It is finally happening! Ultratech acquiring Kesoram’s cement division in the form of 1:52 Ultratech : Kesoram 100% equity share swap ratio. Valuing its clinker backed cement capacity of 8.5 MT at $87/MT and total cement capacity of 10.75 MT at $70/MT. Another case to justify that M&A in cement sector happens at least closer to its replacement value, despite the existing problems.
I recommend you go with Vishwanath’s approach. His approach by far makes sense from risk vs return perspective.
Thanks Praveen. Good points. Actually I want to select only top 10 stocks (instead of top 20 in Vishwanath case) based on return and volatility criteria and for a stock to exit, it has to fall outside top 20 (so a gap of 10 stocks instead 5 in case of Vishwanath). For the universe, I agree that top smallcap top 250 makes more sense.
Few things that could occur.
Thanks
Praveen
, if I would have got the allotment, probably I wouldn’t have said that… “angoor khatte hain”
But I think the point I was trying to make is that often there is lot of gas in listing day price for an overhyped stock and that fizzles our after 1 or 2 quarters. But if someone wants to exit shortly after listing, that’s a super gain.
It was my first such pick of a VCP pattern and I am glad that it clicked. In just two days stock went from 696 to 732. Let’s hope it continues like this.
Huh? It more than the 2x IPO allotment price. I don’t figure how you say that not getting allotment was the best.
Those buying on listing day is different
This is really incredible. I am also contemplating this strategy to adopt in a few weeks time. However, I am thinking to do these tweaks:
Also, my criteria will be slightly different:
I will rank the stocks based on weighted average return in last 12, 6 and 3 months and also on their Sharpe ratios.
I will also select technically strong stocks such as stock above 200 SMA and 100 SMA and near to their 52 weeks high.
Though I am a fundamental investor by heart and will continue to be but I want to diversify my strategy to make extra alpha on my returns.
What do you think about this? Please suggest.
Thank you. Will update.
Hi, this is very impressive. Please share your weekly updates to the PF as I would like to follow it and invest in it. Waiting for the Dec 4th update! 