Sasken-true multibagger

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Dear Readers,

I have not been recommended any stocks through this Blog since April this year. The lopsided market trends, official engagements as well as the homework for my Portfolio Advisory Services constrained me to publish a post in the kind. We have seen numerous ups and downs during this period. Some of us made decent gains, some missed the bus or some get off from the bus before it reaches the probable destination, and a few still waiting for a better time to make an entry to the market.

Any way, I would like to recommend one of my favorite and emerging stocks for my readers/clients. This scrip, which I already have recommended to few of my clients between May-July this year at 70-120 range. Please stick on, if you are not yet exited, else you can still accumulate this gradually at the range specified below. I would like to request you to go through one of my previous article related to the subject before you read these lines, will make a better idea on this amazing sector. Prepare your sense to hold this stock, a 3-5 years minimum, or practice patience till matures the 3G spectrum as well the upcoming mobile/wireless technology standards.

BSE Code-532663
Scrip Name-Sasken Communication Technology Ltd
Sector-Technology-Mobile VAS
CMP (24/07/2009)-165.80
EPS-10.17
PE-16.55
BV-155.09
FV-10
52 Week L/H-41.00/184.90
Buy Range-Accumulate in every fall below 170
Ever High post 2000-624.00(Jan 2007)
Market Cap-456.40
Chairman & MD-Rajiv C Modi
Auditor- Deloitte Haskins & Sells
Promoter’s holdings-27.99%

In 1989, Silicon Automation Systems (SAS) started in a small warehouse in Fermont, California as a dream project of Mr Rajiv C Mody (Chairman&CEO) with 2 other co-founders, Suresh Dholakia and Badru Agarwala. Later the company's name has changed to Sasken Communication Technologies Limited(SCTL). The name 'SASken' is a combination of its original name (SAS) and the Scottish word “ken” means knowledge.

SCTL offers an amalgamation of Research and Development Consultancy, Wireless Software Products, Software Services and Network Engineering Services. The company has a worthy range of clientele, in the fields of Network OEMs, Semiconductor Industry and Terminal Device OEMs across the world. Sasken employed more than 3,200 professionals at its offices worldwide, has repeatedly featured among the Best Employers in leading industry surveys. The happy workforce with innovative mission.

The company headquartered in Bangalore, Global Development Centre (called Fac-Z) with 4 other development centers in the city, Bagmane (Fac-B), Hosur Road (Fac-W), Domlur (Fac-M) and Outer Ring Road (Fac-A). SCTL also has development centers at Chennai (Fac-C), Pune (Fac-P) and Hyderabad. The company also has offices in Kawasaki in Japan, Santa Clara, Plano and Burlington in USA, Monterrey in Mexico (Fac-Mx), Saint-Laurent-du-Var in France, Frankfurt and Bochum in Germany and Guildford in UK. Most of its foreign offices manages the sales/marketing operations.

Subsidiaries
Sasken Network Engineering Limited (SNEL)
iSoftTech Private Limited.
Sasken Finland Oy (earlier Botnia Hightech Oy – Finland)
Sasken Automotive Electronics Pvt Ltd – TSAE, A JV (joint venture) with TATA Autocomp(TACO)

In addition to being engaged in the development of a variety of technologies, Sasken is a member of premier technology forums/bodies including ITU, 3GPP, GCF, MPEG-ISO, WiMAX, NFC, DLNA and ATM, DSL & SDR forums. Sasken is a SEI CMM Level 5 certified company and its solutions are qualified by ISO 9001:2000, ISO 27001 and TL 9000 certifications. Sasken’s Wireless IP spread on more than 50 models and over 50 million phones across networks in Australia, China, Europe, Hong Kong, Japan and Taiwan. SCTL’s Test Lab has become the first and only Test Lab in India to be ISO/IEC 17025:2005 certified for Handset Protocol Conformance Test (GSM,GPRS,EGPRS,SIM/STK) Services.

SCTL products/services caters to big Network Equipment Manufacturers (both wireless& wire line), Semiconductor Manufacturers who supplies to Telecom Market, Wireless Terminal Product vendors and Test and Measurement Equipment vendors around the globe. The company offers services for planning, deployment and managing Wireless Networks to Network Equipment Manufacturers and Wireless Service providers. Sasken also offers software services for development and maintenance of various software components required for execute network support system in the field.

