[hrishig]

( Mods pl merge this thread if required),

Hi all,

We all( Any Tbhp member ) eat drink think all the time in car world and have much more knowledge of auto domain than most of the guys around.

My question is how can we use / relate this while purchasing selling stocks of auto other companies? Has anybody tried that?

I am not talking about full scale trading , but basically how to convert various tips guessing we have to actual ( may be occasional ) trading with auto stocks.

Any idea?

[BaCkSeAtDrIVeR]

- Sell Skoda /VW (do I need to explain?) (nah, these shares are not traded here in India)

- Sell Apollo. They make lousy tyres.

- Buy Mahindra & Mahindra (Xylo, scorpio, Govt and DGS&D sales .....)

- Meet an astrologer on future of Tata. (nano, JLR)

- Buy Mico. (They make good fuel pumps).

- Buy SKF (good market share in OE and replacement market).

- Sell Ashok Leyland. (ancient product lineup; lousy marketing, non-existent R&D)

- Sell Exide. (poor OE batteries, leading to bad publicity in replacement market).

[Su-47]

I disagree with many of your observations: Apollo accelere for example is one of the better tyres made by any Indian company. And, even if a company like SKF has a good market share, that factor may already be 'priced in' in its current price.

In other words, it is surely not as straightforward.

[kuttapan]

Originally Posted by BaCkSeAtDrIVeR

- Sell Skoda /VW (do I need to explain?) (nah, these shares are not traded here in India)

- Sell Apollo. They make lousy tyres.

- Buy Mahindra & Mahindra (Xylo, scorpio, Govt and DGS&D sales .....)

- Meet an astrologer on future of Tata. (nano, JLR)

- Buy Mico. (They make good fuel pumps).

- Buy SKF (good market share in OE and replacement market).

- Sell Ashok Leyland. (ancient product lineup; lousy marketing, non-existent R&D)

- Sell Exide. (poor OE batteries, leading to bad publicity in replacement market).

While you maybe right on most or even all counts, the share market unfortunately does not operate based on these. Or that has been my experience. If you had bought Tata motors a few months back(below 150), you would have a four bagger now. I didn't have a lakh and so I am 3 lakhs poorer.

I picked up Ashok Leyland(only a few shares, just coz it is a company I like and I wanted to own some shares - emotional rather than financial decision) at around 14 odd and it is at 44 now. That is 210% returns over a few months!! For a company that currently has been losing market share like a snake losing it's skin !!

I don't know what to make out of our market. I wonder if it cares for fundamentals at all !! Having said that, over long term, your reasons should indicate the way the company evolves. One of my investment manager friends told me to stay away from auto stocks.

[alpha1]

Markets are based on expectations not history.
And the expexctation may not have a sound reasoning behind it.

[hrishig]

Originally Posted by kuttapan

While you maybe right on most or even all counts, the share market unfortunately does not operate based on these. Or that has been my experience. If you had bought Tata motors a few months back(below 150), you would have a four bagger now. I didn't have a lakh and so I am 3 lakhs poorer.

Yup I took tata motors at 152 and Now I am N'joying, but certainly my decision was not on the domain knowledge.

As far I remember the only link between the product launch and share upward movement was launch of Swift and sx4. On that launch day maruti went up.

The reason why I am putting this is , if we can earn much more on all other domains which are not that much familiar with , why can't we make profit out of which we know a lot about.

Maruti was at 12XX levels and now is around 1500 the only major change is k series engine + Ritz launch . But I fail to understand the link between these two.


If sombody can , pl share :-)

[vivekiny2k]

Originally Posted by Su-47

I disagree with many of your observations: Apollo accelere for example is one of the better tyres made by any Indian company. And, even if a company like SKF has a good market share, that factor may already be 'priced in' in its current price.

In other words, it is surely not as straightforward.

but that's what you get when you ask for a share market advice on a public forum