CAMSON BIO TECHNOLOGIES

– INDIA’S 1ST AND ONLY INTEGRATED AGRI

BIOTECH COMPANY.
HBJ Capital, India.
 From the desk of Head, Equity Research Cell
 Put Your Money Where Your Mouth Is !!!
 Top Down Approach of Stock Investing : Think BIG
 Four Emerging Sectors as on Today.
 Opportunity in “Agriculture or Food Processing” Sector.
 Agriculture sector related with food processing sector.
 Bridging the gap between surging demand for food and a
limited supply of fertilizer.
 Niche area in agro commodity to do investment.
 10in3 stock selected as per HBJ Capital’s five golden rules of
investment?
 Is Camson Bio Tech belongs to New Emerging Sector?
 Could you please, provide me a snapshot of Camson Bio Tech?
 Which are the other listed players in BSE/NSE doing similar business? Why
they can’t be 10in3 stock?
 Is Camson Bio Tech, a “Small Market Cap" company with leadership position
in its niche area of operation?
 What is the Scale of Opportunity here? How big Camson Bio Tech can become?

“Make the rest follow your path” – HBJ Capital.

  Are the management unknown & undiscovered? Have you seen their passion
at work more than qualification?
 Credibility based on Shares held by Promoters or Non-Promoters?
 Is there any entry barrier, brand, products or any other moats for Camson Bio
Tech?
 Who are the clients for Camson’s Products?
 End users of Camson’s product are farmers, who are mostly poor, will they
afford to buy such products?
 Numbers speaks more than words. What are their past records/ performance
says?
 Latest significant announcement by the company & its impact?
 Its always the price at which you buy matters?
 Latest Bulk/Block deals - Buy/Sell reported in Camson Bio Tech & hidden
meanings behind this.
 Is there any risk associated with investment in this company?
 What is the best price to buy Camson Bio Tech?
 When do we Sell this stock?
 Are you still looking for a multibagger? Go for next 10in3 report
on small cap multibagger.
 HBJ Capital, India – Our Services.
 Thank You To Our Subscribers.
Sometimes your best investments are the ones you don’t make
 FROM THE DESK OF HEAD, EQUITY RESEARCH CELL.
In the current issue of
10in3 for Sept'08, the
company discovered
has all the merits to
multiply its Mcap by
20-50 times in next 3-5
years.
“Rupees are lot like seeds, you can eat the seeds or sow them”. Choice is yours?
Dear Investors,
There are three ways for a nation to acquire
wealth.
4. The first is by war, as the Romans did, in
plundering their conquered neighbors. This
is robbery.
5. The second by commerce, which is
generally cheating.
6. The third by agriculture, the only honest
way, wherein man receives a real increase
of the seed thrown into the ground, in a
kind of continual miracle, wrought by the
hand of God in his favor, as a reward for
his innocent life and his virtuous industry.
So, as a part of HBJ Capital’s 10in3 research
report on small cap, we have discovered a
most promising agro related company for
the purpose of long term wealth creation.
In many aspects this company stands out of
the crowd….
FROM THE DESK OF HEAD, EQUITY RESEARCH CELL (CONTD.)
 A company from one of the most promising
& emerging sector in India.
20-50 times,  It is a sector leader, a niche player with
very strong moats.
Hmm , Isn’t it
 It is a small cap company, with lots of cash
a lot of in hand (approx 35% of its Mcap) for
money? further expansion.
 Scale of opportunity for this company is
almost 1000 times more than the Mcap or
Sales of the company.
 Unknown management, happy
shareholders, massive expansion planned.
 Valuation reasonable, almost zero debt,
great financial performance shown in the
past, once recognized by masses, PE
expansion will take place which will create
huge wealth.
 They have vision to become #1 company in
its niche area not only in India but also
across the World.
Head, Equity Research, HBJ Capital

A market is the combined behavior of thousands of people responding to information,

misinformation and whim.
 e y
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ou Yo !
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Dear HBJ Team,
Are you going to follow, “Top-Down”
or “Bottom-Up” approach to
Investment?

We believe at “Top Down”

approach to investment.

Our futurist team predicts

the future trends or emerging
sectors and then…

Equity research team

discovers best stocks
available!!!
 TOP DOWN APPROACH OF STOCK INVESTING : THINK BIG

"In a bull market your game is to buy and hold until you believe
that the bull market is near its end."
CHOICE IS YOURS!!! – PLEASE CLICK HERE

 If you have sufficient  If you don’t have

time, you can first enough time now, you
understand the sector can skip sector
before going to the coverage & directly go
company. to the company.
Everyone has the brainpower to follow the stock market. If you
made it through fifth-grade math, you can do it
Dear HBJ Team,
Pls tell us, which are the emerging
sectors as on today where one can
invest & create wealth?

Our focus “Agriculture

Sector”
With growth in organized
retail & uptrend in commodity
market, agro-commodity will be
in high demand.

Food & grocery constitute 25%

of middle –class household
expenditure in India.
 NEEDS SPECIAL FOCUS FOR INDIA TO ACHIEVE ITS 2050
POTENTIAL.
 In the next 50 years we will see many
wealth creating companies emerging
from these 4 sectors.
 Education Sector - Education is
the second largest item of middle-
class household expenditure in
India, after food. Private sector
participation thru 2 opportunities
discussed in HBJ Newsletters, will
open huge demand for wealth
creating stocks, go for 10in3 stocks.
"It never was my thinking that made the big money for me. It always was my sitting.
 Financial Sector - Stark
changes are expected in Indian
Banking Industry in 2009 when
Government and RBI will provide
level playing field to foreign banks.
Insurance, MF & Capital Market
will be in high demand.
 Agriculture Sector – With
growth in organized retail & uptrend
in commodity market, agro-
commodity will be in high demand.
Food & grocery constitute 25% of
middle –class household expenditure
in India.
 Infrastructure Sector – What
we have seen till now is just a tip of
iceberg in infrastructure
development, India need to go long
way. In 2007-08, real estate
attracted 30% (highest) of Private
Equity money in India.
Do you see any opportunity in
“Agriculture or Food Processing”
Sector?

Productive Land is limited but

Population is increasing day by
day.

Only way to solve food crisis is

to increase the crop productivity
not at the cost of our health.

