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 !!!
Good and warranted note sir. please also come out with a new stock story so that we can take advantage of price damage.
i will try to come out with something in a day or two hopefully.
Sir, anything coming soon?
yes
Sir any plans to share your idea?
yes
sir, nifty also respected an important trendline today and bounced back from there…
true.
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!
Was badly in need of this pep talk 🙏🏻🌹🌹🌹Thanks.
Well said, Ace.
Thanks
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….
sir, sampre’s expansion is done. double now.
yup, i know.
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.
How do u see the rise in crude prices affecting prima ?? Is there any change in your view about the stock ?
the company was doing well, even with crude at 140….
Sir I get that ..but don’t u think stable crude price was contributing to that ?rapid moves in raw material prices tends to affect the businesses no ?
yes, rapid moves can cause inventory issues, but let’s not forget the rupee depreciation can be helpful too in this case. Furthermore, in small caps, its difficult to find companies where you get a good management with strong execution skills. they have expanded their business very well over the years without any debt (negligible). One does not invest in a company for a quarter, so one needs to have a longer view.
super reply. cheers
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.
sir, what about initiating a new idea for mortals like me to research on….
will try to come out today or tomorrow max
Waiting , waiting 👍💐💐💐💐
What is your view on Emmbi industries??
sorry, no views.
hi ace any company in solar/wind sector u like
maybe… but nothing pure play…..
Dear Ace – your views on Manaksia Ltd please. Thank you.
sorry, not keen on it.
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.
as you must be knowing i do not give reasons publicly for reasons that we all know by now
sir, nifty is dying down… very said…
there’s nothing to feel emotional about it …20-25% correction happens every other yr and it recovers too…and moves further….part of the game.
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
i do not take names like this … ihope you know this if you are following the blog for the past few yrs.
Sankhya showing amazing strength in this market
ok
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.
Looks like our Aceinvestor is on vacation!!
Sir, please post the new stock story , we are eagerly waiting for it!!
Thank you
Hi Ace, what about Fiberweb at these levels?
not too keen on it.
sir,
your views on VA Tech Wabag at current valuations please.
no views.
Hello ace sir, Need your view on Pidilite Ind??
decent at significant declines.
Thank you Ace!