NEW SERVICE FROM EQUITYMASTER!

How to Profit from
Small Cap Stocks

If you want extra-ordinary returns,
there's no better place to look than small cap stocks

Be forewarned. This stock recommendation service is not for investors who desire ordinary gains. And this is definitely not a service for investors who do not have any appetite for risk i.e., losing money.

Losing money? Did you read that right?

We are not trying to play up greed and fear here. We are neither attempting to hook you on by promising large gains nor are we scaring you off by playing up the chance that you will lose money.

What we are telling you is that there is an opportunity out there in small cap stocks where you can earn extraordinary returns.

But not all small caps can deliver you these extraordinary returns. You need to be very selective, very choosy about the small cap stocks you invest in. And once you have bought into these 'hidden' stories, dig in your heels and wait for the stock markets to take notice.

We know this process works.

How Rs 100,000 became Rs 2,500,000

After all, we have identified small cap stocks in the past, where our subscribers made upto 26 times their investment based on our recommendations. And these are just three of them…

Stock Pick #1:
We identified Voltas in 2003, when the company was in the initial phase of its restructuring, from being a consumer appliance company operating in a highly competitive arena, to one that will have expertise in the niche engineering area of electro-mechanical projects and services. This, we believed, had the potential to take the company on to a high growth trajectory in the future. And it did just that. The stock price followed, multiplying 25 times in a span of less than 5 years.

Stock Pick #2:
Another stock we identified was Titan. When we had recommended the stock in July 2003, the company was in dire straits. It was also undergoing a restructuring exercise with a target of increasing earnings at a fast pace. Since then, the stock price performance tracked the company's growth and returned 17 times, again in a span of les than 5 years.

Stock Pick #3:
And then there was Thermax, which we recommended first in December 2002. The basis for our recommendation on the stock was a belief that investment in energy efficient and environmental friendly products and services was a secular long-term trend. We believed that this trend was only going to gather momentum in the long run and Thermax was ideally placed to capitalise on it. The rest is, as they say, history. Since our recommendation, the stock has multiplied 15 times.

These were all small cap stocks when we identified them. Today of course they are much larger companies, which have created huge wealth for their shareholders.

The secret to identifying multi-baggers
in the stock markets. Now revealed...

So what's the secret to finding such winners?

It's simply the research process which allows us to identify winners early and ride the growth that we have projected…

Our research process is time-tested. And it has delivered. But don't believe us - take a look at our performance report and judge for yourself.

After having made money for our investors in the large cap and mid cap space, we are now replicating the same research process and philosophy to pick winners in the small cap area.

Hidden Treasure - Investment Ideas
from the Small Cap Space

We have invested the last several months looking out for profitable opportunities in the small cap space. We have thoroughly researched each of these companies. And we have travelled far and wide to meet their managements. And what we have come up with investment opportunities that can earn you extra-ordinary returns!

We have already identified
potential multi-baggers…

Among the many companies we have been looking at here are three that may make it to our final recommendation list (the first recommendation will be released on the 15th of February, 2008).

Potential Multi-bagger #1:
A major player in the gear business, this company supplies both standardised and custom-build products to clients in industries like defence, power, aviation and steel. Though the company has the second highest share of the industrial gear market, the fact that it has built a huge library of tools of all kinds gives it a competitive edge over competitors. Our projections indicate that the stock could potentially grow 4 times from present levels over the next few years.

Potential Multi-bagger #2:
Another company that we have been looking at is into textile air engineering. This company is also involved in agency business for international manufacturers of textile equipments. Being in a niche space as textile air engineering gives the company a strong potential to grow in the future, given the large scale expansion that is envisaged for the industry over the next 4 to 5 years. This is a 4 bagger opportunity in our view.

Potential Multi-bagger #3:
And then there is this very interesting company whose core competency is 'blue' pigment. Yes, all that the company does is manufacture blue pigment. But it has some the biggest chemical companies globally as its customers. What is more, one of these has even bought a small stake in the company. This is another 3 bagger opportunity.

…but you must move fast...

All these are amazing opportunities that could generate huge profits for you. But there is a catch - you need to identify these stocks before others do…which means you've got to know these stocks before everyone else does.

One may say that there are risks attached to each of these opportunities. However better research can help to mitigate the risk to a large extent. And when its Equitymaster you can rest assured that before we recommend any stock to you, we would have done a thorough analysis of the companies' future prospects.

We are not saying that every call we make will hit bull's eye or that there will be no negative surprises. What we are committing to you is that, as in the past, recommendations you receive from us will be thoroughly researched. They will be honest recommendations, which are based on credible research. And as always, in our reports, we will share with you our investment rationale in detail.

The first Hidden Treasure report has been released on the 15th of February.

Hidden Treasure is a powerful yet affordable small cap stock recommendation service. But before coming to how affordable it is, here is a list of what a subscription to Hidden Treasure will entitle you to:
» 12 recommendations every year
» Specific price target and investment horizon for each recommendation
» Universe of coverage is Small Cap stocks only

As a subscriber to Hidden Treasure, you get access to a wealth of research and information on Equitymaster.

We want you to benefit from this service. And therefore we are making it very affordable for you.

Hidden Treasure is priced at Rs 5,000 per year (incl. service tax). A two year subscription is priced at Rs 8,000.

Tenure Price Act Now!
One-year Rs 5,000 Click to Subscribe!
Two-years Rs 8,000 Click to Subscribe!

It's no longer out of your reach to earn extra-ordinary returns from the stock market. Act Now!

Write to us at marketing@equitymaster.com
Call 092232-63403 | 92233-20146


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