Past Performance of Mahesh Kaushik Fundamental Stock Recommendations Part 8

Respected readers, 

Thank you for your patience,  faith and love.

Now we continue with part 8 of this chandu journey new readers please start it from part 1, here is the link of part 1:- 

Past Performance of Mahesh Kaushik Fundamental Stock Recommendations Part 1

When Chandu and Chinki finished his dinner then Chinki say " Chandu I have a doubt about mahesh kaushik research analyst if you do not angry then I ask my question about this doubt?

Chandu say " Do not worry chinki I have complete faith on his method of investing so ask your question and if I am unable to resolve this doubt then we ask it directly from mahesh kaushik using his blog comments.

Chinki say " Thank you chandu, I visit mahesh kaushik blog and found mahesh kaushik recommended Vijaya bank @46.45 and Bank of Maharastra @32.35 and when I compare these stock current price then I find that investor of these stock loss their money and not make any profit since last one year of holding and most of analysts on TV channels say " Avoid bank stocks..... book your loss in bank stocks...NPA of banks are continue up so book loss and invest in performing sectors etc.

Chandu laughed and order 2 ice-cream cones for time pass between this hot discussion.

Chandu start explain about banking sector" Chinki when an analyst told anything on TV then we have no record about his recommendation but all of mahesh kaushik recommendations are live on web since 2009.

So chinki I give you a link of his blog when SKS micro-finance traded @ 1400 ( in 2010) then many analyst give a target of 2000 for sks microfinanace only mahesh kaushik give a target of below 200 for SKS Micro-finance and you find that in 2012 this stock touched price of 54 instead of 2000 read this earlier article of 2010  here:-

http://sharegenius.maheshkaushik.com/2010/10/can-sks-microfinance-touch-2000-level.html 

So after this article I understand that one day market give real valuation for any stock on basis of net sale per share, base price and book value etc. 

Chinki have no word to argue about this.

Now Chandu start explain about banking sector" Chinki in the same time (2010) when Union bank traded @425 then he calculate net sale per share book value and base price etc then say "Best price of union bank is below 180" and now union bank is traded @115 only , at this time Vijaya bank traded @ 115 and bank of maharastra traded @ 84 see this past 2010 short view here:-

http://sharegenius.maheshkaushik.com/2010/11/avoid-banking-sector.html

Chinki say " Oh now I understand."

Chandu say " Finally chinki I give you one more link  where you find How mahesh kaushik warn in 2011 about current situation of banking stocks:-

http://sharegenius.maheshkaushik.com/2011/10/my-special-view-on-banking-sector-banks.html

and now when many analysts recommended to sale banks he think bank stocks are traded on fair and cheap valuation so I do not worry and enjoy my dividends in banking stocks in my holding period and one day I defiantly book decent profits in Vijaya bank and Bank of Mah.

Next part of this story:-
How Chandu get 111.74% profit in manali petro

Past Performance of Mahesh Kaushik Fundamental Stock Recommendations Part 7

Respected readers,

I am happy to see your comments, faith and love with last 6 parts of this story.

I am also happy to see that this story teach you stock market investment basics in a simple way.

Now we continue with Chandu journey new readers please start it from part 1, here is the link of part 1:-

Past Performance of Mahesh Kaushik Fundamental Stock Recommendations Part 1

Chinki was very excited when she heard Chandu story and she also plan to follow this investment style.

Now I think after read  last 6 part of this story my readers are properly understood that " How to invest in my style?",  So now I publish final results of Chandu profit booking story as I publish in my penny share blog. ( see past profit booking in penny share here:- Past Profit booking in Penny Share

So here is the Chandu profit booking and holding details start from BLB Ltd.:-

1. BLB Ltd:- Chandu buy 1672 Share on 18.03.2013 Buying price 2.99 ( Investment with brokerage 5050) and get INR 167 as Dividend in this stock. 

On 18.03.2014 Chandu investment complete his 1 year of investing and he check market price of BLB Ltd  on 18.03.2014.

