show you what your entire portfolio is worth any time you log into it

  • You can set up your account to send you automatic end-of-week and end-of-month performance updates for all your portfolios. So no more manual calculating

  • You can also set up price-based alerts for all the stocks that you own... and also the stocks that don't own but only wish to track. You simply need to set up higher and lower limits for the stocks, and the Portfolio Tracker will alert you whenever the stock goes beyond these limits

  • Plus, you can also track your SIPs and get NAV alerts for the mutual fund schemes from Portfolio Tracker now
So as you can see for yourself, the number of things you can do with Portfolio Tracker is amazing.

But wait...

Here's what makes the Portfolio Tracker
the indispensable tool that it is. . .

The intelligent reports that come along with it.
The intelligent reports that come along with it.

You see, we at Equitymaster have spent a considerable amount of time trying to understand how the fund managers who invest for the long-term track and review their portfolios.

And it is the relevant learnings from this exercise that we have translated into reports to give our Portfolio Tracker subscribers the edge.

In a nutshell, these reports help you answer questions like -
  • Should you be buying stocks from the automobile sector or the consumer products sector? Do you have too much of cement stocks in your portfolio?

  • Which stocks deserve your maximum attention?

  • Is the construction of your portfolio in line with what a smart fund manager would have?
These are all questions you have been asking for a long time, but never got any reliable answers.

But now, the intelligent reports you get along with Portfolio Tracker will also answer such questions for you.

Here's what one long-time user had to say about Portfolio Tracker:

"I have been using the Equitymaster Portfolio Tracker since 2002 and have found it very useful to track my investments, and also to carry out meaningful analysis.

Moreover, what is equally important, I have found the team at Equitymaster extremely responsive.

This applies both to requests for the inclusion of new Mutual Fund Schemes/Scrips as also designing new reports."

-- José Rodrigues, a Portfolio Tracker Subscriber since 2002

The Portfolio Tracker usually costs Rs 330 for a year. But by subscribing to ResearchPro, you get it absolutely FREE.

Stock Screener

While Portfolio Tracker lets you track the past performance and current value of your portfolio, the Stock Screener... a recently launched service of ours... can be used to find stocks with the maximum upside over 2-3 years.

Let me explain how this works...

You see, the Stock Screener is again a part of the Query Module which enables subscribers to compare companies on various fundamental parameters.

Some of these parameters include Sales Growth %, Profit Growth %, P/E, Return on Net Worth, and so on.

Here's what the Stock Screener module looks like basically:

 Stock Screener module

Apart from this, you can directly find out the top 10 companies among:

  • Fastest Growing Companies,
  • Most Indebted Companies, or
  • Best Dividend Yield Stocks

...by simply clicking on their links!

S-Features

These are articles and reports that are available to our premium subscribers only.

We release over 800 of them every year.

You might understand that there are a lot of factors influencing the stock price, most of which need to be monitored regularly. So from time to time, we release instant reports and updates on various companies.

These reports include excerpts of management meetings, extracts of conference calls, updates on the happenings in a company that we monitor and our personal views on it.

But it could also be an update on a sector or a company that we like but are not yet covering.

All these are made available to you via a feature called the 'S-Features'.

This is all "unadulterated" information and it will serve as a valuable input for your investment decision.

"How to Plan Your Equity Portfolio":
Our Asset Allocation Guide

Asset Allocation Guide
Our experience shows us that a majority of new investors fall into two main categories:
  • Those that primarily aim for big returns and often take unnecessarily risks to achieve the same
  • Those that are overly particular about safety and often forgo excellent money-making opportunities just because there's a slight bit of risk involved
The truth is... if you want to lead a RICH and HAPPY life with the money you make from your stock investments, you must learn to tread the middle path between the two.

Therefore our intention through this guide is to help you allocate your investments properly... so as to not just give you a chance of maximizing your stock market returns, but also keep the risk involved to a minimum.

So after reading this guide, you will FINALLY know how to distribute your investments between large, mid and small caps stock... apart from a lot of other things.

And this guide, too, will be available to you FREE when you subscribe to ResearchPro.

Weekly Investment Idea

This is another new initiative started by Equitymaster.

Every week, we send out to our ResearchPro subscribers a note on the companies that have done well and not so well during the results season...on the sector and stocks to give higher priority... or the sector and stocks to avoid and so on... while making investments during that week.

In each case, we clearly explain our reasons for coming to the conclusion we have.

So how does this help our subscribers?

Let's assume we suggested that you stay away from the manufacturing sector. Then if you come across a manufacturing stock that looks attractive, you will instantly know that you need to do some more research before investing in it.

We also notify you of high-risk stocks from the sector, so that keeps you from acting on impulse and making hasty investment decisions.

And this is not just sector-specific. For instance, if we list out companies that have the highest levels of debt, you can be on the lookout for these stocks and dig deeper before you invest in them.

We also notify you of the attractive stocks you can consider for buying in any sector, and the buy/sell limits for each.

And this initiative too is available to ResearchPro subscribers only.

Research Alerts

Finally, the research alert is an email alert that we send out to those ResearchPro users who 'opt in' to receive it.

Simply stated, it as an update on all the new research published.

It has info on the latest research that we have posted, and also tells the subscriber which research reports have been updated.

Since ResearchPro is a service that provides new information to its subscribers on a frequent basis, it can be difficult for users to keep track of what was published when and if they've seen it all or not.

That's why we're making things easy for you... by sending you frequent emails informing you of all the recent research published.

Now, this service is completely optional and customizable.

So if you don't want to receive these alerts, you can just turn them off...

Or, you can select which companies you want to receive the research alerts for so that you're not bothered about changes in the other companies.

The choice is yours!

The Equitymaster Yearbook 2011 (PDF Version):

The Equitymaster Stock Market Yearbook 2011

Both you and I know investing in shares is risky.

But what makes it even riskier for a lot of investors is that they almost gamble their money on stocks without doing proper research.

The proven and time-tested method used by many of the smartest investors in the business is to understand the long-term trends...

And that's exactly what the 'Equitymaster Stock Market Yearbook' helps you do.

An extremely popular publication, the Equitymaster Yearbook, is a guide consisting of financial analysis and business profiles of the leading 200 companies in India.

For each of the 200 selected companies, the Yearbook provides a full page of financial and other important data, conveniently tabulated under relevant headings with a host of important ratios.

Recent performance reviews of companies, the sectors they operate in, the business challenges they face, how they compare globally, etc. are all revealed at a glance.

And apart from current data, the Yearbook also provides information on the history of each company and its progress and transformation over time.

Additionally, you also have detailed notes on over 20 sectors, the Indian economy, mutual funds and a lot more.

Simply put, this book offers accurate, unbiased and detailed data on leading companies, sectors and economy all in one place...and currently there's no other resource that offers all this information together.

That's why it's something every profit-minded investor must have.

The Yearbook costs Rs 750 to buy separately. But if you subscribe to Equitymaster through this offer, you get the PDF version of this Yearbook absolutely FREE.

Free subscription to
The Daily Reckoning

Are you someone who's interested in monitoring or even investing in the global markets?

Now you can read what knowledgeable investors across the globe read every single day for global market analysis and investment ideas.

Yes, we are delighted to bring you 'The Daily Reckoning', a daily financial e-column by Bill Bonner, Publisher and Editor, and three-time New York Times best-selling author.

The Daily Reckoning is published every day in 3 languages from offices in 6 countries - US, UK, Australia, France, Germany, South Africa.

Now, it's India's turn... and your turn to get it for FREE!

When you subscribe to ResearchPro, you automatically get a free subscription to the Daily Reckoning also.

