Porinju’s USP is his sharp mind. He keeps his eyes and ears open and stays alert to the numerous money-making opportunities that present themselves on a daily basis. When Porinju spots an opportunity, he is able to swiftly analyze the situation and take rapid and bold action.
We have seen instances in the past where Porinju has seized opportunities that no one else saw coming.
One example is Arvind Infrastructure where the indiscriminate selling by big-ticket shareholders sent the stock price plunging like a ton of bricks. Porinju rightly recognized that the rock-bottom prices were not sustainable and he scooped up a truckload of the stock. When sanity prevailed, Porinju had added a couple of digits to his bank balance.
Another example is Palred Technologies where Porinju rightly predicted that the excitement about internet stocks would send Palred soaring. He bought a big chunk and also contributed to the hype. However, he also had the presence of mind to realize that the junkyard stock was not portfolio worthy. So, he dumped the stock just before it got hit by an insider trading regulatory taint and pocketed a tidy profit.
The most recent example is Ashoka Buildcon. When the grim news leaked out that the company had been raided by the sleuths of the income-tax department for allegedly bribing Chagan Bhujbal, the former Dy. Chief Minister of Maharashtra, the stock imploded and hit a 52-week low of Rs. 111.
Now, this is where the difference between a sharp mind and a dull mind comes in. While novice investors like you and me were gaping open-mouthed at the carnage, with a stupefied expression on our faces, Porinju’s mind was racing. He quickly figured out that the steep collapse in the stock price was an opportunity to make a quick buck.
Wow…Ashoka | 114 – down 40% in 2 days for bribing politicians? No project was executed without bribing filthy politicians till recently!
— Porinju Veliyath (@porinju) April 7, 2016
In hindsight, it is sheer common sense that when a stock price plunges in such a savage manner, the management does try to salvage the situation and the stock price can be expected to bounce back, at least in the short-term.
This is exactly what happened. Ashoka Buildcon’s management gave itself a clean chit by claiming that “it has not contributed or financed any of the constructions of Bhujbal family including their bungalow at Nashik”.
That did the trick. The stock price sprang like a rocket from the depths of Rs. 111 to a high of Rs. 161, translating into a difference of nearly 45% in just a couple of hours.
Obviously, Porinju claimed credit for the mega bucks that effortlessly fell into his lap.
Stock up 40% in 2 days! #commonsense https://t.co/ivCfAMhlz5
— Porinju Veliyath (@porinju) April 11, 2016
Buy a stock during Income Tax raid & sell it when they are given a clean chit – that's value investing!https://t.co/ivCfALZKHx
— Porinju Veliyath (@porinju) April 11, 2016
When the situation calmed down a bit, Porinju realized that what he had done was not “value investing” by any stretch of imagination. So, he coined the word “value trading” and called it an “interesting segment of value investing in today’s volatile world and 90% irrational movements in stock markets!”
'Value trading' is an interesting segment of Value investing in today's volatile world and 90% irrational movements in stock markets!
— Porinju Veliyath (@porinju) April 11, 2016
While the purists will baulk at Porinju’s choice of words, the fact remains that staying alert to such money-making opportunities and having the presence of mind to take advantage of them can prove to be a very rewarding experience!
Smart trading on the part of Porinju – must give credit for his sharp mind, his presence of mind or sense of timing – whatever you want to call it.
did you bribed
Please stop praising Porinju … he only talks about his winning stocks.Some of his stock picks are disastrous which have destroyed his Pms portfolio down by 50 %(eg. zicom, palred , Sheryas shipping , Selan etc). Whatever gains he makes are out done by the junk stocks.Before 2013 his PMS underperformed even the nifty as per the disclosures to SEBI. Try searching for disclosures of his company Equity intelligence . 33% cagr he boasts of may be for one single client not the weighted average of entire PMS ,which would be definitely less than 15%.
Rightly said!
I am one of his clients and when I corrected him on twitter about his statement of 33% cagr, interestingly he blocked me. At that time my return was -5% and with the market movement now, the return is +7%.
So, you gauge his claim.
Some of his stocks are doing good but few of stocks are in deep shit like Zicom and Selan/
in the fall, one existing big ticket, Sunil Bansilal Raison bought 9 lac qty. (may be shadow of promoter) (https://www.zaubacorp.com/company/ATR-INFRAPROJECTS-PRIVATE-LIMITED/U45209MH2008PTC188768). The sudden fall because of IT and sudden bounce back because of the above transaction. As per your hero previous statements, can understand ,he already bought few months before, and now he may average it now , as a PMS no other way but average and followed by the above tweets. ok all in the game.
To the author
You should not make a HERO of guys like Porinju. What he did is called a FLUKE and it could have gone either way. Please be very careful before idolising such people.
Its a trap for newcomers
Sam
Its really a trap…finally after following him for three months and idolising him…finally blocked him from twitter account one month back…
HI,
If novice investor like you and me would have done this act of buying a stock in the eyes of IT raid and had sold it in couple of hours, we would have standing in front of SEBI’s door.
No. Why should someone stand in front of Sebi door? Where is the rule that if some raid happens nobody can buy such shares? The above article just gives us an example how a successful investor’s mind works. Porinju is just one of the investors who has taken advantage of this situation. There could be many other Porinjus.
porinju is the GODDDD OF INVESTING
#Niveza #Review on Article:
Stock like Ashoka buildcon which operates in construction and Infrastructure space. The company has strong order book and revenue visibility for next 1-2 years. Due to unfortunate event of Income Tax raid on the company to do the enquiry about Chagan Bhujabal case, the stock crashed 40% in 2-3 days time. Such news are usually taken as very much negatively by the markets and it shows knee jerk reactions. However such turbulent times offers a good opportunity for true value investors. Remember the famous quote ” Buy when there is blood on the street ” If our fundamental study and understanding of events is intact, we can make such bold decisions and make good returns in turbulent times as well.
Its better to Invest in Good Mutual Funds scheme, Instead of PMS schemes.
Tara jewel & talvalkar value pick for porinju
I am sure he is an expert in the stock market, but,per se, if one was to examine all and I mean all, the investments of these gurus of the stock market, one would get a very different picture of their investment ideas and success rate. Most investors make some solid profits and losses, but merely focussing on one and not on the other is like judging a book by its cover. I am sure he adopted the same philosophy in some other stock purchase and found that all his money was not seen again. Apart from this, a lot of investors are privy to insider info and their clandestine footsies with XYZ pay off big time, therefore what they claim as their success is merely their success not at strategy but at closed door information and data gathering, beyond the rules of the game. An ordinary investor will follow their principles at his own risk. The devil is in the details it is said, it is to be found in their secret failures, not in their publicised “Me Tarzan!” successes.
Wat is your view on coal india , it has come down without any great reasons it seems
Whatever say, Porinju knows the art of making money.