Chandu found that market price was 2.50 So now value of his BLB holding was 1672*2.50=4180 So he was in notional loss of INR 870 but he could not worried because he understand that if he hold this stock then he get dividends income and his maximum loss is limited to INR 5000 only.

and Chandu do not average out this stock because he is a strict follower of me and in my theory average out of any stock is not allowed see this youtube video for more understanding of this theory:-

So what is chandu target ?

Chandu want minimum 15% profit so it means his target price is 2.99+0.45 (15% of 2.99)=3.44

So chandu wait this price on closing basis.

Now I advice to download this excel sheet of BLB price history here:-

BLB LTD price history from 2013 to 2016

at 26.05.2014 Chandu get this  price and closing price of 26.05.2014 was 3.57 as you seen in above excel sheet.

Now Chandu have 2 option:-

1. Book profit @3.57

2. Wait more profit  but secure his profit at 3.57

Ok,

So chandu decided to track every day closing price after this 3.57 and if closing price fall below 3.57 then he sell his stocks on next trading day.

If closing price not fall below 3.57 then he enjoy the ride but if stock price start  to falling and closed near 10 % of any recent high then he book profit on next trading day.

Please refer above price sheet for more deep understanding

You find that closing price on 12.06.2014 was 5.65 and closing price of 16.06.2014 was 5.11 so on closing price basis stock is falling near 10 % from recent high of 5.65 , Chandu book his profit on next trading day ( on 18.06.2014) @ 4.86

So chandu profit is 4.86-2.99=62.54% in this trade.

Chandu net profit is:-

Buying date:-18.03.13 @2.99 brokerage 50 total 1672 shares total investment 5050

Selling date:- 18.06.14 @ 4.86 brokerage 50 total amount get from selling 4.86*1672-50= 8076

Net profit in this trade:-8076-5050=3026

Net dividend income:- 167

Total Profit  with dividend=3193

Overall gain % on 5050 investment=63.22%

I made this report with full honesty because if you see above excel sheet then you find that BLB touch all time high @10.63 on 29.09.2014 

So if I do not use honesty then I tell chandu sell his stocks @ 10.63 and get 10.63*1672=17773 from his 5050 investment total 255.51% profit.

but instead of this self prayer I want to teach my followers with reality and honesty.

Please remember "In stock market it is near about impossible to buy on lowest price and sell on highest price".

So chandu is very happy with his first profit booking of INR 3026, Chandu go to nearest ATM and withdraw INR 2000 then he invite Chinki to take a dinner in 5 star restaurant with his first share market income...

Click here to read part 8 of this story.

Hindi Edition of "The Winning Theory in Stock Market" Launched

Respected readers,

Namaskar,

I am Happy to announce that now Hindi edition of my book" The Winning Theory in Stock Market" available in the market (worldwide).

This book is available in 2 formate:-

1. Hindi Paperback. (Printed book)

2. Hindi E book ( Soft version for reading on computer and mobile only)

Here is the some of top buying choices of this book :- (

Hindi Paperback. (Printed book)

Amazon india:- This book is listed on Amazon India Near INR 340 ( Total @340+65 delivery charges ) here:- The Winning Theory in Stock Market (Hindi)

Amazon.com:- For readers who live at USA, Canada etc

http://www.amazon.com/Winning-Theory-Stock-Market-Edition/dp/1523491647

Creatspace E store USA:- Publisher of this book here is the link :-

https://www.createspace.com/6010546

Hindi E book ( Soft version for reading on computer and mobile only):- Price of Hindi E book " Share Bazar me jitne ke sidhanat " is 135 Rupees click on the link to see listing page of particular retailer:-

1. Smashwords

2. Scribd:- in 14 Day Free Trial you read e book of the winning theory in stock market (Hindi) at free of cost Join Now

3. Barnes & Noble

4. Inktera

Disclaimer:- I am the author of this book not sell my book directly or indirectly from any physical or on-line retailer or book seller so I am not liable for any mistake in book price, book condition and book delivery time or non delivery from seller.