So in a nutshell, here's what all you get by subscribing to ResearchPro...
  • Effectively, your very own research team

  • List of Stocks to Throw Out / Buy Now!

  • Quarterly reviews of these recommendations

  • The New Portfolio Tracker

  • Stock Screener

  • S-Features

  • "How to Plan Your Equity Portfolio": Our Asset Allocation Guide

  • Weekly Investment idea

  • Research Alerts

  • Equitymaster Yearbook 2011

  • Free subscription to 'The Daily Reckoning'

But hold on, this is where the deal gets even sweeter...

Special Bonus
FREE Subscription to our large cap
Recommendation Service, StockSelect!

Look, we really want to make this absolutely special for you.

So when you subscribe to ResearchPro, you will also get a year's subscription to our large cap recommendation service, StockSelect, free!

So what is StockSelect?

Simply stated...

If you're looking at building a portfolio of blue-chip stocks that will deliver steady returns over the long term, then StockSelect is the service you need to be subscribed to.

StockSelect tells you which big companies are a "must-have" for your portfolio... and more importantly, it notifies you as and when they're available at attractive valuations.

It works on a simple principle - buying great companies at bargain prices and making staggering returns on them when the company grows rapidly in a few years.

Here are some of our recent recommendations and how they've done:

Asian Paints Gained 133% before we recommended a SELL
Crompton Greaves Up 107% since recommendation
Hindalco Up 132% since recommendation
Tata Motors Up 129% since recommendation
TCS Up 94% since recommendation
Novartis Up 56% since recommendation
Power Finance Corp. Up 96% since recommendation

And the important thing to note here is that all these returns were generated in a period of less than 2 years from the date of recommendation.

Look, even though large cap companies are a dime a dozen, it's still important to know which stocks are the right stocks and what is the right price to buy these stocks.

StockSelect tells you just that!

Through StockSelect, you'll be notified of 52 blue-chip Buy/Sell opportunities AT THE RIGHT TIME.

In addition to these, we also release special reports from time to time on attractive large caps opportunities. Fast action takers will benefit from these reports also.

And the main benefit of getting ResearchPro and StockSelect together is that many of the companies we track constantly through ResearchPro are large cap. So now we not only recommend good large cap companies through StockSelect, but also help you track them through ResearchPro!

A year's subscription to StockSelect usually costs Rs 5,000. But through this offer you get it absolutely FREE!

And Finally, The Biggest Surprise Of All:
The Price

A year's subscription to ResearchPro usually costs Rs 10,000.

But if you sign up now, through this offer, you can get ResearchPro for Rs 5,450 only.

That's INSTANT SAVINGS for Rs 4,550 for you.

Plus, if we also take into account all the other things you'll be getting (free subscription to StockSelect, etc.) the real price you'll be paying is actually zero!

Not to forget all the money you could make using ResearchPro and StockSelect.

However, if you're still in two minds about signing up, let me just give you 4 perfectly good reasons to do so right away:
  • All our recommendations are supported by thorough research; we list out the reasons to buy and also the investment concerns that we foresee in an unbiased manner

  • We travel far and wide to meet companies before we put out reports on them

    For each stock, we clearly state the prices at which one should buy the stock and at which we think one should exit

  • We go to great lengths to ascertain the credibility of the management since quality of governance is an extremely vital issue (as was revealed by the recent corporate scandals)
Here's what two more subscribers had to say about Equitymaster and our services:

"I've been with Equitymaster for a long while now, and I'm happy to say that I started with StockSelect and last year ventured onto your full package - it works. That explains it all!"

-- Jose Paul Martin, a ResearchPro Subscriber since 2003


"I have been a user of Equitymaster's almost all subscription based products for a while. Being an investment analyst by profession, I must say your reports are very through, unbiased and of very high quality."

-- Mandar Vaze, a ResearchPro Subscriber since 2003


And all you pay for ResearchPro is
Rs 455 a Month . . .

Rs 5,450 per year comes down to just Rs 455 per month.

That's definitely a lot less than the money you spend on all the phone calls to your broker, the money you pay to watch the noise on your television, and all the newspapers and magazines you buy hoping to find good investment opportunities.

And none of these do any good to your stock portfolio.

But now, for all of Rs 455 a month, you can actually get honest, competent research, which will make you a lot of money.

Look, I'm certain that at least once in a while you must be going through that worrisome thought of how your stocks will turn out in the years to come.

No doubt, you must have picked all your stocks after researching them thoroughly...but both you and I know that just about anything is possible when it comes to stocks (remember Satyam?).

By subscribing to ResearchPro you can leave the tracking part entirely to us, and obtain the peace of mind that most investors badly crave for.

If there's any problem with one of these 100 plus stocks, we will inform you right away.

If there's an opportunity to make money from any of them, we'll tell you about that also immediately!

In addition, there's also no risk . . .

This subscription to ResearchPro comes with a 30-day money back guarantee.

So you can test-drive ResearchPro (and StockSelect) for 30 days... without risking anything!

And then, if you feel that ResearchPro is not for you, just get in touch with us before the 31st day and we will refund the full fee you paid. And you get to keep the special report as a thank you from our side for trying our service.

Fair enough?

Look, we consider this a really great deal because you're getting both ResearchPro and StockSelect together, along with a lot of other stuff, for a single low price...

Whereas there are some people who are paying Rs 5,000 a year just for StockSelect.

However, this offer will be available till Monday 31st January, 5 PM only.

So don't delay any more...

Click here to subscribe

Regards,

Rahul Goel
Chief Executive Officer
Equitymaster.com

P.S.: The 5 Stocks to throw out are available when you log into the members' area and click on a link. There's a 30-day money back guarantee on this offer. So you've got absolutely nothing to lose by giving ResearchPro a try.

P.P.S.: By signing up for ResearchPro through this offer, you get:
  • ResearchPro at almost half-off... and our large cap service, StockSelect (usually costing Rs 5,000 per year) for free
  • A free copy of the Equitymaster Yearbook 2011
  • ... plus a lot of other stuff!
But you must sign up before 5 PM on Monday, 31st January 2011. Post that this offer will disappear forever.

P.P.P.S.:If you have any queries, please do not hesitate to contact us at +91-22-61434055 or Write in to us. We will be delighted to assist you!

Subscribe Now! Click Here!


*Returns have been calculated as on 1st January 2011 or on the date of Sell, whichever is applicable.

Please read the Terms of Use. To Unsubscribe, click here.
Equitymaster Agora Research Private Limited
103, Regent Chambers,
Above Status Restaurant,
Nariman Point, Mumbai - 400 021. India.
Telephone: 91-22-6143 4055

Friday, January 28, 2011

Crash Proof Your Portfolio

Dear Reader:

Imagine...

The stock markets have crashed by 20%.

Trading on the exchange has been suspended.

Television anchors are looking as though they have seen a ghost.

But here's what matters the most - "How have YOU been impacted by the crash?"

If you want to be one among the very few who are geared up for any adversity, then see this right away...

But you must hurry! This opportunity will disappear forever at 5:00 PM sharp on 31st of January!

Warm regards,

Rahul Goel
CEO, Equitymaster.com


"5 Stocks You Should
Throw Out Right Now!"

Many investors are buying these stocks even today
expecting to earn big returns

Are YOU making the same mistake too?


Dear Reader,

My research team has just forwarded to me a long list of stocks that could crash over the next 2 years...

And of these, 5 stocks are almost certain to be the worst hit!

Which 5? How do we know?

Just keep reading...

Look, every time the stock market crashes, millions of investors lose their hard earned money.

