Ladies in red spell doom for Bears
The Bears knew that their days are numbered when three charming ladies of Dalal Street decided to dare them by decking up in red.
RED is the colour of the screen today! Now you know why. pic.twitter.com/7uVdalFcR3
— Prakaran Tiwari (@praxus) October 11, 2018
In addition, Sonia Shenoy glared at the Bears, fed up at their shenanigans and the colossal losses that they have caused to hapless novices.
The best part about being behind the camera is to have the best view in the house. pic.twitter.com/wTviEftG5g
— Prakaran Tiwari (@praxus) October 10, 2018
Naturally, this baffled the Bears and they bolted from Dalal Street, their tail between the legs, never to return again.
The Bulls stormed back and sent the Indices surging to new highs.
Sensex records biggest single-day gain in 2 years, Nifty tops 10450 https://t.co/sDr2ex1EHF
— News Facto (@newsfacto) October 12, 2018
All's well that ends well
For The Week:
Nifty & Sensex +1.5%
Midcap Index +2.75%
Bank Nifty +4% https://t.co/ycHNPWkKaa
— Mangalam Maloo (@blitzkreigm) October 12, 2018
Buy more stocks when prices fall: Billionaire Nirmal Jain & S. Naren
Billionaire Nirmal Jain is the new evangelist for stocks.
He has been repeatedly soothing our nerves and cajoling us to buy more stocks, whenever there is a dip.
He endorsed S. Naren’s advice in this behalf and and described it as “sage”.
It is obvious that Billionaires know what they are talking about and we should diligently follow their advice.
Sage advice by Naren CIO- ICICI Pru MF- please do listen and continue your SIPs and start new investment when markets correct pic.twitter.com/2wFmfmBpXo
— Nirmal Jain (@JainNirmal) October 14, 2018
— Kotak Mutual Fund (@KotakMF) October 11, 2018
Nilesh Shah trashes academician
An academician-journalist with no practical knowledge about stocks or the working of the stock market made some outrageous claims.
This rightly infuriated Nilesh Shah, the distinguished MD of Kotak Mutual Fund.
He trashed the article as a “scaremongering article with twisted facts and assumptions”, gave a point-by-point rebuttal and tore the academician apart with facts and figures.
He also warned the journalist in a stern tone not to “lie or twist facts to suit your negativity”.
A scaremongering article with twisted facts and assumptions. Where do you get all this negativity ?
"401 open ended funds lost money YTD"
Do you know concept of benchmarking? Should you compare a fund performance on an absolute basis or relative basis?
— Nilesh Shah (@NileshShah68) October 12, 2018
Do you know the concept of long term investment? In which part of Bloomberg they evaluate 10 month performance of equity?
"Most MF down between 20 to 40 % in a flat market"
The chart in article doesn't confirm your accusation. Your own research doesn't agree with you.
— Nilesh Shah (@NileshShah68) October 12, 2018
"Most MF down between 20-40 % in a flat market"
This isn't true even for PMS where stocks are down more than MF. We have fallen for sure in a falling market but not as much as you are accusing. Please don't lie or twist facts to suit your negativity
— Nilesh Shah (@NileshShah68) October 12, 2018
Jim Rogers apologized after similar attack by Nilesh Shah
It may be recalled that Nilesh Shah had earlier torn Jim Rogers apart for making similar buffoonery statements about the stock market.
To his credit, Jim Rogers realized his mistake and apologized profusely for missing the bus.
At that stage, Nilesh Shah again wrote an open letter to Jim Rogers in which he graciously advised him not to repent but to return to Dalal Street without further delay and tuck into high-quality stocks.
No doubt, Jim Rogers would have followed the sage advice of Nilesh Shah.
Personally, my view is that all academicians and journalists should be forced to read treatises like The Intelligent Investor, Peter Lynch’s One Up of Wall Street, The Warren Buffett Way etc before they are even allowed to enter Dalal Street.
Otherwise, they make a mockery of themselves and lose even the little credibility that they have.
Dolly Khanna buys aggressively
Dolly Khanna has been on a shopping spree and is tucking into high-quality multibagger stocks.
NR Agarwal Industries Ltd
It is no secret that Dolly has a fascination for paper stocks.
Her portfolio already boasts of high-quality paper stocks like Ruchira Papers, Shreyans Industries, Trident etc.
NR Agarwal Industries is the latest incumbent to join the portfolio.
According to screener.in, NR Agarwal Industries has all the credentials of a multibagger.
It has a market capitalisation of only Rs. 814 crore coupled with a RoE of 51.19% and a RoCE of 28.66%.
The average RoE over 3 years is 42.13%.
The sales growth over 3 years is quite impressive at 18.72% while the P/E is quite reasonable at 8.32%.
The stock has delivered impressive gains of 124% over 24 months and 69% over 12 months.
Dolly holds 2,01,544 shares as of 30th September 2018 valued at Rs. 9.67 crore at the CMP of Rs. 480.
Dolly’s fascination for Selan Exploration is quite intriguing.
As far back as in June 2014, she held a chunk of 307,969 shares. These were sold by June 2015.
In March 2018, Dolly was seen with 2,43,400 shares in her portfolio.
