Dear Reader:
This message is exclusively for you...
You see, we want to immediately share with you details of three midcap stock ideas that could deliver triple digit returns in the years to come.
But you must hurry! The special report discussing these stock ideas is available only till 5 PM on Monday, 7th March i.e. tomorrow.
Act Now! Read on for full details...
Warm regards,
Rahul Goel
CEO, Equitymaster.com
Why We Agreed to Lose Rs 2,050*
To Get Our Latest Multibagger Midcaps
Report Into Your Hands. . .
(*That's a loss of Rs 2,050 for every copy of the report
we give out through this offer!)
Dear Reader,
My research team recently informed me that the latest report from Equitymaster's highly successful Multibagger Midcaps series is ready for release.
Now this is really exciting news because...
When we released the first edition of Multibagger Midcaps in March 2009, investors had the opportunity to convert, on an average, every Rs 1 lakh they invested into Rs 3.75 lakhs!
Yes! The report consisted of 4 midcap opportunities... of which Shriram Transport Finance Ltd. returned 327%, Opto Circuits made 220%, Sintex Industries generated 85% and Yes Bank gave 469%...
A combined average return of 275.25%.
Then we released another set of potential multibaggers, Multibagger Midcaps - II, in June of 2010.
And the brand new edition of Multibagger Midcaps is ready for release now... with details of 3 NEW midcap opportunities that could at least DOUBLE over the next 3 years.
In short, these new midcap opportunities include... - A company whose main business is helping other companies, in multiple industries, cut costs and run their processes more efficiently
- An electrical company placed to benefit, at the same time, from two of the fastest growing segments in India right now i.e. power and personal consumption
- And a bank which, despite debuting on the bourses recently, is over 100 years old and has the potential to outdo larger peers
But since the only way for you to get access to this report is by being a member of MidcapSelect, for the next two days only...
MidcapSelect will be available for 2,950
(Normal Price: 5,000)
MidcapSelect, as the name suggests is our midcap stock recommendation service. The Multibagger Midcaps report is normally available only to MidcapSelect subscribers.
But as we want more people to benefit from it... despite the fact that we'll be earning significantly lower revenues by doing this... we've decided to reduce the price of MidcapSelect for a short time so that interested people can join for less and get access to it.
The deal is...
You have until Monday, 7th March at 5 PM to subscribe to MidcapSelect for Rs 2,950 only. (At a loss of Rs 2,050 to us!)
You can sign up at this highly discounted price and test-drive MidcapSelect for a full 30 days.
During these 30 days, you'll get: - The brand new edition of Multibagger Midcaps
- 2 latest issues of MidcapSelect
- Access to archives of ALL previous MidcapSelect issues
- ...plus much, MUCH more!
After going through all these, if you don't like what you see... or you feel MidcapSelect is not for you, just get in touch with us before the 31st day and we'll refund the FULL fee you paid.
And, we'll also let you keep the Multibagger Midcaps report and the 2 latest issues of MidcapSelect as a Thank-You for trying MidcapSelect.
But this offer will strictly close on Monday, 7th March at 5 PM. There will be no extensions!
After that, you'll no longer get the new edition 'Multibagger Midcaps' report... and the subscription price of MidcapSelect will also go back up to the usual Rs 5,000.
Here's more on midcaps and MidcapSelect, both of which are unique in their own ways...
Want bigger returns without too much risk?
Midcaps are perhaps what you need...
People often ask why they should consider investing their money in midcaps.
You see, the problem with the blue-chips is that even though they're stable and offer consistent returns, the chance of making BIG returns from them is less.
On the other hand, Smallcaps offer huge growth potential but there's enormous risk involved and a chance of losing money quickly.
So if you want to get the best of both worlds (good returns plus stability), then midcaps are the way to go.
And, midcaps also give you a chance to invest early in companies that could be the blue-chip stocks of tomorrow.
Yes! Many of the reputable blue-chip companies you have in the market today were once midcap stocks.
Infosys was a midcap stock many years ago... and so were HDFC Bank and Tata Power.
These stocks are out of the reach of most investors today, but at one time, you could have easily obtained them at 60-80% off on the current prices.
