OnMobile Global qualifies as one of Daljeet’s brilliant and tactical stock picks. He put a buy on the stock on 3rd November 2014. At that time, OnMobile was totally out of favour because it was deep in the red owing to huge international diversification in non-core areas.
However, Daljeet confidently recommended a buy on the basis that a “turnaround” was in sight.
On the day Daljeet sent out the buy recommendation, OnMobile was languishing at Rs. 39. It soon took off like a rocket and touched a high of Rs.98 on 6th February 2015.
This means that in just three short months, massive gains of 151% (Rs. 98 – Rs. 39) were on the table.
The stock has since corrected a bit and is now resting between Rs. 67 and Rs. 71.
Daljeet has now sent out a buy recommendation with the promise that a target price of Rs. 101 is in sight. He states as follows:
“OnMobile Global (OGL) | Reiterate BUY with previous TP of Rs.101…
We recommended BUY on OnMobile Global Ltd (OGL) at Rs.39/share on November 3rd 2014. The stock already yielded 151% return and touched 52 week high price of Rs.98/share on February 6th 2015. During Q3FY15, the company reported 9.3% Q/Q revenue growth with ~740 bps Q/Q expansion in EBITDA (to 20.5%) margin and turnaround at net profit (v/s net loss in Q2FY15) level. In our view, performance improvement does not look one-time; OGL demonstrated consistent improvement in EBITDA margin and reduced net loss from last three quarters.
Valuations: At CMP of Rs.67, the stock in trading at P/E multiple of 73.9x FY15E, 7.5x FY16E, and 6.6x FY17E earnings estimate. Based on the various available trigger and strong management team at the helm of the fair, we maintain ‘BUY’ with target price of Rs.101 (valuing 10x FY17E) on OGL.”
At the end, Daljeet says with his customary confidence “In our view, the turnaround in operations post major restructuring looks sustainable and likely to deliver growth and profitably on back of robust business model. We recommend investors to be greedy and start accumulating.”
If Daljeet’s prophecy comes true, we are talking of nearly 50% gains.
Of course, we must be wary of the several risk factors that Daljeet has outlined in his first report of 3rd November 2014. If any of those materialize, all prospects of gains will evaporate into thin air. So, we must all carefully consider the matter and take an informed decision on whether to buy the stock or not.
ATTENTION
if anyone get motilal oswal reports REALTIME ( ie when it is released but after 3 days when they upload in their website or from other group ) iam interested..
I can exchange some very gud reports i subscribe…
if serious and luk at long term sharing pl reply
jacobvacha@gmail.com
sincerely
Jacob mathew
What is present & future of “PENNER INDUSTRIES” earlier recommended by Daljit
Plz be cautious. Looks to be an Operated stock.
If I get greedy and invest in the stock and gain, I will share 25% of the gains with the writer of this blog provided I get a assurance that he covers my losses and gives me 25% profit in case I end with losses…
Bholu ji,
Well said.
I have been surfing this blog from past 1 hour.
I came across 10 interesting stock picks.
I can’t buy all. I can’t sort out which one to buy.
I am just so confused with all suggestions, Advises given by various GURUS
Sir, I suggest you write para on each stock with likes and dislike. It will help focus your thoughts and decide. You can post here for our benefit and analysis and comment.
My response to this particular post was a bit sarcastic because DK advice on Onmobile Global was being repeatedly posted …I do not have much information on the company but by the looks of it I cannot see the justification in the sharp price increase..at a time when IT companies were growing,expanding this company’s stock fell sharply..now in the bull market this company coincidentally returned to profit when other IT companies are facing challenges….@ Kiran first you need to decide on your time horizon and the money you want to invest…then as Ayesha pointed out look at each stock one by one …debt amount, PE multiple, and management profile are three important criteria….if you get that right chances are that your investment will be right and you will make money in 2 years time