Past Performance of Mahesh Kaushik Fundamental Stock Recommendations Part 6

Respected Readers, 

Sorry for late update because I am busy to select good stocks for my new research reports and also give my time for edit Hindi Edition of my book. 

I scan 100-200 companies data then I find only 1 stock which full- fill all of my criteria so this is a very time consuming job. plus I get many comments and e mails from my followers so most of my time consume in reply of these comments and e mail. 

Now we continue this journey. 

New readers please start it from part 1 , here is the link of part 1 

Past Performance of Mahesh Kaushik Stoc Recommendations Part 1 

01.08.13 

I publish a new stock Pricol Ltd @ 16.35 you can read this past recommendation here:- 

Pricol Ltd 

Chandu invest his fresh 5000 in this stock and buy 306 share of Pricol Ltd and invest total 5003+ brokerage 50=5053

So as on 01.08.13 Chandu portfolio plus balance sheet of stock market business is:-

1. BLB Ltd 1672 Share Buying price 2.99 ( Investment with brokerage 5050)
LTP on 01.08.13 is 3.55 Unrealized profit 936.32 ( Realized Dividend income 167)

Why Chandu not book this profit 936.32:- Chandu is my strict follower and not book his profit where holding period is below 1 year because after 1 year profits are tax free and one year is sufficient time to evaluate company performance.

2. Manali Petro Ltd 554 share buying price 9.02 ( Investment with brokerage 5047)

LTP on 01.08.13 is 6.85 Unrealized loss 1052.60  ( Realized Dividend income 277)

3.National plastic ltd 571 share buying price 8.75 ( Investment with brokerage 5046)

LTP on 01.08.13 is 7.69 Unrealized loss 609.50

4.Vinyl Chemical Ltd 524 share buying price 9.55 (  Investment with brokerage 5054)
LTP on 01.08.13 is 11.70 Unrealized profit 1126.60  ( Realized Dividend income 277)
5. Guj Sidhee Cement 218 Share buying price 23 (Investment with brokerage 5064)
LTP on 01.08.13 is 12.25 Unrealized loss 2343.50

Total investment from 17 March 2013 to 01 August 2013 ;- 30314

Net Dividend income ( Tax Free):-1081

Chandu do not worried to see this unrealized loss in above 3 stocks because he knew that this loss was notional loss and notional loss is not a real loss until he sell his stocks. 

Chandu knew that as per mahesh kaushik theory if price of these stocks is down till zero then his maximum loss is INR 5000 in each stock but his growth potential is unlimited if he hold these stock. 

Now one day Chandu meet from his childhood friend Chinki, Chinki say " hi chandu how are you? I see you are very happy today? 

Chandu say " Yes chinki I am happy because I find a very smart business of stock market. 

Chandu tell his story to chinki then chinki ask one question " Why you invest INR 5000 in a stock ? I have no enough money then how I define a minimum amount for investment in a single stock? 

Chandu say " Chinki I told you Mahesh kaushik formula of minimum amount investing in stock market. 

Mahesh Kaushik (My) Formula of Investing:- When you start a stock market business in my style then first of all I recommended to invest your INR 650 to buy and read these 2 books (click on link for buying these book and read details about these 2 books):-

1. The Richest Man in Babylon ( English) Price INR 108 

or 

Babylon Ka Sabse Amir Aadmi (The Richest Man in Babylon) (Hindi) Price INR 123 

2.The Winning Theory in Stock Market ( English) Price INR 557 

or 

Share bazar me Vijay pane ke sidhanat ( Hindi translation of The Winning Theory in Stock Market )

Now as per book one "The richest man in babylon" decide your monthly saving ( it is 10% of your total monthly income)

suppose your monthly net income INR 50,000 then 10%=INR 5000 ( which i use in chandu example or in my case).