Don't believe me? Take a look at this table:
Change in share prices over the past 10 years | Company | 01-Jan-01 | 01-Jan-11 | Change | | Bharat Heavy Electricals Ltd. | 81.5 | 2,324.75 | 2,752% | | Axis Bank Ltd. | 45.75 | 1,349.50 | 2,850% | | Tata Power Co. Ltd. | 100.1 | 1,365.70 | 1,264% | | Sun Pharmaceutical Inds. Ltd. | 26.18 | 484.65 | 1,751% | | HDFC Bank Ltd. | 223.8 | 2,346.50 | 948% |
Imagine yourself investing early in such companies, when they haven't yet caught the fancy of most investors.
You could not only acquire some of the most enviable blue-chip stocks of tomorrow for dirt-cheap, but also make BIG returns from them when they grow in a few years.
Bringing You MidcapSelect. . .
A service that does exactly what we talked about till now -- notify you of companies which could turn into blue-chips in the years to come, and in the process make you a lot of money.
We have been offering this service for over five years now... and it has a spectacular track record - 7 out of every 10 stocks we've recommended through this service hit the mark.
An exact accuracy rate of 73.5%!
But don't just take my word for it.
Here are just 3 of our successful recommendations and the returns they made:
1) Kansai Nerolac:
It's amazing how much more time we spend on the roads today - driving and stuck in the traffic - than just a couple of years ago.
Clearly the number of 2-wheelers, 4-wheelers, trucks and other commercial vehicles has ballooned in the recent years.
But while you and I may rue the traffic scenario today, there's one company which benefitted immensely from this development.
You see, much before the current auto boom kicked off in 2008, we began looking for new ways to play it besides investing in auto manufacturers.
It was then that we uncovered a midcap gem in the form of Kansai Nerolac.
Kansai Nerolac had been a strong player in the automotive paints segment. It was the primary supplier to passenger car leader Maruti Suzuki, commercial vehicles leader Tata Motors, Honda, Toyota, Volvo, Mitsubishi and even Bajaj Auto and TVS.
Plus, it also had the technical knowhow of its Japanese partner Kansai to bank on.
So we knew from the outset that this company would benefit greatly from the trend.
In addition, the company was also trying hard to establish itself in the decorative paints segment which had immense potential.
Hence we recommended this "blue-chip in the making" to our subscribers in October 2008.
The auto growth story and the demand for decorative paints continued, and with it the company's ascendancy on the price charts, enabling our subscribers to more than double their money in just 13 months.
2) Cadila Healthcare:
Now picturize a company going from annual revenues of Rs 500 million to Rs 6,715 million... in just 6 years of operation!
Believe it or not, this is actually something that the US arm of Cadila Healthcare has been able to pull off.
And it did so by focusing more on niche products which would give it greater monopoly and ensure bigger revenues and profits in the long term.
We observed that Cadila Healthcare was now employing the same strategy in India also, and doing pretty well at it.
Sugar Free, Everyuth and Nutralite are just some of the products associated with this company which you might recognize instantly.
But what you probably didn't know is that the company launched 25 new products and over 30 line extensions during FY09.
The acquisition of niche businesses Carnation Foods, Recon Healthcare and German Remedies over the years further strengthened its position in India.
Cadila's niche-oriented approach, along with the fact that it was doing well overseas also, made it a strong candidate for being considered a "Blue-chip of Tomorrow."
So we recommended the stock in May 2009. And our subscribers doubled their money within a span of just 7 months.
3) Kajaria Ceramics:
Suppose a company is the second largest player in its industry... the largest exporter of its product in the country... and the demand for its product is growing by the day in India and internationally...
Wouldn't you expect it to at least double easily in the next 3-4 years?
Why just double? You'd expect it to do even better and turn blue-chip in a few years.
We recommended Kajaria Ceramics, a ceramic tile company, in November 2007 when the housing activity was on an upswing due to both increase in personal income levels and easier availability of home mortgage finance.
Kajaria was already one of the leaders in this industry, so it already had an advantage.
And we had faith in the company's long-term ability to further grow its profits on the back of its flexible approach, and a strong distribution network of 600 dealers across the country.
While the stock did waver initially due to fluctuations in the real estate sector, our faith paid off as the company nearly doubled in less than even two years. Eventually, it returned 105% until we recommended a SELL on it!
Why you can trust us to deliver. . .
You see, we're not stock brokers. We have nothing to gain even if you buy the stocks we recommend.
But our income... and our credibility... depend on whether or not the stocks we recommend make you money.
