The Supreme Court’s judgement canceling 214 coal blocks allotted since 1993 has delivered a body blow to the entire mining & metals Industry. Jindal Steel is the worst affected.
Daljeet Kohli and Abhishek Jain had earlier conducted a detailed “scenario analysis” and advised that even in the “worst case scenario”, there was an opportunity to be a contrarian and buy the stock.
However, the duo has now taken a different view of the matter. In their latest advisory, Daljeet and Abhishek have turned cautious about JSPL’s prospects and downgraded it to ‘Hold’ from ‘Buy’.
A detailed rationale for the downgrade has been given but what is important is the bottom-line:
“We advise investors to avoid creating fresh position on the stock. Those who bought the stock at higher level, they can hold the stock till the clarity emerges for coal block auction or shift towards Godawari Power & Ispat Ltd (No impact of this verdict but corrected due to sentimental impact)”.
The advice is to shift to/ buy Godawari Power is noteworthy. Daljeet has earlier issued a detailed report with a price target of Rs. 198. However, though the stock reported good Q1FY15 results, it has been pummeled over the coal block scam issue. In the last one week itself, the stock has lost 11% even though it is unaffected by the Supreme Court’s order. Given that the CMP is Rs. 143, there is a 38% upside, if Daljeet’s analysis comes true. So, one can be a sensible contrarian in Godawari Power, if one is so inclined!
Dear Arjun,
Do you know how stupid you sound by writing this article?
Pratul, why do you shoot the messenger. Arjun is doing his bit in communicating the report what Daljeet has come out with.
Never buy stock recommendations blindly I suggest all readers (includes me to..) should apply their mind and do minimum analysis & research before buying the stock recommendations.
My 2 Cents
Bhs
Both Daljeet Kohli as well as Arjun acted responsibly, I really don’t understand what some people here are complaining about.
indianivesh has recommended the investors only few days back (4-5 days) stating that all negativity in JSPL has priced in and investors should buy even if there is worst case scenario BUT when the verdict came the stand was changed to HOLD and lowering the target price to Rs. 201/= and caution. This is how innocent investors get trapped in this market and become reluctant to invest. And everybody shouting retail investors are not coming to the market etc. Each and every investor cannot be an MBA in finance and somewhere depend on the advice of so called experts. god bless….
Hi. Being a very small retail investor, I usually find myself trawling (note, TRAWLING, not TROLLING) silently thru very many discussion forums on investing… trawling for information and pointers… and I have been disappointed time and again…. this forum seemed like more sensible… but ALAS, this Daljeet & JSPL thing proves it yet again…. may be, small retail folks like me shud stick to good old FD / NSC / PPF / LIC combo…
…. I think Daljeet should apologize for what he did with JSPL cotrarian thing… c’mon, that wud be just basic professional decency…
Considering that Daljeet Kohli has recommended only winners so far and JSPL is his only dud, I don’t know what you’re griping about.
The answer lies in between Greed and Fear….. We need multibaggers, and seek any idea that floats around. Every rise has a fall, every fall had a rise…… It’s only our reaction to such events that make us either happy or unhappy. Who asked us to buy whatever is recommended here?
The trap is in the headline of THE BLOG…. We all wanted to become RJs, DKs and Damani’s….. But only their success part, not their agony……
The SC ruling really is a big blow…..one day, RKD is also getting ready for the Court Ruling for TVToday….If the projected growth is not met as per the plans, Capital First would fall…..what Dolly would be thinking if RSSOFT gets down to 115 levels?????
Some hits and some misses, Agony….ecstasy …….oooooooh! Aaaaaaaaaaah!
Welcome to stock market.
Also, DK doesn’t always mean Dolly Khanna….sometimes it is Daljeet Kohli too. Do not carried away by the headlines….the truth always would be in fine print. One should observe that only a part of the portfolios of these so called Ace Investors is revealed. Not the entire portfolio. That is where their hidden gems exist. RJ’s open portfolio is just 20% of his entire holdings.. Did you ever noticed Dolly’s total percentage of investment I this blog itself? Not more than 25%…. Go and check….
