[wanderernomad]

Guys please advise. I hold quite a sizeable number of an equity which is now de listed. What are my options? Can I continue to hold and wait for it to get re listed. How do I check the price of the scrip now. Thanks.

[VindyWheels]

Hi,

Picked up a nice stake in Kitex Garments. Started buying at 120 levels a month ago, bought more at 182 on 16th May and then eve more at 240 recently too! No the run-up has nothing to do with elections, its just that during the AGM on 15th May the MD explained very clearly on why the business will do well. The AGM for the first time had some analyst and big investors.

I had attended the AGM and also took part in discussions with the MD, Mr Sabu Jacob. We were also shown the factory and other facilities.

Pretty impressive business. Most of the Malayalees would say Kitex makes lungis But Kitex Garments is a fully export oriented company manufacturing infant garments. Clients are the top infant wear retailers of West - Gerber, Babies-R-Us, Carters, Wallmart etc and Jockey. For Jockey they manufacture a temperature sensitive product which will maintain body temperature at 23 degrees!

Kitex Garments is currently the No.3 player in infant wear manufacturing and will be No.1 next year. Excellent moat with a big capital "M" that is. Raw material and currency risks are largely pass-through. With huge unmet demand the company doubled capacity last year and the same will result in growth in the coming years.

What was most impressive was the story of how the company which was struggling in 1998 grew to such a strong position and currently is slated to be No.1 globally.

Definitely worth looking at.

Disclosure: Invested more than 10% of my portfolio

Cheers

Vindy

[LonelyPlanet]

I have 400 shares in Suzlon @ Rs 80. Should I liquidate now since the stock is at 31.xx or it is expected to go up further

[VindyWheels]

Hi, why did you buy it? And does the hypothesis hold now?

I do not know about Suzlon, but can tell you that investing based on "hope" of a company doing well is not a good idea if we do not know why the company would do well.

But its true that poor stocks are also going up. A Diamond Power which faced IT raids for massive tax evasion in 2012 has tripled in price! I wouldn't feel any regret on missing such rallies.

Also remember that to become seriously wealthy the trick is to have a consistent 20-30% return for 20-25 years. A 100-200% return in a year or 2 just does not matter if the process/investment strategy cannot be replicated for 20 years without losing capital.

Originally Posted by LonelyPlanet

I have 400 shares in Suzlon @ Rs 80. Should I liquidate now since the stock is at 31.xx or it is expected to go up further

[faustus77]

VindyWheels
Hi.
Your posts are a treat to read.Thanks a lot for them.
I am a long to very long term investor and generally invest in giant/large caps.
However you do collect some shares which do not give good returns. I wait until I cover my cost and then sell.
I am sitting on some profit but not much and am thinking of selling Gujarat State petronet,GNFC,Maharashtra Scooters,Tata Investments,Dalmia Bharat,Tinplate.
Any idea about these scrips? Please guide.
Thanks a lot.
Regards
PS: I have been reading about tax notices to individuals for capital gains.Anything held for over 1 year are tax exempt if STT is paid.In spite of that some assesees have got notices. Are any guidelines issued to the ward officers about the amount?Any idea? Once again thanks a lot.

[VindyWheels]

Hi,

I do not have much idea about most of your stocks. Generally PSUs are having a good time after Mr Modi took charge. So it may not be a good idea to sell good quality PSU stocks.

I somehow did not like Tata Investments, it is like a mutual fund which invests largely in Tata group companies and that too there is no sound reasoning in investing more in "x" over "y". In such a scenario why should we trust them to make the best use of the company's capital?

If you like only large caps I would suggest ITC (Rs 335) and TCS (Rs 2000) at current levels. That would be two "sleep-well" stocks where-in you need not even track quarterly results

Originally Posted by faustus77

VindyWheels
Hi.
Your posts are a treat to read.Thanks a lot for them.
I am a long to very long term investor and generally invest in giant/large caps.
However you do collect some shares which do not give good returns. I wait until I cover my cost and then sell.
I am sitting on some profit but not much and am thinking of selling Gujarat State petronet,GNFC,Maharashtra Scooters,Tata Investments,Dalmia Bharat,Tinplate.
Any idea about these scrips? Please guide.
Thanks a lot.
Regards
PS: I have been reading about tax notices to individuals for capital gains.Anything held for over 1 year are tax exempt if STT is paid.In spite of that some assesees have got notices. Are any guidelines issued to the ward officers about the amount?Any idea? Once again thanks a lot.

[ghodlur]

Originally Posted by VindyWheels

If you like only large caps I would suggest ITC (Rs 335) and TCS (Rs 2000) at current levels. That would be two "sleep-well" stocks where-in you need not even track quarterly results

Hi Vindywheels,

Can you suggest some good midcap or small cap scrips for a horizon of 9 months? I have around 1.5L to invest, suggest a strategy. Or I am well off in large caps or stick to Mutual funds. Expect a gain of around 15-20% min.

[VindyWheels]

Hi,

9 months is too short a time irrespective of whether you invest in MFs, large or mid caps. But I think Page Industries, ITC and TCS can be safer than others to park your funds...15-20% should come in these by that time.