Hybrid seeds, Bio fertilizer, Bio

pesticides & Zero residue fruits
and vegetables are the only
solution!!!
 WORLD POPULATION VS PRODUCTIVE LAND
 World Population
 In next 50 years, the world's
population will increase by 50%
from 6 billion at the end of 1999 to
close to 9 billion in 2050. We are
living at the end of the fastest
growth period of human
demographics.
 Between 1995 and 2000, the
growth rate was 78 million people
 Productive Land
per year. Between 2015 and 2020
 Climatic variations, natural the annual growth rate will
disasters, and human intervention decrease to 64 million and then to
are ceaselessly at work changing the 30 million by 2045-2050. 
boundaries of productive land.    In 2050, the Earth will be
 The loss of productive land can be inhabited by 8.9 billion humans.
attributed largely to the destruction Africa and Asia will be home to 20
of forests. and 60%  of the world's population
 It is estimated that one hectare of
respectively.  Developed nations
will have twice as many elderly
productive land is lost every 7.67
people as youth.
seconds. 

"Men who can both be right and sit tight are uncommon."
AGRICULTURAL SECTOR: IMPORTANT FOR ECONOMIC GROWTH AND
REDUCING POVERTY
 When Jim Rogers
were asked about
which is the best
investment as on
today?
India is agriculture dependent
Nation…  Rogers one of the top
commodity trader in
 70% of population lives in villages, the world is bullish on
75% of poor are in rural areas.
agro based commodity.
 Agriculture: Main source of  India/China is going to
livelihood for 60% of population. consume more and
more due to increasing
 Agriculture contributes about 20%
to GDP, which is a huge income level and
opportunity out there. standard of living. 14
"The market does not beat them. They beat themselves, because
 AGRICULTURE SECTOR (FOOD PROCESSING):
OPPORTUNITIES & CONSTRAINS.
 Agriculture will have to contend
with two other problems.

 First, the loss of arable land for non-

agricultural uses as India
industrializes and urbanizes.

 Second, soil erosion due to intensive

farming and environmental
degradation.

 Since there are limits to enhancing

area under cultivation, as forest cover
is already dwindling, raising
agricultural productivity will be key.

 Agriculture Sector in Focus.

 60% of the workforce employed in agriculture, but the sector accounts for just 1% of overall
growth

 India’s agricultural yields are a fraction of those of its more dynamic Asian neighbors.

 Improvement needed on three fronts: public investment, new technology and deregulation

"He really meant to tell them that the big money was not in the individual fluctuations
but in the main movements that is, not in reading the tape but in sizing up the entire
market and its trend.”
 F-O-O-D IS A FIGHTING WORD
 Agriculture will have to contend with
two other problems.
 U.S. consumers spend roughly 15% of
every dollar on food. In China, 30% of
consumer income is spent on food. In
India, it's closer to 35% or even 40%.
 In poorer nations, 80% of consumer
income goes to food.
 The United Nations World Food Program
says the number of hungry mouths
increased by 50 million in 2007 because of
higher food prices.
 Approximately 50 million acres of arable
land disappear every year thanks to the
growth in cities, urban sprawl and
economic development.
 Food crisis, reason behind all conflicts.
 60% of all conflicts in the past 18 years have been driven, at their core, by disputes
stemming from a scarcity of food, land or water.
 By 2020s, regional food shortages could trigger hundreds of millions of new refugees and
leave no country on Earth unaffected.
 When those folks run out of food, where do you think they're going to immigrate to?

"Obviously the thing to do was to be bullish in a bull market and bearish in a bear
market."
How agriculture sector related with
food processing sector?

If “Food Processing” industry

is - forward integration then
“Agriculture” can be called as -
backward integration.

This might be the reason

why big guys like
Bharti/Reliance are going for
“crop/vegetable cultivation”
along with “food packaging”
and “retail outlets”.
FOOD PROCESSING IS A LINK BETWEEN THE AGRICULTURE
AND INDUSTRIAL SEGMENTS OF THE ECONOMY.
 Considering the wide-ranging and large
raw material base that the country
offers, along with a consumer base of
over one billion people, the industry
holds tremendous opportunities for
large investments.
 India, with an arable land of 184 mn
hectares is, the highest producer of milk
in the world at 90 mn tonnes p.a.,
second largest producer of fruits &
vegetables (150 mn tonnes), third
largest producer of food grains and fish
and has the largest livestock population.
"When your security is acting right, you can safely add to your line from then
forward!"
 The food processing industry in India is
a sunrise sector that has gained
prominence in recent years.
 India’s agricultural production base is
reasonably strong, wastage of
agricultural produce is sizeable.
 Processing of fruits and vegetables is a
low 2%, around 35% in milk, 21% in
meat and 6% in poultry products. By
international comparison, these levels
are significantly low - processing of
agriculture produce is around 40% in
China, 30% in Thailand, 70% in Brazil,
78% in the Philippines and 80% in
Malaysia.
 Value addition to agriculture produce in
India is just 20%, wastage is estimated
to be valued at around US$ 13 bn (Rs
580 bn).
INDIAN FOOD MARKET AT US$ 191 BN. THE PROCESSED FOOD
MARKET IS PROJECTED TO BE OVER US$ 100 BN
 An extensive and highly fragmented industry,
the food processing sector largely comprises of
the following sub-segments: fruits & vegetables,
milk and milk products, beer & alcoholic
beverages, meat and poultry, marine products,
grain processing, packaged/convenience food and
packaged drinks.
 A large number of players in this industry are
small sized companies, and are largely
concentrated in the unorganized segment. This
segment accounts for more than 70% of the
output in volume terms and 50% in value terms.
However, though the organized sector is
comparatively small, it is growing at a much
faster pace.
 The Ministry of Food Processing Industries,
GoI, has estimated the size of the Indian food
market at US$ 191 bn (Rs 8,600 bn). The
processed food market is projected to be over
US$ 100 bn, of which the primarily processed
food market accounts for 60%, while the value-
added processed food market is around 40%.
 The food processing industry in India has a
share of 1.5% in the total GDP of the country,
and as part of total manufacturing accounts for
9%. India’s share in world trade in respect of
processed food is about 1.6%.

"When I buy stocks for a rise I like to pay top prices and when I sell I must sell low or
not at all."
What will bridge the gap between
surging demand for food and a
limited supply of fertilizer?

Genetically modified
(GM) foods

Agri-biotechnology

Residual Free Foods

ANSWER IS : “GENETICALLY MODIFIED (GM) FOODS”.
Why make GM crops?
GM technology enables plant breeders to bring together in one plant useful
genes from a wide range of living sources, not just from within the crop
species or from closely related plants.
What are the potential benefits of GM plants?
Higher crop yields, Reduced farm costs, Increased farm profit,
Improvement in health and the environment
What are the potential risks of GM plants?

#1. Danger of unintentionally introducing allergens in foods.

#2. Likelihood of transgenes escaping from cultivated crops.
#3. Potential for pests to evolve resistance to the toxins produced by GM
Crops & Risk of these toxins affecting non-target organisms.