People will tell you these things are unavoidable. They will tell you that losing money is a part and parcel of investing in stocks.

But that's just what THEY think!

Now imagine there was a service that would warn you of impending dangers in advance.

A service that would tell you which stocks have the possibility of crashing beforehand so that you can get rid of them quickly and avoid courting huge losses.

Believe it or not, such a service really does exist.

And what you read up to now is only a small sample of what this service can actually do for you.

Here's more on it . . .

You see, without a doubt, identifying good stocks to invest in is the relatively easier part. It is at recognizing bad stocks early that most investors go wrong.

However, this is not the investors' fault either.

Almost all stock brokers and research firms out there boast of being really good at picking high-return stocks.

But when it comes down to helping their clients protect their stock investments, well that's a totally different story.

Just think back to what happened in early 2008 when most of these firms were churning out one "buy" report after another.

These firms completely missed the warning signals.

In fact, I personally know of one retired gentleman who lost Rs 8 lakhs in the January 2008 crash because his stock broker was adamant that he hold on to the stocks for a few more months.

And the result? When the market had done crashing, his portfolio value had fallen by 70%!

This is where we're different...

We at Equitymaster believe that it's our responsibility to help our subscribers make money and also avoid losses.

That's why we don't just recommend stocks and forget about them. We constantly monitor stocks we recommend and inform our subscribers if it's time to pull out from a stock.

But here's the kicker...

During all these years of helping investors make and save money, we've devised a process that helps us identify not just money-making opportunities but also risky scenarios with great accuracy.

And now, we want to put this process to work for YOU... and help you avoid huge losses in the stock market.

Here's the full story. . .

Back in 2002 we had conducted an informal survey.

This survey revealed to us the need for a new kind of service...

See, most stock brokers and research outfits out there peddle stocks which are in the news from time to time, and then shift coverage to those stocks which take their place.

Once a certain stock falls out of favor with investors, they stop tracking it and stop publishing information on it.

So there was literally no way for an investor to stay updated with the progress of a company he was interested in THROUGHOUT THE YEAR.

That's what led to the launching of a new service called 'ResearchPro'.

ResearchPro does what no other service does -- it shortlists a group of leading Indian companies and provides ongoing and continuous research on them throughout the year.

And, it monitors and publishes research on them regardless of how well or how bad these companies are doing!

Now why would anybody need this kind of information?

There are actually 3 reasons for that...
  • If the stock market was to crash again - and it does crash frequently - you'd want to know... with as much certainty as possible... which stocks to keep and which to sell away immediately.

  • By tracking good companies continuously, you will know when the prices of their shares drop... making it possible for you to grab them at discount prices.

  • Finally, if some important event is going to take place in the company that could result in a surge in its stock price, you'll know about it early and get a chance to make full use of that also.
But wait, this is where it gets even better...

So ResearchPro was started as a service that would provide ongoing research on certain leading companies instead of one-time stock recommendations.

However we soon found that ResearchPro could actually help investors in more ways than we first thought...

Yes, just by following companies closely, ResearchPro could tell its subscribers if a stock was going to crash. How?

You see, ResearchPro is all about 'Common sense backed by exhaustive research'.

Our intention here is not to find something that nobody else knows, but to take a whole lot of known facts and compile all of them to uncover the MOST PROBABLE OUTCOME in advance.

So we basically just watch these companies with a hawk-eye all through the year... and try to see things that other people don't...

Which in turn helps you exit stocks early and save money in the case of any adversity.

Don't believe me?
Here's an example. . .

In July last year we did a review of all stocks from the Banking sector.

We discovered that quite a lot of them presented a HUGE profit potential for investors.

And so we advised our subscribers about the same...

On July 8th, 2010 we sent out a special message to our subscribers discussing Banking companies that were looking very attractive during that quarter.

Plus, we also gave them a list of Banking stocks that could generate good returns for them.

And today... just six months later... 4 Banking stocks that we had recommended then have generated pretty good returns for subscribers who took us up on our suggestion and bought those stocks.

Following are the details of the stocks and returns generated so far:
IDBI Bank: 33.9%
Bank of Baroda: 24.9%
Corporation Bank: 20.9%
HDFC Bank: 20.8%

In the same way, if we find that investing in stocks belonging to a certain sector can be risky, we also warn our subscribers about that.

For instance, this month we advised our subscribers to be cautious about a certain sector (sorry, details only to subscribers). And we also gave them a list of stocks from that sector that could fall soon.

So, you see, we really help you do both:
        1) Grow rich by investing in good stocks
        2) Minimize the chances of investing in bad stocks


This is the kind of information most investors lack . . .
And that's what Equitymaster wants to provide you now

The problem basically is that while the facts are there for everybody to see, not many investors know how to decipher all that data and convert it into actionable information.

This is where Equitymaster comes in.

We're a Stock Research & Recommendation Company that has been around for more than 10 years now.

So we understand what kind of impact a certain development could produce on a company's stock.

Plus, we've got the required manpower and resources to keep monitoring these companies all round the year.

So we're now giving you an opportunity to get UNRESTRICTED and FULL access to our monitoring reports (ongoing research reports), produced by a team of honest and competent analysts, on more than 100 leading companies in India.

You can now obtain ownership rights to our entire research team... and whatever research we produce on these 100 plus companies, we will send it to you right away - Without holding anything back!

Notification of risks is undoubtedly a big benefit of subscribing to a service like this, but there are many more advantages too:
  • Unbiased research view - as we are not stock brokers and we don't gain anything even if you buy the stocks we recommend

  • Access to managements - we have access to managements which gives a better understanding of the companies under coverage

  • 24X7 Easy Access, anywhere, anytime - the entire ResearchPro service is accessible over the internet, in a password protected section on Equitymaster.com

  • Exclusive source of research on the companies under coverage - you save time as you no longer have to hunt for information and then analyze it

  • Notification of profitable opportunities - If there is something you could benefit from, we will alert you of any developments with regards to that company right away

  • Effectively own a research team - We go out and meet companies, and get accurate information for YOU. You just have to put it to good use
And probably the biggest advantage of ResearchPro...

No more waiting for weekly, bi-weekly
or monthly reports . . .

We will track these companies throughout the year... and whenever there's some important news about a company which we feel could affect your investment in it, we will inform you about it RIGHT AWAY.

If we find out something bad about a company, you will hear about that instantly.

If we hear something good about a company... like maybe an opportunity to make big returns in quick time... we will notify you about it right away too.

And like I said before, there's also no work involved on your end. All you need to do is take a few minutes and read what has been compiled for you.

Our senior analysts by themselves are very experienced and qualified, with a cumulative experience of almost 50 years.

And now you can have not just them, but the ENTIRE TEAM go out and produce up-to-date research for YOU, on more than 100 companies!

Keep reading for full details...

How various companies are shortlisted
For inclusion into ResearchPro . . .

Through ResearchPro, you get on-going research on more than 100 of India's leading companies...about 89 large cap and 19 mid cap stocks, covering 24 different sectors.

Introducing a company as part of ResearchPro is based on several criteria. Some of them include:
  • Company's leadership position in the industry

  • Company's strong past performance and expectations of bright future growth

  • Broader positive outlook on the sector

  • Stock's rising weight in a particular index
Simply put...

If we've added a particular company to ResearchPro, then that means you want to keep a close watch on it.

Look, we are not stock brokers. We don't have to unnecessarily make you buy or sell a stock just to earn a commission.

We have a single minded focus - to help you identify the most profitable investment opportunities out there.

Because if we can't help you do that, you will simply not subscribe to our services again. Correct?

Coming back to ResearchPro...

