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Safe Stocks
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Blue-chips, or Safe Stocks as they are often called, are known for
providing stability and consistent returns.
But please take a look at this now...

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These are just some of the returns that members of a very

privileged group have made - and consistently make - from some of
the market's safest stocks.

And I'm going to reveal all about this group in the next few
minutes... including their recent stock picks.



 
  
       
  
 
 


I know your initial reaction is probably that this number is too

good to be true. To tell you the truth, I felt exactly the same way
when I saw the report on the track record.

But I even got it cross checked by an independent auditor. And as

it turned out, 
   

I will shortly share with you complete details about the track
record, including the stock picks that did not work out.

But before that, there's something else you should know...

iou've been lied to. . .

You see, if you're like most other investors out there, you too
were made to believe that there are basically only two kinds of
stocks:
1) Safe low-return stocks
2) Risky high-return stocks
If you wanted bigger returns, you were told that there's no other
option but to invest in stocks that involve at least some amount of
risk.

Or else, just settle for the dividends and small returns that the
safe stocks gave you.

K
   

  

   
 
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It's true!

And how big could these returns possibly be?

Well, let me give you 3 examples...

We recommended "#$ on 5th November, 2002 when it was selling at Rs

48*. And when we gave a SELL on it in March 2010, it had risen
a whopping 3,275%.

Similarly, % 
 too, which we recommended on 30th June,

2003returned 2,840% until August 2010 when we gave a SELL on it.

Then we recommended $
 on 21st July, 2003 when it was selling at

Rs 67*. Today the same stock is priced at Rs 3,601.

An increase of 5,275%... and we haven't recommended a SELL

on$
 yet.

    
  
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iou might say - Such big returns

don't happen every time
Agreed!

But you can make at least double your money from safe stocks
consistently, if not more.

You already saw 3 stocks before that generated 100% or more returns
in less than 2 years.

Apart from those...

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And there are many, MANY more stocks like these.

So why settle for just tiny returns and dividends, when you can
make 100% or more from SAFE large cap stocks easily?
All you need to do is hold the stocks for 2-3 years...

(

  
        
 
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Khat books, schools or brokers will NOT teach you. . .

What I'm about to tell you now will be in complete contradiction
to what you hear usually.

You won't hear this from your investor friend, your stock broker
or your fund manager. And you also won't read about it in any
financial magazine or see it on television investing news.

Listen...

Ever since you got into stocks, you must have had many people
tell you that you should always see what the other investors are
doing and take cues!

In other words... if a lot of investors are buying a stock, you

can safely assume the stock is a good one and buy it.

And if a lot of investors are selling a certain stock, you can

take it that the stock has turned bad and sell it away or
refrain from buying it.

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On the contrary, you'll just end up like most of the investors

who are forced to settle for meagre returns and never make the
kind of money they want from stocks. 

To make more money than other investors

iou have to do what most other investors won't do
Invest in companies that everybody else is avoiding.

Don't get me wrong - I'm not telling you to invest in bad

stocks. People are obviously avoiding them for a reason.

But sometimes, even perfectly good stocks get ignored due to

some misconceptions. Those are the companies I'm telling you to
go after.
Let me explain...

See, we all know there are no better companies than the large
caps when it comes to stability.

Large caps are all well-established companies with stable

earnings and no extensive liabilities.

 They are well-managed and have consistently performed

across business cycles 

 They have the resources to not only weather the downturns

and disturbances, but also emerge stronger from them

 Long-term prospects for large caps are outstanding

So the risk associated with large caps is very low, and you can
be assured of steady returns and dividends from them year after
year. 

owever, there's something most people

don't know about large caps. . .
There's a strong belief among investors that large caps are
virtually immune to any and all kinds of problems.

That's not really the case.

$ 
  
 
   


    

The reasons could be anything like:

vhange in the company's top management

b.Some new initiatives started by the company turning out to
be failures
c.Fall in demand for the company's product in the market
d.Bad economy
e....or anything else for that matter

When things like that happen, the demand for the large cap stock
falls temporarily... bringing its price down and making it
available to you at a discount!

