Friends, in the last few days, there has been a little too much discussion about the short term trends of a few recently recommended stocks. Prima recommended at 39-40 is near its price (10% above it), cybertech recommended at around 60rs is 18% below its price and today simmonds is closing at its recommended price. The names discussed here are very high quality names. Prima which is expected to give a consolidated EPS of around 9rs, is trading dirt cheap and the lower it goes the better the dividend yield becomes too. People are looking for instant gratification which is never the case. The stocks keep moving up and down and that’s the nature of markets. You should not be left rubbing your hands a year down the line. Just look at cybertech (which was recommended at 60rs), while there were paranoid retail investors looking at the “price” of the stock and desperately trying to get out of it, some guy saw value in it, came in and quietly mopped up 5% of the equity from you. Food for thought isn’t it? Probably it was my mistake that I recommended the stock just before results (and probably will not do it again as most of the readers here seems to be traders, unlike me) and I (like most genuine investors) have never seen results as a deciding factor, but it seems I have more “traders” as readers of this blog than investors and therefore, a lot was assumed and trades taken. One should always be convinced before buying a stock and it seems noone truly was which is very sad. Simmonds, probably one the best pick in the auto sector, is another example of people not understanding what they are buying or probably falling prey to people with ulterior motives spreading propaganda. Agreed there was a investor who sold shares, so what? When a dormant company suddenly comes into a bit of lime light everybody tries to take advantage of it. But does that mean he is out there to sell everything now. It’s a ridiculous thought. If at all that entity was interested in selling more stake, then why didn’t they do it yesterday itself, when they had 2.75 lacs pending orders? Same thing happened with Aro, when a large investor offloaded some stake (a the results was slightly below expectation) and as usual people panicked (and blamed me that I ‘arranged’ for those investor’s exit L ). What happened thereafter? After a couple of weeks, it kept on hitting new highs and who’s the real loser in all this? The poor investor who fell to prey of rumour mongers. Don’t be one of them. So, don’t be surprise, if you sold Simmonds today in panic and tomorrow onwards, there’s somebody on buying spree. People will come and move out, that’s why we call it investment and not marriage. People will do profit booking, that’s natural, but understand how it changes the fortunes of a company, if at all.
Once again, I recommend stocks after market hours so that people and research, build conviction and take their call. If you guys get nervous with some investor buying or selling then its not serving the purpose. Let’s be investors, the long term one and not keep on churning portfolios based on what you read on forums, discussion boards etc. Also, once and for all, as some of you have accused me, I am not an operator and research my stocks very hard. If heavy buying or selling comes in the stocks that I recommend please understand that I am no way connected to it.
God Bless and have faith and rest assured we all WILL make money.