We provide you ongoing research coverage on these 100 plus companies even if the market sentiment for them is bad.

So with access to ResearchPro, you will no longer fall prey to the swings in sentiment. On the contrary, you'll be positioned to profit from them whenever an opportunity arises!

Why our research tends to be accurate
more often than not. . .


You see legendary investors like Benjamin Graham and Warren Buffett have always maintained that 'evaluation of risks' should be given as much importance as 'estimation of returns'.

It is in this direction that our research team has developed the Equitymaster Risk Matrix or ERM which helps quantify the risk attached to a stock. The ERM is an integral part of our stock selection process.

Look, we all know no two companies, even if they are in the same sector have exactly the same degree of risk. Even if they operate in the same sector, their business dynamics, managements and valuations are different.

That's why it is important to evaluate the risk involved in each case separately...because at the end of the day it all comes down to how much price you are willing to pay for how much risk.

And ERM is designed just for that!

The ERM is a matrix designed to evaluate the key risks attached to a business, it financial history and its management. It ranks not just the company but also the sector in which it operates based on its relative risk profile.

If you're not convinced that such an evaluation helps in improving returns from stocks, let me give you an example to prove that it indeed does...and did!

How the ERM made and saved
our subscribers money. . .

When markets were at their nervous best in late 2008, our Buy recommendations on ACC, Tata Steel, Corporation Bank and Maruti Suzuki were backed by our confidence in the low risk profile of these companies as shown by ERM.

As expected, these stocks went on to multiply our subscribers' wealth several times.

And it was THIS risk matrix that helped us by acting as one of the tools used for eliminating the bad stocks, so that we identify and recommend only the best stocks to you.

It did so

But that's not all...

Again, it is the same ERM that we rely on to quantify the risks we believe subscribers need to be cautioned about while recommending a 'Sell'.

"I would want to acknowledge the fact that Equitymaster is ACTUALLY REALLY GENUINE in it's research, SELFLESS and not giving recommendations with a HERD mentality !! Like some magazines and news channels do..."

                                          -- Nishank Mehta, a Lifetime Subscriber

Given the complex operating environment that Indian business are aspiring to be a part of, we believe the ERM can offer immense value to investors seeking to maximize their long term returns without taking on too much risk.

Here's what all you will get
As a ResearchPro subscriber. . .

On all companies under our coverage you get detailed research reports which are updated at least 4 times a year, usually post the quarterly result announcements.

For each company under coverage there are -
  • Detailed "Reasons to Buy"&"Reasons Not to Buy" notes
  • Detailed Financial Models stretching out three years into the past and three years into the future
  • Suggested Buy Price and Sell Price limits for 3 Yrs... i.e. at what price the stock is a buy (the Buy Price) and at what point it becomes a sell (the Sell Price)
In addition to these...

If there's a development in any of these companies that would have a material impact on our forecast, we update the report of that company and notify you right away.

And because we monitor each of these companies with such diligence, we are also able to alert you of 'BUY' or 'SELL' opportunities that may arise from time to time.

Here's what one or our subscribers has to say about it:

"In 2007, Equitymaster was probably the only research house which will give most of HOLD or SELL recommendations rather than BUY reports and everyone knows what happened after that. I feel to be proud subscriber of equitymaster seeing again that you still are not afraid of giving the right opinion irrespective of market moods. Great Job!!!"

                                -- Deepak Aggarwal, a Subscriber since 2007

And we're only just getting started...

The Query Module

ResearchPro comes with an advanced *Query Module* to help you select and compare stocks on various parameters of your choice...

So if you want to know 'The Most Expensive Stocks' in this market, you can get that information in a few clicks!

Similarly, the Query Module also helps you identify opportunities that could make you a lot of money by simply throwing up a list of 'The Most Undervalued Stocks'.

Apart from these two, there is also a list of 'Stocks You Should Throw Out / Buy Now!' I told you about, which alerts you of stocks requiring your immediate attention.

This data is available once you log into your members' area and click on the links.

And these are just 3 of the many parameters on which you can generate information you could profit from.

The Portfolio Tracker

The Portfolio Tracker is an online utility to help you track all your equity and mutual fund investments... in one place!

It's online, and is available to you 24 hours a day.

To begin with, let me tell you some of the amazing things you can do with this tool...
  • First off, the Portfolio Tracker is always up-to-date with the latest stock prices. So you just have to enter the details of stocks or mutual funds owned by you ONCE... and Portfolio Tracker will show you what your entire portfolio is worth any time you log into it

  • You can set up your account to send you automatic end-of-week and end-of-month performance updates for all your portfolios. So no more manual calculating

  • You can also set up price-based alerts for all the stocks that you own... and also the stocks that don't own but only wish to track. You simply need to set up higher and lower limits for the stocks, and the Portfolio Tracker will alert you whenever the stock goes beyond these limits

  • Plus, you can also track your SIPs and get NAV alerts for the mutual fund schemes from Portfolio Tracker now
So as you can see for yourself, the number of things you can do with Portfolio Tracker is amazing.

But wait...

Here's what makes the Portfolio Tracker
the indispensable tool that it is. . .

The intelligent reports that come along with it.
The intelligent reports that come along with it.

You see, we at Equitymaster have spent a considerable amount of time trying to understand how the fund managers who invest for the long-term track and review their portfolios.

And it is the relevant learnings from this exercise that we have translated into reports to give our Portfolio Tracker subscribers the edge.

In a nutshell, these reports help you answer questions like -
  • Should you be buying stocks from the automobile sector or the consumer products sector? Do you have too much of cement stocks in your portfolio?

  • Which stocks deserve your maximum attention?

  • Is the construction of your portfolio in line with what a smart fund manager would have?
These are all questions you have been asking for a long time, but never got any reliable answers.

But now, the intelligent reports you get along with Portfolio Tracker will also answer such questions for you.

Here's what one long-time user had to say about Portfolio Tracker:

"I have been using the Equitymaster Portfolio Tracker since 2002 and have found it very useful to track my investments, and also to carry out meaningful analysis.

Moreover, what is equally important, I have found the team at Equitymaster extremely responsive.

This applies both to requests for the inclusion of new Mutual Fund Schemes/Scrips as also designing new reports."

-- José Rodrigues, a Portfolio Tracker Subscriber since 2002

The Portfolio Tracker usually costs Rs 330 for a year. But by subscribing to ResearchPro, you get it absolutely FREE.

Stock Screener

While Portfolio Tracker lets you track the past performance and current value of your portfolio, the Stock Screener... a recently launched service of ours... can be used to find stocks with the maximum upside over 2-3 years.

Let me explain how this works...

You see, the Stock Screener is again a part of the Query Module which enables subscribers to compare companies on various fundamental parameters.

Some of these parameters include Sales Growth %, Profit Growth %, P/E, Return on Net Worth, and so on.

Here's what the Stock Screener module looks like basically:

 Stock Screener module

Apart from this, you can directly find out the top 10 companies among:

  • Fastest Growing Companies,
  • Most Indebted Companies, or
  • Best Dividend Yield Stocks

...by simply clicking on their links!

S-Features

These are articles and reports that are available to our premium subscribers only.

We release over 800 of them every year.

You might understand that there are a lot of factors influencing the stock price, most of which need to be monitored regularly. So from time to time, we release instant reports and updates on various companies.

These reports include excerpts of management meetings, extracts of conference calls, updates on the happenings in a company that we monitor and our personal views on it.

But it could also be an update on a sector or a company that we like but are not yet covering.

All these are made available to you via a feature called the 'S-Features'.

This is all "unadulterated" information and it will serve as a valuable input for your investment decision.

