Professional Documents
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We strive to build
up a portfolio of stocks carefully chosen through a focused and disciplined approach. We are not market timers
trying to predict the tops and bottoms of the market. The strategy is to acquire equities of strong and profitable
businesses run by smart and credible managements at market prices well below its intrinsic worth. At TMP, you can
see in real time how wealth is created.
Aim to become #1 -
Equity Research
Company in India
by 2012, the same
year we have
planned to get it
listed at BSE/NSE.
What Next?
HBJ Capital – “Specialists in discovering multibagger stocks” is launching
more & more innovative products & services with single focus on long term
wealth creation!!!
Table of Contents
For this edition, we have made 4 changes – 1 SELL and 3 BUY positions. It is to be noted that the portfolio
allocation has also considerably increased from less than 56% to 63%.
We had to sell some of our existing counter in order to cap the allocation levels at 65% and we choose to do it
with xxxxx. xxxx, yyyy and zzz were the ones that we considered and finally we went ahead with xxx. While we
believe that yyy can appreciate by 50% in another 10 months by way of earnings growth, considerable order wins
that are expected by the company can also have its impact on the counter. zzz is actually coming out with record
earnings and the stock has not probably reacted to it.
In our previous edition, we had already tipped you off that “We are expecting significant changes in, the portfolio
in the next 2 or 3 months. Some of the stocks in the portfolio may entirely move out and new stock can replace
them. We may also sell some of our stocks in our portfolio that may be at a loss and replace it with some of our
new recommendations.” We expect the same to continue.
We are expecting the portfolio to get more and more concentrated during the current reshuffling phase which can
continue for one or two more months. We expect that the TMP would contain just 7 or 8 stocks with
allocation levels of more than 85%, by the end of this process. And as for the markets are concerned, we
expect volatility to continue, but we believe that TMP has already got use to it and is best placed to make use of it.
Happy Investing.
Kumar Harendra, CEO, HBJ Capital Services Pvt Ltd, www.hbjcapital.com,
Address: #912, 1st "F" Main Road, Girinagar Phase II, BSK 3rd Stage, Bangalore - 85.
Current Millionaire Portfolio (As on June 16th 2010)
Hidden
Transaction and notes
Hidden
HiddenPetro – The earnings are good, the projections look even better. But stock price does not seem to be
Confidence
going anywhere. It was at least from 7.7 levels before and even that is not happening nowadays. We are exiting
the counter now.
But, the thing is we know what this company is into and how good the business growth can be. So, it should not
really be a problem for us to come into the counter again when we feel that the stock price can move. We may be
losing 25% or 20%, but that should be fine.
Hidden
Spice Mobility – Finally, even the name change has happened. Currently we are buying into a 1200 Crore
company, which we believe has a strong future especially on a longer run with all its related units merged together.
We will buy more at 64 or lower levels.
CamsonHidden
Biotechnologies – This is one of our oldest recommendations. xxx, after making a high of 210 has come
down by 25% to around 150 levels. There has been weakness in the counter for the last few months, but it has
been trying to form a base at around 150 levels.
The company is currently carrying out expansion plans in various spheres. The marketing team, the product
portfolio, manufacturing facilities are all being expanded. We expect the company to post strong earnings for the
next 2 years, especially FY 12. The weakness in the counter can take it to 130+ levels and if that happens, we
will buy again.
Hidden – Looks extremely cheap at current levels – 3.2 times on just the annualized earnings on Mar
Geodesic
quarter. The company posted YOY positive growth numbers in Mar quarter and we expect the trend to continue.
Fundamentally speaking, the valuations should improve.
New Portfolio
Hidden
Basic info on TMP
(The Millionaire Portfolio)
operation
Portfolio objective
To create sustainable wealth for the subscribers over a
longer period of time (read 4 to 5 years).
The Portfolio manager creates and maintains a portfolio, while the investor will
replicate the portfolio with discipline.
Any new customer will be provided with an initial portfolio that he may need to
replicate.
As and when any changes are being made to the portfolio, the investor will be
informed of the changes through a detailed report included in this report.
The changes to the portfolio will be made only after the market hours, thereby giving
sufficient time for the investor to take action.
The Portfolio manager will start with an initial investment of INR 10 lacs (1 million).
The investor will replicate the equity holdings by applying the original ratio of holdings
to his / her portfolio allocation size.
Service features
The idea of offline PMS is yet another
The Offline PMS innovative business model from HBJ Capital and
Service will serve as a
is the first of its kind.
strong alternative to
various Mutual funds
and regular PMS The offline PMS service will serve as the best
offerings. case option for the investors who are looking for
professional help to build a wealth creating
portfolio over the years.
The TMP service will make use of the existing advantages and
leverage the strength of these business verticals. Hence, the portfolio
of TMP service will mostly contain the recommendations of HBJ
Capital only..
Growth opportunities –
Since the portfolio would mostly make use of HBJ’s recommendations, the scope for future growth
in business for the companies are huge. HBJ Capital’s recommendations are well researched,
fundamentally proven and in most cases, they are emerging opportunities.
Hence, the portfolio would mostly contain companies that are from an emerging sector or from an
existing sector that is poised for a big change. The thrust will also be placed on companies that are
innovative and do things in a different manner.
Investment methodology (Contd.)
Focus on long term –
There is substantive empirical evidence to suggest that equities
provide the maximum risk adjusted returns over the long term. In
an attempt to take full advantage of this phenomenon,
investments would be made with a long term perspective.
Market factors –
The investment portfolio would be regularly monitored to
understand the impact of changes in business and economic trend
as well as investor sentiment. While short-term market volatility
would affect valuations of the portfolio, this is not expected to
influence the decision to own fundamentally strong companies.
Portfolio allocation
Following are the limitations on portfolio
allocation….
Portfolio change (addition or removal of stocks partly or fully) if any are likely to be
done after market hour on any particular day, in such case the changes will be
communicated to all the members prior to market opening next day.
Portfolio will be shared with all the members at least twice a month, tentative dates
would be 15th & 30th of every month, but exact dates depends on portfolio reshuffle day.
All the members are expected to replicate this portfolio as soon as possible with the
changes done, either addition of a stock or profit booking etc.
Disclaimer
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not be reproduced or redistributed to any other
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may come are required to observe these restrictions.
This material is for the personal information of the
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