Magic Formula – 14 Sep 2011

I have uploaded the latest magic formula list to the group ( The following companies deserve a deeper look and analysis. Some of the stocks are listed in the Forbes Asias top 200 companies under US 1 billion.

K S Oils Ltd.
AK Capital Services Ltd.
Technofab Engineering Ltd.
Maithan Alloys Ltd.
Panama Petrochem Ltd.
Camson Bio Technologies Ltd.
Ador Fontech Ltd.

Please share your thoughts !!!

Paid Subscriptions

After having successfully tested the concept of Magic Formula in the context of Indian markets, I am convinced of the philosophy and along with a group of friends have started digging deeper in to the list filtered by magic formula. More often than not, the original list contains in itself, a few multibaggers that need to be identified ahead of the surge in stock prices. I cannot predict where the stock market is headed, in fact no one can and hence it is important to stay invested in fundamentally strong companies.

We are putting in efforts to have this initial list of Magic Formula filtered and analysed further to arrive at a potential list of the best two or three bets from the list on a monthly basis. I do not know, what our success rate would be since a lot of the price movements are governed by emotions and not rational thinking. To be able to do a good job with the analysis, we indeed have to put in extra efforts and would like to get compensated for this efforts.

We are mooting over the possibility of starting a paid yearly subscription and would like to know the opinion of the readers of this blog. My existing blog will continue in the present format and I will continue to publish the list of magic formula as I have been doing in the past.

The following will be made available for the paid subscription:

1. Detailed analysis of some companies from the magic formula list that is worth investing in. The holding period will be a minimum of 1 year for such stocks.
2. We will suggest two stocks on a weekly basis for trading calls where the holding period is no more than one month. These will be pure technical calls based on price movement and technical indicators, support, resistance and price patterns. Fundamentals of the company will have no bearing on these scrips and are purely short term. (luck and hope !!!)
3. Investment opinions on some large cap that are available at reasonable valuations due to negative sentiments in the market. I will include the scrips from sensex in this.

We are still looking at the various options and viability of such services. If you are interested, please do write to investologic

Happy Investing.

Magic Formula 25 August 2011

I think I am back !!!

Now that the markets have dropped and the Sensex P/E is less than its average over last 10 years, some more money can be allocated to equities. I have uploaded the latest magic formula sheet to the google groups ( me know your thoughts on the same. This magic formula extract is out of a website run by the same professionals that run ┬áThe quality of content on this site is exemplerory and I urge you to keep track of Ayush’s blog.

Please do you own homework on the list before allocating any money to scrips from this list. Please read the disclaimer and drop me a note if you wish to discuss the list.

Happy Investing.

Its been a while

I am humbled with the amount of emails, queries, requests and good words that I am receiving in the context of my blog. I must confess that part of my inactivity has been my own self and the other part has been work. I have a full time job that has kept me on my toes this year and I plead guilty of not being able to contribute in a meaningful way to the community out there.

All the positive feedback and comments that I have received from a whole lot of you have been very motivating and I would like to sincerely that you for those words. I will soon be starting updating the blog as even in the context of Indian markets, the potential is huge. Companies like Mayur Uniquoters, Force Motors, Patels Airtemp, Compact Disc, Gujarat Fluorochemicals, Symphony comfort systems and Amruthanjan have performed really well from my initial list of magic formula.

The key to success here is patience. I will soon be writing on my thoughts on the process that I follow, where I am certain that the returns are likely to be twice of what you would ideally get in a fixed deposit. Indian economy is set to grow at about 9% and inflation is also about the same. Considering these one should easily gain at least 18% per annum. Well it is better said than done and its easy to comment and analyse in retrospect. I am not an analyst and hence I will keep things simple.

Time permitting, my next post will be on things that worked for me with the magic formula, and things that I would avoid in the future while using the magic formula.

New Magic Formula Data Posted

I have finally been able to muster some time to run the magic formula list. The latest one ranked by magic formula has been posted under my google group. There are some interesting picks in this list. I will post more on that later. In the meantime if you find any bargain scrips in there, do let the readers know !!

Some interesting moves today

Todays technical charts have shown some interesting moves. With an apetite for risk one can enter Spanco Tele, Jumbo Bags and Astra Micro at current levels. Follow the standard rules of +50%, -20% or 2 months for exit. Please read the disclaimer.

Trading positions update

Squared positions in Aarti Industries with 50% gains and sold remaining indsil. Initiated positions in Sarda Energy & Minerals Ltd and Ginni Filaments Ltd and Natco Pharma. Will hold for 2 months, or 50% gain or 20% loss. Your comments on the picks are welcome.