Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Basics
Abhishek Basumallick
Disclaimer
Please assume I am personally invested in any stock ideas that may have
been referred to in the presentation. My views ARE biased. This is NOT a
stock recommendation. Kindly do your own due diligence and/or consult
a registered investment advisor before making any investment decisions.
Investment Philosophy
What excites me (in a stock!!)?
A lollapalooza effect of more than one of the following factors working
together:
Large opportunity size
Limited competition
Industry tailwind
Pharma, Financials
Great management
Cheap Valuation
Investment Philosophy
When do I sell a holding?
Business deteriorates or management does
something that harms the business long term
Examples
Company
Description
Checklist Details
STFC
Superb management
Good growth; low NPAs
Excellent franchise; unique
customer base of 2nd hand
truck owners
SELL decision
Cyclicality of customers (CV owners) Karnataka mining ban
Supreme
Leading plastic
manufacturer in India
Best-in-class management
High return ratios for a
commodity business
Examples
Company
Description
Checklist Details
Page
Jockey
Speedo
Confirmation Bias
Concerned;
Loss Aversion
Foreign
acquisition
- FCCB
Started
getting
interested
BUY
Zone
Monolithic
under
performs; FCCB
conversion;
equity dilution
SELL Zone
Started getting
interested BUY Zone
BUY:
Valuation
Friendly Management
- 80 yrs record of
uninterrupted
dividends
SELL:
Headwind - No
traction in pre-fab &
monolithic
Increasing debt Debt & FCCB
overhang
Equity dilution
BUY:
Valuation
Business Tailwind Custom moulding,
Prefab & Textile
improving
Possible implications
Possible Beneficiaries
Sintex (?)
Cement (?) JK Lakshmi,
Shree Cement
Banks specially PSU ones
some are really cheap
valuation. There are banks
with PE < 10 & PB
<0.5worth looking at
Canara Bank, Union Bank
Bajaj Finance, SCUF,
Edelweiss (?)
Increase in Mobile /
Broadband penetration