General Update !!!

I think in the last week I have been bombarded with comments and emails about the markets and sankhya in particular – clear signs of panic 🙂 . I think one has to understand that in times like these, the best bargains are visible and available. If one does not buy when price is significantly lower than value, then one needs to evaluate, if one should be in stock markets at all or not. If fluctuations in price changes one’s conviction, then there’s no conviction at all. A lot of the price damage in the small cap index and some stocks in particular had probably triggered some margin selling in other cash stocks, which further escalated the price damage and a lot of stocks became collateral damange. But this is a market cycle and such things happen all the time. Seasoned investors take such opportunities with both hands. Small cap index is at strong support levels so hopefully there should be more of time correction than price, but as I keep saying there’s no point is watching index as we invest in stocks and not index. Identify good strong stocks and back your conviction. We have already seen close to 40% correction in the index itself (which is huge) and we are near strong supports, so probably the small caps could now outperform the nifty.

As far as sankhya is concerned, the sudden price damage seems to be more of lack of buying than anything else. Today’s price action supports the theory and more importantly last month’s sudden price damage came on much lower than average six month volume, clearly showing its more because of lack of buying. The management clarification is welcome and this announcement  clearly gives a fundamental fillip to the company. By the way today company also announced appointment of Company secretary. Those who have any doubts should attend the AGM and get it clarified but hopefully sanity is restored here.

Have faith in yourself and dont expect multi-baggers overnight. We have seen lot of 5-10-20 baggers and more will certainly come, but in time and not over night.

God Bless !!!

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50 Responses to General Update !!!

  1. shewata says:

    Good and warranted note sir. please also come out with a new stock story so that we can take advantage of price damage.

  2. vivektechie says:

    sir, nifty also respected an important trendline today and bounced back from there…

  3. niraj says:

    Have learnt a lesson or two, valuable ones from your writings. CONVICTION based decision making, when BLOOD is on the street, when panic sets in, when every body warns….don’t catch the falling knife…..for once had the courage and dug deeper. Feeling thrilled today……THANKS …ACE!

  4. Mohit says:

    Was badly in need of this pep talk 🙏🏻🌹🌹🌹Thanks.

  5. Jayan says:

    Well said, Ace.
    Thanks

  6. Maya says:

    Thank you Ace for this post. Waiting eagerly for you new recommendation.
    What do you think of V2 retail at current price?

    • v2 at 15rs had tremendous margin of safety…that’s obviously not the case at CMP….just like most of the stocks i discussed here….this is usually my standard answer for questions like these….

  7. albertdude says:

    sir, sampre’s expansion is done. double now.

  8. Rajendra Pillay says:

    Dear Ace, having followed you for the last three and a half years and seen how conviction is generated in invested stories, I am not bothered by this down trend. In fact I want to make full use of this opportunity before the tide turns. Thanks for your selfless initiative to put investment in right perspective for us retail investors.

  9. Saurabh says:

    How do u see the rise in crude prices affecting prima ?? Is there any change in your view about the stock ?

  10. totallooser says:

    what do you think about goverment bailout of IL&FS?

    • i think the move was quick and warranted. Very good on their part. I hope the wrong doings-if any, should also be probed, but the goverment’s crisis management should be appreciated IMHO.

  11. newbie33 says:

    sir, what about initiating a new idea for mortals like me to research on….

  12. 26gr says:

    What is your view on Emmbi industries??

  13. ravverma says:

    hi ace any company in solar/wind sector u like

  14. prpu2810r says:

    Dear Ace – your views on Manaksia Ltd please. Thank you.

  15. prpu2810 says:

    Thanks ace – any reasons – the valuations appear very good, low debt and good free cash flow. just came across this stock but still need to analyse business, prospects etc.

  16. suckerpunch says:

    sir, nifty is dying down… very said…

  17. Shankesh says:

    Dear Ace,

    Can you name any stock that you like in liquor industry at current levels, also is united spirits a good buy for long term at current levels,

    Thanks & Regards,

    Shankesh

  18. Saurabh says:

    Sankhya showing amazing strength in this market

  19. Rajendra Pillay says:

    Dear Ace, Attended Ram info AGM. The MD during informal interaction with a few of us informed that they are developing a product on MARS (Malnutrition analysis and reporting system). He informed that Ram info has an early mover advantage in this area where there aren’t many players right now. He said that the market size is enough for all the existing players to get enough business. He said that our co has atleast a two year head start over new entrants in the space and the co hopes to make the most of it. It’s in advanced talks with AP and Telangana and are likely to get few orders in immediate future. To a question on trade receivables being shown as LT debts, he said that the company was having problems with UP govt regarding payments since 2016. But now the issue is resolved and payments are likely to flow without much delay like in case of states like AP and Telangana. He said that by the end of this year all payment backlogs from UP GOVT is likely to be received. They are also looking at various other areas like smart street lighting etc, where they have already executed some works. The MD also said that they intend to undertake serious brand building exercise from Oct this year. Am reminded of last sankhya AGM where the sankhya MD said the same thing 😊 Will follow the story closely. Thank you for bringing a very promising story to our notice like so many others in the past.

    • congrats to you for attending this AGM. i think this one thing most investors fail to do. this is the best time to catch the top management and know their plans in detail…both formal and informal. great work.

  20. Pradeep says:

    Looks like our Aceinvestor is on vacation!!

    Sir, please post the new stock story , we are eagerly waiting for it!!

    Thank you

  21. Amit Jain says:

    Hi Ace, what about Fiberweb at these levels?

  22. pradeep K says:

    sir,
    your views on VA Tech Wabag at current valuations please.

  23. prem says:

    Hello ace sir, Need your view on Pidilite Ind??

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