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Tuesday, November 16, 2010

Our Latest Small Cap Stock Pick

 Just consider for a moment, on every first saturday/sunday of the month, you receive a recommendation from Saral Gyan for a literally unknown and unheard of small cap stock.

This stock will never have been talked about in the media, your stock broker won't ever mention it to you, and there's no chance whatsoever that you'll come across it during a conversation with a friend.

But still, largely because it is Saral Gyan team that's recommending the company, you decide to play it safe and invest a tiny-winy portion of your money in it. You know, just in case. And then, silently the company continues to grow behind your back.

As you grow older, the company also grows old with you, moving up in value and price... doubling, tripling, and quadrupling during this period.

Then one day in the not so distant future, when you've probably even forgotten that you own shares of this "once unknown" company, it surfaces as one of the leaders in its industry.

Giving You Returns Of 1,000% or More Effortlessly!

Is something like this really possible?

Yes, it certainly is!

In July 2000, Shriram Transport Finance Co. Ltd. was a little known small cap stock available for just Rs 3.3 a share. Not many people expected it to grow the way it has, and therefore not many bothered to invest in it.

But by cashing in on the increased need for commercial transportation and coming up with a business model that set it apart from all its competitors, the company succeeded in growing its business rapidly.

As a result, its stock price increased from Rs 3.3 in 2000 to Rs 882.3 currently. And those who invested in Shriram Transport in 2000 ended up making a whopping 20,659% on it by 2010.

And this is not a one-off case either. Take a look at the table below:

Though not many people knew, all these companies were already leaders in their own sub-niche or the small area of the industry they operated in. And they were much better prepared than their peers for managing explosive growth in the years to come.

Hence when the demand for their product grew, they were able to provide a much better service than all of their competitors and quickly established themselves as the go-to guy in their niche.

And the rest as they say, is history.

It's true! Most of the companies you see in the table above are pretty well known in India today. But at one time they were not so well known.

They all started out small, established themselves as the leader in one main area where their expertise lay, and then diversified into other areas.

Well, the story of the companies you see above is also more or less similar.

Imagine how much you would make if you found out all such high-potential small companies early, and invested in them while they're still in their infancy?

Given the uncertain nature of small caps, we cannot and should not expect every small cap stock to be an out-and-out winner.

But we know that small caps are fast movers, and that the movement quickly shows in their stock price.

So assuming you manage to pick 12 'reliable' small cap stocks, even if just 2 out of the 12 manage to endure the market uncertainties and turn multi-baggers, you will be rich! That's the real magic of investing in small cap companies.

Team of research analysts at Saral Gyan exclusively do research work and analysis to explore such Hidden Gems. Further filtering is done on the basis of company future expansion plans, current earnings, dividend paying history, management views etc. As a result of extensive research every month, we identify one Hidden Gem and prepare complete research report.

On subscription to Hidden Gems, subscriber will receive one small/micro cap stock research report on monthly basis. The objective of research report is to make an educated investment decision backed by sound, unbiased and detailed research analysis of the company. The annual subscription charge for Hidden Gems services for Indian subscribers is INR 3000 and for abroad subscribers is $ 69.99 only.

Saral Gyan offers Hidden Gems (Unexplored Multibagger Small Cap Stocks) and Value Picks (Mid Cap Stocks with Plenty of Upside Potential) research reports. To read more about Hidden Gems & Value Picks subscription charges and payment facilities, Click Here!