BI-for-Sept-2009

Releasing “Business Insight” on 25th Sept’09 : If you are looking for 20x returns in 3 years then go for “Business Insight” stock reco from MPS Unit

{Available ONLY to the existing & new subscribers (joining before Sept 25th) of HBJ Capital’s “Penny Stock Package”!!!}
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It’s a common belief amongst investors that cyclical sectors should be avoided, as the return provided by them are not stable. Well, we are not here to follow what others are doing, because the common beliefs will never earn you more than what a common man earns. We have to make use of other’s mistakes, and make prudent investment decisions, so that wealth can be created over a long run.
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Peter Lynch had many 100 baggers in his portfolio from the cyclical sectors. Well, if he could make money out of them, then why not us, especially when the time is ripe to invest in such sectors.
  1. The company/stock selected for the current issue of “Business Insights” is a flagship company (market leader in its zone) belongs to one of the big business house operating in commodity.
  2. Major financial institutions have picked up around 15% stake in the company; which gives a sense of confidence that some big names are associated with the company whose Mcap is below Rs50 Cr.
  3. Mcap of this company is well below Rs50Cr, but the total sales of the company for FY2008-09 stood at around 16 times its Mcap, while the operating profit was more than its Mcap. Do we really need to say that it’s a huge value buy.
  4. The company has spent Rs 200+ Cr on its first phase of expansion & it has plan for total investment of another Rs 2000+ Cr in 5-7 years to take the total capacity multiple times higher.
  5. The current stock price is below Rs 20 & trading well below the book value which is 4 times its CMP. Promoters has bought the shares at around Rs 50/share which provide huge margin of safety.
  6. Considering the improvement in performance due to capacity expansion coupled with better margins in next 3-4 years, on account of self-sufficiency and backward integration. Also, during the peak of cycle, the commodity stocks easily trade at a P/E of 14-15. So, there’s very high probability of this counter giving return in excess of 15-20 times in next 3-4 years.

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Are you still waiting!!! Grab this potential 20 bagger stock in next 3 years from MPS Unit.
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Subscribe before Sept 25th for MPS (Penny Stock Package) Paid Services to avail this wealth creating penny stock, you can call 98867 36791 or e-mail to Info@hbjcapital.com

-Team HBJ Capital

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