1. DIYTechnicalAnalysis is a private community of traders and investors interested in building wealth from Indian equity market. You can become a member with a one time registration fee of ₹199. Click here to become a member

Need your views

Discussion in 'Investment Analysis' started by basantv2011, Jun 6, 2014.

Tags:
  1. basantv2011

    basantv2011 New Member

    Joined:
    Dec 30, 2013
    Messages:
    15
    Likes Received:
    1
    Hi Shabbir,
    I am planning to invest and have shortlisted some of these companies for short to medium term perspective.
    1. Shipping Corp (SCI)
    2. Chambal Fertiliser.
    3. Sintex Industries
    4. A2Z Maintenance

    Can you please share your analysis/advice on these stocks and growth prospects as per CMP?

    Thanks,
    --Basant
     
    basantv2011, Jun 6, 2014
    Share #1
  2. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,699
    Likes Received:
    1,940
    Basant,

    Can you please tell me what is your timeline and also what is your investment objective.

    Thanks
    Shabbir
     
    shabbir, Jun 6, 2014
    Share #2
  3. basantv2011

    basantv2011 New Member

    Joined:
    Dec 30, 2013
    Messages:
    15
    Likes Received:
    1
    Shabbir,

    My timeline for Sintex and SCI is 1 year and for Chambal and A2Z is 3-6 months.
    If prospects look better then I would continue for long term with partial profit booking.

    Thanks,
    --Basant
     
    basantv2011, Jun 9, 2014
    Share #3
  4. basantv2011

    basantv2011 New Member

    Joined:
    Dec 30, 2013
    Messages:
    15
    Likes Received:
    1
    Sorry, I didn't get the investment objective part of your question. I think investment is to make profit within the stipulated time frame.
     
    basantv2011, Jun 10, 2014
    Share #4
  5. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,699
    Likes Received:
    1,940
    Investment objective is what you want to be doing with your investment. If you have trading as the objective, it is something different but if you want to be building wealth with long term investment, you invest with different stop losses.

    Like you say you have 1 year for some stocks and 3 to 6 months with others and I could not see a reason for that and it should be like you have x amount of money that you can invest for 1 year and y which you may need in 3 to 6 months. Right. Why stock specific timeframe.

    SCI and Chambal Fertilisers are avoid because of gap ups.
    A2Z and Sintex depends on Target and SL.
     
    shabbir, Jun 10, 2014
    Share #5
    basantv2011 likes this.
  6. basantv2011

    basantv2011 New Member

    Joined:
    Dec 30, 2013
    Messages:
    15
    Likes Received:
    1
    Thanks for detailed explanation.
    I have chosen stock specific time frame because
    1. Sintex: Sintex has good fundamentals and posted better result in last quarter. It's FCCB debts will improve with rupee appreciation. I have chosen this stock for long term (1+ years).
    2. SCI: SCI has given good result after many years and it is quite undervalued. Further improvement in result will boost the stock price. (Time frame 1+ years).

    3. Chambal Fert: This stock I have chosen to ride the pre budget wave and if something +ve for the sector in budget then I will continue or exit.

    4. A2Z: A2Z had fallen due to bad economy and few order cancellation last year. It is trading at almost low point. Although, they are into green sector which has bright future but their huge debt/losses makes me confused. Whether I should buy because of low price, good business or should avoid because of debt?
     
    basantv2011, Jun 10, 2014
    Share #6
  7. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,699
    Likes Received:
    1,940
    Stock is consolidating for few sessions after breakout and so can be a good entry with a stop loss of 100. I would prefer to wait even for a breakout in this stock above 105 as well.

    This stock is also doing good but then with a stop loss of 58, can be good entry but if such big stop loss is not ok, should wait to form new support levels like Sintex which is forming 100 as good support.

    The big red candle is a worrying factor and so wait and watch for couple of trading sessions at least.

    A stock has gone from 280 levels to 8 odd levels in 3 years and so there has to be something that we may not know and so I would not invest in this stock because as the stock moves up there will be lot of resistance of people who are stuck in this stock and left the market with only this stock in portfolio to come out of it at no profit no loss kind of scenario.
     
    shabbir, Jun 11, 2014
    Share #7
    basantv2011 likes this.