Futurecaps Investor Master Mind

August 18, 2018

Thank you All for the Subscription Participation! Already 2 Multibaggers were released to the Subscribers. They have the Potential to become 5-10 Times Growth in next 5 Years!

Subscribe here >> https://futurecapsblog.wordpress.com/subs/

Also, Futurecaps would like to remind few Master Mind Quotes which Survived Decades of Stock Market Investing.

Investor sees Value amateurs sees Price

Investor works for Tomorrow amateurs works for today

Emotional Fluttering is the reason 95% people lose money in stock market

Emotional Fluttering of these 95% People gives opportunity to the remaining 5% Investors to buy at low & sell at high

Noise Constitutes 95% of the investment arena eg: news, tv advisers, brokers, tips & short term investors

Market Moves Up or Down due to these Noises including short-term investors.

Fundamental Investor convert these Nose Problems to Advantage by Buying Low & Selling High using the tool  of Fundamental Analysis

Potato Theory says you should be happy to buy more stocks when it crashed as it multiplies the returns in future

Fundamental Analysis ensures the company have good foundation, growth perspective & led by prudent management

Long Term Compounding takes multiple years to happen

Investing is Passive Job while Trading is Active Job

Two Types of Investing are there – Wealth Creation & Income Generation

Stock Market Investing is meant for Long Term Investing where Companies use Investor money for Expansion thereby creating Wealth through Sales & Profits.

Short Term & Medium Term Investing only creates Wealth for Brokers, Advisers & Government

Income Generation strategy ensures one can reach Financial Freedom

Financial Freedom enables one to Self-Actualize the Life

Stock Market coupled with Income Generation strategies allow one to reach Financial Freedom in just 5 Years!  Ask How!

Subscription

You are Welcome to Subscribe the Multibagger Picks here:

https://futurecapsblog.wordpress.com/subs/

Advanced Training

Investor Master Mind is a set of beliefs & responses carved into the sub-conscious mind so that the Decisions are in-line with Long Term Investing.  If you require Programming the Investor Master Mind please let us know.

Advisor: futurecapsadvisor@gmail.com

Advertisements

Fiberweb India – Multibagger Analysis

August 16, 2018

Thank you All for the Subscription Participation! Already 2 Multibaggers were released to the Subscribers. They have the Potential to become 5-10 Times Growth in next 5 Years!

3rd paid multibagger will be sent this week!

Subscribe here >> https://futurecapsblog.wordpress.com/subs/

Meantime, I would like to Publish a Free Multibagger Analysis here.

Fiberweb India

Name: Fiberweb (India) Ltd.

NSE Code: FIBERWEB.NS

BSE Code: 507910

URL: https://fiberwebindia.com/

Company established in 1985 and from 1996 manufactures high quality Spun Bond Polypropylene Non Woven roll goods and products thereof, used in Hygiene industry, Agriculture Crop Cover, Soil Cover, Medical and industrial clothing and many other innovative products, like Bags, Pillow ticks and Covers, Bed Covers, Curtains, Table Cloth, Garment Interlining, etc.

Bull Factors

Consistent Growth in Sales & Profits

German Technology under the hood, High Quality, Long Durability machines, Reducing Capital Expenditure