Are GM crops appropriate for developing countries?

#1. Food prices directly affect the incomes of majority of the population.
#2. They lack the scientific capacity to assess the bio safety of GM crops.

"Experience has proved to me that real money made in speculating has been in
commitments in a stock or commodity showing a profit right from the start."
GM (GENETICALLY MODIFIED) CROPS KEY TO FOOD
SELF SUFFICIENCY
 Agri-biotechnology, What is this?

 Uses molecular biology to develop

commercial processes and products.
 Generates social, economic and
environmental benefits if
specifically targeted at the needs of
the resource-poor farmers.

 In US, approx 70% of processed foods contain genetically modified ingredients.

Considering that about 90 cents of every dollar spent at the supermarket goes
toward processed foods, hence for every dollar you spent in malls you are buying
GM foods worth 63 cents. Opportunity is huge!!!
 India is currently facing a shortage of edible oil, wheat and rice. It imports more than 40%
of its edible oil requirement. India imported 5.5 million tonnes of wheat in 2006 and 1.8
million tonnes in 2007. It barred export of non-basmati rice to meet local demand in 2007-
08.
 The success India has achieved through use of Bt cotton can be replicated for
other crops also. It became the second largest producer of cotton through the
use of GM crops.
 India is currently testing GM rice and GM brinjal with commercialization likely to happen
in 2011 and 2009 respectively.

"It is literally true that millions come easier to a trader after he knows how to trade,
than hundreds did in the days of his ignorance."
Any niche area in Agro commodity
do you suggest to focus on and do
investment?

Today’s farmers are not

looking for just seeds,
chemical pesticides or
fertilizers but…..

They are looking for hybrid

seeds, bio fertilizer, bio
pesticides, zero residue fruits
and vegetables.
 From the Green Revolution to the Gene Revolution
 Avoid use of conventional
pesticides, herbicides and
fertilizers.
 Use of Pesticides to kill insects,
herbicides to kill weeds, and
fertilizers to amend poor soil, all
three of these have a negative
impact on the environment.
 Hybrid seeds, bio fertilizer, bio
pesticides, zero residue fruits and
vegetables are the need of hour!!!
 Use of these can significantly
influence the immune and
 There are many benefits of using
endocrine systems as well as
biotechnology in Agriculture like… neurological health.
 Improve yield from crops
 Reduced vulnerability of crops to  Fertilizers and pesticides are still
environmental stresses legal, but they must be applied
 Increased nutritional qualities of according to directions.
food crops
 Improved taste, texture or
appearance of food
 Reduced dependence on fertilizers,
pesticides and other agrochemicals.
"From my point of view, the investors are the big gamblers. They make a bet, stay
with it, and if all goes wrong, they lose it all."
As per HBJ Capital’s five golden
rules of picking 10in3 stocks, do you
suggest any stocks for investment?

Yes, it is….
Camson Bio Tech
HBJ CAPITAL’S FIVE GOLDEN RULES OF PICKING 10IN3
STOCKS.
Is Camson Bio Tech belongs to New
Emerging Sector?

1st and only company in the

world to offer range of…..

Hybrid seeds,
Bio fertilizer,
Bio pesticides,
Zero residue fruits and
vegetables.
AGRICULTURE BIOTECHNOLOGY: THE ANSWER TO
FOOD SHORTAGES
 Agriculture Biotechnology – Only
solution to India’s food crisis!!!
 Agriculture is a dominant sector in India,
we see a huge opportunity in improving
agricultural productivity.

 The 'green revolution' is showing signs of

fatigue and farm productivity increases are
now flattening.

 A revitalized Indian agriculture can be the

engine of growth for the 21st century, and
biotechnology can provide the needed fuel.

 The greatest promise of biotechnology is in

its application in developing countries like
India and China because of their high
reliance on agriculture, large farming
areas, low crop yield and the urgency for
food increase and economic revitalization.

“First I determine themes that will be played out over the next several years. Then I
identify groups of stocks that reflect those themes.”
 GENE REVOLUTION AND FOOD SECURITY
 Bio Agri will be a very strong sector in
the years to come, in view of the Indian
government’s decision to open the
market for biotech crops.

 India offers a huge market for

agribiotech products as more than half
of the country’s population depends on
agriculture. Indian market is big, value
lies in making products suited to Indian
agronomy and markets.

 Development in the green movement is

still in its infancy. Less than a dozen
companies around the world are
Agribiotechnology….. commercially manufacturing and
selling small quantities of bio-pesticides
and bio- fertilizers.
 Agriculture occupies the prime position in
 Unlike popular fertilizers and
the economy contributing 24.1% to the GDP pesticides in common use today, these
and agriculture and allied activities employ products can be safely metabolized by
about 60% of the work force. most living creatures, and leave no
residues in their bodies. They have no
adverse effects on the soil, and are
 Hence a lot is expected of agribiotechnology. produced from biological sources rather
than chemical synthesis.
New products in agribiotechnology sector would
be increasing in the coming years.
"There is only one side to the stock market; and it is not the bull side or the bear side,
but the right side“.
Could you please, provide me a
snapshot of Camson Bio Tech?

Camson Bio Tech

Ltd, India’s first
wholly integrated
Agriculture
Biotechnology
Company, based at
Bangalore.
 SNAPSHOT…
Camson Biotechnologies operates in the  HBJ Capital’s Views…
niche segment of agriculture bio  CMP = INR 71/- as on Sept’08
technology. Camson was incorporated in
 H/L = 210/54 (Share price has come
1993, and became a Public Limited
closure to 52 week’s low)
Company in 1995.
 Mcap = Rs 70Cr (You are getting a
Camson Biotechnologies is nurturing a leader @ just Rs70Cr where scale of
business where the opportunity space is opportunity is 1000 times more than its
big enough for Camson to attempt Mcap, lot of head room available)
doubling revenues (and profits) every year  PE=7.47; EPS = 9.5 & FV=10 (Currently
for perhaps a decade. at reasonable PE, Monsanto trades at
12-15 PE, with 100% growth YoY, PE
This is the kind of product that the expansion and exponential EPS growth
world's farmers are thirsting for, and if can’t be ruled out)
Camson does not do it, someone else will.  # of Shares = 98 Lakhs (Equity
It's the only listed company in India that expansion expected for such a high
seems to be getting a grip on this difficult growth company)
(but promising) business.  Official Website
1st and only company in the world to http://www.camsonbiotechnologies.com
offer range of Hybrid seeds, Bio fertilizer
and Bio pesticides, zero residue fruits and
vegetables.
The markets are the same now as they were five or ten years ago because they keep
changing-just like they did then.
 PICTURES SPEAKS MORE THAN WORDS!
The company has developed many unique
biocides for plant protection and hybrid
seeds for improved productivity.

