Some of my IPO investments are coming in & out. Paid a very heavy price for wrong decision on Innoventive Industries :( Similarly, Muthoot Finance and Power Finance (FPO) turned out to be poor listing as well. It seems to me that Sell decisions are turning out to be more crucial at this stage than the buy decisions. What I am doing right now is to leverage the bearish undertone and use sell positions.
As an example, I had liquidated all of Innoventive Industries at about 97 on the listing day (against IPO Price of 117). Few days later I managed to buy them at 86 and again sold them at about 95. The stock is down to 91 right now.
Similarly, I managed to liquidate Muthoot Finance @ 183, bought back at 160. Missed selling them when it reached 185 and its now back to 160. Nevermind :)
Similar story with Power Finance. Sold the FPO quantity at about 194 average against 193 FPO Price. Now the stock is down to 180. I am thinking to buy back tomorrow subject to market mood. The valuations are extremely attractive too right now...at about 8 PE.
If I could afford to invest more in Stock Market, I would buy more of below stocks with investment horizon of at least 3 years. The most part of my buy recommendation is attractive valuation and solid growth foundation that already exists.
Yes Bank has announced the Roadmap for 2015. They would want to get to 750 Branches from 250 today. They would like to grow to 3000 ATMs, Rs. 125000 Cr. Deposits and Rs. 100,000 Cr Loan base. This is very impressive. I am tracking Yes Bank since 2004 and can say that they have proved their credibility. I do see a bit of delay in management guidance and actual execution as an example Rana Kapoor had declared the target of 225 Branches by March 2010. This actually happened somewhere end of 2010 / early 2011. However, my sense is that this is still an incredible growth with a high management pedigree and a very good quality of loan book.
I feel there is a bearish undertone in the market and in the short term lower levels could be seen. I do not watch markets very closely now a days and given my engagements at work place, I have slowed down on most of the reading as well. My sense is that in the Bulls Vs. Bear fight, at the moment Bears are having an upper hand. I have a very strong conviction that any one investing in the markets right now will be very handsomely rewarded in 3-5 years time.
Regards, Rohit
As an example, I had liquidated all of Innoventive Industries at about 97 on the listing day (against IPO Price of 117). Few days later I managed to buy them at 86 and again sold them at about 95. The stock is down to 91 right now.
Similarly, I managed to liquidate Muthoot Finance @ 183, bought back at 160. Missed selling them when it reached 185 and its now back to 160. Nevermind :)
Similar story with Power Finance. Sold the FPO quantity at about 194 average against 193 FPO Price. Now the stock is down to 180. I am thinking to buy back tomorrow subject to market mood. The valuations are extremely attractive too right now...at about 8 PE.
If I could afford to invest more in Stock Market, I would buy more of below stocks with investment horizon of at least 3 years. The most part of my buy recommendation is attractive valuation and solid growth foundation that already exists.
- Power Finance
- Yes Bank
- Shriram Transport
- Piramal Health
- Tata Steel
- Aditya Birla Chemicals
Yes Bank has announced the Roadmap for 2015. They would want to get to 750 Branches from 250 today. They would like to grow to 3000 ATMs, Rs. 125000 Cr. Deposits and Rs. 100,000 Cr Loan base. This is very impressive. I am tracking Yes Bank since 2004 and can say that they have proved their credibility. I do see a bit of delay in management guidance and actual execution as an example Rana Kapoor had declared the target of 225 Branches by March 2010. This actually happened somewhere end of 2010 / early 2011. However, my sense is that this is still an incredible growth with a high management pedigree and a very good quality of loan book.
I feel there is a bearish undertone in the market and in the short term lower levels could be seen. I do not watch markets very closely now a days and given my engagements at work place, I have slowed down on most of the reading as well. My sense is that in the Bulls Vs. Bear fight, at the moment Bears are having an upper hand. I have a very strong conviction that any one investing in the markets right now will be very handsomely rewarded in 3-5 years time.
Regards, Rohit
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