If you earn INR 20000 in a month then this amount is INR 2000 ( 10% of 20000).

Suppose your income is INR 30,000 per month and you decide to save INR 3000 per month then do not invest more then 3000 in a single stock.

First of all wait your 3 month saving when you save 3000*3=9000 then deposit it in your trading account and now invest INR 3000 in each of my new recommendation of http://www.maheshkaushik.com/

Suppose you start your investment on 01.01.2016 with INR 9000 then you invest INR 3000 in Bank of Maharashatra in Chandu style and hold INR 6000 in cash for my next recommendations.

Every month add your 10% saving in your stock market business ( in this example every month add INR 3000, Read book one for more detail)

and every time invest your 3000 in a fresh stock do not average out your falling stocks.

In above example Chandu invest his 5000 in Pricol Ltd as a fresh buy he do not average out guj sidhee stock which is fall near 50% from his buying price.

Next:-

Click here to read part 7 of this story

Past Performance of Mahesh Kaushik Fundamental Stock Recommendations Part 5

This is the 5 th part of this series so if you are a new reader then please read this story from first part.
Here is the link of 1 st part of this story:-

Chandu share market journey with mahesh kaushik


10.07.13
Today Vinyl Chemical  give 0.80 rupee per share dividend so Chandu get INR 419 as his first dividend income from stock market.
Chandu is happy because his first income is income tax free ( Dividend income is exempted from Indian income tax law),
Chandu go to nearest ATM and withdraw INR 400 from his first income for buying some sweets as prasad of god.

18.07.13 
Today Manali Petro  give 0.50 rupee per share dividend so Chandu get INR 277 as his second dividend income from stock market.
Chandu is happy because his dividends incomes are income tax free Chandu think Stock market investment in mahesh kaushik style is world smartest business where:-
No shop space or shop rent require.
Stocks gives dividend in holding time.
Dividends and long term capital gains are tax free.
No need to invest huge money at once.
Profits are income tax free.

17.07.13 Today Guj Sidhee Ltd Ltd give 1 Rupee per share dividend so Chandu get is third tax free dividend income of INR 218 

19.07.13
Today BLB Ltd give 0.10 paisa per share dividend so chandu get is fourth tax free dividend income of INR 167 , Now his total dividend income is 419+277+218+167=1081
So Chandu is very happy because he get INR 1081 as tax free dividend income without selling a single stock.
His Total investment from 17 March 2013 to 19 July 2013 ;- 25261

Dividend Income:-1081

Next:-

Part 5 of This story (must read Important)

Past Performance of Mahesh Kaushik Fundamental Stock Recommendations Part 4.

This is the 4 th part of this series so if you are a new reader then please read this story from first part.
Here is the link of 1 st part of this story:-

Chandu share market journey with mahesh kaushik

Now I think you understand well that how to set up a decent stock market business ( shop of stocks) with my recommendations.



I describe this shopkeeper approach in chapter 1 of my book.

On 02 June 2013 (Sunday):-

I publish an article to buy Guj Sidhee Ltd @23 read this past recommendation here:-

Guj Sidhee Ltd

So Chandu buy 218 Share of guj sidhee ltd @23 on 03 June 2013  and pay 5014+50 brokerage total 5064.

So as on 03.06.13 Chandu portfolio plus balance sheet of stock market business is:-

1. BLB Ltd 1672 Share Buying price 2.99 ( Investment with brokerage 5050)
LTP on 03.06.13 is 3.10 Unrealized profit 183.92

2. Manali Petro Ltd 554 share buying price 9.02 ( Investment with brokerage 5047)
LTP on 03.06.13 is 8.24 Unrealized loss 432.12

3.National plastic ltd 571 share buying price 8.75 ( Investment with brokerage 5046)
LTP on 03.06.13 is 8.26 Unrealized loss 137.04 

