Educomp Solutions- The great wealth creator

Educomp is one stock which has created great wealth for investors in a very short period of time. The stock’s IPO came in beginning of 2006 at 150 bucks and now 2 years later the stock is at 5000 bucks. That is more than 30 times returns !

The stock remains one of my favourite stocks and continues to trend up well.

Moral of the story- Stick to your winners and they can easily become “big winners”.

The problem is that we tend to stick to our losers like Infosys and hope for a recovery in them

Reliance trends up while INFY trends down

Whereas Reliance Inds is going its best to take the markets up, Infosys is doing its best to pull it down! Two opposite trends trying to neutralize each other!

Once can make money on both of these by going LONG on RIL and short on INFY .

Mid and small caps are also correcting after their parabolic rises in the last 2-3 months. Large Caps are looking relatively better and look set to regain their lost momentum.

The moves are now becoming more and more “stock specific” which is good for the overall health of the markets.