This is when you need to act fast and grab the stock.
K  
  
  

    
       
   
 

con't believe me?

Just see these 2 examples. . .
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This was a stock recommended at the height of the global crisis

in November 2008.

High inflation, cost pressures, liquidity crisis and regulations

concerning the real estate sector had made funding difficult.
This coupled with unrealistically high land prices and
government red tape was resulting in hotel projects taking
longer to fructify.

The slowdown had also led to sharp declines in tourist traffic

and room rates, and that too was impacting the company.

But we kept the long term picture in mind and expected the
crisis to not have any material impact in the company's future
over a 3 to 5 year period.

And the stock is up 93% since then.

ã
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We recommended GSK vonsumer in February 2009 when the Indian

malted beverage market was seeing stiff competition from new
entrants like Dabur and Hindustan Unilever.

In the midst of all this, GSK initiated a 7% price hike in its

flagship brand 'Horlicks'. It also leveraged its brand power to
launch new variants.

This firmed up our confidence in the company retaining its 70%

market share. Plans to introduce products from its global
parent's portfolio in oral care, energy drink and other segments
over the next 3 to 4 years was the additional sweetener.

So we maintained that despite competition GSK vonsumer would be

able to leverage its brand power to emerge stronger and improve
returns to shareholders.

The stock is up 270% since then.

The Real Reason Khy People Avoid Large Caps

Regardless of what everybody says...

We believe the main reason why people avoid large caps is

because they aren't aware of this unique, time-tested, highly
effective way of making BIG returns from large cap stocks.

K       
     
 

 
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Of course, others with vested interests (you know who) also

force investors to believe that large caps cannot generate big
returns...

Plus, ordinary investors usually won't have the resources to

execute this method properly.

But whatever their reason for avoiding large caps, this gives
YOU an excellent opportunity to multiply your money safely.

Since you're investing in large cap stocks using this approach,

you need not feel that you're taking on too much risk.

Agreed that no investment is 100% guaranteed. Not even large

caps!

But with the big companies, you can be confident that they will
not disappear overnight and take your entire investment with
them.

h   



       
       
 



 
   
  

So if done correctly, it is certain to produce profitable

results... as has been proved already in the examples presented
to you. 

rut that said, not every large cap company

will be a good buy
You need to know exactly which big companies are likely to
recover faster and make bigger returns for you... and of course,
when is the right time to buy them.

-  ã

   

You see, we've got this Premium research service

called  

Simply stated...
If you're looking at building a portfolio of blue-chip stocks
that could deliver steady returns over the long term, then
StockSelect is the service you need to be signed up for.
StockSelect tells you which big companies are a "must-have" for
your portfolio...
   
 
   


   


 


 

 
It works on a simple principle - buying great companies at
bargain prices and making staggering returns on them when the
company grows rapidly in a few years.

So with StockSelect, you not only earn consistent dividends but

also big returns from the large caps stocks we recommend.

Take $

 for instance... 

We recommended Tata Steel in December 2008, when the stock was

trading a mammoth 80% lower than its 52-week highs!

The stock's underperformance then could be attributed to its

balance sheet that had been loaded with debt on account of the
leveraged buyout of vorus.

While we saw the concerns as being valid, we knew those were far
too exaggerated. Our calculations showed that even if the
company's earnings were to fall by 50%, there would still be
enough cash flow for it to pay for its financial expenses on the
debt.

So we remained confident that the company will come out of the

downturn rather unscathed.

And the stock is up 269% since then.

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Great companies always recover when the storm passes.

So if you buy the blue-chip stocks at the right time, you could
easily make attractive returns over 2-3 years.

Khy you can trust us to deliver

We're not stock brokers. We don't gain anything even if you buy
the stocks we recommend.

