Monday, April 28, 2008

Keep Your Investments Healthy!

The companies shared earlier all had their stock prices spurt up by more than 20-25% within a matter of weeks, however this just happened due to market conditions. It isn't necessary that this happens every time, especially since we are investing only on the basis of fundamentals and value and not technicals or trends. Also please do not regret anything. Yes, the markets have run up again, but that doesn't mean there will be no new opportunities. It doesn't means that they can't correct again. Irrespective of where the markets are you need to look at the fundamentals of your company.

All of you might by now be knowing about my philosophy of looking at goods services we use in our daily lives as potential investments. Lately I have started investing in one such company. This company is behind a product that is a market leader in a segment which is still very small, but extremely fast growing.

It always makes sense investing in market leaders in sectors which are just about to grow exponentially. Because usually such companies are available at cheaper valuations and when the sector does grow, their valuations rise quite aggressively. This company is a high growth small-cap that has rapidly growing sales as well as growing profits. Sales for instance have grown more than 500% in the past five years.

The company was taken over by a big corporate group around two years ago at a price more than 50% of today's price. Even though in the past two years business as well as profits have grown, the stock price is still 50% away from what the price was when it was taken over. Markets are not perfect or rational and that is what provides us with opportunities.

Just like all our other reports, I like sharing what made me invest in this company and how I discovered it. I'm sure based on it, you too can learn how to select companies better. Most of my investments have been based on my experiences in daily life, and this one is similar too. Please remember that my reports are very simple and personal and are meant to help you learn more. Please do not just invest and be happy with the returns you make. Instead spend time and learn as much as you can from everything. I too am constantly learning as I feel we never know enough.

You can find out more about it and learn how I selected this company by downloading this report here. You would be directed to a Paypal page where you can pay securely via credit card/Paypal and once the payment has been received you will be able to download the report online.

Happy Wealth Creation!

Yogesh Chabria

© Happionaire

32 comments:

Meera said...

It was so nicely explained and also the simple logic behind investing in this company seems so easy, but yet is so powerful. This company surely makes a good investment just like the previous ones shared by you.

Thanks

vishnu said...

This was an interesting company and an interesting product. I think it is not too often that we get to see companies which are growing so fast in a sector which is just about to grow. It can be a great investment, I think.

karan said...

A definite add to my portfolio. Loved the practical way of research with photos and all. You have the power to make even research reports fun and interesting to read and at the same time letting us learn something and also create wealth.

kunal said...

This company does offer a lot of value. I am working with an Indian Mutual Fund and the only thing that is bad for us is that since this company is so small and our assets are so large compared to it, we won't be able to make a lot of returns on it.

That is one place where smaller retail investors can make more money than us. If you have a few lakhs or even a few crores you can easily double or triple it in a short period of time. But since we have so much more a 50 crore company can't really help us. Most retail investors can easily do better than a Mutual Fund.

subeer said...

I read your book Yogesh and it is lovely. One of the most powerful books I have read in my entire life. Powerful because it makes me think more and change my mindset towards wealth. After reading your book, I have become more curious to learn.

I read your latest report and liked the way you selected this company too. I went through the fundamentals and it can easily double in price according to me.

Yogesh says the same thing you are saying Kunal in his book.

neeraj said...

I have bought all your reports and they have all helped my investments a lot. I have a capital of two lakhs and based on the earlier two investments I am already making Rs. 40,000 in just a month's time.

Thanks

vivek said...

Yogesh, what is the option for us in India to buy your reports? Any other option other than paypal?

radhika said...

Vivek, Paypal can be used in India too but I know a friend of mine she bought the reports by doing a manual bank transfer. Just send him an e-mail and he would tell you how you can get it in India.

This company does look very promising btw.

Did you get your copy? I had read your comments on your hunt for ITHW. I got mine and besides just the writing, even the entire way the book has been presented is very nice in hardcover.

gaurav said...

Yogesh, I just want to thank you so much. I remember when the markets were correcting you helped me stay calm and not sell in a panic. Today thanks to you I am back in green and exited some of the money to repay the loan I had taken.
Had I listened to those people who come on TV and on the same site you write, I would be bankrupt today.

Now that I have repaid the loan, I will take time to study and learn. I know I should not take loan to invest. But just want to thank you for keeping me motivated and just changing my whole mindset towards investing.

