David Sylvain
gadgetsgalore blog Share Investor: March 2021

Share Investor: March 2021

Debt burden keep mounting until last year when Aditya Birla group has raised its stake to get ownership control in Kesoram Industry. For example if you will analyse the recent demerger of Crompton Greaves and Aditya Birla Nuvo, in both cases the boutique price fall much below assigned valuation of demerger but price gradually moved up within few months. Generally this type fall is normal due to high selling pressure during initial few days and it is happening almost in every demerger. As per assigned valuation of TCI demerger , it should trade above 230 but it fall below 200 on ex-record date of demerger. We are keeping one stock with ongoing demerger process so that it will help to improve habit of holding the stock with patience for longer period. I have been trading this stock for a long time and heard about this privatization story for the longest period but it did not happen until the past 1-2 weeks.

 

Next stock will be posted in the last week of July or first week of August. Oracle hit a new 52 week high in September at $27.62 and is now a buy on pullbacks below $26. Last week we have received several comments on ‘surgical strike’ and its effect on stock market. ConocoPhillips (COP) – ConocoPhillips (COP) is back trading in the low $60’s as the stock market sell off. Always need to buy the stocks at low price on time instead of chasing at higher price because almost every month (30 – 45 days) new stock is posted on the blog so you are never late. stocks – These are tremendous organizations, for example, Apple and Google which are accessible in the benefit list. Nervousness among retail investors is obvious, especially in those who are experiencing first time demerger process. Generally demerger process is taking 12 -18 months time from date of proposal to the final listing. We have picked the stocks at mid of the process and Orient Electric is expected to list within next 4 months. As the nation at the centre of the initial Covid-19 outbreak, Chinese GDP fell for the first time in four decades in the opening months of 2020. However, many analysts believe harsh controls to contain the spread of the disease helped to lay the ground for a faster return to relative normality.

 

The average exposure is 3.4% of GDP and I have highlighted the countries with exposure at 4% of GDP or more. stocks have already priced in much of the expected recovery in the economy and corporate profitability, leaving just slightly more upside heading into next year, according to Bank of America equity strategist Savita Subramanian. TCI XPS will unlock huge value for investors and expected EPS would be more than 10. Courier sector stocks are trading at very high P/E ( Blue Dart P/E 74 and Gati P/E 58). Even if XPS will trade at 50 P/E than also it translate into more than 500. Remaining business left with TCI has enough strength to sustain the stock price after record date of demerger. Company get caught on wrong foot due to recession during 2008 and later slow down of business growth in cement and automobile sector. If investor will sell 250 share with 30 -35% gain than his buying price will come down to Rs.18.

 

Patience is required for buying as well as for selling. Recent market correction has brought it into our buying range and given very good opportunity to buy the stock at deep discount, even promoter have bought the preferential issue @ Rs 90 which is almost 50% above cmp. He calls the stock market Ponzi Scheme “stock printing.” The strategy of printing money is currently being used by many countries to fight the global recession, including the US. If the company goes bankrupt, then you could potentially lose all the money you invested in the stock. Its business was performing very well (EPS was above 50) and stock was trading in the range of Rs 400 – 500 in year 2006 – 08. Company went for setting up an ambitious greenfield project at at Laksar (Haridwar) to produce 250 MT of truck tyres per day with cost around 1000 crores. 25 and total 1000 shares bought for 25% allocation in the portfolio.

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