Zero Debt company, No Interest needs to be Paid

Increase in Promoter Holdings, Shows good Sign of Confidence in Future

100% Export Unit, Advantage of Indian Rupee Deprecation

No Tax Payable on Profits due EOU zone, Can Re-invest

Value Parameters Good

Risk Factors

Global Recession can impact Performance

Credibility of Promoters  is Questionable

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow Yes image
Durable Competitive Advantage Yes image
Future Growth Drivers Moderate. image
Conservative Debt (long term debt < 3 Net Profit) Yes image
Debt Equity Ratio, Current Ratio Debt is Zero, Current Ratio is High. image
Return on Equity must be Above Average Yes image
Low CAPEX required to maintain current operations Moderate image
Management is holding / buying the stock Yes image
Price is Under Valued (< intrinsic value) Yes image
Stock Price is consolidating (now) Yes image
Stock Price is growing in past years along with EPS growth Yes image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio Yes image
Cash Flow Positive, Net Profit % greater than 8% Yes image
Paying Dividends, Tax No Dividends. No Tax since EOU image
EPS Growth Rate Yes image
Jump in Trailing Result EPS Yes image
Jump in Quarterly Result EPS Yes image
Expected Gain in 5 Years Yes image
Price Movement Graph, 52 Week High & Low Yes image
Volume Analysis Bit Out of Range image
Power of Brand Yes image
Corporate Governance, Reputation of Leaders Promoters selling holdings is an Issue in Past. image
Fraud reported Not in current search image
Annual Report Okay image

Declaration

Based on the Value & Growth parameters, the company hold Multibagger properties.

image_thumb1

However, the Promoter Credibility Issues need to be focused & cleared before Investing.

Note Free Multibaggers will not be tracked & Hence no follow-ups will be provided.

Subscription

Subscribe here >> https://futurecapsblog.wordpress.com/subs/

Disclaimer

Futurecaps is an independent equity research Company. Use of the information herein is at Investor’s own risk. This is not an offer to sell or solicitation to buy any securities and Futurecaps will not be liable for any losses incurred for the investment based on the advise.  The report is purposefully kept concise.  The Investor is advised to do due diligence in the scrip mentioned.  None of Futurecaps Advisors hold 1% above Holdings of this company.

I am Back!

August 3, 2018

Hope you remember me! There was a time where I used to post multiple multibaggers in this site.  Then SEBI came with the restriction on advisers – hence I discontinued public posting.

Now I have attained the necessary SEBI Certifications (NISM XV – Research Analyst Certification). So now I can post in public media.  My SEBI registration number is: 1800100568.

Fundamentals

As always, I wanted to keep the Noise out of the picture & rely on the fundamentals.  I use Warren Buffett Way of Analysing companies.

Current Situation

I really know the current situation where smallcaps & midcaps are thrashed to the floor. The reasons could be many – overvaluation, demonetisation, poor economy, greed, fear etc.

Luckily, I was able to sell all the holdings early 2018 itself.  I was seeing the over-valuation of NIFTY and the mad run on stocks during the time.  So I acted against the crowd & saved from disaster.

NOW, I can see lot of advisers are asking subscribers to sell their holdings at loss.  One adviser (with an audi car) released sell advice for one dozen stocks.  I cannot believe that how irrational & irresponsible they are to be a massive wealth destructor!

Root Cause

The root cause of problem lies with both adviser & investors.  Both parties wanted to be Rich quickly without having the fundamental learning, patience & long term vision.

In reality, only promoters & advisers became rich!

So if You wanted to become rich, You need to be a Long Term Investor!

Good Advisers

At the same time, I have seen good advisers (very few) who stopped giving buy-signals few months back itself.  They know the Valuations were high & parked the money out of stocks.

Long Term Vision

The people who made the losses are those without a Long Term Vision.  In stock market we are Investing on companies which are a Plant today, It will take real time of 5 years 10 years or even 20 years to become a Tree!

So if you wanted 10X, 20X or 100X returns, there should be Long Term Vision!!

Investment Mix

As I said previously, we should have an Investment % Mix of aggressive : safe proportion that will vary based on valuation.

During the OVERVALUTION times, I prefer to have the mix of 25:75 where 25% will be parked in equity and 75% in high yielding bonds, deposits, real estate etc.

During the UNDERVALUATION times, the mix can be adjusted to 50:50 levels.

During the RECESSION times, the mix can be 100:0 levels or even 125:0 levels where one can even take loans to invest.

CURRENT MIX is 50:50 as of Jul 2018.

Potato Theory

I believe in the old potato theory of Warren Buffet.. If you bought potato yesterday for rs. 10 and today it is rs. 5 you should be happy about buying it!

This is because the rationale investor is seeing the real gain in the future at Rs. 5000! So the lesser the price, the bigger is the gain %!

High Fee won’t Guarantee High Profit

It is not the High Advisory Fee that matters! It is the Investment Strategy X Invested Quantity X Invested Time X Patience going to give you High Profits & Build Wealth.

