Pincon Spirit Ltd (hidden gem pick by The Ace Investor)

I brought 200 shares of Pincon @155 and from that day onwards the share is falling. My stop loss is Rs 120. Most probably I will hit stop loss and loose Rs 7000 (+ Rs 300 brokerage) in this share. But anyway while researching about this share I came across this forum and got to know some great members. Got to know good sites like value-picks, investopedia and equinomics. Also learnt that MMB 'Gold' and 'Platinum' members are mostly fakes or stupid and people who proclaim themselves as 'Ace Investor' might just be a manipulator. Learnt that investing in small and mid caps in a very volatile market is an act of stupidity. Learnt to be wary of people who give 'targets' in electronic media and MMB board. Learnt a lot so totally optimistic about future.

 

Good attitude. Tution fee paid of Rs. 7000 is very cheap for such learning. You can earn in five figures if you learn lesson properly

 

I hv been following the forum since pre bonus 100 levels..now it has been 7 months.. Wat I learnt from that was wenever stock moves up those who get some gains including platinum members will talk about pincon as though it was the best stock that happened to planet earth..and when stock comes down they say it is operator manipulated etc etc...Some other people come and spread bad news and make people panic....For 2018 company will post a revenue of 1500+》crores..eps will be around 17 or 18....This is very conservative estimate...assuming a p/e of 15 it will be around 200 at least...take into account that it gave a maiden dividend of 50ps fr 10 rs fv share..
Company want to expand and sell 3.2 million bottles of liqour annually..current capacity is 1.2 annually..
So company on path of aggressive expansion..
For fy 2015 annual revenue on course to break 800 crores...so if it maintains same track record with reducing debt then it can achieve eps of 25+ for 2017...den imagine wat the market will pay to get pincon shares..
As of now just hold...it's pure operator play.
The best way to beat an operator is to think like him...
So don't follow herd mentality and run...as and when the price goes down buy more and more.
BE GREEDY WHEN OTHERS ARE FEARFUL...
IF a shirt which is valued at 150 is given to u at 100..don't u think u shud buy it...y do u sell and run...THINK....

 

Thanks Sir. Today Pincon closed at Rs 135 so stop loss not hit. So won't sell. I hope that such a situation never arises and the stop loss is never triggered. Maybe one should set higher stop losses while investing in a small cap. Still a lot to learn.

 

Went on BSE website and found that Pincon has 'received a rating as 'SMERA BBB' with a "Stable" Outlook (Pronounced as SMERA triple B) for Bank Loan Rating of Bank facilities of Rs. 245 Cr & for NCDs of Rs. 35.00 Cr.'

SMERA BBB ratings: - Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk

A high risk company will never get such a rating. Also P/E is quite low so company not expensive. Although I will not buy but I will not sell either. Found a excellent article about stop loss written by Chokka Sir.

https://equinomics.in/dont-stop-loss-when-fundamentals-are-good/