It is active in the areas of Hybrid seeds,

bio- fertilizers and bio-pesticides.

Camson visualizes a healthy and disease

free society by providing safe food. Camson
has recently been recognized as one of the
fastest growing technology Companies in
the ‘Technology fast 50 India 2007’
conducted by Deloitte Touche Tohmatsu,
Asia Pacific.

The Company has successfully launched

32 products in the Indian market within
last seven years. All these products have
been received enthusiastically by the
consumers. [Click above] : Pictures
Extensive research practice over 10
years.
speak more than words
Sometimes.
The elements of good trading are cutting losses, cutting losses, and cutting losses.
 AWARDS & CERTIFICATES.

Win or lose, everybody gets what they want out of the market. Some people seem to
like to lose, so they win by losing money.
 1ST “PROTECT THE PLANT” AND 2ND “IMPROVE THE
PRODUCTIVITY”.
 Camson has developed many
unique biocides for plant protection
and hybrid seeds for improved
productivity .

 Superior technology in crop

transformation and functional
genomics has helped in developing
new products which are first of its
kind in the country.

 Protect the plant and Improve the

productivity.

 Unique research and intellectual

proprietary

 Unique biocides for plant protection

and hybrid seeds for improved
productivity .

The trend is your friend except at the end where it bends.

Which are the other listed players
in BSE/NSE doing similar business?
Why they can’t be 10in3 stock?

Stock picking is more

like a rejection process
rather than selection;
So one should
eliminate the
unwanted weeds and
get the best crop!!!
 BSE/NSE LISTED PLAYERS.

To avoid whipsaw losses, stop trading.

Is Camson Bio Tech, a “Small
Market Cap" company with
Leadership Position in its Niche
area of operation?

Yes, Camson Bio is just

Rs 70Cr Mcap company.

A wholly integrated
company with leadership
position in its niche area
of operation, almost no
competition!!!
WORLD IS LOOKING FOR : A CHEMICAL FREE FOOD
 Why farmers prefer bio-fertilizers & bio-pesticides?
 With the world increasingly becoming sensitive to
chemical-free food, and exports increasingly needing to
be zero-residue, demand for bio-fertilizers & bio-
pesticides is zooming yearly.
 The world over, countries are moving towards banning
agro-chemicals due to the increasing realization of the
longer term costs on the health of their populations.
 Bio-pesticides & hybrid seeds make up around 80% of the
current turnover of the company. The company sells it's
products at lower than the equivalent prices for the
chemical-based products, and with the "chemical-free,
zero-residue" advantages.
 This makes it a win-win for the farmer / contract farmer.
Company has all the necessary certifications of it's
products.

 Extensive details regarding the company, it’s products, it's vision etc can
be accessed on it’s website : http://www.camsonbiotechnologies.com/
Here's the essence of risk management: Risk no more than you can afford to lose, and
also risk enough so that a win is meaningful. If there is no such amount, don't play.
 IF YOU WANT TO CREATE HUGE AMOUNT OF
WEALTH THEN “CATCH THEM YOUNG”.
 Just think for a moment…
 You are buying an undisputed leader
company whose Mcap is just Rs 70Cr,
just like a child prodigy or a product
based giant in making.
 Remember that, best returns are
generated by latching on early on
unique companies with big moat  (R&D
& Products Portfolio for Camson)
around them & tremendous growth
looming ahead (Opportunity 1000 times
more than its Mcap or Sales).
 As of now company is too small for FII
or MF to take substantial stake in it. In
fact FII/MF has not yet looked at it.
 Company planning for Private
Placement for further expansion, and
you must be knowing that PE folks
expects minimum 30-50% returns per
year.

Markets are fundamentally volatile. No way around it. Your problem is not in the
math. There is no math to get you out of having to experience uncertainty.
What is the Scale of Opportunity
here? How big Camson Bio Tech can
become?

India’s fertilizer
(nitrogen, phosphorus,
potassium: N-P-K) industry
alone worth $5bn
(Rs20,000Cr).

Usage of nutrients in
India is only 98 kg per
hectare compared with 254
kg in China. India need to
use 2.5 times more
nutrients.
 INDIA NEED TO USE MORE & MORE BIO -
NUTRIENTS!!!
 Bio fertilizers are sooner or later going to
replace the conventional NKP based
fertilizers due to their side effect on
human health.

 Camson has products from following

areas…
 Hybrid seeds,
 Bio fertilizer,
 Bio pesticides,
 Zero residue fruits and vegetables.

 Out of the above just “Bio fertilizer”

alone has market of $5bn, What
about others? Think about it!!!

 All these products from Camson is

ready to capture major market
share.

“An investment in knowledge always pays the best interest”

 SIZE OF INDIAN FERTILIZER INDUSTRY : $5BN
(APPROX)
India is primarily an agriculture based
economy. The agricultural sector contribute
about 25% to the GDP.
The Indian Fertilizer Industry is one of
the allied sectors of the agricultural
sphere. Due to various risks involved in
usage of fertilizer slowly conventional
fertilizers (NKP) will be replaced by Bio-
fertilizers etc.
In a global fertiliser industry worth
roughly $50 billion, India stands third in
terms of production after China and the
US. So, assuming India’s share of 10% in
production, India’s fertilizer industry alone
will be worth $5bn which is Rs20,000Cr.
 Increase in productivity due to more usage of
fertilizers and that too Bio-fertilizers.
 Organized food retailing is likely to play an
important role in increasing the consumption of
processed food items. The retail format reduces
the number of intermediaries and transaction
costs. It also aids better understanding of
consumer preferences as it is a vital link between
the processors and consumers.
 The current sales of processed foods through retail
outlets are hardly 1% of total food sales, it is
estimated to grow at an annual rate of 40% in the
near future.
 Indian corporate who have already ventured into
this segment include ITC, Bharti, Reliance, Aditya
Birla Group, Subhiksha and Future Group.

However, in terms of usage of nutrients

India consumes only 98 kg per hectare of
arable land compared with 254 kg in
China.

“Buy the stocks of small companies below their economic value, let the companies
grow, and resell them as proven successes at full economic value.
 COMPARABLE COMPANY ACROSS GLOBE?
 Although there is no direct comparison
between Camson & other agro based
companies across the globe due to
diversified business, but by visualizing
their size one can understand the scale of
opportunity in agro biotech companies..
 Monsanto Co, which is $61bn
listed in NYSE is 4000 times
bigger than Camson Bio.
 It commands PE of 31 which is 5
times more than Camson’s PE of 6-7.
 Monsanto who is a global leader in
agro biotech, has Indian subsidiary,
mentioned below is the comparison
between to giant (Monsanto) & giant
in making (Camson Bio).