I have seen one high paid adviser taking rs. 1 lakh for the advise for 5 stocks per year.  The reason was few of the past recommendations gave 3X returns in 6 months.

Now that made the investors greedy and put more money in the next 5 stocks, eventually all of them were sold yesterday at loss price.  So the past gains also wiped off & the adviser fee too.

So a high fee does not guarantee success!

Paid Adviser Service

In the current times of panic, I can see real opportunities bubbling up, there are few scrips with good fundamentals, growth potential with right valuation range.

Hence I would like to restart the publishing at this moment.

image

I will be having 2 Services now:

  • Free Service where multibaggers are published with basic information, no tracking
  • Paid Service where concentrated list of multibaggers will be published with details, tracking updates, educational & investment tips.

I wanted to keep the Paid Service at a Low Price of rs. 1999 per year, so that more retail investors can participate, no piracy & customer wins!

You can Purchase Subscription here!

Futurecaps Performance

August 18, 2015

The past 3-5 year Performance of Futurecaps shows that we are up to par with the professional analysts.

image

Recommendations

Lot of people email us why we are not providing further recommendations.  The reason was already published, as per SEBI guideline we should not provide Stock Recommendations without an Analyst Certificate.

Hopefully, one of our “too busy” analysts should come up with the certification shortly.

Our dream is to launch “Futurecaps Supercaps” during 2016 and show a return of 1000% in just 2 years.

Smile

Why Day Traders won’t become Millionaires?

July 16, 2015

Stock Market is very tricky that 90% of the investors are trapped in the first step called “Day Trading”. Let us analyze some facts that makes them a failure, while they are unaware of these. I have validated these with Brokers & Analysts .

PROBABILITY

Consulting with a 10 year experienced Day Trader, the maximum profit he can make is 5% per month.

==========CALCULATION FOR THE ARITHMETIC NICHE=======
This is how we conclude Net Profit of 5%:

The costs of each trade are:
1) Buy/Sell – 1% cost including brokerage, exchange charge, STT etc.
2) Capital Gain – 15% on net profit of year end

For 10 trades the winning pattern with 10% gain or 10% loss is.
1) 5 Profit Trades =
2) 3 Loss Trades
3)) 2 Break Even Trades

Here 10% gain will come down to 8% including charges & capital gain
Loss or Break Even will add additional 1% too.

So the summary is
5 Profit Trades = 5 * 8% = 40%
3 Loss Trades = 3 * 11% = -33%
2 Break Even Trades = 2 * 1% = -2%
So that makes Net Profit of 5%
==============================================

So the yearly profit is 60%. After deducting Capital Gain Tax of 15%, the profit comes down to 50% yearly.

AS YOU KNOW

these retail day traders are trading with 1-2 Lakhs of capital, so their profit per year is 50 thousand rs. Plus, they have to deduct electricity, internet & tips expenses too.

SO THE NET PROFIT

is 40000 rs. per year OR 4000 rs. per month.

WHY THEY WON’T BECOME RICH?

Because, in order to be rich, they have to increase the capital, which they won’t! As they don’t have confidence in the 5% profit too!!

DAY TRADING IS A JOB

Day trading happens 9-3 office time and one has to do it replacing their office hours.

IMAGINE IN ANOTHER JOB

If the above day trader was working in another job, his 10 year experience would have earned him 10 Lakhs Rs. salary after tax, per year.

So they are loosing money in that manner.

I hope this clarifies that Why a (retail) Day Trader won’t be rich.

SEBI Restrictions

December 26, 2014

As per SEBI’s new restriction on recommendations, we are waiting for getting the analyst certification.

Till then no new recommendations.  Sorry for the same.

Link: http://www.thehindubusinessline.com/markets/from-dec-1-only-registered-analysts-can-give-recommendations-sebi/article6643934.ece

Stock Updates

November 5, 2014

Panasonic Energy, Saksoft, Poddar Developers rendered 100% returns in 3 months.  Congratulations! (if you are holding it) 🙂

You may wish to hold/sell Panasonic Energy.  Delisting on card.  news link

Mirza International holding 30% returns from recommendation.  It posted flat-quarterly results.  We recommend to sell it if Sep 2014 result too is flat.  Switching to promising counters like Mahindra Lifespace (100% Trailing EPS Growth) would prove better in coming year.

