Stocks for the long and short term portfolio

[aryan.]

jamit sir i think yes bank is such a stock a friend of mine normally book 10% return 5 to 6 times in a year trading yes bank this he is able to do for the past 5 years

If your friend had purchased yes bank on May 15 2009 at 95 and sold on May 16th 2014 at 545, he would have a CAGR 42% in the last 5 years without doing any efforts.

 

[seetharamank]

If your friend had purchased yes bank on May 15 2009 at 95 and sold on May 16th 2014 at 545, he would have a CAGR 42% in the last 5 years without doing any efforts.

friend without doing anything is postmortum and cannot be certain but he sells yes bank on every raise of 40rs and buy on every fall of 50rs and it happened 6 to 8 times thus netting 10% every time in the last 5 years

 

[Einstein]

friend without doing anything is postmortum and cannot be certain but he sells yes bank on every raise of 40rs and buy on every fall of 50rs and it happened 6 to 8 times thus netting 10% every time in the last 5 years

You should not get influenced from how much other is earnings, just remember, bottom picking is a very dangerous game, like playing Russian roulette with your money.

 

[praveen taneja]

This depends on how the company was before you purchased it. Compare the current status with what it was. If you see that the reason for the purchase, is fading away or long gone then you must get out. It depends on a person's reading.

If you'd name the stock and period and reason for purchase, it'd be interesting.

Bro as I posted earlier too I traded mostly on Tukka and on news flow nowadays reading all your posts including this thread from start In start you wrote that things to be noted is margin safety and div yield that must be above 3% where to check that???? as most stock have div yield more then that 15%????should I wait for a fall to see div yield down???

 

[praveen taneja]

Another question is I feel as Modi is our Next PM and his main work was on power and infra in gujrat as RPower is going to be largest power company in time to come even now it have a capacity of 4000MW I feel as tatapower is above 880+ it can at least cross 500+ in next 3-4 years. Is it sensible to play long term bet on this stcok although I read you said ADAG group is non reliable but can stay from more then 10 years

 

[jamit_05]

jamit sir i think yes bank is such a stock a friend of mine normally book 10% return 5 to 6 times in a year trading yes bank this he is able to do for the past 5 years

There are as many ways to make money in the stock markets are there are people. I am sure your friend has some level of expertise in earning money the way he does.

I do not understand this approach and have not tried it.

 

[jamit_05]

Bro as I posted earlier too I traded mostly on Tukka and on news flow nowadays reading all your posts including this thread from start In start you wrote that things to be noted is margin safety and div yield that must be above 3% where to check that???? as most stock have div yield more then that 15%????should I wait for a fall to see div yield down???

Div Yield is important, but not a deal breaker. Some managements see room for strong growth, hence they retain every bit of the Free Cash Flow they have collected in the last year and invest into growth. They do not give dividends. Therefore, the company and the management's intention must be understood. Some groups like to retain huge amounts of money, that is dangerous too.

 

[jamit_05]

Another question is I feel as Modi is our Next PM and his main work was on power and infra in gujrat as RPower is going to be largest power company in time to come even now it have a capacity of 4000MW I feel as tatapower is above 880+ it can at least cross 500+ in next 3-4 years. Is it sensible to play long term bet on this stcok although I read you said ADAG group is non reliable but can stay from more then 10 years

It won't be easy for the new Captain to turn the ship around. The global scenario will be important from now on. So, lets not put our cash on assumptions, but continue to focus on the core of value investing: If we want to make wealth as sensible investors we must focus on Buying Good Companies when they are available at a discount. And that is what I am looking for. Currently, I think Castrol India and Infosys are looking agreeable. Any further fall should make them dear enough.

Yes, there is a general belief going around that BJP will support power, Cap Goods and infra. The Dollar will lose sheen, causing IT, Pharma to suffer. Poor rains will cause FMCG to fall. RBI is expected to hike interest rates to reduce inflation, so banks might suffer too. If Banks suffer, Nifty will remain subdued.

 

[aryan.]

friend without doing anything is postmortum and cannot be certain but he sells yes bank on every raise of 40rs and buy on every fall of 50rs and it happened 6 to 8 times thus netting 10% every time in the last 5 years

You will keep making 10% with this strategy not big money. There is no guarantee this would work all the time and you will have to watch the market constantly adding more stress.

 

[praveen taneja]

It won't be easy for the new Captain to turn the ship around. The global scenario will be important from now on. So, lets not put our cash on assumptions, but continue to focus on the core of value investing: If we want to make wealth as sensible investors we must focus on Buying Good Companies when they are available at a discount. And that is what I am looking for. Currently, I think Castrol India and Infosys are looking agreeable. Any further fall should make them dear enough.

Yes, there is a general belief going around that BJP will support power, Cap Goods and infra. The Dollar will lose sheen, causing IT, Pharma to suffer. Poor rains will cause FMCG to fall. RBI is expected to cut interest rates to reduce inflation, so banks might suffer too. If Banks suffer, Nifty will remain subdued.

Report Card
PE Ratios55.40
EPS (Rs.)5.14
Sales (Rs. Cr)817.00
Face Value (Rs.)5
Net Profit
Margin (%) 15.58
Last Bonus1:1
Last Dividend(%)35
Return on
Average Equity 67.68
FII reducing stake and public buying BV is 15.19 on Dec 2013
Am I missing something????