I bought your latest report and am liking the way you study companies. I can't invest now in the company, still but in this time I will study and learn more.

kabir said...

Gaurav, it is very simple when snakes come and say market will hit 10,000 you should just do the opposite. Those guys want small investors to sell in a panic so they can buy cheap.

Glad to know that Yogesh is helping investors learn for themselves.

vivek said...

Thanks Radhika for the info about the bank transfer option. I am aware that Paypal can be used in India, but a friend of mine had some problems with it and advised me against using it, so am looking for other options.I have mailed Yogesh and waiting to hear from him.

As for my copy of the book, well this weekend could not go to Crossword as i was busy, but have decided to definitely pick it up during the upcoming 4-day weekend! :-)

P.S. Didnt know that my adventures with picking up this book was so widely followed! ;-)

Yogesh,
Please check your email and reply. Thanks.

radhika said...

Probably your friend had some issues, but I think Paypal is pretty safe and is a global standard. But I guess you can pay ofline.

Oh ....yes a lot of us girls follow several things happening around this blog. ;-)

I think Yogesh does have a very large female fan following and we are all out there to try and make sure as many copies are sold as possible. Even though we know about certain things already, that doesn't mean we shall stop being his fans! We still love SRK even though he has Gauri, don't we?


What do you do Vivek besides being a fellow Happionaire?

rajiv said...

Thanks for sharing one more investment gem and also sharing the strategy to select such gems on our own in the future.

Vivek don't worry, just use Paypal it is much faster and safe. I have been used it a lot.

mukesh said...

This company should have good growth ahead according to me in next 2-3 years. This sector can really boom and pick up. Good one Yogeshjii.

dilip said...

After reading your book, it is nice to see real world investments based on the concepts you shared. Very interesting and also something I can use in the future to select companies on my own.

vivek said...

Radhika, yes it is really nice to see so many people becoming Happionaires. Yogesh mailed me the account details and i have transferred the money online to his account, so waiting to receive the report. Thanks again! :-)

I also have told many of my friends about this book and everyone is eager to read it. In fact i plan to gift it to them, which is one reason why i didnt want to order online, so planning to go to Crossword tomorrow and pick up 4-5 copies and giftwrap them! Initially
i thought of reading it first and then gifting if it is good, but looking at all your reviews, i think there is no need for it.

Me, well i am in that job which most people in Bangalore are associated with, though i really hate that term of "software engineer" - its so boring! :-)
I have always been interested in the stock market and financial world, i am looking at doing my MBA. Started investing in the markets in 2001.
How about you - where are you located and what do you do?

Yogesh,
pls check your email :-)

karthik said...

Great company. The earlier companies you shared were purchased at me just at the right time. I have heard people in the market telling me they can easily double, but I have told them not to think about such things but just worry about fundamentals. They will double and triple automatically over time. Thanks for sharing such wonderful companies with us.

Nirmala S said...

Hi Yogesh,

You have a huge fan following :) ( including me).

I see that people have started using you blog for personal inteaction (For e.g Radhika & Vivek). I think that defies the purpose of your blog.

Soon we will end up seening msgs like hi sweetie, i made 40 K profit by investing in companies suggested by Yogesh, lets celebrate, join mefor dinner tonight etc etc..

Pls dont let this wonderful blog become another junk on internet.


Regards,
Nirmala S

The Happionaire™ Blog said...

Hi Nirmala and all other fellow Happionaires!

Thanks for the lovely words.
Just to make sure there is no argument here, I'm posting a message.

I do encourage interaction between everybody and as long as it is civil and interesting, there is nothing wrong and it makes everything more fun. All of Happionaires should celebrate life.

Of course if discussions are going to be too personal, fellow Happionaires can simply exchange e-mails and carry on their discussions in private.

All of us will make sure that everybody posts comments on the basis of mutual respect.

Hope everybody is smiling!

Yogesh

Radhika said...

Nirmala, it is great to speak to each other and know each other better. The Happionaire way according to me as Yogesh puts it, is about life and there is more to life than just stocks. I have full respect for what you say, and know what you mean. But this blog is not like other junk sites you talk about and will never become that. Firstly there is comment moderation, which means only good messages will go across. As you can see my comments were of help to Vivek and this is what a community is about.

We should all help each other and become friends. I would love to know you better too and as many people here as possible.

