[JMaruru]

Originally Posted by ajmat

Family bickering over who leads the bank

I thought it is between two sets of promoters. Are they related?

[ajmat]

Originally Posted by JMaruru

I thought it is between two sets of promoters. Are they related?

I think there is some connection by marriage. It is sad though, just because one is family, one should not always think you have the automatic right to run the organisation especially with in a public limited company

[VindyWheels]

Hi Hiren,

I am sorry, generally I do not track the well discovered and well researched large-cap stocks with huge institutional coverage already. I am not much of a Macro person either - I can't predict where the dollar is going, when coal issues will be solved, when the capital goods cycle will change or when the GDP growth will pick up. My approach is essentially bottom-up.

I stick to my core area of Mid and Small Caps. The value unlocking there is much higher. If you had observed, the Mid/Small cap index has received a severe beating but there were many gems which already gave very good returns in the last 12 months! One just need a few good stocks and be disciplined to stick with his or her conviction once you get to know those great businesses in and out.

For example look at how the share prices of companies like Ajata Pharma, Mayur Uniquoters, Kaveri seeds, Atul Auto, Astral Polytechnik moved. Tremendous wealth creators if bought at the right price.

I was lucky to meet the top management and/or promoters (of 3 of the 5 companies mentioned above) last year after the initial research looked very promising.

Rgds

VW

Originally Posted by hiren959

Great to have you VW on this forum, I have been doing some activity in this market since 2003 apart from my main business. Previousely the IPO market was hot cake, but not nowadays.
Please guide me in these stocks HUL, SPARC, Tata steel, Coal India and MOIL.

[hiren959]

Thanks VW for the details given, Mid and small caps listed below are really wealth creator since last 12 months they are almost doubled.
But some of the mid and small caps I am having are Bartronics, EKC, Nagarjuna, Power Finance, Edelwisse made me a huge loss. Biggest loss maker is Tata Steel in my portfolio.
So as per your suggestions which are the potential mid and small caps should we pick up right now to compensate all this market duds??

[VindyWheels]

Hi Hiren,

I had already given my suggestion for picks a few days back. Just have a look. Do your own research and build conviction, otherwise you will not be able to hold on to your decisions.

Happy Investing

VW

[VindyWheels]

Hi,

Symphony Ltd has come out with great results. 31% revenue growth and 25% PAT growth on a stand-alone basis. Export growth is 40%.

FY14 will be interesting as there will be most likely a positive contribution from the Mexican subsidiary. This should help grow the overall consolidated EPS well.

The company has also paid good dividend of Rs 6.5 which is almost 44% of their net profit. I think its still very attractive at around 12-13 times FY14 expected EPS. Today's concall will give more inputs.

Originally Posted by VindyWheels

Hi,

Here are some of stocks which look attractive at current price and ideal % allocation of fund if I were to build a portfolio today:

1) Kaveri Seed company - Rs 1530 - allocate 30% of the fund
2) Canfin Homes - Rs 125 - allocate 20%
3) Symphony Aircoolers - Rs 285 - allocate 20%
4) Navneet Publications - Rs 58 - allocate 15%
5) MPS Ltd - Rs 125 - allocate 15%

This is just my thought process and the above picks and weights can change according to changing market situations. But I'm confident in my research and expect this portfolio to give atleast 30% returns in FY14. Please do own due diligence before taking your investment decisions and always be wary of borrowed conviction.

Rgds

VW

[S_U_N]

Perhaps this is the only active thread dedicated to stocks/ equities.

I have never invested in these yet and today I found that FundsIndia is offering a limited time offer where you don't have to pay Rs. 500 for account opening.
So, as an existing FundsIndia MF customer, I can now open Equity account as well.

Here is the link:
http://www.fundsindia.com/content/js...n=equity728x90

Quoting them:
FundsIndia’s Equity Platform is an equity INVESTMENT platform, and not a day-trading platform. We accept only delivery-based trades in this platform.

The Demat account annual maintenance fee is Rs 200. The demat account charges will be waived for the first year. A demat account fee of Rs. 200 will be charged starting the second year.

We charge a very reasonable 30 basis points per trade i.e 30 paise per Rs. 100. This is a very competitive rate relative to our competition which charge typically upwards or 50 basis points.

Now, I am not sure if this reasonable or not, since I have no clue about this.

In case someone needs help the support is helpful is what I can say based on my personal experience.

[akj123]

Question: Does any trading website have option of ECS or Standing Instructions for transferring money at regular intervals ?

This would be useful for any periodic investments like stock auto-invest, but my broker (kotak securities) doesn't support this. So curious to know if others do ?

[VindyWheels]

Hi,

Check if this is what you are looking for

http://www.hdfcsec.com/Equity-sip/201107140950207305273

Rgds

VW

Originally Posted by akj123

Question: Does any trading website have option of ECS or Standing Instructions for transferring money at regular intervals ?

This would be useful for any periodic investments like stock auto-invest, but my broker (kotak securities) doesn't support this. So curious to know if others do ?

[carboy]

Originally Posted by VindyWheels

Hi,

Check if this is what you are looking for

http://www.hdfcsec.com/Equity-sip/201107140950207305273

Rgds

VW

His broker Kotak Securities also offers this - http://www.kotaksecurities.com/faqs/Autoinvest.html

But I think what he is asking for is for money to either
- money to be autodebited for the SIP from his bank account
or
- money to be automatically transferred from his bank account to his stock account to be prepare for this.