*   
   
   
 
   
             
  
  

Because if you don't make money from our recommendations, you

will simply not renew your subscriptions. Furthermore, you'll
also tell your friends not to sign up for our services.

We don't want that, and that's why we take extreme care while
finalizing the stocks to recommend.

 All our recommendations are supported by thorough research

- we list out the reasons to buy and also the investment
concerns that we foresee 

 We travel far and wide to meet companies before we put out

reports on them

 For each stock, we clearly state the target price and also
the time horizon for achieving the same

That's exactly why over 907,500 registered members (of all

Equitymaster services combined) trust us!

And there's one other thing...

I bet you too, like numerous other investors, were taken aback
by the 

 fiasco and started wondering how many more
companies of that sort are there in India.
Well, guess what?

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Another big reason why our research tends to be accurate

more often than not . . .
You see, most investors take the return on stock investment to
be the key yardstick while deciding whether or not to buy a
stock.

But legendary investors like Benjamin Graham and Warren Buffett

have always maintained that 'evaluation of risks' should be
given as much importance as 'estimation of returns'.

  
  


    

ã

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Look, you probably understand that no two companies have the

same degree of risk associated with them. Even if they operate
in the same sector, their business dynamics, managements and
valuations are different.

That's why it is important to evaluate the risk involved in each

case separately...
And the ã.h is designed just for that!

The ã.h is a matrix designed to evaluate the key risks attached

to a business, it financial history and its management. It ranks
not just the company but also the sector in which it operates
based on its relative risk profile.

When markets were at their nervous best in late 2008, our Buy
recommendations on Avv, Tata Steel, vorporation Bank and Maruti
Suzuki were backed by our confidence in the low risk profile of
these companies as shown by ã.h

As expected, these stocks went on to multiply our subscribers'

wealth several times.

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Given the complex operating environment that Indian business are

aspiring to be a part of, we believe the ã.h can offer immense
value to investors seeking to maximize their long term returns
by without taking on too much risk.

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rut I won't lie to you -

Sometimes we make mistakes too
Like I said before, StockSelect has an accuracy rate of 82.5%.

That means for every 6 large caps stocks we recommend through

StockSelect, 5 hit their target.

   (     /
    


  

Now, there's no doubt that we recommend a stock only when it

meets all the required parameters.

But sometimes... despite having all those valid reasons for

recommending the stocks... the assumptions we make turn out to
be incorrect.

For example, here are 2 stocks that didn't do like we expected

them to...

(0.
 )

The Indian textile industry had just broken the shackles of the
quota regime. The government's benign subsidized loan scheme for
this sector made it more appealing. What better time to
recommend one of the most established names in Indian textile
manufacturing and retailing? This was the thought behind our
'HOLD' recommendation on Raymond way back in September 2006.

The company then had a reasonable debt to equity of 0.7 times

and net profit margin of 15% which was one of the best in the
sector. Since then the stock corrected by 67% (on a point to
point basis) until we recommended a Sell on it in September
2008.
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While our judgment of the management's ability to takeoff the

joint ventures with foreign partners was faulty, forex losses on
sales as well as external borrowings aggravated the matter.

Economic recovery in the developed markets too did not shape up

too well over the last two years. The management still remains
quite unsure of where its focus lies.

012" )

We had recommended Punj Lloyd in 2008 backed by our optimistic

assumption about the company consolidating its position as the
second largest engineering and construction player in India. Its
foray into the oil and gas pipeline business was especially
encouraging.

We expected the company would grow due to a strong demand from

sectors like pipelines and terminals, aggressive forays into
newer segments, and execution of large scale domestic and
international projects.

But unfortunately execution delays and cost overruns marred the

performance of the company. Our attempts to meet the management
to get some clarity on the future direction of the business were
also in vain.

In addition to this, after some change in the senior management,

the new members seem very reluctant to share the long term
outlook for the company. Finally we asked our subscribers to
stay away from the stock.

