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 !!!