The company powers the Semiconductor industry with IC Design services and Silicon Platform Software services. The IC design Services include Design, Verification and Integration of Integrated Circuits, the SPSS covers, design & testing, maintenance/sustenance and integration of software around the chips.

Softwares are emerging as the principal factor in the next-generation wireless terminal devices, delivering a wider range of utility applications and experiences to the users. Mobile Terminal Softwares are critical to the realistic performance of Terminal Equipments, yet these are complicated and expensive to build up, consumes a lot funds of handset manufacturers. Sasken provides software solutions for 2G, 2.5G and 3G technologies, offering a range of platform independent, standards compliant Wireless Protocol Stacks, multimedia codecs, middleware frameworks and applications to boost the product range, helps the firms to come up with high end handset varieties in short span of time.

The Symbian Competence Center at Sasken provides licenses of Symbian OS, Series 60 & UIQ with Component Design and Development, Software Porting, Integration as well as Testing Services.

Sasken Symbian expertise covers :-

Application Development
Multimedia applications comprising Sasken IP
Symbian TRP customization and testing
Software porting & integration
Base porting
Device drivers
Testing & Integration.

SCTL also licenses the following Strawberra Multimedia products

Multimedia codec engines (video, audio, speech and image)
MMS client
Media suite/Audio/Video players
Still camera/Video camcorder
3G-324M Videophone terminal
ARM Approved Design Centre
Sasken’s expertise ranges across wireless technologies, hardware platforms and multiple Operating Systems. SCTL also mastered in existing wireless technologies including TDMA, CDMA, GSM, GPRS, EDGE, 3G, IS95 and 802.11b The company with its wireless experience, offers High-End Consultancy services in the area of emerging wireless technologies such as Seamless Mobility and Fixed Mobile Convergence. As of now, Sasken is the largest Silicon IP vendor in India.
In March, 2009, Sasken has entered in an agreement with Inmarsat , the leading provider of global mobile satellite communications services, to complete development of the next generation global satellite hand-held phones. Sasken and Inmarsat have working together for more than five years in the area of mobile satellite communications. Inmarsat has preferred Sasken, to design and bring into pre-production the complete phone, which would include the hardware component comprising design, development & testing of antenna, RF and Mechanical Elements and the Software Component Comprising Protocol Stacks, application framework and test lab offerings. This engagement is first in its nature for an Indian company to be involved from the basic design phase up to producing pre-production units.

My View

I have a strong faith on this sector and believe, Sasken will do miracles in coming days. Sasken is an undisputed emerging player in this segment with tremendous growth perspectives. I dream that, being the licensees of Symbian OS (The platform referred as future Operating System for Mobile applications) and the ongoing venture with Inmarsat will bring Sasken to new heights and these projects may guide this scrip to a real multibagger with in few years. Accumulate!

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“Sasken offers expertise in communications technology along with their capability and experience in wireless terminal development, they will make a strong partner, we will work closely with Sasken in the design and development of our satellite phone to offer a new and compelling product in our broad portfolio of services over the Inmarsat network.”

Perry Melton, Chief Operating Officer ( Inmarsat)

Intel’s - http://www.intel.com/capital/download/Success_Story_Sasken.pdf

Check my previous post too in this regard. http://shabuhere.blogspot.com/2009/07/mobile-vas-hotspot.html

Readers are requested to comment whether negative or positive, as I am eager to know what you think on the above information as well as about the recommended scrip.

I am not responsible for your investment decisions; please do your own research before make any investment.

Contact – sthachat@gmail.com

Book Review - TNLG SMI

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I wish to introduce one of my favorite books associated to stock investments. “The Neatest Little Guide to Stock Market Investing” by Jason Kelly. The book is much discussed and is a best seller in the category, my intention is to propose this book, as an essential read for every new and young investors. I strongly recommend all those to make a read who are related anyway to the market with an intention to make money.