“First I determine themes that will be played out over the next several years. Then I
identify groups of stocks that reflect those themes.”
Are the management unknown &
undiscovered? Have you seen their
passion at work more than
qualification?

This company is
promoted by a senior
agricultural scientist.

Management belongs to
a family of agricultural
technologists with
decades of experience in
agriculture.
 UNKNOWN MANAGEMENT ? UNDISCOVERED YET?
 Dhirendra Kumar – Managing Director
 A senior agricultural scientist.
 Belongs to a family of agricultural technologists with decades of experience in agriculture.
 Technocrats with vast relevant experience.
 His vision is to create a healthy and disease free society by providing safe food.
 Aims at being world class manufacture of Biotechnology products.
 Board of Directors : A. N. Singh, Veerendra Kumar Singh, Krishnaswamy Ramaswamy
& B.C. Madappa

 These activities demonstrates promoter’s faith on this company.

 Promoters, associates & their group companies holding (including warrants outstanding)
is around 55-60% though in the classification only 19.9% is currently shown as promoter
holding.
 Impressive list of non-promoter shareholders; which includes Prof Mankekar & Jignesh
Shah thru their own private ventures. Mr. Vivek Mundra, Alumnus of IIM Ahmadabad
& Director, Jet Age Securities P. Ltd is the latest entrant, having picked up a 1% stake
recently.
 Huge stake taken by Prof Mankekar investment arm  Pivotal securities & MCX director
Jignesh Shah & Financial technologies thru investment company.
 Promoters have bought back shares from ICICI Bank & ING Vysya bank @ 125.

“The best company in a marginal industry is worth more than the third-best company
in a major industry.”
 VISION, MISSION & VALUES
 Vision
 To create a healthy and disease free society by providing safe food.
 To pursuit for wholesome goodness in agriculture and aims at being world class
manufacture of Biotechnology products.
 Camson visualizes a healthy and disease free society by providing safe food.
Just remember, any company doing work for the cause of mankind or to solve
generics problems of ours are going to excel. Like Bharti on Telecom, Pantaloon
in Retail, Educomp in Education, Infosys in IT……Camson in Bio-Nutrients &
chemical free foods.

 Mission
 Mission is to be a world class manufacturers of bio technology products, non
poisonous, eco friendly, zero residual product.

 Values
 Camson Bio, not only produced the bio-nutrients but also adds value to the society by
providing us “Residue Free” foods.
 Just think if conventional fertilizer and bio-fertilizers are available at the same price
and same yield capacity then anyone in the world is going to choose bio-fertilizer
which doesn’t have side effect.

A fish at one with the water sees nothing between himself and his prey. A trader at
one with his feelings feels nothing between himself and executing his method.
 HAPPY SHAREHOLDERS: A TESTIMONY OF GOOD
PROMOTERS

 Whether a promoter is good or not? This might not be reflected by the company’s
income statement or balance sheet, but yes, if shareholders of the company are happy
and wish to see it amongst the foremost companies in the world, in its field.

 Such statement from shareholders are really motivating, that too in spite of share
price of the company falling down by 50% from Rs 150+ to just Rs70-80 in last 6
months.

 For a small company number of shareholders are normally less, and most of the time
they know personally the promoters and their vision. So, even if share prices falls
down, they are confident of the potential of the driver driving the bus.

The four most expensive words in the English language are "this time it’s different."
Any credibility based on Shares
held by Promoters or Non-
Promoters?

 Promoters have bought back

shares from ICICI Bank & ING
Vysya bank @ 125. This gives
comfortable margin of safety.

 Non-Promoters: Huge stake

taken by Prof Mankekar
investment arm  Pivotal
securities; MCX director
Jignesh Shah of Financial
technologies thru investment
company.
 PROMOTER’S HOLDINGS FROM DEC’07 TO JUNE’08
 After listing the company
at BSE during Feb’08,
Promoters has hiked their
stake by 2% thru open
market at Price close to Rs
120+.

 Promoters, associates &

their group companies
holding (including warrants
outstanding) is around 55-
60% though in the
classification only 19.9% is
currently shown as
promoter holding.

I thought, I'm only going to be on this planet once, and only for a short time. What can
I do with my life that will lead to permanent benefits?
 NON-PROMOTERS HOLDINGS FROM DEC’07 TO JUN’08
 Indirect holding thru Promoter’s
group companies + Holdings in
personal capacity…
 Camson Farm Produce Pvt Ltd
(12%)
 Santan Herbal & Naturals Ltd
(9.8%)
 Prashant Desai (2.16)
 Anand Subrahmaniyam (2.55)
 Devika Anand (2.55)
 Alagar Venkatesan (2.04)
 Holdings by Reputed Investors.  Murali Dharan (1.37)
 Melchor Indian Opportunities Fund - (4%)  Shiela M (1.53)
managed by U.R. Bhat (ex-JP Morgan) is new
entry here.
 Grand Slam Investment Pvt Ltd – (9.3%) held
by Jignesh Shah of Financial Technologies/MCX.
 Pivotal Securities Pvt Ltd – (4.43%) Prof
Mankekar investment arm.
 Vivek Mundra – (1%) Director MERLIN
HOLDINGS PVT LTD (IIM -Ahmadabad
graduates ) has more than two decades of
experience in the Indian Financial Market.
 Ventura Securities – (1%) Well known
brokerage.

Most investors don’t even stop to consider how much business a company does. All
they look at are earnings per share and net assets per share
SHARE IN LOCKED-IN : THEY ARE LONG TERM INVESTORS

 Let’s see approx. how much % of shares are in strong

hand….
 Promoters Holdings = 19.9%
 Public holding = 80.1%
 Foreign Institutional Investors = 4.46%
 Persons Acting in Concert = 21.83%
 Bodies Corporate = 18.41%
 Individual shareholders holding nominal share capital in excess of
Rs. 1 lakh = 22.11%
 Individual shareholders holding nominal share capital up to Rs. 1
lakh = 13.30%  Hence, 13.30% shares are in weak hand!!!
Investment planning is about structuring exposure to risk
Is there any entry barrier, brand,
products or any other moats for
Camson Bio Tech?

#1. More than 10

years of Research.

#2. 46 Products, 10 in
Pipeline.