"How to Plan Your Equity Portfolio":
Our Asset Allocation Guide

Asset Allocation Guide
Our experience shows us that a majority of new investors fall into two main categories:
  • Those that primarily aim for big returns and often take unnecessarily risks to achieve the same
  • Those that are overly particular about safety and often forgo excellent money-making opportunities just because there's a slight bit of risk involved
The truth is... if you want to lead a RICH and HAPPY life with the money you make from your stock investments, you must learn to tread the middle path between the two.

Therefore our intention through this guide is to help you allocate your investments properly... so as to not just give you a chance of maximizing your stock market returns, but also keep the risk involved to a minimum.

So after reading this guide, you will FINALLY know how to distribute your investments between large, mid and small caps stock... apart from a lot of other things.

And this guide, too, will be available to you FREE when you subscribe to ResearchPro.

Weekly Investment Idea

This is another new initiative started by Equitymaster.

Every week, we send out to our ResearchPro subscribers a note on the companies that have done well and not so well during the results season...on the sector and stocks to give higher priority... or the sector and stocks to avoid and so on... while making investments during that week.

In each case, we clearly explain our reasons for coming to the conclusion we have.

So how does this help our subscribers?

Let's assume we suggested that you stay away from the manufacturing sector. Then if you come across a manufacturing stock that looks attractive, you will instantly know that you need to do some more research before investing in it.

We also notify you of high-risk stocks from the sector, so that keeps you from acting on impulse and making hasty investment decisions.

And this is not just sector-specific. For instance, if we list out companies that have the highest levels of debt, you can be on the lookout for these stocks and dig deeper before you invest in them.

We also notify you of the attractive stocks you can consider for buying in any sector, and the buy/sell limits for each.

And this initiative too is available to ResearchPro subscribers only.

Research Alerts

Finally, the research alert is an email alert that we send out to those ResearchPro users who 'opt in' to receive it.

Simply stated, it as an update on all the new research published.

It has info on the latest research that we have posted, and also tells the subscriber which research reports have been updated.

Since ResearchPro is a service that provides new information to its subscribers on a frequent basis, it can be difficult for users to keep track of what was published when and if they've seen it all or not.

That's why we're making things easy for you... by sending you frequent emails informing you of all the recent research published.

Now, this service is completely optional and customizable.

So if you don't want to receive these alerts, you can just turn them off...

Or, you can select which companies you want to receive the research alerts for so that you're not bothered about changes in the other companies.

The choice is yours!

The Equitymaster Yearbook 2011 (PDF Version):

The Equitymaster Stock Market Yearbook 2011

Both you and I know investing in shares is risky.

But what makes it even riskier for a lot of investors is that they almost gamble their money on stocks without doing proper research.

The proven and time-tested method used by many of the smartest investors in the business is to understand the long-term trends...

And that's exactly what the 'Equitymaster Stock Market Yearbook' helps you do.

An extremely popular publication, the Equitymaster Yearbook, is a guide consisting of financial analysis and business profiles of the leading 200 companies in India.

For each of the 200 selected companies, the Yearbook provides a full page of financial and other important data, conveniently tabulated under relevant headings with a host of important ratios.

Recent performance reviews of companies, the sectors they operate in, the business challenges they face, how they compare globally, etc. are all revealed at a glance.

And apart from current data, the Yearbook also provides information on the history of each company and its progress and transformation over time.

Additionally, you also have detailed notes on over 20 sectors, the Indian economy, mutual funds and a lot more.

Simply put, this book offers accurate, unbiased and detailed data on leading companies, sectors and economy all in one place...and currently there's no other resource that offers all this information together.

That's why it's something every profit-minded investor must have.

The Yearbook costs Rs 750 to buy separately. But if you subscribe to Equitymaster through this offer, you get the PDF version of this Yearbook absolutely FREE.

Free subscription to
The Daily Reckoning

Are you someone who's interested in monitoring or even investing in the global markets?

Now you can read what knowledgeable investors across the globe read every single day for global market analysis and investment ideas.

Yes, we are delighted to bring you 'The Daily Reckoning', a daily financial e-column by Bill Bonner, Publisher and Editor, and three-time New York Times best-selling author.

The Daily Reckoning is published every day in 3 languages from offices in 6 countries - US, UK, Australia, France, Germany, South Africa.

Now, it's India's turn... and your turn to get it for FREE!

When you subscribe to ResearchPro, you automatically get a free subscription to the Daily Reckoning also.

So in a nutshell, here's what all you get by subscribing to ResearchPro...
  • Effectively, your very own research team

  • List of Stocks to Throw Out / Buy Now!

  • Quarterly reviews of these recommendations

  • The New Portfolio Tracker

  • Stock Screener

  • S-Features

  • "How to Plan Your Equity Portfolio": Our Asset Allocation Guide

  • Weekly Investment idea

  • Research Alerts

  • Equitymaster Yearbook 2011

  • Free subscription to 'The Daily Reckoning'

But hold on, this is where the deal gets even sweeter...

Special Bonus
FREE Subscription to our large cap
Recommendation Service, StockSelect!

Look, we really want to make this absolutely special for you.

So when you subscribe to ResearchPro, you will also get a year's subscription to our large cap recommendation service, StockSelect, free!

So what is StockSelect?

Simply stated...

If you're looking at building a portfolio of blue-chip stocks that will deliver steady returns over the long term, then StockSelect is the service you need to be subscribed to.

StockSelect tells you which big companies are a "must-have" for your portfolio... and more importantly, it notifies you as and when they're available at attractive valuations.

It works on a simple principle - buying great companies at bargain prices and making staggering returns on them when the company grows rapidly in a few years.

Here are some of our recent recommendations and how they've done:

Asian Paints Gained 133% before we recommended a SELL
Crompton Greaves Up 107% since recommendation
Hindalco Up 132% since recommendation
Tata Motors Up 129% since recommendation
TCS Up 94% since recommendation
Novartis Up 56% since recommendation
Power Finance Corp. Up 96% since recommendation

And the important thing to note here is that all these returns were generated in a period of less than 2 years from the date of recommendation.

Look, even though large cap companies are a dime a dozen, it's still important to know which stocks are the right stocks and what is the right price to buy these stocks.

StockSelect tells you just that!

Through StockSelect, you'll be notified of 52 blue-chip Buy/Sell opportunities AT THE RIGHT TIME.

In addition to these, we also release special reports from time to time on attractive large caps opportunities. Fast action takers will benefit from these reports also.

And the main benefit of getting ResearchPro and StockSelect together is that many of the companies we track constantly through ResearchPro are large cap. So now we not only recommend good large cap companies through StockSelect, but also help you track them through ResearchPro!

A year's subscription to StockSelect usually costs Rs 5,000. But through this offer you get it absolutely FREE!

And Finally, The Biggest Surprise Of All:
The Price

A year's subscription to ResearchPro usually costs Rs 10,000.

But if you sign up now, through this offer, you can get ResearchPro for Rs 5,450 only.

That's INSTANT SAVINGS for Rs 4,550 for you.

Plus, if we also take into account all the other things you'll be getting (free subscription to StockSelect, etc.) the real price you'll be paying is actually zero!

Not to forget all the money you could make using ResearchPro and StockSelect.

However, if you're still in two minds about signing up, let me just give you 4 perfectly good reasons to do so right away:
  • All our recommendations are supported by thorough research; we list out the reasons to buy and also the investment concerns that we foresee in an unbiased manner

  • We travel far and wide to meet companies before we put out reports on them

    For each stock, we clearly state the prices at which one should buy the stock and at which we think one should exit

  • We go to great lengths to ascertain the credibility of the management since quality of governance is an extremely vital issue (as was revealed by the recent corporate scandals)
Here's what two more subscribers had to say about Equitymaster and our services:

"I've been with Equitymaster for a long while now, and I'm happy to say that I started with StockSelect and last year ventured onto your full package - it works. That explains it all!"

