For Your Own Sake – Please Read The Post Fully !!!

Its remarkable to see how people get jitters if the stock goes down a few percentage. The difficult part of the money making process in stock market is not to make money but to make huge amount of it. People buy on borrowed conviction and therefore, they lose sleep. Please do not think in days and weeks. Think “atleast” in quarters and years guys. And the worst way to handle the volatility is to sell when the stock goes down and buy when it goes up. You do not make money by buying or selling the stock, real money is made by holding on to those stocks. I have been getting a lot of emails regarding freshtrop, so Lets talk about it right now.

Although the recommended price was around 52rs, let talk about a person who might have bought it at a 52 week high price of 72rs. Now we know the future is great. I told you guys that management is targeting around 50% topline growth (and around 30% topline growth) for next two years. In the AGM also the management confirmed this when they said they are estimating this year’s growth at 140cr and next yr at around 200cr. Given what we have already seen in Q1 (which should be seen YoY), I think they are on the right track. Infact, they hope to do better than what they told me (the bottomline that is). Given that they would become debt-free, the EPS could “atleast” be around 10rs for this year. The person who bought at 72rs is paying just 7 times forward earning for it. A debt-free consumption play where promoters have increased their stake in last couple of years buying for FW PE of 7, do you guys think it’s expensive? If yes, then well, buy FDs, pls do not come to stock market. You may get rich by your income and FDs, but you may never become wealthy because you can never “multiply” your money.

Guys, at 9% FD, it takes 7 yrs for your money to double in absolute terms (and in real terms you actually lose half your money to inflation), and its just double. Stocks, on the other hand, do not just double, they go up 5x,10x,50x and with god’s grace even 100x. But there are times even with such stocks that they are volatile, that’s the nature of real-time information (that you keep on saying on your portfolio tracking tools and TV). Let me ask you, If you invest in house, do you check the prices of your house every few minutes or even days? No, at max we just monitor the news flow and that’s what we should do here. Trust me, if you look at value and not price you will end up making huge amount of money, I mean really huge. A person who paid 72 bucks (i.e. 7PE FW) for a domestic consumption play should know that others are paying 30 PE FW for similar domestic consumption plays. Why are you worried with little downward movement? You should know that what you bought today at 7 PE FW would be bought at 30 PE FW by others (in a few yrs, not days please), and that too on increased earnings (which means multi-fold gains). And that is when you would make huge money.

Guys, we are in a great country in midst of great bull market, don’t let this volatility blur the bigger picture or else you’ll end up losing an opportunity of a lifetime to a smart investor who’s probably happily buying your stocks. I got similar emails when waterbase went from UC to LC and went down from 52-53 to around 43 (I think 20%), look where it is today even after being down by around 25% (from its 52 week high of 98)., its still 50% higher than the 53 levels. So who made money, people who panicked and sold at 50-53 or people who held on to their conviction during that spate of LC? If you want to make money then understand your company and HOLD… HOLD and HOLD. God Bless.

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78 Responses to For Your Own Sake – Please Read The Post Fully !!!

  1. ravi multani says:

    true ace
    i think u r so convince for freshtrop…that i vl buy more freshtrop tomorrow and coming days..thanks for ur analysis

  2. mayur says:

    Well said ACE ji !! Appreciated. I like the way you write be it a stock story or addressing to queries, more than just a stock pick. Hats off!

  3. hitesh says:

    Hundred times it has been said by Mr Ace only invest if u r CONVINCED by the research , you should not go blindly . n in share market if one is expecting gains in a fortnight i am sure he will loss his/her money.
    My father has invested in L&T amount RS 10000 in 1995 and now it is more than 2cr , in the market, HOLDING IS ALSO AN ACTION .

  4. saraaol says:

    Excellent Ace sir,….

    Only the problem with small investor is not to know the news regarding that we need ur help..God bless you…

    • news are news that come in news papers. You do not need a secret channel for that. really i mean it. And people who try to give insider views in various forums, dont trust them, simply send an email to CS.

      • saraaol says:

        Really thanks sir..I searched so many stocks in last years n earned money but wanted a stamp for authenticity from a recognized person..What happened in Edserv software even Dainik bhasker also invested in but currently this Co. finished..over all feeling happy with you..thanks

  5. ravi multani says:

    i m fully convinced…and ur conviction makes my conviction more stronger…

  6. hitesh says:

    Boss plz give Your Expert View on Madhav Marble , last time i have asked the same and u replied that stagnant sales is not good but i have rechecked it and found that in sales in
    FY11 – 63cr,
    FY12 – 63.5cr
    FY13- 74.25cr
    Sir plz give a lil elaborate view , i am not in hurry , take ur own time ,
    {sir plz don t reply not interested}

  7. Darshan S. says:

    Highly appreciated ACE boss. Even you have mentioned that Q1 & Q4 generates more profit than other quarters. So i expected a correction in between 🙂

    Sir, could you tell me your opinion on Vinyl Chemicals ? Sounds very promising.

  8. a.p. says:

    Aimco has started exporting to some untapped market. Are you aware in which continent/country ?

  9. Rajesh Hota says:

    Hi Aceinvestor
    There is no such thing as borrowed ideas . There are ideas , you just hinted at it . If you are not prepared to lend(as you say, which i disagree), why did you open a blog and posted your idea . We have got to be swayed and being the repository of maximum conviction, you should try to pour some .

