The Ace Investor - New bet on cloud computing and big data company

Dear market veterans, do you see any multibagger value in The Ace Investor's new pick named Saksoft Ltd. ?

Please share your insights.

https://theaceinvestor.blogspot.in/2015/12/saksoft-ltd-value-pick-merry-christmas.html

 

Valuepick blog had recommended the stock in early 2014 at 82 levels. I had done a brief study of the company at that time but did not go further. Because I was not able to understand exactly what the company's growth will come from. But the stock tripled from that level in just 2 years

In my opinion cloud computing and data business is very tricky and relatively unknown to most of us. Much different than the regular IT businesses which are easy to understand and analyse. Caution advised.

 

Thanks Parin for quick turn around. I work in IT domain hence I know the potential of cloud computing and big data analytics but still I didn't find any company which is far ahead in these.

 

100% Agreed. It has become buzz word and because some stocks are doing well everyone is jumping into ship. IT IS VERY DANGEROUS GAME. I am not comfortable with such stocks. I advise anyone who is not familiar with business model to stick to basic stocks and not fool around with unknown stocks. See talk by Peter Lynch where he says that investors make mistake of buying fancy stocks instead of simple stocks like Dunkin Donuts.

 

Basically Amazon, Microsoft, Google, Rackspace etc companies provide base for cloud computing. 8k, kelton etc company provides consulting and migration solutions to customers who are using traditional or old system. They also provides solutions to leverage data patterns and trends from large chunk of data that's big data analytics. I believe these types of companies can grow if and only if they provide viable and effective solutions (i.e. services) using base tools.

 

For those who wants to know basics about cloud computing and big data.

https://www.quora.com/Word-Definiti...on/What-is-big-data-22?redirected_qid=2403567

https://www.quora.com/What-is-the-c...ms-that-a-non-technical-person-can-understand

 

Haha. I had a similar experience. I couldn't understand what the business was about. Also in IT, mid sized companies have struggled to scale up and compete with the big guys. I wonder why it will be different here.

 

It is really becoming a menace even after SEBI strict guidelines these type so called ace pickers value pickers are still able to get so much attention from the mind less followers with herd mentality which allows these handful of people to make money in micro cap counters commanding valuations to the extent of above 15/ 20 pe when TCS is available at 13/14 PE
As long as these herd mentality prevail neither SEBI nor any market regulator can save the retail investor
They have to understand the business revenue model and future scalable prospects before putting there hard earned money rather than blindly following some gurus.

 

Tilak Sharma, I understand where you are coming from but just because TCS is available at 13/14 PE and these are available at 15/20 PE would u take an investment decision on this? No way, you take investment decision on the potential of the companies expected future growth, i am again stating expected future growth not sure if its going to happen or not. In case of TCS, Infosys most of the facts are known and are always in the news for one or the other reason and therefore, their valuations too are pretty much in line with expectations. Whereas, if PE was the only parameter, then ROLTA IS THE Only company in IT currently which is quoting at Throwaway prices, how many of us can dare to buy it. But not all companies have bad promoters like ROLTA has, so lets not indulge in PE and junk things, if PE was the only multiple then god save HUL, GODREJ INDUSTRIES, PAGE etc. Lets get real market favors companies which eventually grow or project good growth. SEBI has no role to play in this as they never are user friendly, if that was the case A FRAUD company like CALS REFINERIES would never call the shots even after all these years...

 

This is v imp point that nobody can deny and everyone should follow for success in stocks

 

This is also imp point all investment decisions are based on theory of predicting future growth however imp point is that investor must have clear idea of own mind of business potential and not go by guru's advice

 

Why so much hate? Atleast, look at the record of my blog before posting such defamatory comments.

 

These blog operators (owners) are really stock operators aiming to make their own fortune with the cost of poor retail investors ( those who do not want to make any efforts to study the stock or market) These blog operators buy stocks few days before they announce a recomendaton and on the eventual rally of the stock after their reco they offload. They are not helping investors rather they are aspoinling the investors and the market. many of those investors who lost money will never turn back to market.

 

Kindly do own research. Dont follow blogs. I have loose bugs by following blogs.

 

good comment