Kovai Medical Center (30% returns) posted impressive quarterly results.  Should be good to hold ahead.

Note

We are working towards predicting the end of bull run to do a massive sell of all stocks.  Our barometers says 1-2 years would be safer to play with.

Welspun Syntex – Multibagger Analysis

November 2, 2014

Welspun Syntex Limited was established in 1983 and is the flagship company under the Welspun umbrella. Since its inception WSL. has grown manifold and today is amongst the largest manufacturers and exporters of Polyester Texturised Filament Yarn, Nylon Filament Yarn from India.

With plants located at Silvassa and Palghar (Thane), India WSL. is well equipped to meet the domestic as well as international demand.

image

Company URL: http://www.welspunsyntex.com/

Screener URL: http://www.screener.in/company/?q=508933

CMP: 26.00

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow

Yes. image

Durable Competitive Advantage

Moderate. image

Future Growth Drivers

Moderate. image

Conservative Debt (long term debt < 3 Net Profit)

Not. image

Debt Equity Ratio, Current Ratio

1.65, 1.48 image 

Return on Equity must be Above Average

18% image

Low CAPEX required to maintain current operations

Not. image

Management is holding / buying the stock

65%.  Flat. image

Price is Under Valued (< intrinsic value)

Yes. image

Stock Price is consolidating (now)

Yes. image

Stock Price is growing in past years along with EPS growth

Yes. image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio

PE 5.17, PB 31 image

Cash Flow Positive, Net Profit % greater than 8%

Yes. No. image

Paying Dividends, Tax

Dividends: No, Tax: Yes image

EPS Growth Rate

20% image

Jump in Trailing Result EPS

Yes. image

Jump in Quarterly Result EPS

Yes. image

Expected Gain in 5 Years

10-12 times image

Price Movement Graph, 52 Week High & Low

30/6 image

Volume Analysis

66000 (High) image

Power of Brand

Yes. image

Corporate Governance, Reputation of Leaders

Moderate. image

Fraud reported

Not in current search image

Annual Report

Expansion Plans on Card link image

Declaration

Based on the Value & Growth parameters, the company hold Multibagger properties.

image_thumb1

 Allocation

1-2% of portfolio.

Disclaimer

Futurecaps recommends 100 to 150 multibaggers per year, we recommend a 25% to 50% allocation of your savings in equity.  The stocks recommended here are gone through Analysts of several years experience in stock market.  Although they were successful in predicting future multibaggers, the overall stock market is a risky game.  So we recommend the reader to put his/her own thoughts & invest wisely.

Duke Offshore – Multibagger Analysis

October 27, 2014

DUKE OFFSHORE LIMITED is headquartered in Mumbai, India and is managed by a dynamic group of oil field and marine professionals. Our Engineering Division has dedicated teams of engineers and support staff who are specialized in hook up and commissioning of offshore oil field platforms, their maintenance, modification and inspection services.

The Diving Division provides a dedicated underwater platform inspection, maintenance and repair (IMR) program for oil companies. In addition diving services are provided for drill rig support, SBM and SPM installation, operations and maintenance.

The Offshore vessel and Marine Management Division provides offshore support vessels like supply vessels, crew boats and hook up/ accommodation barges globally.

The Special Force Protection Division has been created to provide offshore patrol vessels to the oil fields and other offshore installations for security and protection.

image

Company URL: http://www.dukeoffshore.com/

Screener URL: http://www.screener.in/company/?q=531471

CMP: 31.00

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow

Yes. image

Durable Competitive Advantage

Moderate. image

Future Growth Drivers

Good for next 2 years. image

Conservative Debt (long term debt < 3 Net Profit)

Yes. image

Debt Equity Ratio, Current Ratio

0.09 image

Return on Equity must be Above Average

23 (Good) image

Low CAPEX required to maintain current operations

Not. image

Management is holding / buying the stock

Slightly decreasing in past 3 years. image

Price is Under Valued (< intrinsic value)