#3. Strong Marketing

Network
 RESEARCH – TO DEVELOP ENVIRONMENTAL FRIENDLY
AGRICULTURAL PRODUCTS

 Camson launched its first product, CALPHOMIL, in 2001.

This was a runaway instant success.
 Its Product range - 22 Biocides, 7 Bio Fertilisers and 17
Hybrid Seeds.
 The current research pipeline includes about 10 new
products across the revenue streams.
 The core focus of the Company is in providing Zero Residue
Products.
It is the part or wise man to keep himself today for tomorrow, and not venture all his
eggs in one basket
PRODUCTS – 22 BIOCIDES, 7 BIO FERTILISERS AND 17
HYBRID SEEDS.
No Government controls for it's products.

Camson caters to the entire range of

requirements of a farmer in that it
provides him Hybrid Seeds, Bio Fertilisers
and Biocides

Camson is the one of the first in the

world to have started breeding Hybrid
Seeds which would perform well under
organic conditions.

 It’s State-of-the-art production facility spread over 20 acres of land at Bangalore North.

 Almost all agri – produce, available in the market, carry pesticides residue. In many
cases, vegetables are produced using sewage water or contaminated water carrying
dangerous chemicals/effluents. The unsuspecting general populace consume these
pesticides and chemical residue loaded products.

 These factors led to Camson’s vision and became the guiding force for launch of its
especially created “Zero Residue Vegetables and Fruits”.

Risk is good. Not properly managing your risk is a dangerous

 CAMSON PRODUCT DETAILS & ITS NETWORK.

With 22 Biocides, 7
Bio Fertilisers and
17 Hybrid Seeds,
Camson is going to
capture major
market share!!!

The essence of effective portfolio construction is the use of a large number of poorly
correlated assets
Who are the clients for Camson’s
Products?

Phillip A. Fisher , one of the pioneers of modern

investment theory, wrote his masterpiece
“Common Stocks, Uncommon Profits”, mentioned
1st item in his checklist, “Does the company have
products & services with a sufficient market
potential to make possible a sizable increase in
sales for at least several years ?"

Well, if there ever was a company that so perfectly

fitted the above postulate, it is Camson
Biotechnologies Ltd .
 DIVERSIFIED CLIENT BASE.
 With the world increasingly becoming sensitive
to chemical-free food, and exports increasingly
needing to be zero-residue, demand for bio-
fertilizers & bio-pesticides is zooming yearly.

 The world over, countries are moving towards

banning agro-chemicals due to the increasing
realization of the longer term costs on the
health of their populations.

 The company sells it's products at lower than

the equivalent prices for the chemical-based
products, and with the "chemical-free, zero-
residue" advantages. This makes it a win-win
for the farmer / contract farmer. Company has
all the necessary certifications of it's products.

 Year on year company is adding client base. No

Government controls for it's products. The
company has built the base to continue this
scorching pace of growth for the next several
years.

The most predictable thing about the stock market is the number of experts who take
credit for predicting it
End users of Camson’s product are
farmers, who are mostly poor, will
they afford to buy such products?

Contract farming is the new trend

after entry of Indian large business
enterprises like ITC, Godrej, Venky’s
India, Marico, Reliance, Bharti, Tatas
etc, into the branded foods segment or
fresh vegetables.

In order to do backward integration,

these retailers are going for self
farming or farming thru contract, what
they expect is high yielding crop and
chemical free food or vegetables.
 OUT OF THE FRYING PAN...? & CAUGHT BETWEEN THE GREEN
REVOLUTION AND THE NEW GENE REVOLUTION.
 During last 5-6 years, organized retail sector
has attracted many big business houses,
who are not doing backward integration by
getting into agriculture & food processing
business directly.
 Entry of Indian large business enterprises
like ITC, Godrej, Venky’s India, Marico,
Reliance, Bharti, Tatas etc, into the branded
foods segment.
 Another factor has been growth of retail
stores, which are emerging as a driving
factor for food processing, though they
 During last 60 years : Poor Indian account for just 1% of food sales at present.
farmers were not able to afford
quality fertilizers.
 Agro business were mostly
unorganized.
 Prominent food processing companies
like Priya Foods, MTR, Surya Food &
Agro and Haldiram’s were for long
well-known names in their respective
regions, with limited national
presence.
“ P/E ratio- The percentage of investors wetting their pants as this market keeps
Numbers speaks more than words.
What are their past records/
performance says?

#1. 100% growth rate

consistently from last 4 years.

#2. You are getting a sector

leader @ Just Rs 46Cr (Mcap –
Cash =70Cr – 24Cr =46Cr).

#3. Camson has never paid

any rupees as dividend.
 PROFIT & LOSS A/C – NUMBERS SPEAKS!!!
 Look at the Sales & Profit
numbers, from 2004-08 (4
years), company has shown
100% YoY Sales & Profit
growth.
 Employee cost is also
increasing in same manner,
which shows the addition of
more employees which is good.
 Camson has never paid any
rupees as dividend, means they
are using most of the profits for
further expansion or they have
expansion plan in pipeline.
 Reserve Surplus is also
growing, in case if company
plan for expansion via organic
route.
 Book value of the company is
also consistently growing year
or year.

"...look for small securities in your area of competence where you can understand the
business“
 BALANCE SHEET – NUMBER LOOKS GREAT!!!
 Interest cost is within
control, company
growing not because of
debt but equity
dilution.
 Share Capital has
increased from 7Cr to
9.8Cr (from 70 Lakhs to
98 Lakhs Shares of
FV=10)
 Company has 15Cr in
Cash Reserve + Share
Capital is 9.8Cr;
excluding debt company
has Cash Asset worth
Rs 24Cr (approx).
 Company with Mcap of
70Cr having 24Cr in
cash, means you are
getting it at 34%
discount.
Astronomic price earnings ratios rarely last for long, as they thrive on excessive hope
and for that reason the most has to be made of them while they persist
 Q1 FY09 RESULT – SALES 132%; PROFIT 72%.

 Q1 FY09 Result Update.

 Sales up 132%; Profit up 72% QoQ.
 Total expenses up 162%, Raw material cost up 150% and Other expenses up
188%; when these expenses increases more than sales & profit growth, it
means company is in expansion mode and has better future earning visibility.
 Staff cost is only 5.5Cr for Q1 FY09, which is just 30% of total income, even in
IT industry staff cost constitute 50% of the total income. Since this is a
product based company so major part of the cost will be for R&D which is
good for long term.

It’s human nature to find patterns where there are none and to find skill where luck is
a more likely explanation
Latest significant announcement
by the company & its impact?

Company growing 100%

YoY from last 4 years.

Shareholders are very

happy with the company &
its promoters.

