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in Ramesh Damanis Stock Picks Suffer Huge Losses Posted By Parul Khanna On November 23, 2011 @ 5:44 pm In investments | No Comments Ramesh Damanis stock picks are at multi-year lows. We investigate whether there is any future for these stocks or investors should bail out Ramesh Damani, popularly known as the Nawab of Dalal Street, has seen it all. In March 2009, Ramesh Damani stuck his neck out and confidently predicted that the Sensex would plunge to 8,000. At that time, the markets were trading at an index level of about 10,000 and there was a sense of trepidation all around that that the General Elections would throw up an unruly coalition and the markets would go into sell-off mode. Ramesh Damani also said that it would take several years for the Bear markets to work itself out. If anybody dared Ramesh Damanis hypothesis, he would silence them by pointing out that they had probably never seen a Bear market while he had seen many. Ramesh Damani The reverse happened. The UPA got an absolute majority and the stock markets went into a buying frenzy, breaking two successive upper circuits (see History on the Stock Exchanges!! [1]) As expected, irate investors who had heeded Ramesh Damanis advice and sold off their stocks, collaredRamesh Damani demanding to know how he had made such a wrong prediction. Ramesh Damani was forced to publicly apologize (see The stock picker who got it wrong! [2]) Since then, Ramesh Damani swore off predicting the outlook of the stock markets and stuck to doing what he does best picking multibagger stocks (see Ramesh Damanis Stock Picks [3]). This kept Ramesh Damanis fans happy. Their master would periodically recommend stocks of fundamentally good companies at reasonable valuations which the fans could buy. Sadly, for Ramesh Damani and his vast legion of fans, even this gambit is turning to be a big flop show with almost all stock picks plunging to multiyear lows. Lets review some of Ramesh Damanis favourite stock picks and see where they stand today.

Geometric Software: This stock is a total enigma. Rakesh Jhunjhunwala first homed on it in 2003 when he publicly called it the biggest element of enterprise software and invested 38 crores of his money in it (see Rakesh Jhunjhunwalas Flop Stock Picks [4]). Though Geometric went nowhere but down, Ramesh Damani picked up the baton and recommended it in 2010 (see Geometric: Why Ramesh Damani recommends this stock [5]) Even Rakesh Jhunjhunwala got so fed up withGeometric that he called it a disaster. At the CMP of Rs. 38, investors who bought this worthless stock have lost 50% in just the past year and must be wondering how master stock investors like Rakesh Jhunjhunwala & Ramesh Damani could get it so wrong. Hyderabad Industries & Visaka Industries: Ramesh Damani had very simple logic to support this duo as his stock picks. There is an infinite demand for housing products in India. So, how could reputed and well managed companies likeHyderabad Industries & Visaka Industries not do well? Visaka got the ultimate boost when Rakesh Jhunjhunwala put his stamp of approval on the stock at Rs. 151 (see Rakesh Jhunjhunwala is buying Visaka Industries!! [6]) Even CRISILjumped into the fray by declaring that Visaka had strong upside at the then price of Rs, 119 (see Rakesh Jhunjhunwalas Stock Pick Visaka Industries Endorsed By CRISIL [7]) At the CMP of Rs. 297 for Hyderabad Industries and Rs. 69 for Visaka, investors would be wondering when, if at all, they will see that strong upside. To be fair, it is not Ramesh Damanis fault that the stock prices have slumped the way they have. It is the nature of the beast. Mid-cap stocks are volatile and tend to fly in a Bull market. In a Bear market, these stocks are the first ones to plunge. It also takes these stocks a long time to recover from the loss of confidence that investors show. Of course, Ramesh Damani has his share of multi-baggers as well. VIP Industries, TTK Prestige, Hitachi Home & Life Solutions and Whirlpool of India are some stocks that come to mind which have richly rewarded Ramesh Damanis fans (see Ramesh Damanis investment mantra for your portfolio [8]). So, what do Ramesh Damanis fans stuck in the dud stocks do now. The carnage is so severe and the damage in the stock prices & sentiment so deep that it will take a long long time for the stock prices to recover to their earlier levels. At this stage, the best thing to do is to go back to the good old fashioned method of stock analysis. Investors must take a deep breath, control their

emotions and objectively clinically evaluate & analyze the fundamentals of the stock. If the stocks fundamentals have deteriorated to an extent that swift recovery does not appear possible, investors must not hesitate to sell the stock and invest that money in front-line blue chip stocks. After all, the same money, instead of being invested in stocks like Visaka Industries or Geometric Software, is better off being invested in blue chip stocks like L&T,TCS, Yes Bank etc. Ramesh Damani Stock Portfolio

Article printed from Rakesh Jhunjhunwala: http://rakeshjhunjhunwala.in URL to article: http://rakeshjhunjhunwala.in/index.php/2011/11/23/ramesh-damanis-stockpicks-suffer-huge-losses/ URLs in this post: [1] History on the Stock Exchanges!!: http://rakeshjhunjhunwala.in/index.php/2009/05/18/history-on-the-stockexchanges/ [2] The stock picker who got it wrong!: http://rakeshjhunjhunwala.in/index.php/2009/05/24/the-stock-picker-who-gotit-wrong/ [3] Ramesh Damanis Stock Picks: http://rakeshjhunjhunwala.in/index.php/2010/05/22/ramesh-damani-sharestock-picks-investment-portfolio-multibagger/ [4] Rakesh Jhunjhunwalas Flop Stock Picks: http://rakeshjhunjhunwala.in/index.php/2011/06/18/rakesh-jhunjhunwalasflop-stock-portfolio-multibagger-picks/ [5] Geometric: Why Ramesh Damani recommends this stock: http://rakeshjhunjhunwala.in/index.php/2010/07/01/geometric-why-rameshdamani-recommends-this-stock-share-pick-investment-portfoliomultibagger/ [6] Rakesh Jhunjhunwala is buying Visaka Industries!!: http://rakeshjhunjhunwala.in/index.php/2010/08/16/rakesh-jhunjhunwala-isbuying-visaka-industries-shares-stock-investment-portfoliomultibagger/ [7] Rakesh Jhunjhunwalas Stock Pick Visaka Industries Endorsed By CRISIL: http://rakeshjhunjhunwala.in/index.php/2011/01/26/rakesh-jhunjhunwalasstock-pick-visaka-industries-endorsed-by-crisil/

[8] Ramesh Damanis investment mantra for your portfolio: http://rakeshjhunjhunwala.in/index.php/2010/07/11/ramesh-damanisinvestment-mantra-for-your-portfolio/ Copyright http://rakesh-jhunjhunwala.in. All rights reserved.