That's why we take extreme care while finalizing the stocks that we recommend. - All our recommendations are supported by thorough research
- We travel far and wide to meet companies before we put out reports on them
- For each stock, we clearly state the target price and also the time horizon for achieving the same
- And lastly, because we meet various companies face to face, ask tough questions and continuously track our recommendations... we reduce the risk of a "Satyam" like situation emerging in stocks that we recommend.
This is exactly why more than 907,500 registered members (of all Equitymaster services combined) trust us!
Coming to MidcapSelect, our midcap stock recommendation service...
Midcaps, as you know, are relatively under researched. There is an opportunity here, but at the same time there is a serious lack of credible information.
We want you to subscribe to MidcapSelect now so that you too can benefit from our comprehensive, time-tested research process for MidCaps.
We believe that our research, which is long-term in nature, will appeal to long-term investors like you.
"I love your MidcapSelect service which is analytical and rich in information and also prompt with respect to timing."
-- Vasant Mallya, a MidcapSelect subscriber since 2006 |
"I would want to acknowledge the fact that Equitymaster is ACTUALLY REALLY GENUINE in its research, SELFLESS and not giving recommendations with a HERD mentality !! Like some magazines and news channels do..."
-- Nishank Mehta, a subscriber since 2009 |
And did I tell you about the
Equitymaster Risk Matrix?
Most investors take the return on stock investment to be the key yardstick while deciding whether or not to buy a stock.
But 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, you probably understand that no two companies have the same degree of risk associated with them. 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 the ERM is designed just for that!
The ERM is designed to evaluate the key risks attached to a business, its 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.
"First of all I would like to appreciate the stock selection mechanism of Equitymaster. I am a subscriber of Equitymaster since 2009. Also enjoying handsome returns since then.
I made this decision of joining Equitymaster in one of the tough phases in my life and fully got paid for the right decision.
I am happy investor and proud to be associated with Equitymaster. I encourage the large community of retail investors to join such an advisory services to be active participants in Indian Stock Markets and NOT to run after quick money."
-- Pankaj Deshkar, a subscriber since 2009 |
How the ERM made and saved
our subscribers money. . .
When markets were at their nervous best in late 2008, our Buy recommendations on Maharashtra Seamless, VST Industries, NIIT Ltd. and M&M Finance were backed by our confidence in the low to medium risk profile of these companies as shown by the ERM.
As expected, these stocks went on to multiply our subscribers' wealth several times. In fact, this is how these stocks performed since we recommended them:
| Company Name | Returns (%) | | Maharashtra Seamless | 177.1% | | VST Industries | 195.7% | | NIIT Ltd. | 128.3% | | M&M Finance | 100.7% |
And it was THIS matrix that helped us by acting as one of the tools used for eliminating the bad stocks, so that we recommend only the good stocks to you.
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'.
"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 |
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 by without taking on too much risk.
But that said, sometimes we make mistakes too. . .
Like I said before, MidcapSelect has a success rate of 73.5%.
That means for every 10 midcap stocks we have recommended through MidcapSelect, 7 hit their target.
So there are 3 midcap stocks out of every 10 that do not perform as expected.
Look, there's no doubt that we recommend a stock only when it meets all the required parameters.
But sometimes... despite having all those valid reasons for recommending the stocks... the assumptions we make turn out to be incorrect.
For example, here are 2 midcap stocks that didn't do like we expected them to...
1) Asahi India
We recommended Asahi India, a glass company, back in April 2006 when the Indian auto market was booming and also the market for architectural glass.
Asahi was the market leader in automotive glass business at the time, and it also had around 25% market share in the architectural glass business.
We expected the company's revenues to increase & the stock to perform well.
While the company's revenues did increase, the company took too much debt, its business became capital intensive and its pricing power decreased.
And all this led to an overall decline in the profitability of the company.
The stock now trades at 11% lower than the price at which it was recommended.
2) Lakshmi Energy
We recommended the stock in January 2008.
At that time, we had hoped that with the revival of rice buying by the Government and the lifting of export ban on the same, better days lie ahead of the company.
What more, the company also seemed pretty bullish on its power business as by using the husk, it presented a environmentally safe way of producing power.
But things did not turn out as anticipated. On account of Government's whims and fancies, the rice offtake did not pick up as expected and to make matters worse, even the power business failed to flourish.
Hence, on account of this double whammy, our earlier projections went for a toss, and the stock currently trades at 73% lower than the price at which we first recommended it.
While the stock may still recover from here on, the recovery could now take much longer than earlier expected.
