Sarda Plywood - on Lower Circuit, WHY??

Hi

I have a small position in Sarda Plywood - honestly, took it after Porinju reco. But its been on lower circuit since last 2-3 sessions? Any clue WHY?

Should i hold it (guess no choice as there are no buyers!)

Thx

 

I also hold Sarda Ply.
I also bought it on hearing porinju on TV that it can be a 1000-2000 crore market cap company.
No idea why the stock is hitting lower circuits everyday. Something's fishy..

 

Another lower circuit today.
Looks like "Game Over"

 

Porinju might be offloading his stake
Cz there's no other reason for stock to be down 25%.

 

Might be. You are right. There is no other reason why stock should fall drastically like this.

 

Same pattern can be seen in alpa labs , sunil hitech, cosyn ....
After his purchase stock goes 2x 3x then after reaching its peak, starts falling....cz he starts offloading it..

 

Any update on this counter??

 

Today it is showing same price as yesterday's..
I wonder what is happening.

 

It will show same price till 31st july due to Price band applicability it cannot go lower than 187.15 this month.check the same on the below link.

https://www.bseindia.com/stock-share-price/sarda-plywood-industries-ltd/sardaply/516003/

 

What is the reason for such sudden down turn? Why such heavy selling pressure?? Any announcement? Bad result? Big investor exit? What's the reason can anyone say pls

 

The most probable reason behind the crash can be selling by Ponrinju veliyath whenever stock price increases 2x or 3x of his buying price he has a habit of booking it.
And retail investors like us are stuck in his trap.
U may verify this from his earlier stock picks like alpa labs , gokaldas exports, cosyn... n Many more

 

Porinju is offloading...and moving towards another stock where he can play the same game...if you are following him it is important to know when to exit......if you do not know when to exit then follow people like D D Sharma...

 

How to follow stock picks of DD Dharma? Does he have blog?

 

I think problem is caused by BSE limit of circuit. Stock is stuck without movement because of circuit. So nobody will buy till circuit limit is there. Only if stock is released from circuit new buyer will come IMHO.

 

Thankfully I was able to sell all Sarda i had last week, still made about 18% , though at one point it was up 70% !
Lesson learned :
1) While we cant help taking cue from ace investors like Porinju, we still need to be a bit cautious in the approach. Monitoring the stock is very important. Some basic research should be done.
2) If there is a free fall without any change in fundamentals, results etc - exit the stock (book profit or loss whichever way) at the first available opportunity.

 

He is on Twitter ..... @ddrsharma

 

Logical Side
The share has been moved to SS segment and hence an addition brokerage of 1% has to be paid to SEBI for transacting there share and 100% delivery is compulsory (as informed to me by HDFC securities) hence the traders and manipulators are getting out of the share as it has gone up from 41 to 295 without change in any performance.
About Company
Coming to company Sarda plywood is company with superb brand DURO which is quite famous. But has a chor management. But with the government regulations getting little stringent and if they start reporting their actual earnings it could be game a changer. So i personally feel its a all or nothing stock and anyone who holds the stock should be prepared to lose full capital in order to give it a chance to be a game changer and which is why i also feel Porinju will not off load his stake so easily as he usually invests around 20 lacs to 1 cr if the market cap of the company is less than 100 cr but in this case he has invested around 3cr.
Simple Maths
I am Quite sure Porinju is holding onto his stake. Anyhow if u look at 30th June 2017 shareholding pattern it still mentions he holds 2,29,763 shares i.e 5.09 % and last 30 days average trading volume is 10k per day which includes 10 holidays so in 19 days 1,90,000 shares have been traded and hence its quite difficult to believe he is off loading as there are no buyers.

 

You were right. As soon as circuit limit got released buyers emerged.
Great judgement.