Meanwhile the stock never came back to the recommended levels

and the company's problems are far from being resolved. -
 

   / 
      

The truth is, despite making all the efforts to be as accurate

as possible, there will always be factors that we can't
control.

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So here's what all you get by subscribing to StockSelect. . .

52 rlue-chip Recommendations in a year

Every Friday, we'll send you a StockSelect report recommending a
Buy/Hold/Sell on one large cap company.

In this report, we will provide you detailed and extensive

analysis of the company along with our expert opinions.

Look...

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StockSelect tells you just that!

vonsider the case of r

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4  is one of India's largest and technologically most
advanced manufacturers of Forged & Machined components...

We recommended this stock in April 2009. The company was then

facing serious issue on the balance sheet front as it had loaded
the same with debt.

Our view was that the company was soon to get a return on the
expansion it made using this debt. We expected the company's
domestic operations as well as foray into other segments to
minimize the impact that sharply lower exports were having on
its overall business.

While we agreed that the company was no doubt struggling to grow

at rates that it has managed to do in the past, we thought the
fall in stock price was much exaggerated.

And the stock is up 251% since we recommended it.

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You can then explore the opportunities further if you like, and
pick a final list of blue-chip stocks to invest in.

In addition to these, we also release special reports from time

to time on attractive large caps opportunities.

Fast action takers will benefit from these reports also.

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 Ongoing Research on
The Companies Recommended. . .
And we don't just recommend some companies and forget about
them.

At the end of each quarter we review all the stocks that we

recommended during the six month period prior to that.

We provide subscribers our latest analysis on all those

recommendations... and whether we maintain our views on them or
have changed the same.

We illustrate in detail our reasons for maintaining the stance

or change in stance, and finally summarize all of those into a
table as you can see below: 


Apart from these quarterly reviews, another thing that forms
part of the "ongoing coverage" is the Quarterly Result Analysis
that we write for all companies under coverage... wherein we
also mention whether the results are in line with our estimates
or not, and whether we maintain our view on the stock or not.

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Here's what one subscriber had to say about our review

reports...

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S-Features
These are articles and reports that are available to our premium
subscribers only.

K 
   66    


You might understand that there a lot of factors influencing the

stock price, most of which need to be monitored regularly. So
from time to time, we release instant reports and updates on
various companies.

These articles include excerpts of management meetings, extracts

of conference calls, updates on the happenings in a company and
our personal views on it, and so on.

This is all "unadulterated" information and it will serve as a

valuable input for your investment decision. 

The Portfolio Tracker

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You just have to enter the details of stocks or mutual funds

owned by you ONvE... and Portfolio Tracker will show you what
your entire portfolio is worth AT THAT MOMENT anytime you log
into it.

Furthermore...

 You can set your account to send you automatic end-of-week

and end-of-month performance updates for all your
portfolios. 

 You can set up priced based alerts for all the stocks that
you own (and also the stocks that you don't own but only
wish to track).

 Plus, you can also track your SIPs and get NAV alerts for
the mutual fund schemes with Portfolio Tracker now

But wait...

K

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You see, we at Equitymaster have spent a considerable amount of

time trying to understand how the fund managers who invest for
the long-term track and review their portfolios.

And it is the relevant learnings from this exercise that we have

translated into reports.

In a nutshell, these reports help you answer questions like -

Should you be buying stocks from the automobile sector or

the consumer products sector? Do you have too much of
cement stocks in your portfolio? 

b.Which stocks deserve your maximum attention?

c.Is the construction of your portfolio in line with what a

smart fund manager would have?

d....and so on

Here's what one long-time user had to say about Portfolio

Tracker: 

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The Portfolio Tracker usually costs Rs 330 for a year. But by

subscribing to StockSelect, you get it absolutely FREE.

ow to Plan iour Equity Portfolio

Our Recently Released Asset Allocation Guide
Our experience shows us that a majority of new investors fall
into two main categories:


 Those that primarily aim for big returns and often take
unnecessarily risks to achieve the same

B.Those that are overly particular about safety and often

forgo excellent money-making opportunities just because
there's a slight bit of risk involved

The truth is... if you want to make to lead a RIvH and HAPPY
life with the money you make from your stock investments, you
must learn to tread the middle path between the two.

