Some updates – This was a quarter in which I had made negligible churn until last week. All that changed with the HOEC (management) performance. I have had my trust evaporate overnight with what transpired last week, so I have booked out almost all of my position.
I have added to my positions in Coastal Corp, Time Technoplast, Mold-tek Technologies and Dhanlaxmi Bank (thanks to the poster above) from some of the cash raised from selling HOEC, while retaining rest of p/f as is.
Coastal Corp, Monthly – I think this video is worth a watch to understand the business. The company is diversifying into ethanol (grain based) and also has found Oriental markets to export shrimp to, to diversify away from US. They seem to have long-term contracts here, so I think Coastal’s performance could diverge from other US-focused shrimp players over the next few quarters. Chart looks good technically as well.
Risks:
- Unsure of margins in Oriental markets
- Govt. sets the price of ethanol, procures it and also provides grain and presumably chooses grain pricing – you can’t have a worser business when it comes to being at the mercy of the govt.
Time Technoplast, Monthly – I have had an earlier trade here around 80 levels but had a SL hit (should be in this thread). I added again at 110 when it looked about to breakout and again around 135-140 levels last week. Fundamentally business has delivered highest PAT while still trading at much lower than ATH levels. The composite cylinder business is doing well and I believe its trading at cheap valuations
Risks: It has been historically cheap, so expecting it to re-rate might be based more on hope
Mold-Tek Technologies – What I understand is fairly basic from the first concall of the business. The promoter appears ambitious and seems to have built a good business. The mold-tek thread has had some very good posts of late. While the employee cost indicates this is low-tech work, I think the differentiating factor of the business is their ability to train people and to have presence in the US to play the cost arbitrage. Acquiring an architecting firm in the US should strengthen the moat and also improve margins further, if they do manage it. Seems like a decent play, given the valuations. The risks are that we might be overpaying for a business that might have no moat. I am following the thread to understand the business better, as I have a very average understanding at present.
Technically, current month needs to close above 350 to ensure continuation of the uptrend from the previous breakout
Disc: Exited HOEC. Have positions in Coastal between 200-250. Time Techno between 110-140. Mold-tek Tech between 310-335 and Dhanalakshmi Bank around 24 levels. I am no expert and my understanding of these businesses is very shallow (and allocations reflect that)
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