Sunday, May 28, 2006

Five Small - Cap stocks for long term

Small Cap stocks have the power that its prices gets doubled, tripled, and multiplied many times than the Large Cap stocks. But at the same these small cap stocks equally have the risk to go down to half or quarter or even much lower.
So in choosing small cap stocks, you should be much more careful, more patient. After spending lot of time in screening the small-cap stocks, selecting the few that has the growth opportunity,

I have found these five stocks are good candidates for long term.

StockCurrent Market Price(in Rs)P/E
Minal Jewels80 3.63*
Polychem Ltd 87.95 5.95
N. K. Industries 13.01 0.61*
Dhampur Sugar Mills 175.30 5.62*
Jayshree Chemicals343.03

All these stocks are from different sectors. They don't have any theme in common, so completely diversified. While investing, invest in all five stocks because, if you try to select a few, you may choose the wrong one, preferably equal amount in each stocks.

Be patient and wait for one year. I am expecting around 40-50% returns from this 5 stock pack.

Happy Investing.

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