4.Vinyl Chemical Ltd 524 share buying price 9.55 (  Investment with brokerage 5054)
LTP on 03.06.13 is 11.20 Unrealized profit 864.60
5. Guj Sidhee Cement 218 Share buying price 23 (Investment with brokerage 5064)
LTP on 03.06.13 is 23.35 Unrealized profit 76.30

Total investment from 17 March 2013 to 03 June 2013 ;- 25261
Net Unrealized Profit/Loss from 17 March 2013 to 03 June 2013 ;- 555.66 
( For easy calculation here I do not consider brokerage for calculate unrealized profit/loss but when Chandu realized his profit booking then I discount brokerage from profits)
So what you learn from Chandu last 4 months stock market journey?
1. He do not realized his small short term profits, because he is a long term investor and hold a stock for minimum one year period because one year is enough time to see real performance and after one year profits are tax free.
2. His buying in Manali petro is in 8-9% loss but he do not worried about it and not use stop loss to book loss  because he understand if year high/ low ratio is not cross 2 in downside then no more risk is there( Read reverse trading system chapter in my book).
3. He do not put all of his savings or money in stock market, he invest INR 25000 only and invest this amount gradually in last 4 months.
4. From his small capital of INR 25000 he is a stock holder of 5 companies and proud that he hold shares of 5 companies.  

Read next part of this story here:-

Past Performance of Mahesh Kaushik Fundamental Stock Recommendations Part 5

Past Performance of Mahesh Kaushik Fundamental Stock Recommendations Part 3.

This is the 3 rd part of this series so if you are a new reader then please read it from first part here is the link of 1 st part of this story:-

Chandu share market journey with mahesh kaushik

On 28.04.2013 

Chandu read my 3rd stock recommendation National Plastics ltd @ 8.75 So he invest his next 5000 Indian rupee in national plastic ltd and buy 571 stocks of national plastic ltd and pay INR 50 as brokerage so his investment amount is 4996 (571*8.75)+50=5046

You may read this National plastic recommendation here:-

National Plastic Industries Ltd

In last 1.5 month Chandu buy these 3 stocks on my recommendations and he is a strict follower of my method so he not invest more then 5000 in a stock at a time and minimum hold a stock for 1 year because he want to get tax free long term capital gain.

So as on 28.04.13 Chandu portfolio is:-

1. BLB Ltd 1672 Share Buying price 2.99 ( Investment with brokerage 5050)

2. Manali Petro Ltd 554 share buying price 9.02 ( Investment with brokerage 5047)

3.National plastic ltd 571 share buying price 8.75 ( Investment with brokerage 5046)

Total investment from 17 March 2013 to 28 Apr 2013 ;- 15143

On 19.05.2013

Chandu read my 4 th stock recommendation Vinyl Chemical Ltd @ 9. So he invest his next 5000 Indian rupee in Vinyl Chemical Ltd and buy 524 stocks of Vinyl Chemical Ltd and pay INR 50 as brokerage so his investment amount is 5004 (524*9.55)+50=5054

Here I use price 9.55 instead of my recommendation price 9 because 19.05.13 is a sunday and next day closing price of vinyl is 9.55 so as my rule of honesty I use 9.55 instead of 9.00

You may read this Vinyl Chemical Ltd recommendation here:-

Vinyl Chemical Ltd

So as on 19.05.13 Chandu portfolio is:-

1. BLB Ltd 1672 Share Buying price 2.99 ( Investment with brokerage 5050)

2. Manali Petro Ltd 554 share buying price 9.02 ( Investment with brokerage 5047)

3.National plastic ltd 571 share buying price 8.75 ( Investment with brokerage 5046) 

4.Vinyl Chemical Ltd 524 share buying price 9.55 (  Investment with brokerage 5054)

Total investment from 17 March 2013 to 28 Apr 2013 ;- 20197

Now Ask some question from you:-

Have you patience to make a portfolio like Chandu ?

Are you wait one year to book a profit?

Are your stocks give dividends in your holding period?

Read next part of this story here

Click here to read part 4