J P Associates ,will it recover ?

Sold JP Associates today.Lessons are learnt but learning cost is huge

 

good that is a great decision.

 

I tend to hold shares for very long term (5-10 years+). Made very bad investment decisions in the past and have burnt my fingers badly. Two of the shining stars from my bad investments that I still hold are: J P Associates 1400@85 (buy year 2011) and J P Power / Hydro 6000@38 (buy years 2005-08). In both 85% capital is lost. Is there any hope that these companies will be able to turnaround considering their huge debt? Is the current business / economic environment favourable or against these companies?

 

Consider this as cost of learning and take the bitter pill , invest some where in other good stock No body know the future,but at least you would come out of mental pain.

 

Thanks for your response, kharb. Eventually, I will do what you have advised. I was looking at if there is anything positive anticipated for these companies in terms M&A /Selling /DebtRestructuring /UptickInBusiness /Etc making these stocks go little higher than where they are currently. If there is any news flow anticipated taking these stocks 10-30% higher then I will wait for exit (6m) else I will exit in 1m time.

Also, don't know if PSU NPA Ordinance (President's approval acquired an hr back) will have any positive impact on these two stocks.

 

Take lessons from experiences very fast, that group is in a doldrums , dont expect a man in Brain Dead condition will recover soon ....
dont waste your valuable money and time with these companies

 

Sell all useless stocks in your portfolio and maintain cash position , then divide your money 5 parts, for every year invest 1 part , select good quality stocks combination with Large cap front line and quality mid cap stocks below 10 different sectors , and slowly infuse your money in that
in market dips like SIP method for 5 years
and book profit partially and continue until your capital recovered

or select 1 or 2 mutual funds from different funds (ex: Birla top 100 or HDFC Top 200 )
and do SIP for 5 years

i think you may recover from this catastrophe

ALL THE BEST

 

Sure, Ramaji.

"dont waste your valuable money and time with these companies" -- Already wasted . I have been into direct-equity-investment-with-sit-tight-for-long-term strategy so far (no MF except ELSS, no SIP). Of-course, the wrong part of the strategy was that I ended up picking immensely bad stocks one can ever get into (K10 Stocks, Infra Stocks, Suzlons of the world, PSBs, and likewise). Another wrong part of the strategy -- I know when to enter but not when to exit (seen many unrealized crests). Sure, there have been profits in some of the stocks that I have/had invested in.

Based on learnings in a very hard way from the past 15+ years, now I have come to terms (I know it is too late). And I don't believe in recovery. Whatever is the MTM value is the present value, rest is with stock's current potential.

Long GREED phase is over . After liquidating bad stocks (there are still too many in my portfolio - did I mention Punj Lloyds, BHEL, NMDCs of the world), I would be very much ok with 10-13% kind of annual return portfolio. That is my task for the next 3-6 months.