i Develop Stocks Advisory

Saare Zamen Per.....

New Releases on Monday, January 21, 2008

I have been trying to get in touch with my predecessor who is on leave today and from his email he has requested our subscribers to give him 48 hours so as to bring the entire picture and the reason for what has happened and what would follow. Please bear with me...

It was an unexpected carnage on the dalal street which has left a deep scarce on the mind, body and wallets of the traders. There was chaos and bloodshed all-round. Today can be termed as a “Black Monday” but not blackest as this would be a regular feature in the future as the base would keep on increasing and we would be used to a volatility of 1000 odd points.

Nature’s law says that anything which goes up vertically has to come down the similar manner. This has happened with stocks which have run up like anything in the past couple of months without any fundamentals. So it was but obvious that the same had to come down and they infact did. Stocks with fundamentals have not gone that much.

You must remember that only IDevelop has been advocating stocks with very low FII holding and we have been doing this from the beginning as we all know how the FIIs sell?

Now coming back to the markets there can be some technical pressures still left in the market and hence a weak opening tomorrow is not ruled out followed by couple of days of consolidation. So it would be great time to invest I would be specific here “Investment” in these couple of days where there would be consolidation.

Please remember that if every one is bullish and comments that the fundamentals are intact than why should one even think of selling or bear phase. Note that strong fundamentals and bear market cannot exist at the same time.

People have been advocating on the streets that the markets are expensive and are quoting at higher PE’s I would like to ask one question as to when these peoples talk about long term good fundamentals the question remains as to what is long term a quotation of 09 PE? This is absolutely ridiculous a one year forward PE is all that is long term vision.

We have to remember that the infrastructure projects would still take about 5 more years if not more to be on track this would lead to a cost saving to the country of about 60-75 bps of GDP which might not sound more but believe me it could turn out to be a significant number that can reduce costs all around which will help keep inflation in check.

So please don’t keep 09 as long term view……..otherwise there will be “Saare Zamen Per”

"A nation or civilization that continues to produce soft-minded men purchases its own spiritual death on the installment plan."