So the truth is - despite making all the efforts to be as accurate as possible, there will always be factors that we can't control.
But all said and done, you can rest assured that when you receive a research note from us, it is our honest opinion about the stock - based on certain time-tested criteria and assumptions.
So here's what all you get by subscribing to MidcapSelect. . .
26 Midcap Recommendations
Every alternate week, we send you a MidcapSelect report notifying you of an attractive Midcap opportunity.
In each report, we clearly give a recommendation and discuss the pros and cons of investing in that company at that point of time, hence enabling you to make an educated decision on it.
And the best part...
While we strive to find new investment opportunities for you, we also do not hesitate to put out a SELL report just in case a stock is grossly overpriced.
So you get 2 MidcapSelect Buy/Sell/Hold recommendations every month. Plus, we also release special premium reports from time to time... as and when attractive opportunities show up.
"I am a subscriber to StockSelect, MidcapSelect & Hidden Treasure.
Equitymaster has really shown its skill in finding the PICKS much before others do.
I know that it is not so easy for an analyst to 'PICK UP' ahead of others always.
BUT YOUR RESULTS INDICATE THAT THE TEAM WORKS HARD."
-- Satya Pal Gupta, a MidcapSelect Subscriber since 2006 |
S-Features
These are special articles and reports 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 articles include excerpts of management meetings, extracts of conference calls, updates on the happenings in a company and our personal views on it, and so on.
This is all "unadulterated" information and it will serve as a valuable input for your investment decision.
The Portfolio Tracker
Equitymaster's "intelligent" Portfolio Tracker will not only help you manage your portfolio efficiently, but also help you grow your wealth!
It's online, it's easy to use and is available to you 24 hrs a day.
Here are some of the amazing things you can do with this tool...
Track both- your mutual fund as well as equity portfolios in the same account ; Get automatic end-of-week and end-of-month performance updates and alerts for the stocks and funds that you own and even for those that you simply wish to track; Plus you will also get to track your SIPS and get NAV alerts for the mutual fund schemes
And what makes the Portfolio Tracker unique is the intelligent reports that come along with it. These reports will give you in-depth information about your portfolio as well as a detailed analysis to help you invest like a smart fund manager.
The Portfolio Tracker usually costs Rs 330 for a year. But by subscribing to MidcapSelect, you get it absolutely FREE.
"How to Plan Your Equity Portfolio":
Our Recently Released Asset Allocation Guide
Our experience shows that to lead a RICH and HAPPY life with the money you make from your stock investments, it's essential to allocate your investments properly... so that you can maximize your stock market returns but at the same time, keep the risk involved to a minimum.
So, based on your investor profile, this guide will help you understand how to distribute your investments between large, mid and small caps stock... apart from a lot of other things.
This guide, too, is available to you for FREE when you subscribe to MidcapSelect.
Free subscription to
The Daily Reckoning . . .
Are you 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.
As one reader put it, Bill "makes more sense in one e-mail than a month of CNBC".
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 MidcapSelect, you automatically get a free subscription to the Daily Reckoning also.
So to summarize, here's all you get by signing up to MidcapSelect... - New Multibagger Midcaps Report
- A year's subscription to MidcapSelect for just Rs 2,950 (usual price = Rs 5,000)
- Special Reports from time to time
- Quarterly reviews of all recommendations
- S Features
- Portfolio Tracker
- Special guide - "How to Plan Your Equity Portfolio"
- Free subscription to The Daily Reckoning
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This offer will be open until Monday, 7th March at 5 PM and we don't want you to miss out.
And remember, this is a risk-free offer also -- cancel anytime before the 31st day and we'll refund the FULL fee you paid.
So what have you got to lose?
Sign up for MidcapSelect today...
Subscribe Now! Click here!
Yours sincerely,
Rahul Goel
Chief Executive Officer
Equitymaster.com
P.S.: You have two options - Put off subscribing to MidcapSelect for later, and pay Rs 5,000 when you do. Or get in now for just Rs 2,950 and get the latest Multibagger Midcaps special report also!
P.P.S.: This offer will close on Monday, 7th March at 5 PM. There's a 100% money back guarantee on this offer, so at least sign up and check out what MidcapSelect is all about. If you don't like it, we'll give you a full and prompt refund anyway.
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! |
| *Returns calculated as on 1st January, 2011 or on the date of Sell recommendation, 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
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