Buying Strategy - 52 Week Lows !

kkseal · #21 17th December 2006, 03:10 PM

Quote:

Originally Posted by jatayoo

-------------------------------------------------------------------------- The mining sector is a story that may unfold.Ever since indra nationalised the coal mines it has spawned only the coal mafia.This lobby is very strong in the states of bihar,west bengal,and madhya pradesh.The local population is with the mafia for easy money.

This is very true. I have a first hand view of this as i hail originally from Asansol (on the WB-Bihar border). Here the coal mafia (alongwith the Steel/scrap mafia) runs a virtual parallel economy. This happens right across the Jharia-Dhanbad-Asansol-Ranigunj belt where some of the world's richest coal deposits lie.

BTW Rain Calcining made an European acquisition last year that is going to make it the world's largest producer of calcined coke.

Regards,
Kalyan.

kkseal · #22 17th December 2006, 03:19 PM

Quote:

Originally Posted by taunk22

hi saga,
if u are a short term trader then u and buy at all time low and sell after gaining 15-20% which would be a bounce back.
happy trading

That's what i'd call a real dead cat bounce!

But Saga has indeed given us something different to think about. Something hatke from the usual crowd following strategies.

Regards,
Kalyan.

Agilent · #23 17th December 2006, 03:52 PM

Quote:

Originally Posted by kkseal

Clutch Auto is a very good one. it's the only Indian company I know of that holds more than 20 international patents!! If it's foray into the US mkts is successful then this one is a surefire multibagger. Last year the mgmt had given a 50% CAGR growth projection for the next 5 yrs. and they're maintaining it so far. It's nearly debt free, so not much equity dilution needed either.

Yes ... but to come back to the focus of this thread...I got aware of Clutch Auto (and made money ... like hundreds of others I'm sure who may have identified it thru other techniques/tips) only thru the 52 week high strategy

see my post on another thread long back ..
http://www.traderji.com/36998-post5.html

Not to say that a 52 week LOW can't turn around and become a multibagger .... but Saga, you are safer off riding the wave (and backing winners), rather than investing in a likely loser

What say ?

AGILENT

kkseal · #24 17th December 2006, 05:46 PM

Quote:

Originally Posted by Agilent

Yes ... but to come back to the focus of this thread...I got aware of Clutch Auto (and made money ... like hundreds of others I'm sure who may have identified it thru other techniques/tips) only thru the 52 week high strategy

see my post on another thread long back ..
http://www.traderji.com/36998-post5.html

Not to say that a 52 week LOW can't turn around and become a multibagger .... but Saga, you are safer off riding the wave (and backing winners), rather than investing in a likely loser

What say ?

AGILENT

But what if Saga spots this stk early (when say it's at a 70-80 prc lvl & languishing) Having studied the fundamentals he concludes that this is a good company that is being irrationaly discounted by the mkts at present but will do well in the long run (as in the long run mkts give each one its due).
He buys a little (in case it's noticed by the mkts & shoots up) & waits for a more opportune time to buy more. And he does get his chance during the May fall when the stock hits a new 52 Wk low (don't know if Clutch Auto actually did; this is just an e.g.). Or let's say he keeps accumulating the stk in small lots everytime it falls 15-20% till it hits a couple of 52 Wk lows.
Then today won't he be sitting on much heftier profits than someone who buys the stock only after it hits a 52 wk high?

Off course such a strategy takes a lot of courage & conviction & patience and is not for the average trader. In fact it wouldn't qualify as a trading strategy at all. Only long term investors can contemplate such a strategy.
Also it needs deep pockets & some risk appetite.
For people with less capital, like myself, the best i can envisage is allocating a portion of my portfolio for such value investing and keeping the rest for regular (momentum or whatever) trading.
Also i wouldn't insist on a 52 Wk low - but the more undervalued the stock is the better (i.e. more my potential upside & less the downside risk).

Regards,
Kalyan.

saga364 · #25 17th December 2006, 10:57 PM

Hi Guys,

I am overwhelmed with the messages. I am kind of tied up with a lot of things right now. I shall reply in a couple of days ..

Thanks

Regards,
http://pseudosocial.blogspot.com

Prakash Nath Bhargava · #26 17th December 2006, 11:23 PM

You get a daily list in www.buzzingstocks.com for those hitting 52 week low. You can analyse them in the economic times web site where you get all the details like current quotes, news, P&L accounts, charts (intra day-5 years) and also the peer group cos with EPS and P/E ratios. It is quite syatematic and easy to pick and choose good buying potentials.

Agilent · #27 17th December 2006, 11:52 PM

Quote:

Originally Posted by Prakash Nath Bhargava

You get a daily list in www.buzzingstocks.com for those hitting 52 week low. You can analyse them in the economic times web site where you get all the details like current quotes, news, P&L accounts, charts (intra day-5 years) and also the peer group cos with EPS and P/E ratios. It is quite syatematic and easy to pick and choose good buying potentials.

u mean good selling proposals !

arent we back to square one ?

AGILENT

Agilent · #28 17th December 2006, 11:57 PM

Quote:

Originally Posted by kkseal

Or let's say he keeps accumulating the stk in small lots everytime it falls 15-20% till it hits a couple of 52 Wk lows.
Then today won't he be sitting on much heftier profits than someone who buys the stock only after it hits a 52 wk high?

Regards,
Kalyan.

KKS
Have u ever tried averaging a stock which is in a medium/long term bear trend ?

AGILENT

toxicexpulsion · #29 18th December 2006, 12:50 AM

Hmm...
I bought beml at 150 in 2004. How do i average it now...? even tough the high is around 1700 and now its around 950 but its still way above my buying price.

kkseal · #30 18th December 2006, 01:40 AM

Quote:

Originally Posted by Agilent

KKS
Have u ever tried averaging a stock which is in a medium/long term bear trend ?

AGILENT

And what makes you think trends never change??

You can only see things from a trading view point, while i've made it clear in my posts that i see it as an investment strategy - and that too a contrarion one.

And YES i've averaged DOWN on stocks that appear fundamentally sound to me - and successfully too. Contrary to what your favourite trading gurus might tell you.

KALYAN.

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