[akj123]

Originally Posted by VindyWheels

Hi,
Check if this is what you are looking for
http://www.hdfcsec.com/Equity-sip/201107140950207305273

Originally Posted by carboy

But I think what he is asking for is for money to either
- money to be autodebited for the SIP from his bank account
or
- money to be automatically transferred from his bank account to his stock account to be prepare for this.

Thanks VW and CarBoy - yes, I was asking for what CarBoy pointed out. Looking for some more automation and one less thing to remember

[PatienceWins]

Originally Posted by VindyWheels

Hi Null,

To make the learning simpler this is what a Sr Investor shared on the different areas one needs to work on.

There are broadly three areas one needs to keep building and sharpening his skills in:

1) Information Edge - to analyse a stock we need to collect information on the company, industry, competitors, promoters etc. Over a period of time one needs to be skilled in quickly assimilating information.

I always start with the annual reports of the company. Read about 10 years annual report starting with the oldest one. This could be boring but I feel its very critical. Other sources of vital information are competitors annual reports, articles on the industry trend, conference calls (there is a wonderful site called research bites which provide concall transcripts and audio files), investor presentations etc.

Apart from these we also meet the company's top management/promoters, its distributors or channel partners and even the competitors where-ever possible (this step is taken only if the stock passes most of the screens and looks good in the initial research)

The objective is to collect all the info needed for you to understand how exactly the business works, is the opportunity in front of the company big and sustainable, does the company have enough resources to tap the opportunity without taking undue risks and what is the level of profitability.

We also need to gain a handle on the management - integrity, attitude towards share holders, business acumen etc

Information edge is easy to acquire but the next two are tougher - Analysis edge and Behavioral edge. Will explain those in details in subsequent posts. Meanwhile let me know if this is helping.

Rgds

VW

Very nice to have you on the forum. It would be helpful if you can give more information on the analysis and behavioural edge. I am trying to come up with a stock analysis procedure. It would be great if you can share information on how you analyse a stock, mainly financial statement analysis, once you gather information.

Your reading list is great. Another great book by Pat Dorsey on moat is The Little Book That Builds Wealth.

It is motivating to know that you are doing what you love on a full time basis.

[RS_DEL]

Originally Posted by ajmat

I think there is some connection by marriage. It is sad though, just because one is family, one should not always think you have the automatic right to run the organisation especially with in a public limited company

The family of one of the late co-promoters is suing for board representation. With 10% or so of equity and co-promoter status are they justified? Make your own decision. BTW even independent investors sue for board level representation when they find their interests are being compromised. Since the matter is sub-judice I am awaiting the verdict of the judicial review with interest.

[VindyWheels]

Hi Pateince Wins,

Thank you for your kind words.

Analysis Edge is the second edge. Here one needs to analyse 1) the business and then 2) the market price of the stock or valuation of the company.
The business analysis involves both number crunching and qualitative analysis.

I divide the business analysis into four categories:
1) Business Moat
2) Quality of the Management
3) Opportunity Size
4) Risks

Business Moat as you would have already read and understood is the "durable competitive advantage" a business possesses in Warren Buffet's terms.

Many aspects help us to understand if the company enjoys a Durable Competitive Advantage - The ROE and its drivers (Margins, Asset Turn and Leverage) is a good starting point, can the com increase price of its product or service easily or in other words does it have pricing power? Pricing power is also a function of competitive intensity in the particular business. A well established brand has good pricing power. Eg: Jockey. Does the company have high receivables? Check the receivables to sales ratio and days sales outstanding ratio (receivable days). Always check these ratios over a period of time and its trend.

Another factor which shows Moat is level of entry barriers to the business. How difficult is it for a competitor to enter the business and garner a good market share? High entry barrier can be due to technology, regulatory barriers, distribution challenges, brand moat, unavailability of critical raw materials, R&D etc.

Bargaining power of suppliers is another pointer towards durable competitive advantage. Will the suppliers of raw materials and the employees squeeze the company and force it to pay higher price as material cost or salaries? Is the net profit margin of the company at the mercy of suppliers? Do they give credit to the company?

Overall we need to understand if the company can sustain high profits through high profit margins or keep churning out high profits by impressive asset turn-over. What is the probability of the company growing its sales and profits in the next 5-10 years?

Does the company need huge amount of capital to scale up the business and manage its working capital?

Trying to establish "moat" is a critical part of analysing the business. All through the stock analysis we need to think as business owners and not as stock market players.

Cheers

VW

[eq24]

Originally Posted by VindyWheels

VW

Hey VW,

Great insights you have given and must appreciate that more and more people on Team BHP are into stocks.

I have been dabbling into stocks on or off for an year now, had found Peter Lynch years ago and the book really got me going. Was apprehensive all this while but around an year back decided to jump in. I have done OK, I guess but what I really enjoy is the short play than the long game most people go for. Just wanted some pointers from you, is it worthwhile doing the day trader, since you said you have taken up stocks full time. How do you do it. Do you play long and short or go Full time long. Also how much do you allocate and any tips on how you discipline yourself.

Do you Play the forex markets as well, I have heard both sides of the coin to forex but still not sure.

Pardon the word "Play" as this is anything but a game but somehow no other word does justice to this activity, do you use another verb, do let me know.

Many thanks once again.