-- Jose Paul Martin, a ResearchPro Subscriber since 2003


"I have been a user of Equitymaster's almost all subscription based products for a while. Being an investment analyst by profession, I must say your reports are very through, unbiased and of very high quality."

-- Mandar Vaze, a ResearchPro Subscriber since 2003


And all you pay for ResearchPro is
Rs 455 a Month . . .

Rs 5,450 per year comes down to just Rs 455 per month.

That's definitely a lot less than the money you spend on all the phone calls to your broker, the money you pay to watch the noise on your television, and all the newspapers and magazines you buy hoping to find good investment opportunities.

And none of these do any good to your stock portfolio.

But now, for all of Rs 455 a month, you can actually get honest, competent research, which will make you a lot of money.

Look, I'm certain that at least once in a while you must be going through that worrisome thought of how your stocks will turn out in the years to come.

No doubt, you must have picked all your stocks after researching them thoroughly...but both you and I know that just about anything is possible when it comes to stocks (remember Satyam?).

By subscribing to ResearchPro you can leave the tracking part entirely to us, and obtain the peace of mind that most investors badly crave for.

If there's any problem with one of these 100 plus stocks, we will inform you right away.

If there's an opportunity to make money from any of them, we'll tell you about that also immediately!

In addition, there's also no risk . . .

This subscription to ResearchPro comes with a 30-day money back guarantee.

So you can test-drive ResearchPro (and StockSelect) for 30 days... without risking anything!

And then, if you feel that ResearchPro is not for you, just get in touch with us before the 31st day and we will refund the full fee you paid. And you get to keep the special report as a thank you from our side for trying our service.

Fair enough?

Look, we consider this a really great deal because you're getting both ResearchPro and StockSelect together, along with a lot of other stuff, for a single low price...

Whereas there are some people who are paying Rs 5,000 a year just for StockSelect.

However, this offer will be available till Monday 31st January, 5 PM only.

So don't delay any more...

Click here to subscribe

Regards,

Rahul Goel
Chief Executive Officer
Equitymaster.com

P.S.: The 5 Stocks to throw out are available when you log into the members' area and click on a link. There's a 30-day money back guarantee on this offer. So you've got absolutely nothing to lose by giving ResearchPro a try.

P.P.S.: By signing up for ResearchPro through this offer, you get:
  • ResearchPro at almost half-off... and our large cap service, StockSelect (usually costing Rs 5,000 per year) for free
  • A free copy of the Equitymaster Yearbook 2011
  • ... plus a lot of other stuff!
But you must sign up before 5 PM on Monday, 31st January 2011. Post that this offer will disappear forever.

P.P.P.S.:If you have any queries, please do not hesitate to contact us at +91-22-61434055 or Write in to us. We will be delighted to assist you!

Subscribe Now! Click Here!


*Returns have been calculated as on 1st January 2011 or on the date of Sell, whichever is applicable.

Please read the Terms of Use. To Unsubscribe, click here.
Equitymaster Agora Research Private Limited
103, Regent Chambers,
Above Status Restaurant,
Nariman Point, Mumbai - 400 021. India.
Telephone: 91-22-6143 4055

Wednesday, January 26, 2011

Ends today! 110%, 41% and 26% returns to be made

Dear Reader:

This is your last chance...

...to subscribe to our Derivative Service that has a 100% success rate, with returns like 110%, 41%, 26%... in just a few months!

But remember, this offer ends at 5 PM sharp today! Read on for complete details now...

Warm regards,

Rahul Goel
CEO, Equitymaster.com


If Stocks Made You Money Until Now,
Here's Your Chance to Become Even Richer With Derivatives

Our subscribers have gained
110%, 41% and 26% in months!

Act now, and grab this service at 50% OFF...

Offer valid till 5 PM Today!


Dear Reader,

If you've been with Equitymaster for even a short time now, you know we're always on the lookout for new money-making opportunities to recommend to our subscribers.

The new investing opportunity we are excited about introducing to you now is 'The Lucrative Derivative Report'.

Let's face it - if you are like most investors out there, you must be thinking that:
a. Derivatives are complex
b. They are extremely risky
c. They are not for retail investors like you and me
Honestly, we shared the same view too.

Until we met Asad Dossani, that is.

Meet Asad Dossani, a top Derivative Analyst who will lead you
to profit-building strategies in derivatives

A graduate of the London School of Economics, Asad has been a part of the Derivatives team at Deutsche Bank for 2 and 1/2 years. We zeroed in on Asad after a search that spanned almost a year!

We actually met and interviewed quite a few people, and studied their methodology and practice. What impressed us about Asad is his painstaking research.

Asad has his fingers on the pulse of the world and Indian economy, political conditions, trade agreements, analysis of central banks, market trends, debt default, the weather, war... all this and more!

This is what gives him the edge to be on top of the global markets and their dynamic movements. And since he's also been using his own money to trade, he is a sensible player.

But here's the kicker...

Asad has developed a unique system that leads him to pin-point profitable trades and mind-boggling returns with high accuracy.

In fact, it was his impressive mix of short and long term gains that got our eyes gleaming.

Hence we decided we just had to get him on board, so that he could share his money-making Derivatives strategy with serious investors like YOU.

Bringing You:
The Lucrative Derivative Report

This new recommendation service from Equitymaster will deal in Futures and Options specifically in Currencies and Commodities like gold, silver, oil, natural gas...

There will be absolutely NO intra-day calls.

Now, even we agree that derivatives can be risky...

But we have done our extensive homework on derivatives... and after weighing the risks and rewards, we believe that derivatives trading could actually be very profitable.

And if traded wisely, your wins can easily beat your losses.

Provided of course, that you have the right advice to guide you.

And that requirement too has been fulfilled now.

We strongly believe that Asad is the right person to lead you in your quest for making remarkable profits in Derivatives without taking unnecessary and uneducated risks.

We believe his methodology is in sync with ours, and have thus entered into an exclusive arrangement with him so that his services will be available only to Equitymaster subscribers.

So your dreams for big money could come true at last!

Any sound investment analyst will tell you that you should not have all your eggs in one basket.

With derivatives:
  • You can take control of a large holding in an asset for a fraction of what it'd normally cost to buy it

  • Your returns are also often bigger and quicker in comparison to stocks

  • You can make money when the market goes up, and down
And diversification also helps you reduce your risk and increase your risk-adjusted returns. Thus investing in derivatives can be an excellent way to complement your total portfolio.

Yes! Individual contracts can be risky, no doubt. But through proper diversification, risk management and a disciplined approach, you can achieve steady long-term returns.

For instance, here are just a few examples of double and triple digit returns on the winning trades Asad has made:
  • In May 2010, when global markets were falling, the volatility index for S&P 500 index options (VIX) spiked upwards. Knowing that the VIX usually does not stay at high levels for long, Asad took a short position in VIX futures from 6th - 22nd May and made a profit as the VIX futures fell by 12% over the course of the month. He used 5:1 leverage and the resulting gain was 60%!

  • Earlier this year when the Eurozone debt crisis took hold, the value of the Euro fell considerably. Asad was short the EURUSD from March 2010 until June 2010, right at the time the Euro had its largest falls. The Euro fell 11%, and having used 10:1 leverage, the gain was an impressive 110%!

