Monday, December 5, 2016

4 Stocks to Invest in December 2016


I want to describe the four stocks I invested this December 2016 and why I did so. But first let us see the four stocks:

Name of the Stock
Read Research Report
Download Research Report
Rural Electrification Corporation
REC Research Report
Power Finance Corporation
Great Eastern Shipping Co. Ltd.
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Shipping Corporation of India Ltd.

All the scrips listed in Portfolio 2K15 are good then why did I choose only these four?

Name of the Stock
Price to Book Value (P2BV) on 5th December 2016
Price to Earnings (PE) Ratio
Rural Electrification Corporation
0.45
2.31
Power Finance Corporation
0.48
5.32
Great Eastern Shipping Co. Ltd.
0.65
11.58
Shipping Corporation of India Ltd. (SCI)
0.39
30.45

Most of the shares in our Portfolio 2K15 presently trading at high valuations. Only these four are trading at very attractive P2BV ratios giving us an opportunity to buy highly valuable assets at a discount.

SCI’s PE Ratio is beyond the permitted 15m but as already mentioned in the research report, SCI is a special situation case. The global shipping rates are at their nadir. Once these pick-up the company will do very well and we may not get the opportunity to buy the assets at a discount.