BUY BERGER PAINT
TIME JAN 10 12.23
BUY 500 BERGER PAINT CMP 212 SL 205 ON CLOSING BASIC TGT 230-250
berger paint hit 225.50:) PROFIT 6750 RS
Thursday, 23 January 2014
SELAN: A STOCK READY TO EXPLODE
SELAN AS EXPECTED EXPLODED TOLD TO BUY AT 320-330 ON JAN 18 TH IN JUST 2 WEEKS STOCK EXPLODED AND HIT 464 WHOPPING 42% MOVE
HERE WAS MY UPDATE ON JAN 18 TH
Selan Exploration stock after a long time seems ready to explode
Here’s the Selan Exploration Weekly Chart
The stock appears BUY with a closing stop loss below 314.9.
FEW FUNDAMENTAL REASON
Note:Trying to pen in most simple words.Please read it meticulously and understand why you need to buy the stock.
Story:Selan Exploration is into exploration & production of oil & gas.It currently operates 5 small fields in Cambay onshore-Lohar, Bakrol, Indrora, Ognaj and Karjisan.These oil fields were awarded to the company in 1995-2000 under a Production Sharing Contract (PSC) with 100% participating interest by the Government of India.Selan was subsequently awarded two more fields in Gujarat namely Ognaj Oilfield and Karjisan Gas field.In-place resource stands at 73 mmbbl(million barrels)& 7 mmbbl in Bakrol & Lohar respectively.Production level is currently at ~660 bpd(barrels per day).The company sells its crude output to Indian oil at a discount of 5% to Brent.Five points to qualify Selan exploration as a great medium to long term buy.
1)As of now, the company is producing oil from only 2 fields,Bakrol & Lohar.Management has also indicated that Indrora Oilfield contain far larger quantities of recoverable oil than Bakrol.Let us conservatively assume 100 Million Barrels of Oil Reserves under Selan.Selan's reserve would get valued at many a thousand crores.Selan recently has completed drilling of 2 wells, commercial production is expected to happen any day now.Further drilling is also going on.Company has a marketcap of only 500crs.It delivered a revenue of 97crs and PAT of 45crs respectively for the last fiscal 2012-13.
2)Previously, the technology recovery rate of exploration activities was ranging from 10-20% from the total potential reserves in Gujarat.But with the latest technology implementation of 3D contour mapping this recovery rate has gone up to as high as 50-60% for the similar fields.Contour mapping is just like a magnetic resonance imaging(MRI) scan of a human body.Stunning management quality and they are committed to make huge amount of shareholders wealth in the coming years.It buybacks(7 buybacks in the last 10 years),it allots warrants,it generates huge amount of cash,it has got a wonderful under leveraged balance sheet.Selan is one sure shot winner for the longer run.
3)Numbers has been flattish so far over the last few years as it was consolidating its resources and investing a lot in its proven fields.Over the next few quarters the company would actually be in a position to ramp up production massively and deliver an EPS of 60(2014-15).Value it as per the sector and the valuation would be in 4 digits.Even if at the present juncture we see the valuation of selan;EV/reserves of less than 1,marketcap to sales of around 5 with high double digit return ratios,its the cheapest oil exploration company in the bourses.
4)Selan's production cost is $11 per barrel, which is reasonably low.Company pays $5 per barrel as Royalty to the government.The stock has delivered an annualized return of over 41% from 2003 to till date,much superior to the broader market(Selan was at 10rs 10 years ago).Hell,its even higher than what "Warren Buffet Sahab"s berkshire hathaway delivered in the same period.In my view creating and delivering shareholder value has been well handled by Selan. Selan is now all set to start the process of returning value to shareholders while they continue the value creation process.
5)Crude oil demand is projected to increase to about 1600-1800 mn barrels per year. Rising global crude oil prices have triggered increased domestic exploration and production activity.All this factors makes Selan a big beneficiary and helps one to have a lot of conviction on the stock.Selan posses robust fundamentals,amazing pedigree quality,mind boggling prospects,low business risk.Over the next few quarters it can have a production level of about four to five lakh barrels per year, which can lead to a cash flow of over Rs 150 crore.Have put a 8 times forward earnings to arrive at the target price.Selan is a stock which can be kept for lifetime.Make it a part of your core portfolio folks.
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JUST DAIL :GRAND SUCESS
We covered JUST DIAL on DEC 11 to our paid clients when it was trading at 1145 and updated in our blog on DEC 20 th when the stock made a 300 rs up move and hit 1345 still said the stock look set for major major gains in times ahead see where the stock is now just 1 more month JAN 22 THE STOCK Made a further 300 rs move and hit 1727 ..THIS STOCK MOVE WHOPPING 58% MOVE IN JUST 1 AND HALF MONTHS ..JUST6 JOIN US IF YOU WANT TO ENJOY A GREAT 2014 . YOUR KEY TO SUCCESS IS TRENDZOFMARKET
JUST DIAL in last one and a half month. I covered the stock here on Dec 11 2013.
here is the link: http://trendzofmarket.blogspot.in/2013/12/just-dail-another-gem-of-multibagger.html
Here’s how the stock has moved -
(SORRY SMALL ERROR IN IMAGE NOT JULY 11 ITS DEC 11)
As you can see in the chart above: Momentum stocks are great buys on pullback at moving average. The stock worked exactly as the text book and has delivered strong gains in just over a month and half. When stocks deliver windfall gains in very short period of time: one should take it AND wait for pullback.
We will cover all breakout and momentum stocks for subscribed members only
.We invite you to become Premium member of the website and get access to many more Breakout Opportunities that may come this year. WE just charge 2500 rs/pm .To join us plz mail us to trendzofmarket@We invite you to become Premium member of the website and get access to many more Breakout Opportunities that may come this year. WE just charge 2500 rs/pm .To join us plz mail us to trendzofmarket@gmail.com
SBI: LOVE LOST
SBI was the Leadership stock before Nov 2010/Inflation-Corruption Noise
As you can see in the weekly chart above: SBI made a high of 2500 in 2007. Then during Lehman crisis, SBI stock saw a brutal correction and it fell from 2500 to 1000. But then when Global markets made a comeback on Ben Bernanke’s green shoot remark/QE program – SBI rallied and from 1000 levels – it rallied to 3500 in a pretty vertical fashion. In the process – SBI broke past 2500 and that level became the support for the stock
Inflation Attack on the SBI stock
SBI stock bore the brunt of the stock market correction post Nov 2010.
As you can see in the weekly chart above: SBI stock not only broke down below 2500 – but also established it as well defined resistance. Also, in last few years: SBI stock seems to have found support near 1500-1600. Now what’s disturbing: at a time when Nifty is trading at higher end of the resistance – SBI is trading at lower end of the range. It just reflects how weak the stock is technically. Even in a good market – traders/investors are avoiding the stock.
Is SBI a Buy at CMP of 1500-1600?
Technically – The Answer is No. But if one is a big SBI believer, one can Buy with an assumption that stock will hold 1500 and eventually rally to 2500 in CY 2014. That itself will be a 50% move. BUT Here’s the problem: there is no guarantee that such move may happen considering how weak the stock is technically. Also if overall market starts correcting, then SBI will be the first stock to break down. Hence, one should be prepared to exit if stock breaks down and makes new low below 1450.
.We invite you to become Premium member of the website and get access to many more Breakout Opportunities that may come this year. WE just charge 2500 rs/pm .To join us plz mail us to trendzofmarket@We invite you to become Premium member of the website and get access to many more Breakout Opportunities that may come this year. WE just charge 2500 rs/pm .To join us plz mail us to trendzofmarket@gmail.com
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