NMDC is the safe Investment

I have NMDC shares in my Portfolio, Now trading at Rs.103 levels

NMDC is a very good company in the NIFTY 50 Stocks

Pros :

1. 57Years old company
2. Indian Government Owned Company
3. Company is Virtually Debt Free
4.stock is trading at 1.6 times to its book value
5.Very High Dividend Yield 8.31 %
6.Company is PE Ratio is at 8.3
7.Last 20 years continuous dividend paying company
8.Low Risk Company because it is a Nifty stock

Cons.
1.Company main business related to Iron ore , and because of china market demand is low
2.last 5 years company showed low growth rate

But i recommend this stock to " retired " or " low risk apatite " person's portfolio for Long term investment
because it is almost nearer to Year Low price ...my suggestion is slowly accumulate this stock
you will get good dividends and it is a contrarian stock also

ALL THE BEST

 

Good analysis and advice but for retired/ low risk people. If you can take risk there are many other stocks to look at.

 

Dear Srouta Mukherjee, Yes ...my intention is to help low risk apatite persons ... Safety for their Hard earned money ....

 

Very truly said. Rama Murthy

 

Dear MoneyWorks4ME ji ,
Thank You Very Much sir

 

RamaMurthy Ji,

NMDC is not in NIFTY stock as now been removed from NIFTY, still do you think it will be good bet because I have seen whenever a stock removed from NIFT slowly n slowly moves lower and a trap in longer run. In this case also it happened It was at 103 level now is at 92 after removal.

Please suggest.

Thanks
Ajay

 

Dear ajay ji i am holding this stock in my portfolio ... and i will not panic if it is removed from
Nifty or delisted from stock exchange .... my investment is emotionless , exchanges are doing with market capitalization and volatility and volume based calculations with their rules ...
but company is in profit , available at low valuations , management abilities , leader in that sector and other parameters also i am looking ....

so investment is depend on Risk apatite and capital and holding capability ....

i all ways see company numbers ... i never do news based investments and trading .....

I never panic if 10 rupees fall after my buying in investment ....

that is your risk apatite so please assess your risk apatite and holding capabilities once again ..
according to that build your investment strategy .....

i always plan for " Emotionless trading or Investment " ..
ALL THE BEST ....

 

RamaMurthy Ji,

I have one query from you as u are both trader and investor, how to do you decide on a stock whether you will do Investment or Option Trading.
Take for example NMDC is multi year low . should we go ahead and buy call option at 92 as it has bounced multiple times from these level (And also the probability of doing down drastically is low)or should we buy on delivery. Other thing is, in call option you have lot of 1000 quantity and to buy have to provide minimum premium but in delivery you have pay heavy amt.

This is something I am curios to know and understand and I think there might other ppl in this forum might want to understand this.

Could you please elaborate yours thesis on this.


Thanks in Advance

 

Dear ajay ji ,

Investment is separate ,and Option Trading is separate ....
Option trading is depend on trade system and risk apatite ....
i always do Nifty options day trading and positional trading ...
option trading is for short term trading max one month period ....
but investment i treated as a business buying , both aims are different

 

i too hold NMDC since 2010 but suffered heavy losses, sold some of the holdings during may 2015, but regret, should have sold all the shares in may.
It is very difficult for a normal investor to make money in stock market, it is gambling or you should have a very good luck.

 

Dear Sunny ,

In market 3 type of approaches are there

1.Gambling : with out knowing anything invested based on Tips or friends suggestions
2.Speculation : season and unseason or based on product demand selling and buying based on some
reason and calculation or estimation is called speculation
3.Investment : Purely Business buying

so in market almost gamblers are there , very few are smart traders and smart investors

investment based on home work is always correct ....

i want tell you ex : if you are buying one stock at Rs. 200 with all calculations thats fine
buy before going to buy that stock after buying it reached Rs. 100 with in short time , what to do at that time
is it a plan with you before going to buy
are you going to buy more or wait with previous quantity , how many year wait for profit or averaging concept or stop loss concept ....

most of the persons are not knowing these things with there plan and after price fall they are panic

before going to invest in market please read all successful investors theory and made your investment model

risk management tectonics are also part of investment plan are you having that ...

Diversification , sector allocation , etc ....are mainly for risk management tools
with luck we are not sucess in this stock market ...luck may be 3 times or 4 times
with out knowledge there is no use ..... first improve that ....
ex : if a doctor treated patient without knowledge , may be some times may be sucess ...but not all times ...patient will die

it is also like that profession ....any profession must be based on knowledge and hard work ....in stock market only generally prefer tips and short cuts


ALL THE BEST

 

Dear Rama,

Your advice is good but i have not seen any persons atleast people whom i know who are small/medium investors made money in stock market.

