Theme - "Stock specific" NOT "Sector specific"

Do not to bother on global cues and sectors not peforming... I believe the theme for Year 2016 is finding quality stocks with strong fundamentals and debt free.

We need to focus on companies which will benefit from falling commodity prices e.g. steel, oil etc. Huge benefit is going to aviation, automobile-cars, packaging & oil companies. Internet is will be the biggest boom, need to find companies offering cloud/e-commerce services.

Essentially finding stocks in these sectors which will have more profit margin due to falling commodity prices and also driven by the government spending over the next 12 months.

Most importantly need to determine their intrinsic value before buying them.

Please feel free to share your views stocks which you feel can double in 1- 2 years.

 

In 2015, some stocks performed even though the sector in which the stock belonged failed to perform.

 

I do not feel that commodity or oil prices will fall any further. Actually a rise is expected.

Aviation shares have already appreciated a lot. So avoid them.

If oil prices rise then companies engaged in oil refining will loose due to less margins. But oil companies having less P/E may turn out to be good bet provided that oil prices do not rise much.

Companies like Kelton, Saksoft, Intrasoft and 8k Miles offering cloud services/ e-commerce have already risen a lot so please avoid them.

Don't know about packaging.

Housing finance companies and defense seems to be good sectors to bet on. Defense depends on government policies so be very careful. But keep a watch on housing finance.

 

Whats your say on Datamatics ?