  • At the last two months, the value of crude oil rose over the following two months for two reasons: First, stock markets in general have been rising giving way to a bullish tone in commodities. Second, the US Dollar has weakened, again making commodities more expensive. Asad took a long position in crude oil over this time period. Crude oil was up 6%, and with a 10:1 leverage, he made a 60% gain.

  • In April 2010, gold was on its way up (though nowhere near today's levels!). As a short term play, Asad was expecting gold to rise because of bad economic news coming out of the Eurozone. Sure enough this occurred, and a profit was made from taking long positions in gold call options. Over the course of the month, the option values increased, and Asad made a gain of 33%.

  • In May 2010, the UK was holding an election that at the time was too close to call. There was a high probability that no party would win a majority (which is what ended up occurring). Asad took a short GBPUSD position in the beginning of the month to take advantage of a potential fall in the pound as a result of the election. The pound fell by 3%, and with a 10:1 leverage, the gain was 30%.
Thus you can see how Asad with his overall knowledge of politics, economies and trade... has employed smart strategies to earn handsome profits.

And now, it's your turn to benefit from his expertise!

The Lucrative Derivative Report
was launched a few months back and here's the
performance review. . .

On the 19th of October 2010, we launched The Lucrative Derivative Report service to our lifetime subscribers, first.

And it was only after we got a wonderfully positive initial response during the BETA launch that we decided to open The Lucrative Derivative Service to our other subscribers.

The overall performance of the portfolio has been outstanding.

In fact, the returns on cash invested for the 4 closed positions are fantastic to the tune of 110.27%, 18.15%, 41.51% and 26.38%. That too, in just a few months!

Yes, 4 out of 4 closed recommendations have been winners, 2 out of 3 open recommendations are in profit, and overall they have earned an unbelievable average of 29.32% per trade!

Here's what some of our subscribers have to say about the service:

"Just writing in to say that Asad Dossani's Lucrative Derivative Report is an excellent guide to trading futures. Using this as a guide since November, I have already doubled my capital at risk in derivatives by shorting the Euro and Yen. This will pay for my subscription for more than a year. Thanks."

                                              -- Nalin K Nirula, A Lifetime Subscriber


"Analytical. Sounds good. First time I am going to enter currency market.
All credit goes to you for the initiative you have taken."

                                              -- T.R.Govindrajan, A Lifetime Subscriber


"Thank you for starting the derivatives Service. I am a happy member of your Private wealth alliance and am quite satisfied with the performance of the Value-pro Recommendations.

Always wished that you also had a shorter term Investment advisory service. The new Derivatives Service fulfills that need. Hats off to you for your efforts in investor education. I believe I am a much better informed investor now than I was a year ago when I had just subscribed to your services.

I like the simple and practical approach adopted by Mr. Dossani to draft his reports. Hope the pricing of this new service remains affordable to those of us who will be committing a small starting capital initially."

                                 -- Edward James Saldanha, A Lifetime Subscriber

Soon the good news got around.

Our regular subscribers who had heard of the gains earned by our Lifetime subscribers kept calling up to ask when the opportunity would be opened to them.

That's why, for a short time only, i.e. till 28th January 2011, we are accepting subscriptions for The Lucrative Derivative Report.

To make it even better, if you sign up right now, you can get in at our introductory price of half off straight away!

Plus if you get in through this Offer, you will have access to all the recommendations Asad has been making week after week since 19th October 2010.

(Psst... since only four positions have been closed and the others are still open, we suggest that you grab this lucrative opportunity while you can!)

Here are the details of three closed positions as recommended by Asad in The Lucrative Derivative Report:
  • On 2nd November 2010, Asad recommended a short position in EURINR, as the Eurozone debt crisis was expected to negatively affect the value of the Euro. At the time of the recommendation, the EURINR was trading at Rs 62. Asad closed the position at Rs 59.90 and when the contract moved in our favor, our subscribers made a fantastic return on cash investment of 110.27%!

  • On 26th October 2010, Asad recommended a long position in natural gas. He recognized a short-term fall in the commodity's price (due to a temporary increase in supply) as a good opportunity to establish a long position, as a reversal was very likely. Yes, the price of natural gas ended up rising - the contract gained 10.23%, and our return on cash investment was 18.15% by the time we had closed the trade!

  • On 14th December, Asad recommended a short position in gold. This was due to technical factors which indicated that a short-term reversal was likely. Asad's shrewd play paid off very handsomely and within four weeks, the contract had gained 1.65%, and our subscribers made a return on cash investment of 41.51%!
Now, here is an example of an open position in the Lucrative Derivative Report that has made money:

(Sorry we can't reveal the full details since they are still open but do read on to get a good idea of the performance of the recommendations.)
  • On 19th October 2010, Asad recommended a position in a currency as a short-term trade, believing that the currency would depreciate due to over excessive previous gains. The trade has fluctuated between gains and losses, and is currently showing profit. The currency has moved in our favor by 1.12%, giving our subscribers a return on cash investment of 27.84%.
But we are not satisfied.

For we are aiming for a return of 75% on this trade.

Thus you can see for yourself that there are lucrative double and triple digit gains to be made in Derivatives.

But of course, you need the right guidance.

And we are so confident of Asad's recommendations,
we too are investing!

To prove that we are confident of Asad's recommendations, Equitymaster too will be investing, alongside you.

Yes, we invest in every Derivatives recommendation Asad makes. We are willing to put the money where our mouth is and will be with you, every step of the way.

As you are aware, we believe in transparency and have irreproachable ethical standards when it comes to investing.

Therefore, we have opened a Derivative Trading account which is operated by a designated and responsible person at Equitymaster, and have already invested a certain sum of money in the Derivatives recommended by Asad.

We invest in one contract for each of his recommendations 1 trading day AFTER we make the recommendation to you. This is so that we don't have any unfair advantage and you get the first go at it.

And we are not complaining with the returns we've made so far!

So if you have any doubts about investing in Derivatives, take a deep breath and relax. You are in good capable hands.

But get this...

If you want to build wealth in a relatively short time,
derivatives are the way to go

The derivatives markets have grown in size and sophistication.

They are no longer just for the big banks and hedge funds - retail investors can make full use of what the derivatives markets have to offer.

In fact, the latest product to be introduced in India in the derivatives world is the Dollar-Rupee Option. Previously only Currency Futures were available.

That just shows the scope for Derivatives market in India is growing day by day.

So why should YOU add derivatives to your portfolio?

The answer is simple. Diversification! When you add other asset classes to your overall portfolio, you can reduce risk and increase your returns.

How will you know if Derivatives are for you?

Well, if you have a business with exposure to commodities and currency...

If you are the type of investor who doesn't mind taking calculated risks and using smart ways to amplify your returns...

If you can invest a few minutes of your time daily in understanding and playing this very exciting market...

Then yes, we wave the green flag and welcome you to the world of profitable Derivative investing.

Because, Derivatives are an excellent way to make money, and not just for the short-term.

The big benefit of adding Derivatives to your existing investment portfolio is that it can give you higher overall risk-adjusted returns.

And in case you are concerned that Derivatives sounds too new and technical for you, don't worry.

Asad will literally handhold you and guide you as you take your first steps into Derivatives so that you do not feel out of depth, ever.

Like he's been doing for hundreds of our satisfied subscribers who had previously never dared to dabble in derivatives.

But having said that. . .

While there is a lot of money to be made, please note once again that Derivatives are risky nonetheless.

You'll have to time the market and know when to call (the right to buy Options) and when to put (the right to sell Options), when to hedge (make zero profit-zero loss) and leverage (use borrowed money to fund your trades so that you put up less of your own cash)...