The lengthy name of the book itself stretched than half of its cover page. But the most valuable but very simple following 4 sentences put on the cover page aptly described inside.(slight changes in various editions)

1. How the stock market works.

2. Concise summaries of advice from master investors like warren buffet peter lynch and bill miller.

3. How to beat the market with simple permanent portfolios

4. Keeping a cool head when others panic.

The book is basically targeted to novice investors, but by the end , author has taught several advanced expert level strategies that will ensure wealth for anyone who follows them diligently. The author explained the modus operandi of stock markets and simple techniques related to investment strategies. The book is streamlined to the final objective to making money with few clear cut revelations of various strategies.

The author stresses on few basic, but important aspects related to investment. First of all, an investor should know, why he is investing in stocks where such a variety of investment options available with lesser risk profiles. Kelly spell out one of the logical reason to invest in the stocks, as you can become a partial owner of big companies which you can not even dream out. He also establishes the stocks as the best investment option in entire category with a long term view.

The book also trying to convince some significant technical terms in simple lingo, like Return of equity, Price/Sales Ratio, Price/Earning Ratio, EPS, Net Profit Margin, Price/Book Ratio, Return on Equity and lot others. Its also elaborate the basic concepts related to technical analysis.

One core portion of the book is trying to exclusively discuss the strategies and investment techniques of the investor giants like Warren Buffet, Benjamin Graham, Philip Arthur Fisher, Peter Lynch, William O'Neil and Bill Miller etc.

Every stocks have a business value as well a market value. The market value is the same referred as CMP. We can buy any household items/garments with a considerable discount when a stock clearance occurs in any of the shops/brands in festival seasons or so, like wise we can buy stocks in good valuations than their original worth in certain junctures. Market always avail such chances irrespective of the trends. This strategy generally termed as Margin of Safety. Benjamin Graham is known as the father of this strategy. The book reveals investment related myths and tips of market legends in simple and with logical examples.

Jason Kelly also illustrates one of the famous strategies to make good returns from the market ie. Dow Dividend strategy. This strategy is treated as one of the most effective technique by decades. He also explains his own other extremely effective strategies like Doubling the DOW and Maximum Midcap etc.

He also placed a comparison on returns between his Maximum Midcap, Double the DOW techniques with DOW. He establishes, if someone invest a $10000 in DOW on 31/12/2002, it was around $14805 by 29/12/2006. But, if that investment applied with his own theories like Maximum Midcap or Double the DOW, the amount could have around $29457 and $19642 respectively. The logic can applicable to our market too.

Kelly makes the market easy to understand, exciting, and even incorporates some comedic pitch throughout the book. Although not trying to convince the readers that you can become a millionaire overnight, instead focusing on the proved formulas and strategies that will give an investor the lowest chance of loss and the highest chance of gain. He covers what has worked, what has not and what legendary investors experienced. He also summarizes similarities between those legendary investors.

The book lights on, how you can search and find out best stocks for good earnings in long term. It is also discloses, how to spot or avoid stocks which are under possible risk roofs.

I would like to sum up… It is a simple, intelligent and highly effective approach to investing. I can say from my own experience, the book is an invaluable resource for new and young investors.

Plus check the link... with a good read... may definitely help you

http://www.first30days.com/experts/jason-kelly

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"Jason Kelly captured my investment methods well, and better than most who have tried to describe what I do."

Bill Miller, Portfolio Manager, Legg Mason Value Trust

Readers are requested to comment whether negative or positive which encourage me to do some more in this row.

Shabu - sthachat@gmail.com

Review - Previous recommendations

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Dear Readers,
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I wish to have a look on my previous recommendations, made through various posts. The market were even on a short term bullish trend and still hanging around the 15000 level, its interesting to measure the gain potentials of various scrips suggested during last 7 months. It is interesting too to compare the gain of these scrips with the gain of indices.

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The article published on 09 February 2009, "10 Multibagger Stocks for long term investors" where I recommended 10 scrips.

