All of you might by now have realized the importance of both growth as well as value. Investing should be holistic and you need to consider every possible factor. Just because a company has made low profits in the recent quarter, does not make it bad. In fact several times just because of a few special situations profits might decline, and this leads to the hammering of the stock price. Not necessarily that the company is bad. For example sometime ago cement company stocks got hammered because of government regulation and price control. Every analyst, journalist and broker out there was telling to sell cement. However was it really the time to sell cement or rather buy it when everybody sold in a panic? In the game of investing you need to keep your emotions under control and be able to see what others are not seeing. I know I might sound a bit ruthless when I tell you to buy when others are selling in a panic, but that is one of the best ways to play the game of investing. Just because everybody says something is right, does not make it right. Similarly just because everybody says something is wrong, it doesn't make it wrong. What makes things right or wrong are simple facts.
One company whose stock price has been hammered from a high of over Rs. 300 to around Rs. 90 has caught my attention, and I have started investing in it. This company is involved in manufacturing as well as retail and has had rapidly growing sales over the past few years, even though profits have not grown as well. One of the reasons I like this company is because it can benefit largely from the domestic Indian growth story. The retail sales are projected to grow exponentially in the next 3-4 years and large investments are being made into establishing a competitive retail chain. Besides that, this company also has significant amounts of land in major cities like Mumbai, which are being developed.
The company offers a lot of growth ahead and at the same time the land and factory make the remaining business almost free. This mixes elements of growth as well as value. As I mentioned earlier that companies should never be judged just by immediate returns and the last two quarters. If you go back into history, you will see how it makes sense to invest when there are challenging moments being faced. Laxmi Mittal bought steel mills in Kazakhstan when these units were all loss making and the government wanted to shut them down. He made his billions by having the guts to buy when nobody else had the guts to buy these sick steel mills. He did not have that much money and went around knocking several doors till he could raise the money. He is an inspiration for all of us and we should all follow those who have created wealth.
I would like to stress as usual that this report is being shared to help you learn more and you will need to try to search for more information on your own. The reason I am doing this is because this way you will learn more and understand better. What you learn can be applied to companies universally. Please never ever invest blindly without proper understanding and learning.
You can find out more about 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!