Massive expansion
planned, equity dilution
expected.
 NEWS 2 USE - DATE: 6TH SEPTEMBER 2008
4 years in a row – Revenue and Profits grow over 100%.
 Camson’s revenue grew by an astronomical 139%, during the year ended March
31,2008 to Rs.41.96 crores, from Rs.17.58 crores, during the year ended March 31,
2007. The profits registered a robust growth of 130%, at Rs.7.79 crores from Rs.3.38
crores, as at the end of the corresponding period, for the previous year.
 Company to go ahead with its expansion plans and forward integration efforts.
 Company to continue its pioneering pursuits to launch trend setter products for
production of safe food.

HBJ Capital’s Interpretations:-

 The basic purpose of Camson Bio is to provide safe food to mankind. A
company focusing on basic need of common man are most likely to excel,
like Google for Search, Big Bazaar for cheap & best stuffs etc.
 Very few company, like Infosys use to show 100% growth rate for 4 years
in a row, so this company who is not only a leader but one and only one
unique company in India, integrated backward and looking for forward
integration now.
 Leaders are always trend setters, with more than 10 years of experience
in this field and popular products, Camson is undisputed leader.

It is a myth that profits are higher in fast growing industries

 NEWS 2 USE - DATE: 25TH JULY 2008.
Date: 15th August 2008.
Camson signs MOU with Royal Science and Technology Park, Government of Swaziland.

HBJ Capital’s Interpretations:-

 In order to use latest technology, Camson has signed MOU for the purpose of R&D.

Date: 25th July 2008.

2. Issue of Equity Shares, Warrants and FCCB aggregating Rs 30.10 crores subject to
approval from Shareholders.
3. Delisting of Equity Share from Hyderabad and Delhi Stock Exchanges

HBJ Capital’s Interpretations:-

 A company with Mcap of Rs 70Cr, is planning for placement of share for Rs 30Cr
which is 40-50% of its Mcap.
 It clearly indicates two things, #1. Promoters might hike their shareholdings, or some
reputed FII or Investors will acquire stake worth Rs 30Cr at higher price #2. It looks
like massive expansion plan is in pipeline, they have established product portfolio &
10 years of R&D experience is a proof that Camson growth rate of 100% YoY for next
5-10 years more.

90 % of the people in the stock market, professionals and amateurs alike, simply
haven’t done enough homework
 NEWS 2 USE - DATE: 20TH JUNE 2008
Eco- friendly Investing
“A long talk with the technocrat CEO Dhirendra Kumar followed by a visit to its R&D
centre convinced me that this company was nurturing a business where the
opportunity space was big enough for Camson to attempt doubling revenues (and
profits) every year for perhaps a decade. A parallel presence in hybrid seeds gives
Camson critical mass in distribution. I know that this is the kind of stuff that the
world's farmers are thirsting for, and if Camson does not do it, someone else will.
Right now, it's the only listed company in India that seems to be getting a grip on this
difficult (but promising) business.
- Dipen Sheth, Head of Research, Wealth Management Advisory Services

HBJ Capital’s Interpretations:-

 Above statement made by Dipen Sheth is a clear indication about the management,
business, its R&D and scale of opportunity.
 Future visibility of this company looks very promising, if it comes true means 100%
growth for next 10 years, wow!!! It will be a great multibagger stock in making.
 Unique business, clear monopoly, strong line of products is its moats.

I have probably purchased fifty ‘hot tips’ in my career, maybe even more. When I put
them all together, I know I am a net loser.
 NEWS 2 USE - DATE: 4TH FEB 2008.
1. Camson Bio Technologies Ltd has announced that the Company is wholly integrated
agribiotech Company to provide the complete solutions in the field of agriculture. It
is active in the areas of Hybrid seeds, bio- fertilizers and bio-pesticides.
2. Camson visualizes a healthy and disease free society by providing safe food. Camson
has recently been recognized as one of the fastest growing technology Companies in
the ‘Technology fast 50 India 2007’ conducted by Deloitte Touche Tohmatsu, Asia
Pacific.
3. The Company has successfully launched 32 products in the Indian market within
last seven years. All these products have been received enthusiastically by the
consumers. To meet the growing demand the Company has established its own
godowns and offices at various strategic locations through out India.

HBJ Capital’s Interpretations:-

 This announcement was done after listing Camson Bio at BSE.
 Remember that Camson is just listed at BSE, no NSE listing yet. Most of the small
cap multibagger first get listed at BSE and after getting a scale they will list at NSE
where it will be noticed well and general public will start buying making its valuation
high. Similar case was for Pantaloon, ICSA, Karuturi Networks etc.

The problem with the person who thinks he’s a long-term investor and impervious to
short-term gyrations is that the emotion of fear and pain will eventually make him
sell badly.
Its always the price at which you
buy matters?

There is strong
support around
Rs60 and fall
below this price
should be
considered as
bargain prices!!!
 SHARE PRICE MOVEMENT : JAN’08-SEPT’08
 Re-listing on Feb 8th 2008 at BSE
 Camson Bio Technologies, a leader in hybrid seeds, bio- fertilizers and bio-pesticides,
got listed on the Bombay Stock Exchange on 8th Feb’08. Till now it had been listed on
the regional stock exchanges.
 Camson Bio Technologies resume trading at the base price of Rs 153.

 In Feb’08 it got listed @ BSE with trading price of Rs 150-180, its share prices fell
down due to global sell off and formed bottom around Rs 60 during Mar’08.

The function of the press in society is to inform, but its role in society is to make
money.
 Latest Bulk/Block deals - Buy/Sell
reported in Camson Bio Tech &
hidden meanings behind this.

Promoters are
promptly
accumulating
share from open
market!!!
 MAY’08 TRANSACTIONS…
 Sell - Pivotal Securities Pvt Ltd sold 2.46% stake in the Open market during Feb 07,
2008 to May 13, 2008. Its holdings reduced from 6.89% to 4.43%.

 Buy - Sunidhi Securities & Finance Ltd bought 0.03% stake from open market
during May 09, 2008 & May 13, 2008.

 Buy - Melchior Indian opportunities fund buys 2 lakh shares @ Rs 125/share.

HBJ Capital’s Interpretations:-

 “Laxmi Shivanand Mankekar” owns “Pivotal Securities Pvt Ltd”. This farsighted
investors like Prof Mankekar (popular to make 100x returns in Pantaloon &
Financial Technologies) thru his investment firm Pivotal securities holds stake in
Camson Bio.
 Melchior India Opportunities funds a very reputed long only FII headed by ex JP
Morgan U R Bhat has purchased 2 Lacs shares of Camson Biotechnologies in bulk
deal at Rs 125 per share.

