HBL as a company has been discussed threadbare in the relevant thread on VP… And even after all the knowledge related to the company was shared, the stock price remained range bound from around 85-110 for many months. That was the time to first of all do our own research on the company and if there was conviction, build positions by accumulation. The price swings offered attractive price points multiple times to accumulate the stock.
Now the stock price has run up 60-70% within a few weeks. From here, for fresh entry, the price is not as attractive as it was when it was available when it was consolidating between 85-110.
Key learning from the whole post is that its very important to buy into good companies when price points are attractive. There is often a lot of frustration when you buy during times of consolidation because when stock price keeps moving in a tight range for many weeks and months, the conviction also keeps getting questioned and its often difficult to buy and if already bought, keep holding on. But one has to learn to overcome these kind of problems and if that’s done, and if your call is right and entry point is attractive, returns are exceptional.
Regarding your queries, we have to figure out what is absolutely relevant to this company and what is of lesser significance. Coming to your queries, 1. Regarding top management not aggressive for growth, this is a company that has been laying foundations for growth since many years and its only now that it has started experiencing tailwinds. 2. Regarding majority of shares owned by Barclays wealth, you can call the company and ask for shareholding structure and understand how it stands. 3. MP ( I assume this means market price) has runup strongly and as mentioned before, entry at 165 is not as attractive as entry at 85-110.
Investing in small caps is somewhat tricky. Usually picture is not totally clear at the beginning. It requires a lot of digging and scuttlebutt. We at VP are lucky that guy like @Anant keep sharing their ideas when there is a lot of juice left in the story. Our job of doing a lot of digging is already done when the write up is put up and further posts keep coming up. The colloborative nature of research provides all the details on the relevant thread. So it is our job to go through the thread atleast once and preferably more than once to get an idea about the business and understand relevant points about it.
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