Great to know about it Vivek. Hope you got the report. lol Yes your city is filled with "IT people." I'm based in Bombay and am working with an investment bank. IT people are not all that bad, my husband is an "IT person".

Oh and yes ITHW will make a good gift as the packaging is pretty good too.

arbaz said...

This is a great company but I feel the one shared earlier has more potential, partly because it is available at a price which is less than what Rakesh Jhunjuwala bought it at. This might double soon, but that one can easily have its share price going up 6-7 times. Maybe even more looking at the huge possibility ahead.

vivek said...

Nirmala, your point is well taken, but this not a open message board, it is moderated, so i dont think anything like what you are referring to will happen.

Also, like Radhika and Yogesh have said, life is all about interacting and meeting with different people and celebrating it. Besides, even from an investment perspective, one needs to build a "circle of competence", with whom you
can interact and exchange your stock ideas - that is how you will
become a better investor.

I met a small group of fellow minded investors through
the moneycontrol message board many years ago. We interact through emails, and have even met a few times over the last few years, even though people are spread out in Pune, Mumbai, Kolkatta, Bangalore, etc

Believe me, the amount of knowledge
each of us have gained through our
interactions has been invaluable (None of us are experts, but everyone is good at something - like one guy is into technicals, another into value investing, etc).

Radhika,
me still unable to get my hands on the book, not available at the bookstores in Blore :-(

joseph said...

Hi Vivek,

Strange how you didn't get it at Crossword. I'm from Bangalore and got a copy. Check out the Crossword website and just drop them an e-mail. They will surely help you out. Specially since it is now a bestseller, they should easily send it to your place.

Your adventures have been keenly tracked here. I'm sure they would be well worth the trouble. Somethings are much more fun when they are hard to get.

Nirmala, I don't think anything will get too bad here as most of us are mature adults. It is good too connect and just share ideas. It is tons of fun too.

Hope that power problem of yours gets sorted out!

Cheers!

ramesh j. said...

This company is something I know about because I have seen more and more people use its products. I am a retailer and now am starting to realize how easy it can be to select companies for the long term based on fundamentals.

Lovely pick and I got to learn so much.

reena mehta said...

This is an interesting defensive pick according to me, and if markets go down this will go up. Good one. Will be buying over time for sure.

kapil said...

Hi Yogesh,

This is not a comment for this post, rather an earnest request for an email reply. Apologies in advance.

I have been requesting Educational advice through email (Subject: GENTLE REMINDER: The Buffett System, Date: 8/2/2008), but I guess you have been too busy to look at the mail. I understand.

I would really appreciate if you could take a quick look and advise me if I am on the right track or not.

Thanks,
Kapil

The Happionaire™ Blog said...

Hi Kapil,

Sorry for the delayed reply and thanks for posting the query here.

I will be sending you an e-mail today.

Thanks and keep smiling!

Yogesh Chabria

anish gupta said...

Just went through this report. I feel this one is excellent and I too feel that this company has a lot of scope in the future.

if not for anything, at least to learn how to study a company this report is priceless. I"m actually getting to learn the practical live uses of the strategies shared by you in Invest The Happionaire Way.

kajal said...

What a co-incidence. We have been using the products of this company for quite some time now and are very satisfied. It does look to have good scope- only one issue seems that this is the only product in there range - as in major revenue earner. I'm very new to investing but reading such reports surely is very helpful to understand how to select and keep eyes open for other companies. Have also relaized that you also do through financial research after detecting a company.

Thanks for sharing such valuable learning insights and helping us learn to fish on our own!

Abhinav said...

The parent company has increased the quity by 6 times and have added one of their division. Now, the product which was capable of exponential gains is just a tiny percent of total sales. I wonder if this is still a good buy.Yogesh, can you pls throw some light on the recent restructuring.

Abhi said...

Hi Yogesh,
Recently there is some restructuring wherein the parent company has merged certain division and increased the equity base. Now the equity base has increased to 7 times and also the killer product is just some percent of total sales. Should we still buy this company.Pls respond.

rosesh said...

Abhi, I think now it is better to wait and watch as it is not running anywhere in a hurry. I am currently buying into the other company - Cash Is King and it has given me quite good returns too. But still better has been the company shared in Cash The Crash. Given me over 30% already.

I like the fact that in Cash The Crash, Yogesh has accepted how he had losses over 70%-80% in some companies and how those were good learning experiences. As investors at the end of the day, our losses teach us more than our profits.