Yes. image

Stock Price is consolidating (now)

Yes. image

Stock Price is growing in past years along with EPS growth

Yes. image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio

PE 9, PB 1.5 image

Cash Flow Positive, Net Profit % greater than 8%

Not.  Yes. image

Paying Dividends, Tax

No. Yes. image

EPS Growth Rate

50% to 100% image

Jump in Trailing Result EPS

Yes. 100%. image

Jump in Quarterly Result EPS

Yes. 15%. image

Expected Gain in 5 Years

10 to 15 times. image

Price Movement Graph, 52 Week High & Low

62.00/11.00 image

Volume Analysis

6800 (Good) image

Power of Brand

Moderate. image

Corporate Governance, Reputation of Leaders

Yes. image

Fraud reported

Not in current search. image
Annual Report Expansion plan on card. LINK image

Declaration

Based on the value & growth parameters we declare the company as a multibagger. 

image_thumb1

Allocation

1-23% of portfolio.

Note

Capitalization is very low – 15 crores.

Disclaimer

Futurecaps recommends 100 to 150 multibaggers per year, we recommend a 25% to 50% allocation of your savings in equity.  The stocks recommended here are gone through Analysts of several years experience in stock market.  Although they were successful in predicting future multibaggers, the overall stock market is a risky game.  So we recommend the reader to put his/her own thoughts & invest wisely.

Menon Bearings – Multibagger Analysis

October 20, 2014

Menon Bearings Ltd. established in 1991, is one of the few companies in the continent having fully integrated manufacturing facilities under one roof, to produce a wide range of critical auto components like bi-metal Engine bearings, Bushes & Thrust Washers for light & heavy automobile engines, two wheeler engines as well as for compressors, refrigerators, air conditioners etc. MBL is Listed on the BSE ( Bombay Stock Exchange ) & is globally positioned with business activities spanning 24 countries around the globe. Exporting 35 % of its production capacity, with exports growth at more than 25 % per annum, the engineering capabilities at MBL enjoys strong brand equity among leading OEMs all over the world.

image

Company URL: http://www.menonbearings.in/

Screener URL: http://www.screener.in/company/?q=523828

CMP: 121.00

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow

Yes. image

Durable Competitive Advantage

Moderate. image

Future Growth Drivers

Good. image

Conservative Debt (long term debt < 3 Net Profit)

Yes. image

Debt Equity Ratio, Current Ratio

0.55 image

Return on Equity must be Above Average

18% image

Low CAPEX required to maintain current operations

Moderate to High. image

Management is holding / buying the stock

Promoter Holding 75%, Flat image

Price is Under Valued (< intrinsic value)

Yes image

Stock Price is consolidating (now)

Moderate. image

Stock Price is growing in past years along with EPS growth

Yes. image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio

PE 18; PB 3 image

Cash Flow Positive, Net Profit % greater than 8%

Yes. Yes. image

Paying Dividends, Tax

Yes image

EPS Growth Rate

30% average. image

Jump in Trailing Result EPS

Yes. 50%. image

Jump in Quarterly Result EPS

Yes. 100%. image

Expected Gain in 5 Years

8-10 times. image

Price Movement Graph, 52 Week High & Low

132.00/28.00 image

Volume Analysis

15000 image

Power of Brand

Moderate. image

Corporate Governance, Reputation of Leaders

Yes. image

Fraud reported

Not in current search. image

Read Analysis Report for Future Plans, Capacity expansion

No serious expansion plans on card.. LINK image

Declaration

Based on the value & growth factors, we declare the company as a moderate Multibagger.  But as the PE is 18 we prefer to invest at lower levels.

image_thumb1

Allocation

2-3% of portfolio.

Disclaimer

Futurecaps recommends 100 to 150 multibaggers per year, we recommend a 25% to 50% allocation of your savings in equity.  The stocks recommended here are gone through Analysts of several years experience in stock market.  Although they were successful in predicting future multibaggers, the overall stock market is a risky game.  So we recommend the reader to put his/her own thoughts & invest wisely.