$            


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3  
  
   
   


So after reading this guide, you will FINALLY know how to

distribute your investments between large, mid and small caps
stock... apart from a lot of other things.
And this guide, too, will be available to you FREE when you
subscribe to StockSelect. 

The Equitymaster iearbook 2011 (PcF Version)

re among the first to get it

 

An extremely popular publication, the

Equitymaster Yearbook, is a guide consisting
of financial analysis and business profiles of
the leading 200 companies in India.

It helps you understand the long-term trends

associated with each company and sector, and
thereby plan your investments intelligently.

For each of the 200 selected companies, the

Yearbook provides a full page of financial and
other important data, conveniently tabulated
under relevant headings with a host of
important ratios.

And apart from this, you also have detailed notes on over 20
sectors, the Indian economy, mutual funds and a lot more.

 
8
   



 
 
 


 
 
 
  
   
  

 
        
  

 
    

That's why it's something every investor must have.

The Yearbook costs Rs 750 to buy separately. But if you

subscribe to Equitymaster through this offer, you will get the
PDF version of this Yearbook absolutely FREE.

Free subscription to
The caily Reckoning . . .
Are you someone who's interested in monitoring or even investing
in the global markets?

Now you can read what knowledgeable investors across the globe
read every single day for global market analysis and investment
ideas.

8 
 
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The Daily Reckoning is published every day in 3 languages from

offices in 6 countries - US, UK, Australia, France, Germany,
South Africa.
Now, it's India's turn... and your turn to get it for FREE!

When you subscribe to StockSelect, you automatically get a free

subscription to the Daily Reckoning also. 

- - - And I've saved the best news for last - - -

You might be thinking all this would cost a lot, but no!

The price of StockSelect is normally Rs 5,000 per year, which is

anyway not much to pay for a service like this.

But for the next few days (till 28th February,2011), you can
subscribe to StockSelect for Rs 2,450 only.

-  

 &

And, you can sign up at this highly discounted price and test-
drive StockSelect for a full 30 days.

If you don't like it, get in touch with us before the 31st day,
and we'll refund the full fee you paid. That's a promise!

However, you must act quickly.

This offer will close at 5PM on the 28th of February. And after
that, the subscription price of StockSelect will also go back up
to the usual Rs 5,000. 

 
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Try StockSelect without any risk. . .

Look, StockSelect has an extremely good success rate of 82.5%,
and you'll also be investing in the some of the market's safest
stocks by subscribing to it.

Plus, you've also got nothing to lose...

If you make use of this offer, you can subscribe to StockSelect

at a highly discounted price, and try the service for 30 days
without risk.

During this one month, you'll get 4 current issues of

StockSelect... plus access to archives of all the previous
issues.

After going through the current and past issues, you should have
a good idea of whether StockSelect is for you or not.

If you don't like what you see, just let us know before the 31st
day and we will refund the entire price - no questions asked.

  
 

 
     

9(K)

 To get your subscription to StockSelect for just Rs 2,450

instead of the usual price of Rs 5,000 

 To get access to our extremely popular Equitymaster

Yearbook 2011 costing Rs 750 for FREE

Why delay any more? 

[Sign up now! vlick here]



Regards,

Rahul Goel
vhief Executive Officer
Equitymaster.com

1) This offer will close at 5 PM on 28th of February. So sign

up before then to get...

 Subscription to StockSelect for just Rs 2,450 (usual price

= Rs 5,000)
 A free copy of the new Equitymaster Yearbook 2011 (PDF
version) worth Rs 750
 Our Special guide - "How to Plan Your Equity Portfolio"
 ...and much more!

11) $  
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1111) If you have any queries, please do not hesitate to

contact us at +91-22-61434055 or Write in to us. We will be
delighted to assist you!