With the recent market meltdown and uncertainty, I have become even more conservative about my stock selection process. I look for lower PE's, strong and simple business models, aggressive growth strategies and limited downside. Sometime amidst the market mayhem, my portfolio had returns of around -25%. I have to take some time to recheck the fundamentals, and clean my my portfolio. The Indian Stock Market had become too costly (@ a PE of 18 when the sensex was at aroound 18,000, India was the costliest emerging market). I feel that even at the current level of 14,300 it is costly. Add Political Uncertainity, Government Intervention in pricing, decreasing dollar reserves, highly volatile FII in/out flows to this and life does not seem easy.
This is the time to pick up a magifying glass and choose companies with great care. Not all stocks that were going up will go up. Since, the number of stocks I can manage with the time I have in hand is limited, I am planning to keeps the stocks in my portfolio limited to a maximum of 6 - 7 stocks. Here is my portfolio as of yesterday.
I added Eastern Silk Today and I must confess that I bought this stock without putting it under the scanner. This company had made a loss of 5 Cr last Quarter. The company had not released any information on the cause of this loss, but I feel that this was due to the currency losses. The sales too had dropped substantially over the last quarter. The things I looked at were Low Debt, Low PE (2.7) and it is trading at a 50% discount to it's book value. It had fallen to it's 52 week low of 12 a couple of days ago. And SBI MF had added this company last month (after the results had been announced) and I felt that they must be knowing better than me :). I'll post about eastern silk once I get more information and some time.
Here is the performance of the above fund as compared to the BSE Sensex.
Another company I am looking at is Prajay Engineers. This company is into real estate development and has a large land bank and had made a loss in the previous quater. It rose close to 20% today after being beaten down due to selling by GE funds.
I am also looking at applying some physics principles to exploit the volatility of the stock market. Something similar to Maxwell's demon and the perpetual motion machine.
Any suggestions are welcome
This is the time to pick up a magifying glass and choose companies with great care. Not all stocks that were going up will go up. Since, the number of stocks I can manage with the time I have in hand is limited, I am planning to keeps the stocks in my portfolio limited to a maximum of 6 - 7 stocks. Here is my portfolio as of yesterday.
I added Eastern Silk Today and I must confess that I bought this stock without putting it under the scanner. This company had made a loss of 5 Cr last Quarter. The company had not released any information on the cause of this loss, but I feel that this was due to the currency losses. The sales too had dropped substantially over the last quarter. The things I looked at were Low Debt, Low PE (2.7) and it is trading at a 50% discount to it's book value. It had fallen to it's 52 week low of 12 a couple of days ago. And SBI MF had added this company last month (after the results had been announced) and I felt that they must be knowing better than me :). I'll post about eastern silk once I get more information and some time.Here is the performance of the above fund as compared to the BSE Sensex.
Another company I am looking at is Prajay Engineers. This company is into real estate development and has a large land bank and had made a loss in the previous quater. It rose close to 20% today after being beaten down due to selling by GE funds.
I am also looking at applying some physics principles to exploit the volatility of the stock market. Something similar to Maxwell's demon and the perpetual motion machine.
Any suggestions are welcome
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2 comments:
Its good to see that you share your portfolio.
Thanks
Nitin
Hi Nitin,
I am maintaining this blog so that it would help me in the future to refine my investment decisions. But please note that you can not take the stocks in the portfolio as a recommendation. Every individual has a different rist tolerence, risk capacity and investment objectives. A few months ago, my portfolio was down 30% from the base value!
I believe that one gets to learn new things each day. For instance I bought Agro Dutch out of the urge to "buy", NTPC out of a recommendation from my friend (If I had looked at the numbers PE of 22, I would never have touched it ;)).
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