No one can predict future of any stock in share market.

This is my view / belief.

 

I am not agree with your statement brother ..... if any person loose money obviously it is a profit to other trader or investor

you said you have not seen any person made profit in market ...

"Warren Buffett , Rakesh Jhunjhunwala , Ramesh Damani , Ramdeo Agarwal " you know those successful persons in market ?

 

the names you said is not even 1% of the total investors who has invested in stock market, picking up a stock is art / luck - it is not a game for small/medium investors.

 

Dear Sunny ,
i am only quoting some examples ..... in warren buffett life total he bought maximum 38 stocks ...
in that 8 stocks are mega multi baggers ...so stock selection is not based on luck

Ramdeo brought airtel at 25 rs. and hero honda at 30 rs .
with huge quantity .....if they are not with full knowledge and vision about that stock they dont buy
and most important point is holding it they know long story .... if a ordinary person buy they sell
it 50 rs. or 100 levels ...

but their calculations are true ....

in my life i know so many successful traders and investor .....
but they dont publicity every one ....

warren Buffet guru benjamin graham said almost 95 % of the investors and traders are gamblers
all loose money went to remaining 5 % smart traders and Smart Investors

 

Dear Rama,

Did you know how many stocks these experts have taken which are failed, this will not come out bcs it will effect their business. If these people are so much wise then they should have purchased all the 100/1000 baggers stocks in the market.

It is simple, 5% of investors makes money from the 95% of investors, and from that 5% only 0.01% will be retail who may of mere chance selected stock which become 100 baggers.

Stock market is the game for predictors... hope i have the insight to know one stock which can be 100 baggers after 3 or 5 years it will be so nice, or any stock gurus who can say take this stock it will be 100 baggers..

In my view, no analyst can predict a 100 baggers.....

 

Dear Rama,

Did you know how many stocks these experts have taken which are failed, this will not come out bcs it will effect their business. If these people are so much wise then they should have purchased all the 100/1000 baggers stocks in the market.

It is simple, 5% of investors makes money from the 95% of investors, and from that 5% only 0.01% will be retail who may of mere chance selected stock which become 100 baggers.

Stock market is the game for predictors... hope i have the insight to know one stock which can be 100 baggers after 3 or 5 years it will be so nice, or any stock gurus who can say take this stock it will be 100 baggers..

In my view, no analyst can predict a 100 baggers.....

 

RamaMurthy Ji,

Thanks for your answer and trying to convince that we can make money in investing which we also agree but the process the model somewhat we are missing. For example Kaveri was quoting at 1000Rs few days back, now its 430 almost 60% loss and NMDC since 180 Rs it cheap but at what level it stop no one knows and even at 92 we are not sure its cheap that only future will tell us so accumulating is good strategy but how long as money is limited for a person once who is invested since 200 at every 20 rs or 50 rs deep also might be afraid as he has also limited money.

Trading also in NIFTY is somehow is most difficult task. For example you might be making money but one day you loose all of them instantly, see what happend on 5th August almost 500 point fall and 250 point when the market opened that time itself, someone who has be in short position might have made money but everyone was bullish that time so how many ppl might have made money that is questionable.

You are gem that you are making money in Trading as I had also mentioned in one of the posts in these forum that I have never came across a single person who made money in trading in FnO.

And also the veteran investor Vijay Kedia in his latest interview to ET told that FnO is weapon of wealth destruction.

Even in my case whatever small amt I made I made in short term investing in cash segment. FnO I tried for one month I made initially some money but lost all of them. I tried Nifty Future and its very stressfull too. I followed the call from poweryourtrade.com which I have subscription.

What I observed, take for example I will tell you my case in IndiaBull Housing Finaice which I had purchase one lot Future at 666 and it was making all time high it went to 672 and after that it started to fall I have to sell it at 650 to avoid further loss and booked some losses and it finally went to 630 level but I observed again t came back and crossed 700 and finally reached around 800 level.

Point while making journey of 630 to 800 level multiple times it fell and rise and ppl in day trading might have been trapped in between as in my case.

I have question for you, which type of trading made money for you IntraDay or positional. How you determine that trend is up or down for today for some stocks. I know its difficult question but atleast you can guide us some important points which worked for you in trading.

Thanks
Ajay

 

almost traders loose money they abuse others , If profit comes they tell their skill , timing , etc..things come to the picture ....

in my case i am a full time trader and investor , i am living with that amount only ....

i will tell one thing " If stock market is there i will earn definitely " .....
every trade or every investment i will maintain reasons in my trade dairy ....

Knowledge , understanding and application is main levels ....

 

Yes, rama, you are from the 5%, wish i had the knowledge, understanding and application of yours and mostly the temperament. Best of luck and thanks for the suggestions/advice.