Originally Posted by ghodlur

Hi Vindywheels,

Can you suggest some good midcap or small cap scrips for a horizon of 9 months? I have around 1.5L to invest, suggest a strategy. Or I am well off in large caps or stick to Mutual funds. Expect a gain of around 15-20% min.

[avingodb]

Jet Airways has proved to be a good stock for me. I have bought it thrice now under 245 and sold closer to 295-310.
I had also bought Suzlon in 2010 at 90 but then averaged it and now i hold it at average price of 22.30. Any calls on the future of Suzlon?

[VindyWheels]

Hi,

Airline industry is a very difficult business to make profits..and this is true world over. It is too capital intensive and the price wars lead to lower profits. With Airasia coming in, it could be good time to re-assess your investment in Jet.

Indigo is the only exception in India where an Airline company is really making profits.

You might find this interesting.

http://articles.economictimes.indiat...globe-aviation

Originally Posted by avingodb

Jet Airways has proved to be a good stock for me. I have bought it thrice now under 245 and sold closer to 295-310.
I had also bought Suzlon in 2010 at 90 but then averaged it and now i hold it at average price of 22.30. Any calls on the future of Suzlon?

[avingodb]

Originally Posted by VindyWheels

Airline industry is a very difficult business to make profits

True,
that's why I deal with Jet in a conservative manner and sell within 20% range each time.
This time also I managed to buy at 241 and monitoring closely now.
No doubt that its a traders stock and not really for a long term investor, especially since 2012.

[sgiitk]

Originally Posted by ghodlur

Can you suggest some good midcap or small cap scrips for a horizon of 9 months? I have around 1.5L to invest, suggest a strategy. Or I am well off in large caps or stick to Mutual funds. Expect a gain of around 15-20% min.

Small / mid-cap stocks by their nature are more volatile. Unless you are a guru I will stick to mutual funds - like TI EIF, IDFC Sterling (PE is an excellent SME based fund but is available at the moment through SIP)

[swiftnfurious]

Originally Posted by VindyWheels

Hi,

Picked up a nice stake in Kitex Garments. Started buying at 120 levels a month ago, bought more at 182 on 16th May and then eve more at 240 recently too! No the run-up has nothing to do with elections, its just that during the AGM on 15th May the MD explained very clearly on why the business will do well. The AGM for the first time had some analyst and big investors...

And you let us know now?! Too bad! What would be your estimate for a 3 month period?

Originally Posted by VindyWheels

...If you like only large caps I would suggest ITC (Rs 335) and TCS (Rs 2000) at current levels. That would be two "sleep-well" stocks where-in you need not even track quarterly results

Again any 3 month guesstimate for ITC ?

PS:: I think you are the one who gave a link to vlaue-picks blog? Any sites where you pick up your tips from?

Edit:: When is the new budget happening? I read it would be some time around July 1st week?

[VindyWheels]

Hi Swift,

I mentioned valuepickr and not value-picks blog. Valuepickr is a website where we collaborate to analyse companies threadbare. I am an active participant there and does company visits and management interviews.
It is not a tip service and we do not believe in tips. But if you are ready to collaborate with what-ever knowledge you have and wants to learn more about investing its a great forum. Even if you know nothing about stocks your industry domain expertise could help a lot. You can say it is the "team BHP" of investing in stocks

Regarding Kitex, I bought only 3% of my portfolio at 120 levels, it was more of testing the waters and to attend the AGM as a qualified share holder. I bought more quantity at 188-184 levels and even more at just less than 240. I am bullish about the stock for a 3-5 year horizon even at 240-250 levels. Do read their annual reports and keep clued to valuepickr site, I will be posting more about my analysis on Kitex there. Once you have conviction you can invest accordingly. Only then you will be able to hold on to your position for longer periods even if the stock price is volatile.

Investment for 3 months? You are asking the wrong person buddy.

In the last 10 months I have already given at least 16 suggestions to buy some companies in this thread. Some of them have tripled and many have doubled, so don't blame me for late calls

But I never expected them to give that kind of returns in such a short span. You just buy good companies run by good people at good price and let the market do the rest. Sometimes rewards are heavy and early sometimes you might have to weight for years.

For example Canfin Homes was suggested almost a year back at 125 levels, but the stock did not move much beyond 140 for a almost 8-10 months and now it has shot up to 360! Patience is required in this game Sir. 3 months to 12 months may not take us anywhere.

Originally Posted by swiftnfurious

And you let us know now?! Too bad! What would be your estimate for a 3 month period?



Again any 3 month guesstimate for ITC ?

PS:: I think you are the one who gave a link to vlaue-picks blog? Any sites where you pick up your tips from?

Edit:: When is the new budget happening? I read it would be some time around July 1st week?

[S_U_N]

The markets have gone crazy.
Mafatlal is now just around 160. I had bought at 160 after value-picks blog suggested the same several months ago. That was my first purchase, by the way.
So, I am hopeful I can sell it for at the same price and wash my hands off this dreaded stock.

Other than that, everything that you invest now will turn green till the budget is announced.
So, @swiftnfurious: If you have some money to risk, then put it on anything. The chances of increase is much higher than chances of decrease.
Just remember you have to pay STCG tax if you sell within 12 months.