HLL, still got faith?

Uday · #1 17th May 2005, 04:10 PM

Friends, I have a confession to make,

I picked up HLL pretty high, at 147, 1100 shares, don't know what I was thinking....

My idea was of a long-term investment, but of course the timing of the buy was wrong, and I should have waited for it to dip further.

I don't need the money, so I don't have to sell the stock.

With the new boss for HLL coming in and having the reputation of getting things done, I have decided to hold on to the stock for at least 1 year, and then consider my options.

What do you think of my decision?

Regards,

Uday.

joy_mitali · #2 17th May 2005, 06:01 PM

Dearest UDAY,
With VAT being finally implemented,--life's becoming more and more fast paced,---eveybody relying more and more on junk items,--- and with a new management coming in HLL,---a price of 147 at which u bought HLL is actually very low priced(considering long term investment).I think,in near times--(6-8 mths horizon),it will be trading anywhere between 200-220.So,nothing to think of--CHEERS!!!!!
As of taking mistakes---its a common affair in stk market.I bought JAYPEE hotel at 52,which went down to as low as 40,---finally I got rid of it at 42,and just after that it started rising.A perfect example ,regarding what can happen,when u buy at the tops,without any research.
Regards,
joy_mitali

kanhaic · #3 17th May 2005, 07:01 PM

HLL is a defensive stock, it will not move very sharply with the market's ups and downs. hence there will have to be a long wait.

There are better stocks that you may want to look at, P&G, Colgate these will appriciate quickly.

Also FMCG stocks may be hit since the monsoon is expected to be below average.

HLL results also have been disappointing.

These are some of the points I think you should consider before staying on.

Uday · #4 18th May 2005, 12:12 PM

Thanks for your views, Joy and Kanhaic,

Joy, you cheered me up.

Kanhai, what you are saying can be correct in the short term, but I'm willing to wait long-term......

Somehow, I'm seeming to have faith in the new management of HLL ....

As regards 220 levels , as they say "Tumhare Muh me Ghi Shakkar!!!"

Another grave mistake I might have made is to purchase Bharati Telev at 236!!!!

Which other fool would do that?

As the both of you might have guessed, I am relatively very new to investing.

Bharati and HLL were my first 2 investments, made in March 2005, when everyone else was selling. I had no idea about the market-dynamics, knew I wanted some long-term stocks and just went with my intuition, without study of pricing levels.

5 days after I purchased Bharti, Warburg Pincus sold its stake in the scrip, and the scrip fell to a level of about 190. It has been rising since, but is facing resistance above 220.

Somehow I have a good feeling about this scrip, and plan to keep it for about 2 years. Let's see what happens.

Meanwhile, my investments have got more sober and are more research-based.

Thanks for listening,

Uday.

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