Money talks… but all mine ever says is good-bye.

 FEB’08 TRANSACTIONS…
 Buy - Dhirendra Kumar – Promoters bought 2.04% stake from off market on 5th
Feb’08. His holdings increases from 7.11% to 9.15%

HBJ Capital’s Interpretations:-

 Stock sold by “Pivotal Securities Pvt Ltd” during Feb’08 are actually bought by
Dhirendra Kumar in person.
 Accumulation by Promoters at higher price between Rs 120-140 gives sufficient
margin of safety, because current price is around Rs 70-80.

Bear Market-A 6 to 18 month period when the kids get no allowance, the wife gets no
jewelry and the husband get no sex.
Is there any risk associated with
investment in this company?

So far it has been a one man

show very promoter dependent.

Its a classic under researched &

under owned stock which makes it
specially attractive.
RISKS ASSOCIATED WITH CAMSON BIO?
 Equity dilution - Fully diluted
equity stands at 16 Cr . The
Industry is working-capital
intensive so maintaining the
current rate of growth (company is
growing 100% yearly) will require
further cash infusions resulting in
equity dilution – however
incremental earnings will be at a far
faster pace than any incremental
equity dilution hereon.

 Any adverse weather conditions

affecting farming will impact the
company in that particular quarter.

 HR & other challenges typical to

smaller companies growing at
scorching rates.
Market Correction-The day after you buy stocks
What is the best price to buy
Camson Bio Tech?

Best buying price

for Camson Bio
Tech is between
Rs 30-40 per share.
Why?
 BEST PRICE BETWEEN RS 30-40 PER SHARE.

 It is the best time now to accumulate Camson and add more on

declines. In fact this is once in a year opportunity!!!

 Most of the investors or even promoters has acquired

share above Rs 100, but looking at current market
scenarios HBJ Capital advice you to buy between Rs 30-40
only.
Great investment opportunities come around when excellent companies are
surrounded by unusual circumstances that cause the stock to be misappraisal.
When do we Sell this stock?

Personal Reason
OR
Market Reason?
 WHEN IS THE BEST TIME TO SELL A STOCK?
Personal reasons : It depends on person to person.
Risk Tolerance Reached
You bought a company that looked like a steady growing concern, but instead it has turned out to be a roller coaster
ride. For whatever reason, this stock is just too volatile for your nerves. Dump this firecracker and replace it with a
stock that will let you sleep at night.

You Need some Cash

An unexpected major bill can sabotage anyone’s budget. Using a stock, especially one that is underperforming, to solve
a financial emergency is another reason to sell. However, take a close look at your personal finances. An emergency
cash fund that is not tied up in investments is recommended to avoid, except in extreme cases, liquidating stocks to pay
bills.

Moral, Ethical Conflicts

More and more investors are becoming concerned about the social, environmental, ethical and moral standards of the
companies they own. You may decide that a company you own has practices or products that conflict with your social,
religious or moral beliefs. There is no better reason to sell if that is important to you.

The Grass is Greener

This overlaps with market reasons to sell, but there is nothing wrong with dumping an underwhelming stock for a
company that offers better returns. The danger here is that active trading can generate significant transaction costs
and taxes, both of which eat into any potential gain. Look (and think) before you leap.

You’ve Reached your Goal

It worked. Your plan to reach that financial goal, whether it was retirement or getting a child to college, is finally here.
Now is the time to start systematically liquidating those stocks you’ve tagged for this goal. If you have been trading,
make sure you have owned the stock at least one year before selling so it falls under long-term capital gains tax rules.

“ A stock broker is one who invests other people’s money until its
 WHEN IS THE BEST TIME TO SELL A STOCK?
Market reasons : Time to sell?
The Stock Drops by x%
If you buy a stock as a trader, rather than an investor, you may set an arbitrary floor for the stock. When the stock
falls to this floor, you sell. Many traders set that floor in the 6% – 8% range, depending on the volatility of the stock.
They may not be happy about a small loss, but they make sure it doesn’t become a big loss.

The Company Flounders

This is the investor’s signal to sell. The investor bought the company because of its fundamentals and its business
plan. When something changes and the company loses its way, the investor has to re-examine whether it is the same
company or not. Maybe a new CEO takes the company off in a direction that the investor (and market) believes is
wrong.

When a Stock is Over Valued

Can there be too much of a good thing? There certainly can in the market. When stocks are pushed way past their true
value, they are often set up for a fall. The strategy is to sell when they are over valued and buy them back after a
market correction has knocked the price back down. This, of course presumes an accurate knowledge of the top and
bottom of prices – something very few of us are particularly good at with any consistency. Selling an over-valued stock
is certainly preferable to buying an over-valued stock. Just be prepared to watch it keep going up after you sell, as
happens sometimes. Don’t second-guess yourself; it could have more easily gone the other way.

Rebalancing Your Portfolio

You have decided that the best allocation for your circumstances is 60% stocks, 30% bonds and 10% cash in your
portfolio. Good fortune has smiled on you and your stocks, which are now valued at 70% of your portfolio. As tempting
as it might be, your best move is to rebalance your portfolio by selling off some of your stocks and bringing the
percentages back into alignment. Obviously, the stock(s) you sell should meet the long-term capital gains test of one-
year ownership. Beyond that, look at how your stocks break out and decide which stocks can be sold to keep the
diversification intact.

“ Average investors who try to do a lot of trading will only make their
brokers rich.”
WHEN IS THE BEST TIME TO SELL CAMSON BIO
TECH?
Market reasons : Time to sell Camson Bio?
The Stock Drops
Camson is a company one MUST keep on accumulating more and more if its
share price falls below Rs50 per share.
You MUST not sell due to fall in the share price. NEVER, NEVER, NEVER.
The Company Flounders
Testimony of the promoters can be judge by company performance, this is a
company growing 100% from last 4 years, in case if its growth rate falls below 50%
or less for two consecutive quarters, take this as alert sign and get back to us, we
would provide best act.
Don’t worry about equity dilution, any company growing at 100% rate is most
likely to dilute equity to raise funds or take debt.
When a Stock is Over Valued
This stock should multiply at most 2-3 times per year, in case if you find it going
up say 5-6 times in a year itself, we would suggest better sell it partly and acquire
after it cools down.
At any PE > 30, you must sell this stock and wait for PE around 10-12 to
accumulate again.
Rebalancing Your Portfolio
Camson can definitely occupy 10% of your portfolio, due to capital appreciation if
it occupies portfolio 25-30%, better offload it partly.

Emotions are your worst enemy in the stock market

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