Stocks for the long and short term portfolio

[jamit_05]

Ok,,thanks....I'll manage Portfolio in money control only...now they offered http://goo.gl/25nYRD....as per view what's your suggestion...

Not worth it. Besides, what is there to manage. See price at end of every day and update in the excel sheet.... !

 

[stockman]

Re: Why it is justified to buy stocks of high PE.

To answer your question, I will ask you to go back to your objective of making an investment.

My objective of investment is to find a company, in which I can stay invested for a very long term, like a decade or so and in that period see the EPS of the company consistently grow by around 10% and then flatten out, to give me an Annual Yield of at least 25%.

We have three things here:

1) Company should see the other side of the decade
2) Grow by 10% in that period (in EPS, not in Net profit/Revenues and then dilute equity!)
3) Finally, become stable.

So, when I emphasized on the importance of EPS, I was talking about point #2. And all the while, I assumed that point #1 is in place.

Now, what goes into a company to ensure its survival and growth over two economic cycles is a very interesting subject, which I will be glad to make a post about.

Regards,
Amit.

PS: Many Small Caps show promise and in the next down-cycle fizz out. This % is very high in Small Caps. Do you believe Persistent Systems can survive a decade and grow its EPS? If so why?

Amit - I'm not sure whether the company can go through a decade.. but there would always been a possibility of good/innovative companies either been acquired by other majors or sustain over a period.. With the US economy to recover by over 2.3% Q2 2014 & depreciating Indian rupee.. it is expected that the IT industry to get major boost out of it.. so anticipating all this I thought this company has the potential of surviving another half decade!! Lil skeptical.. as I was not able to get better data about this company & its future propects.. I will make further research & post it, provided if I get some good findings about the company...

 

[jamit_05]

Re: Why it is justified to buy stocks of high PE.

Amit - I'm not sure whether the company can go through a decade.. but there would always been a possibility of good/innovative companies either been acquired by other majors or sustain over a period.. With the US economy to recover by over 2.3% Q2 2014 & depreciating Indian rupee.. it is expected that the IT industry to get major boost out of it.. so anticipating all this I thought this company has the potential of surviving another half decade!! Lil skeptical.. as I was not able to get better data about this company & its future propects.. I will make further research & post it, provided if I get some good findings about the company...

I like the words you used in this post.... in researching a company a person should start with words like "skeptical".

I agree the prospects of IT industry are good in the long term. But, unless I am 100% sure about small caps I do not want the headache of holding one.

In the coming months, I will be able to demonstrate what does a good long term investment look like.

 

[stockman]

Amit - Another interesting wedlock in the pharma industry that makes me go wild.. Weyth & pfizer are merging.. the profitabillity of pfizer seems to be good & weyth is somewhat better.. my question is..
- Will this be a big game changer?
- Will this lead to better market accessibility?
- Does it increase the market share & profitability?

Your views for long term?

 

[jamit_05]

Amit - Another interesting wedlock in the pharma industry that makes me go wild.. Weyth & pfizer are merging.. the profitabillity of pfizer seems to be good & weyth is somewhat better.. my question is..
- Will this be a big game changer?
- Will this lead to better market accessibility?
- Does it increase the market share & profitability?

Your views for long term?

I will be honest with you on this one. I only read about it in the papers this morning. In the coming months I will be interested in seeing the Financial Statements and see how much is their spending, income and RoA. Till then I would only be speculating.

 

[poolspan99]

Amit,

Of all da stocks that you have recommended as of now all are way above the fair price, again, as suggested by you.

If i wer to buy something now, what scrip that would be?

 

[jamit_05]

Amit,

Of all da stocks that you have recommended as of now all are way above the fair price, again, as suggested by you.

If i wer to buy something now, what scrip that would be?

To give you a point of reference, Nifty is near its all time high. Hence, stocks are expected to be priced on the higher side.

Bargain hunting should start when Nifty touches 52-W lows.

 

[stockman]

Amit - will the nifty go sub 52 week low levels?? If yes, wen r u expecting it to happen? Question out of curiosity

 

[stockman]

Read somewhere about this.. This company has made major movements in the recent past.. Has reduced their debt considerably n considering to reduce further.. Selling out all of their overseas business n has stopped acquiring business outside India as it s not making good profits n killing their Indian business n profits as well.. Have made their first profit of 32 cr in the Q2'13 after making 5 consecutive quarterly losses.. I believe Mr. Singh has shown better interest in d Indian arm now.. Yes, I'm talking abt fortis health care..

Amit - What's your view on this? Is it better to go for a long ride on this.. than the giant Apollo?

 

[shreeux]

To give you a point of reference, Nifty is near its all time high. Hence, stocks are expected to be priced on the higher side.

Bargain hunting should start when Nifty touches 52-W lows.

Its possible...or due to election....