Link - http://www.stockmarketguide.in/2009/02/10-multibagger-stocks-for-long-term.html

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The gain from approximate SEVEN months :-

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1. Arshiya International
Price on 09/02/2009-72.00
CMP-140.00
Gain-94%

2. Taneja Aerospace and Aviation (TAAL)
Price on 09/02/2009-24.25
CMP-37.80
Gain-56%

3. Bartronics India
Price on 09/02/2009-71.00
CMP-166.20
Gain-134%

4. Compact Disc India Ltd (CDIL)
Price on 09/02/2009-36.85
CMP-72.85
Gain-98%

5. Electrotherm India
Price on 09/02/2009 – 92.00
CMP – 258.00
Gain-180%

6. Moser Baer India
Price on 09/02/2009-61.85
CMP-90.31
Gain-46%

7. Sharon Bio-Medicine
Price on 09/02/2009-26.00
CMP-75.10
Gain-189%

8. Tube Investments of India
Price on 09/02/2009 – 29.00
CMP – 57.50
Gain - 98%

9. Value Industries
Price on 09/02/2009 – 9.20
CMP – 19.95
Gain – 117%

10. Zicom Electronic Security Systems
Price on 09/02/2009 - 71.00
CMP – 87.85
Gain- 24%

The following scrips were recommended in the article published on March 4, 2009 "Multibaggers - Part II" where I recommended 5 more scrips.

Link - http://www.shabuhere.blogspot.com/2009/03/multibaggers-part-ii.html

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The gain from approximate SIX months :-

1. Enso Secutrack Ltd
Price on 03/03/2009 – 19.10
CMP – 18.50
Gain - -3%

2. OM Metal Infraprojects Ltd
Price on 03/03/2009 – 06.76
CMP – 25.20
Gain- 273%

3. Amararaja Batteries
Price on 03/03/2009 – 33.60
CMP – 130.75
Gain - 289%

4. Opto Circuits India
Price on 03/03/2009 – 78.45
CMP – 187.45
Gain -139%

5. Hind Dorr-Oliver
Price on 03/03/2009 – 35.25
CMP – 145.55
Gain-313%

The following scrips were recommended in the article published on April 11, 2009, "The Penny Passion - Multibaggers Part I" where I recommended 5 more scrips.

Link - http://www.shabuhere.blogspot.com/2009/04/penny-passion-part-i.html

The gain from approximate FIVE months :-

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1. Western India Shipyard
Price on 10/04/2009 – 5.20
CMP – 12.28
Gain -136%

2. Evinix Accessories Ltd
Price on 10/04/2009 – 2.40
CMP – 3.56
Gain - 48%

3. Marksans Pharma Ltd
Price on 10/04/2009 – 3.56
CMP – 5.95
Gain - 67%

4. Kitex Garments Ltd
Price on 10/04/2009 – 5.04
CMP –11.21
Gain - 122%

5. Birla Cotsyn India Ltd
Price on 10/04/2009 – 3.86
CMP – 6.79
Gain -76%

The following scrips were recommended in the article published on April 28, 2009 "Alternate Energy Sector - The Solar Swear " where I recommended 3 scrips, but the Moserbaer already mentioned here.

http://www.shabuhere.blogspot.com/2009/04/alternate-energy-sector-solar-swear.html

The gain from approximate FOUR months :-

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1. Webel SL Energy Systems Ltd
Price on 28/04/2009 – 114.95
CMP – 324.95
Gain - 182%

2. XL Telecom & Energy Ltd
Price on 28/04/2009 – 37.25
CMP – 55.20
Gain - 48%

The CMP shown above is of previous week's. Most of these scrips are touched their 52 week high between the period and keep fluctuating with the indices, means the actual gain is greater in most of the cases compare to what I mentioned above.

The purpose of this post is not to make any claim on my recommendations or to establish any expertise, but it is a self evaluation attempt which I wish to share with my valueable readers as well with my clients. A few of them made good money by investing on the right time especially in the following scrips.

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Hind-Dorr Oliver (>300%)
Amara Raja Batteries (>250%)
Om Metal Infra (>250%)
Electrothem India (>200%)
Webel SL Energy (>200%)
Value Industries(>120%)
Sharon Bio Medicine (>185%)
Kitex Garments (>125%)
Western India Shipyard(>150%)
Bartronics(>150%)

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I would not like to name the people, but hope they will do it in the comment sessions as their own. I also would like to thank all of them who disclosed the profit figures they made on certain recommendations plus who shared a little part of their gain with me as theirown.

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I also wish to mention about the "Enso Secutrack", which made slight lose to few readers. I am still confident on its prospects in a long term view, but enquiring the reasons of underperformance. Readers are requested to comment whether negative or positive.

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I am not responsible for your investment decisions , do your on research before make any investment decisions.

Shabu Thachat - sthachat@gmail.com