If we want multibaggers, we need to bear the BEARS too…otherwise, we can still keep the money in FDs, NSC….LIC……but wait a minute….if our plan is to stick to them, what we are doing here? We don’t need multibaggers…all we need is safety….even if an LIC agent thrusts an ill liquid plan, even the bank charges us enormous interest rates on EMIs…
At least daljeet sir was very forthcoming in admitting mistake and coming out with sell report..
Evens RJ, ramesh damani sir do not have all success..as long as an analystputs his money where his mouth is, we can agree that its an honest mistake
Really???? I am one of those guys who bought JSPL basis the contrarian bet by Daljeet Kohli and now when we are at 20% loss you are asking us to switch? I would request our analysts that you many followers who have faith on you created after your value picking skills over a period of time but now with such mistakes you yourself are killing your followers…How can we just move with loss..where is your confidence on that bet of yours?? Waiting for your answer Mr Daljeet Kohli…
So didn’t you make any money out of any of Daljeet’s calls ? And he’s telling people to get out booking a 20% loss only because the stock can tank further, he is trying to limit further losses. Can’t you see that ?
No I didn’t make any profit from his calls…but yes i have incurred losses 🙂
You incurred only losses ? Man, you do live 🙂
yes i do live but i am not hardcore follower of Daljeet alone, i like the recommendations of dolly khanna specially..late than never i earned from her calls..try it and you will see the difference
Hi Jitesh,
Don’t panic, 20% loss is no big deal, it happens in stock markets.
Remember we haven’t got GOVT response to SC judgement, I believe Modi government will come up with some kind of contingency plan.
If I were you, I will wait until such time a clear picture arises and then make a decision then either to book loss or to hold the position and average it out until things improve.
My 2 Cents
Bhs
its not gripe, my friend… there is nothing to gripe about… he said what he said, one would do what one would do… everybody knows the universal disclaimer “… equity investments are subject to market risk…. blah… blah…”
I was just expressing the feeling of creeping frustration(?) and helplessness when I see my FD giving me 6% in the face of 7.8% CPI … average dividend yields of 4%… there is no way but to somehow catch a “multibagger” so that the 4% or 6% can actually compete, if not crush, 7.8% within a reasonable time scale…. and it is this “somehow”, that is the quest… and sometimes it gets frustrating…
the options for a person with INR100 are starkly different from the options for a person with INR10 …
… no offence offered to anyone.
If you’re in the stock market, you will have to follow the rules of investing and rule #1 is “Never put all your eggs in a single basket”. Spread out your investments across stocks. Had any person invested in all of Daljeet’s calls equally, he would be a winner despite the losses of JSPL.
If a man changes his stance within four days, he has no depth. If a man or woman invests in such a stock,he is blind enough. Both of them did not foresee what is coming. If the contrarian approach clicked, Daljeet would be a hero. He still would write another article an year later, with headlines” everyone was sceptic in Daljeets pick lAst year,but see it is a 5 bagger now…..(still wanted to raise investor’s hopes)
Five bagger because it will fall to 100 now and grows to 500…..OH, ME? ANOTHER VALUE PREDICTOR????just kidding
Each and every comment by Mr. Murty here is worth reading.
“The trap is in the headline of THE BLOG..”
“If a man changes his stance within four days, he has no depth..”
Thank you
One should see Daljeet’s aggressive portfolio in Aug’14. It made huge loss. Also his recent recommendation on Shilpa Medicare. He had written that if formulation mix changed, the profits would double with same topline. The Target Price of the stock increased to 96%.
If it is so easy to change formulations mix in a pharma company, every company do not need its employees but these outside wizkids to boost the profits to multiple fold.
Going into technical operations side of a particular company, the analyst crossed all the limits. Needless to say, the stock tanked.
even well known multibagger maker VP(dont know who this fellow is ,does anybody knows? ) is not exception ,one of his follower response in foloowing link-
http://value-picks.blogspot.in/2014/09/arrow-coated-products-aimco-pesticides.html
Sir.
Plz answer… any further call on Bilcare.?
Under huge loss 🙁
Can i hold it?
one has to be carefully evaluate risk reward ( wear helmet) before following ,otherwise these so called analysts says — marji hai aapki aakhir sar hai aapka
And post his advisory to pull out… stock is up 5% 🙂
Daljeet Kohli again proved wrong here. Godavari Power Ispat turned out to be a dampner while JSPL rallied 23% today!