Stocks for the long and short term portfolio

[jamit_05]

Within a couple of years, or five, down the line, Group A will have stabilized. Their share prices will be in line with future growths. At that time, B will start looking expensive to the big pockets and they will see opportunity in Group A. Then sector rotation will start.

Inspite of doing well, Group A companies will be dumped hence price will recede. This heaps of cash will percolate into Group B. These stocks will zoom up to trade at a premium over their intrinsic values in expectation of good future. Maharatnas will be applauded by the incumbent government as the ministers will derive footage.

Then we'd wish we had most of the Group A companies. But, if you are judicious now, this wish can become reality!

Will you please explain in simple terms - bit confused - kindly clarify

That narrative was to give a glimpse into how a portfolio becomes successful.

Group A is currently underperforming. And the stocks are very cheap.

But, we don't see it now. Our minds want to follow the crowd and buy TCS or HuL from Group B, which is wrong.
When the choice of investors start to shift from Group B to A, which is inevitable, that will be the time for you to reap your benefits.

PS: Pls re-read the original post. I have correct a mix-up.

 

[alex_26]

Hi Amit,

Why is jet airways going down despite d deal being approved by FIPB?

 

[Mr.G]

Hi Amit,

Why is jet airways going down despite d deal being approved by FIPB?

It's going down with general market. Fundamentals are still in place.

 

[jamit_05]

Hi Amit,

Why is jet airways going down despite d deal being approved by FIPB?

Sry. I don't follow the airline business... have heard too many bad things about it. Besides, there are much (much) better stocks out there.

 

[jamit_05]

Yes Bank​

It is believed that Yes Bank is crashing because RBI squeezed out the excess cash. This excess cash was used for Currency speculation.

In F.Y. 2012-13

Yes Bank had Other Income of 1260 Cr.
And Net profit of 1300 Cr


If we consider this Other Income of 1260 Cr. entire raised out of speculation, then this will seriously affect the Quarterly results because Other Income is as much as the Net profit! Sure, operating expenses etc will reduce but we are just looking at the impact of liquidity squeeze.

Its strongest point is that its NPA is Zero.

A very strong support of 200-225 is approaching. But the stock is riding on an evil momentum. I am not sure whether it will be absorbed easily. Lets keep our eyes peeled.

Please post if you guys have any opinions/news or interesting hearsay. There is an ongoing case in HC, but this fall started after RBI credit cut policy.

 

[Einstein]

@Jamit, what do you think how much pain bank nifty can handle?? how long this will continue??

 

[Mr.G]

@Jamit, what do you think how much pain bank nifty can handle?? how long this will continue??

I have posted this several times today. Stocks are worth what others are ready to pay for them, Our economy was mostly pushed up by heavy FII buying, now due to uncertainty of falling rupee they are pulling out to reenter when rupee has stabilized as to minimize currency risk.

The government is trying to cover CA deficit through FII money which is very good in short term but it will bleed the economy in the long run. And it will destroy the economy the moment FII decide to pull out in future.

Bank nifty or Nifty have no base as to how much valuations can fall as they are fundamentally decided by buyers of the securities. When the buyers (FII) think the rupee has stabilized they will come back and invest even more heavily in India.

This is not a technical answer but its based on what is actually happening in the economy in reality.

 

[jamit_05]

@Jamit, what do you think how much pain bank nifty can handle?? how long this will continue??

Bank Nifty has a lot headwinds. It is shown by the bad momentum it has picked up on the charts: Major downward weekly bars. With RBI getting stricter and economy shrinking, only the banks with strong Moats will survive. Hence, small banks with less spread will find it very tough to survive! One such bank is Yes Bank. It has a HC case, promoters fighting, foreign holders selling large bulks... going will get tough.

 

[alex_26]

Sry. I don't follow the airline business... have heard too many bad things about it. Besides, there are much (much) better stocks out there.

Well Jamit

m not talking of Jet Airways in particular...but analysis of a stock in general.

In jet case ..deal is almost sealed ...also d Govt needs FII buying at d moment.So d INSTITUTIONS know wat to do.

Are d BIG PLAYERS ..manupulating this stock taking it lower b4 they can buy it at a cheaper price.Some bak it went from 333-404 within 30 minutes..then to 444...then fell down n lying @ 300 odd at d moment.

Do BIG INSTUTIONS/FII control these stocks movemnts(Price)?...

 

[jamit_05]

Sry. I don't follow the airline business... have heard too many bad things about it. Besides, there are much (much) better stocks out there.

Well Jamit

m not talking of Jet Airways in particular...but analysis of a stock in general.

In jet case ..deal is almost sealed ...also d Govt needs FII buying at d moment.So d INSTITUTIONS know wat to do.

Are d BIG PLAYERS ..manupulating this stock taking it lower b4 they can buy it at a cheaper price.Some bak it went from 333-404 within 30 minutes..then to 444...then fell down n lying @ 300 odd at d moment.

Do BIG INSTUTIONS/FII control these stocks movemnts(Price)?...

Its possible, some big-pocket has a good sense for this Stock is calling the shots. In the short-term, such things are easily done. Hence, it is often hard to rely.