    • i am not sure i followed anything that you wrote. what context it is? What have i hinted and swayed by what? God bless.

      • Rajesh Hota says:

        you hinted at the prospect of FRESHTRP FRUIT . ALL THE BLOGG READERS GOT SWAYED BY IT AND BOUGHT .

        • yes. I share ideas and therefore, if people ask me i will answer them. People clearly got got nervous and this happens with borrowed conviction. Rather than answering individually i put up a post. You are entitled to your views and if you believe that this blog does not suit you pls refrain from visiting it. Its entirely up to you.

  10. Hi Ace. Nice article for people to understand how money can be minted from stocks.

  11. Hi Ace. Nice article for people to understand how money can be minted from stocks.

  12. J says:

    Hi Ace,
    Your views on Aptech Ltd.

  13. MyInsignia says:

    I loved it ..really nice article….

  14. MyInsignia says:

    I would like to share my exp– I purchased huge quantity of arrow coated product at Rs 12 (CMP 214) and sold all at 17/- with mere gain of 5/- per share. See the current price now 214…

    After I sold it price started moving upward ….then I read about the company, its annual reports , its parent articles etc …and entered again at 115

  15. sanjeev says:

    Hello ace,
    Appreciate your views on “swapping SELAN with RS SOFTWARE”… reason being i don’t want to analyse the complex oil sector( i got into selan becoz of good valuations though i do not know much about oil sector.. not in my circle of competence) and coming to RS SOFTWARE i could sense a meaningful growth as online payments are bound to increase.

  16. Mehul says:

    Well said… Have experienced it in Granules, have baught it at 168 (it was 52 weak high at that time) there after it went down to 85-90 or even lower, now it is howering around 800-900….

  17. MyInsignia says:


    Can you suggest 5 picks which can be hold tightly for atleast 5 years. 10 years would be ideal.
    if any 3/5 turns out to be a mutlibagger say 20-30 times it will be worth investing.


    • 5 yrs. sorry wrong blog :). I re-evaluate my opportunities almost every year.

      • MyInsignia says:

        Nice! But in your approach can we get 30x-40x ……returns.. The above 5-10 years approach also covers revaluation from time to time.

        • yes along with protection from downside. e.g. kajaria when i invested around 5 yrs back, it was not from the intention of being in that stock for 5 yrs. I normally buy a stock that doubles in atleast 12 month and then again i re-evaluate. I do that even today.Why to waste an opportunity just because i am chasing a number of 100x. The objective is to make more money, faster. Karajia is up 30x but still i could sell it in a day and get out if i get a better relative opportunity. Thats my approach. 2008 and 2009 crisis along with satyam episode taught me that nothing can be taken for granted, nothing.

      • MyInsignia says:

        Superb! I like your approach…. and thanks for being so clear and precise in your response.

        Take care

  18. Dinesh says:

    Ecoplast – (Flexible Packaging )
    Is it Worth to buy??

  19. stocky says:

    Hi Ace, I came across your blog few months back and has been avidly following you since then. I like your picks, ur replies, everything. You have a big influence on my way of picking my stocks now. God bless you and keep up the good work
    Big cheers buddy

  20. jayaraman says:


  21. thakral says:

    wts ur view on tata metaliks it a good stock to hold.

  22. Noobtomarket says:

    Good post Ace ji, Do you think Freshtrop can get re rated as high as Kitex garments ?

  23. kamal says:

    dear ace,
    very nice post,i request you to post such articles off and on in order to increase the conviction power of the readers on disciplined investing.

    do you carry any opinion on accel frontline as of now?

  24. sudhir mehra says:

    Well said ACE ji !! Appreciated. U really care for your followers. Great article.

  25. taml says:

    hi ace-from today i will enter v2r is it ok? iiwant to know ur view in alphageo,uniteddrilling,lactose india.can u provide me ur valuable opinion. thank’s. subh navratri.

  26. taml says:

    do u track mold tek pack?

  27. sandy says:

    Too Good Sir,

    Can you please share your mail id?

  28. taml says:

    v2r,alphageo,united drill&LACTOSE in current situation.

  29. syantan says:

    ace bhai- what do think about chandraprabhu intl is it good stock to buy?

  30. AP says:

    Hi Ace,
    Please give your valued views on Pricol and Bharat Immunologicals, for a holding period of upto 1 year.
    Best Regards,

    • bharat still under research not convinced as of now. do not track pricol that much

      • AP says:

        Thanks Ace, regarding pricol there was a spike in price last week prior to their board meeting of 24 sep. which was to consider further issue of securities. However, a day before the board meeting (note : it has considered and approved further issue of equity shares and other securities) till today there was a sharp fall in the price. Please suggest if such rise and fall looks manipulated as issue of further shares/securities cannot be bad in itself. If bad then the price had indeed spiked prior to the board meeting. Looking forward to your opinion. Best Regards, AP

        • could be anything, speculators or genuine hopefuls. probably people were expecting a lot more. diluting equity should be done very carefully or else the market sees it as negative. we have much better and safer opportunities right now

  31. Chirag Shah says:

    well said sir… great morale booster in volatile times. keep it up

  32. satish Kumar says:

    Sir pls give ur views on Hilton metal

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