Thereafter, she made history by buying a chunk of 1,04,250 shares through a bulk deal.
BULK DEAL ALERT:
DOLLY KHANNA bought 1,04,250 shares of Selan Exploration Technol at Rs. 244.03
— Rohan Gala (@RohanG90) August 8, 2018
This is the first time that Dolly has done a bulk deal according to the experts in the RJ Fan Club.
As of 30th September 2018, Dolly’s holding in Selan Exploration stands at 3,63,600 shares, valued at Rs. 8.07 crore at the CMP of Rs. 222.
Prima facie it appears that Dolly is expecting crude oil prices to continue to surge though some experts have a different opinion on the subject.
As per current estimates of Crude Oil Demand and Supply, the Supply increase, especially from Non Opec countries next year will significantly outstrip demand growth.
The current spike up on #IranSanction concerns will non sustain beyond couple of months.
— sandip sabharwal (@sandipsabharwal) October 11, 2018
#CrudeOil prices ease as global growth outlook cut by IMF outweighs Iran sanction concerns. Sources say India is yet to reach an agreement with Iran on payment mechanism & choice of currency for oil imports. Details at 9 PM on India Biz Hour | @ShereenBhan pic.twitter.com/nl7MHAckz0
— CNBC-TV18 (@CNBCTV18Live) October 10, 2018
According to Jonathan Barratt, an authority on crude oil, the worst of the rise in crude is behind us and prices will soften henceforth.
#OnCNBCTV18 | Jonathan Barratt, Probis Securities says #brent #crude could hover around $80/bbl in the near term; Worst of the rise in crude is behind us@_soniashenoy @Manisha3005 pic.twitter.com/2kTx3eNfR8
— CNBC-TV18 News (@CNBCTV18News) October 12, 2018
I have already reported, with my usual diligence, that Dolly has increased her stake in Rain Industries, which is also Mohnish Pabrai’s all-time favourite multibagger stock.
— RJ Stocks (@RakJhun) October 9, 2018
Dolly’s vote of confidence was much needed and has sent the stock surging like a rocket.
The Supreme Court’s clean chit on the issue of ban of pet coke has also helped matters.
— ET NOW (@ETNOWlive) October 9, 2018
Dolly had first stormed into Sterling Tools in August 2016, in the distinguished company of Anil Kumar Goel and Vallabh Bhanshali.
At that time, the market capitalisation of Sterling Tools was only Rs. 426 crore.
Today, the market capitalisation is Rs. 1233 crore, which means that fabulous gains of 200% are on the table.
However, for some bizarre reason, Dolly has been easing herself out of the stock using her trademark method of selling bits and pieces on a periodic basis.
This is what the top-secret data of Dolly’s activities in Sterling Tools looks like:
Opening balance on 1st April 2017: 563,210
14.04.17 1700 Purchase 564,910 1.65
02.06.17 -8145 Sold 556,765 1.63
09.06.17 -3500 Sold 553,265 1.62
16.06.17 -4000 Sold 549,265 1.60
23.06.17 -3500 Sold 545,765 1.59
30.06.17 -4000 Sold 541,765 1.58
07.07.17 -5000 Sold 536,765 1.57
14.07.17 -1000 Sold 535,765 1.57
21.07.17 -1000 Sold 534,765 1.56
28.07.17 -1000 Sold 533,765 1.56
04.08.17 -3735 Sold 530,030 1.55
11.08.17 -1250 Sold 528,780 1.47
18.08.17 -1705 Sold 527,075 1.46
01.09.17 -8109 Sold 518,966 1.44
14.09.17 -4525 Sold 514,441 1.43
15.09.17 -2000 Sold 512,441 1.42
21.09.17 -7545 Sold 504,896 1.40
30.09.17 -3000 Sold 501,896 1.39
06.10.17 -10200 Sold 491,696 1.36
13.10.17 -5000 Sold 486,696 1.35
27.10.17 -2000 Sold 484,696 1.35
03.11.17 -1500 Sold 483,196 1.34
10.11.17 -1000 Sold 482,196 1.34
17.11.17 -2000 Sold 480,196 1.33
24.11.17 -11000 Sold 469,196 1.30
01.12.17 -1000 Sold 468,196 1.30
15.12.17 -2000 Sold 466,196 1.29
05.01.18 -1000 Sold 465,196 1.29
12.01.18 -7000 Sold 458,196 1.27
19.01.18 -12000 Sold 446,196 1.24
26.01.18 -1000 Sold 445,196 1.24
02.02.18 -1000 Sold 444,196 1.23
09.02.18 -1000 Sold 443,196 1.23
02.03.18 -1000 Sold 442,196 1.23
442,196 1.23 31.03.18 442,196 1.23
From the holding of 442,196 shares as of 31st March 2018, she brought it down to 4,29,696 shares as of 30th June 2018.
This is further reduced to 4,12,231 shares as of 30th September 2018.
We will have to understand what is spooking Dolly given that Sterling Tools has all the attributes of a multibagger.
Meanwhile reports are streaming in that there is more shuffling in Dolly Khanna’s portfolio.
We will get a clear picture by the end of October 2018!