And even a good analyst like Asad can sometimes get things wrong. For it is difficult to predict the market 100% correctly at all times.

Below are some examples of Asad's not-so-good picks:
  • After the Euro had been falling until June 2010, Asad expected that this trend would continue and that Eurozone debt problems would continue to have a negative effect on the currency. In light of this, a new short position in the Euro was initiated. However, this turned out to be a losing trade, as the Euro has risen in the last few months. This was primarily a consequence of dollar weakness as a result of the Federal Reserve's policies (rather than Euro strength), but regardless the trade lost money.

  • On 19th June, as gold had crossed Rs 18,750/10g, the rise was short lived as by 28th July it fell back below Rs 18,000/10g. Again it started to rise in August and September and as it approached the previous high, Asad took a short position in gold. The rationale was that gold had been topping out around that price, and previously this had resulted in price falls. However, gold continued to climb and it rose above Rs 19,100/10g by the end of September, and he ended up with a losing trade.
In true Equitymaster style, since we believe in honesty and transparency, here are the details of an open position in The Lucrative Derivative Report that has lost money:
  • As recently as 10th January 2011, Asad made a recommendation in a commodity as a short-term trade. The commodity had experienced significant price movements recently, and the belief was that these were not fully justified fundamentally, and therefore a reversal was likely.

    But the contract value has moved against us by 1.36%, and our return on cash investment is -26.93%. However, we are aiming for a 75% return on this trade, which is still possible even though it is currently at a loss.
(At the time of going into print, there has been a silver lining! This trade has moved in our favour and is showing a positive return of 17.39%!)

Since you are a new to Derivatives, you must be made aware that the performance of open trades is changing, and we are holding them open in anticipation that we expect to make money from the trades.

As Asad himself says, "Now you and I both know that not every trade I recommend will be a winner. But let's say that the probability that any one trade will be successful is 67%. So two out of every three trades are winners. Now, if you adopt a long-term approach, and consistently make trades that have a high probability of success, you will make money over time. Sure some trades will win and some will lose, but overall you will be in profit

What I am going to do, through research and analysis, is find trades with a high probability of success. The more trades you then make, the better are your chances of coming out profitable."


So a word of friendly advice...

If you are close to retirement or already have some serious liabilities... please DO NOT read on.

Stick to investing in instruments you are comfortable with, and rely on solid no-nonsense equity recommendations like what we provide you at Equitymaster.

The Lucrative Derivative Report is now available for an
unbelievable price!

Here comes the part you've been waiting for...

Since you are our valued reader we are delighted to unveil this rewarding opportunity in Derivatives to you. At a very special introductory price.

While the normal price for The Lucrative Derivative Report is pegged at Rs 5,000 per Quarter, as our valued reader you pay only Rs 2,500.

But you must subscribe right away!

This Offer which ends on 28th January 2011 entitles you to receive one recommendation/report every week, so in all you will receive 12 recommendations/reports during the 3 month period.

Of these 4 monthly recommendations/reports that will come into your inbox every month, 3 will contain a new recommendation accompanied by a rationale and risks involved.

The fourth report will provide you an analysis of previous trades, and guide you on how to manage them, optimize your returns, limit your risks, etc.

You will also be advised on the stop loss and target price for every recommendation.

And please note that although derivatives are relatively short-term instruments, our investing strategy will still be long-term.

It is much easier to make money over a longer time period than a shorter one. And we believe you too will agree that regardless of the trade timeframe, the goal should always be steady growth.

But still, we will do our best in true Equitymaster style to see that the wins overpower the losses so that you can steadily make money both in the short term, and the long term.

To summarize. . .

We normally have an annual subscription for our services, but because we would like you to test the waters and experience the Derivatives service first hand, we have a special 3 month offer for you. At a special introductory price.During these 3 months, you will get a fair idea of whether Derivatives are for you or not. And whether you want to add it to your overall portfolio.

And that's not all...

If you subscribe now, you'll also get our exclusive Guide 'How to Trade Rupee Options' Absolutely FREE.

You must be already aware that as per recent RBI regulations, you can now invest in Dollar-Rupee Options. This is one more lucrative investment opportunity available to you.

Our exclusive guide: 'How to Trade Rupee Options' will help you understand how you too can profit from this opportunity.

As soon as you sign up, we will immediately email the guide to you.

A word of reassurance

Just in case you are wondering whether our venture into Derivatives will interfere with our core business...quit worrying.

While Equitymaster will identify strong talent to lead you into new and profitable investing territories, we will continue to stick to the business we know best.

Our focus will always be to guide you to long-term, well-researched and 100% unbiased equity picks week after week.

Because honestly, nothing makes us happier than seeing our readers make solid money on our recommendations.

Derive maximum profits - Sign up right now
for The Lucrative Derivative Report !

With Asad as your guide and the professionalism of Equitymaster behind this service, you can be confident that we will pick profitable derivatives for you, in a realistic and responsible manner; week after week, month after month... so you can maximize your profits and minimize your risks.

Even as we write to you, Asad is doing his homework and working shrewdly to identify excellent trades for you, so you can make mind-blowing returns.

Believe us, you will not be disappointed.

In fact, if you go by Asad's recommendations, you will soon be on your way to unimaginable derivative returns... with minimum risk.

Like we mentioned earlier, the 4 closed positions have made our subscribers 110.27%, 18.15%, 41.51% and 26.38%. In just a few months!

Here's what another subscriber has to say about Asad's reports:

"The 1 month trial of derivative trading reports were really a good eye opener.

I got to know more about derivative tradings. The hallmark of any Equitymaster material is that it is educative to the subscriber and enriches their knowledge. This report from Asad was also serving the same purpose."

                                              -- Mohan Sundaram, A Lifetime subscriber

And this is a NO-RISK offer too!

The Lucrative Derivative Report at Rs 2,500 for 12 recommendations/reports is really a steal.

But we want to make it even better. So we're going to give you full 15 days to test-drive this service without risk.

If after going through the 2 recommendations/reports during this period, you feel that The Lucrative Derivative Report is not for you, just let us know before the 16th day and we will give you a FULL refund.

No questions asked!

However, please note that one other benefit of becoming a subscriber of the Lucrative Derivative Report through THIS introductory offer is that you get this service at half-off for the other 3 quarters of the first year also.

So that's a saving of Rs 10,000 in all during the entire year!

Why delay more?

Click here to subscribe now!


To your wealth always,

Warm Regards
 

Rahul Goel
Chief Executive Officer
Equitymaster.com

P.S.: The Lucrative Derivative subscription offer at our best price of Rs 2,500 closes on 28th January, at 5 PM sharp. So don't wait a minute longer. Subscribe now so you can get Asad's well-researched and profitable picks in your inbox, week after week.

P.P.S.: Please note we offer only a recommendation service; we are not a trading house. Since Derivatives Futures and Options are traded on the exchange, you will have to find a broker/bank to do your trading. And even though the rewards are high, there is also a certain risk involved in trading derivatives, so we urge you not to bite more than you can chew.

P.P.P.S.: If you have any queries, please do not hesitate to contact us at +91-22-61434055 or Write in to us. We will be delighted to assist you!

Subscribe Now! Click Here!
*Returns calculated as per the closing price on 11th January 2011.
They have been calculated as follows:
% change in contract value: (Pc-Po)/Po (Po - opening price, Pc - closing price)
% return = % change in contract value * leverage ratio

Please read the Terms of Use. To Unsubscribe, click here.
Equitymaster Agora Research Private Limited
103, Regent Chambers,
Above Status Restaurant,
Nariman Point, Mumbai - 400 021. India.
Telephone: 91-22-6143 4055