@vml , Totally agree with you. Along with charts, breakouts, we need to incorporate fundamentals to avoid such traps, even if returns may suffer…But big drawdowns can be saved.
Posts tagged Value Pickr
Building a Community: Rule-based objective approach to fundamental long-term investing (16-07-2024)
hi
link to backtesting on FidelFolio’s backtester tool for stock screens please
regards
Godawari Power – Any Trackers? (16-07-2024)
All of us know about the cyclicity of GPIL business. There is no need to say that profitability will be affected if iron ore prices go down. But besides this, there are several other things to monitor, e. g. diversification, value addition, capacity changes etc.
Incidentally, buyback proceeds have been credited. Surprised to find that acceptance ratio is more than 20% in my case, where as less than 1.5% equity was bought. Stock was on fire intraday, probably related to this.
RPG LIFESCIENCES – Change in Governance and Performance (16-07-2024)
Hi, Hope you are still holding RPG.
Had a BEAUTIFUL journey from all the way 600 ( in July 22) to 1800 as of today i.e. 16 July 2024.
Special thanks to Sajal Kapoor sir and Aditya Khemka sir for suggesting this one and helping me in building the conviction in this stock.
dr.vikas
Maharashtra seamless-a value plus cyclical play (16-07-2024)
Hi All
Will the increase in exploration and production of crude oil improve the demand prospects for seamless and ERW pipe industry, and Maharashtra Seamless in the given case?
Thanks in advance
DIY Momentum QnA and Discussion (16-07-2024)
I have a different take.
Quant strategies (Momemtum/TA) have some issues:
-
Poor quality : The strongest trends are seen in low quality stocks. This gets worse as a bull market progresses. When a momentum strategy works for long periods of time you end up allocating more of your capital to duds, and when the party ends you are unable to exit.
-
Operators are smarter : Operators also know about TA. I have seen a pattern in a few stocks when the stock price gets pushed down without any news just before a big upmove. Probably stop-loss and margins calls get triggered and then the stock makes a big upmove. So purely rule-based systems cant participate in such price movements.
-
Perpetual arms race : If all traders use the same methods, then no one makes any money. So you need an edge. The larger/smarter traders use far more sophisticated methods than discussed here.
Having said that quant methods are quicker at identifying trends than waiting for a quarterly financial result. I see it as a way of fishing out insider activity. If well informed investors are accumulating some stocks - it may show up as TA patterns like breakouts, crossovers or whatever.
Atma Nirbhar Bharat – Stock opportunities (16-07-2024)
Have you identified companies that look interesting due to this list.
Atma Nirbhar Bharat – Stock opportunities (16-07-2024)
EFC – Entrepreneurial Facilitation Centre (16-07-2024)
The pending scheme of merger raises some red flags for me. Wondering if anyone else has gone through it. These are my notes from the same:
Date | Particulars | ||||||||
---|---|---|---|---|---|---|---|---|---|
June, 22 | Amani trading and exports to be renamed and promoters to conduct a share swap for the new company EFC (I) ltd. | ||||||||
Valuation for the swap arrived at 50 crs | |||||||||
July, 22 | Warrants worth 24.5 crs also issued to new shareholders | ||||||||
SEBI recorded a lapse in compliance regarding in-principal application for seeking shareholders approval done on June23, which shouldve been done on June-22 | |||||||||
Aug,22 | Listing in NSE was approved | ||||||||
Nov,22 | Company decided to incorporate a subsidiary in which they hold 51% called Whitehills Interior | ||||||||
EFC Ltd is also a wholly owned subsidiary of EFC (I) | |||||||||
Feb-23 | Stared a co-working space in Ahmedabad with 995 seats | ||||||||
July-23 | Scheme of arrangement between EFC (I) and Whitehills | ||||||||
EFC owned 51% stake, and rest promoters are the same as EFC | |||||||||
This resulted in total promoter stake in the main company to hike from 54.9% to 69.08% | |||||||||
Valuation report gave whitehills a value of 545 crs!!!, at a turnover of 4 crs, and incorporated under a year ago by the same company | |||||||||
EFC (I) consolidated rev was 100 crs with a value of 587 crs | |||||||||
77 shares of EFC were given to 1 share of Whitehills, and the promoters bagged a cool 269 crs from this swap | |||||||||
37,73,000 equity shares issued at price of 713 | |||||||||
https://www.bseindia.com/xml-data/corpfiling/AttachHis/e84adf22-1017-406d-b311-70b6b0149d1c.pdf | |||||||||
Aug-23 | Stock split from face value of 10 to 2 | ||||||||
Dec-23 | The Board at their meeting held on 20/07/2023 proposed a scheme of Amalgamation of the Subsidiary Company M/s. Whitehills Interior Limited with the Holding Company M/s. EFC (I) Limited and accordingly under Regulation 28 & 37 of SEBI (LODR) Regulations, 2015 read with SEBI Master Circular No. SEBI/HO/CFD/POD-2/P/CIR/2023/93 dated June 20, 2023 and SEBI Circular dated March 10, 2017, bearing reference number CFD/DIL3/CIR/2017/21 filed an application for In-principle Approval for the proposed Scheme on 05/08/2023. Presently, the In-principle Approval of the Scheme is pending before the Stock exchange. | ||||||||
The Board in the meantime approached few Investors for the purpose of immediate need of the Funds for the company for the working capital requirements and other general corporate purposes. Considering the proposed issue of up to 97,07,383 equity shares of face value of Rs 2/- each and their full subscription by way of Preferential allotment of Shares there will be impact on the pending scheme. |
Disclosure: Not invested