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The stock market is undervalued, start buying now

8-Sep-2013

Due to the recent stock market crash in the last month we have seen a surge of new free members as well as new premium members so to make sure that everyone is on the same page, we would like to remind everyone that we are in the business of providing financial data and not in the business of providing investment advice. You would be surprised by the number of phone calls we get to know about our "expert opinion" on a particular stock. So please do not call us with questions like "what do you think about this stock".

In our last email we said that the market right now is undervalued especially the banking sector. The reason we said that was not because of some gut feeling instead we just looked at the valuation numbers. The share price of lot of companies was significantly lower than their intrinsic fair value price. A detailed look at some of the financial charts like net profit margin, cash flow from operations, return on equity, PE Ratio and the summary page with a quick look at the annual report and even you can take the decision to buy a stock with high degree of confidence. Members who bought banking sector stocks should be happy(we sure are) with the decent gains made in the last week.

We believe the market is still undervalued. Our free members who do not have the tenacity to study individual stocks should buy nifty bees etf. Our premium members meanwhile should be busy using the website to do some more research.

A quick note about some of our premium members who had emailed us to discuss some points given in Engineers India annual report and who later bought the stock after the discussion. We encourage such emails where we have to open the annual report of the company because we also get to learn something new. Some of them emailed us back to let us know that they are extremely happy with the 25% to 30% gains made in the last week. EIL's fair value is around 260 Rs with a 20% margin of safety at 208 Rs. So buying the stock when it was between 125 Rs to 135 Rs was a no-brainer.

We are delighted when our members email us that they are making money thanks to our service. This validates our mission of providing such a service to individual investors.

This email was sent to our members on 8-Sep-2013

Note - We do not offer investment advisory service.