Monday, September 13, 2010

Some queries....from a reader...

I am giving the answer of Mr Mayankbhai query on the main page so that everyone can read it and understand what is going on what people expects and what actually is happening....

Mr.Mayankbhai said... and I Quote:

Hello Sir,

what about the Sical Logistics and ABG Shipyard, eating all the profit of other +ve calls in my portfolio,, what is your advise, hold or exit ?

September 13, 2010 3:34 PM

Mayankbhai said...

Dear Rajiv Sir,

Could you please comment about ABG Shipyard and Sical Logicstics huge loss , in both these loss making recos.. My question is more about , why I end up taking your pics, which are loss making, and due to that fear, lose picking the winning picks.. Regards

September 13, 2010 5:31 PM

My Reply:
Mr.Mayankbhai ,

I m not able to understtand how ABG and Sical are eating all profits.

If it is so then it means that you have put more weightage on these two then others.That is not my fault.

Other thing is, if you feel that you are making loss then you should immidiately sell them.Its your money and your profit or loss.I am no way responsible for anything.

I gave a call of ABG Shipyard at Rs 255 and now it is Rs 249....where is the LOSS? 

Yes,Sical has gone down but not ABG Shipyard....a loss of 6 rupees is eating all your profit of other stocks then I feel you don't neeed to visit my blog or buy what I recomend.
Sical is down but that is part and parcel of game....if you can't digest it I think you need to look somewhere else.
Mayankbhai, Rs 6 loss in ABG Shipyard  is eating all your profit of other stocks?I can't believe this. Can anyone come out and explain how this can happen?

To all Readers:

I again reiterate to all my readers, buy only if you are convinced.Do your own due diligence before buying any stock written here.
Whatever I write here is my own analysis and I can prove wrong.I gives new ideas and new views.To accept it or not , is up to you.
Same thing happened with someone who wrote me that in Stride Arcolab he is at loss.But he didn't buy when I recomended and bought at higher price.But still after period of time, it is going up from even his buy price.....and m sure he is now in profit.
I again repeat, if you can't digest the LOSS in stock market, then this is not the place for you.You will lose your sleep and also become unrestful to disturb others ,viz: ur father, mother,brother, sister,wife, children etc......
If you are going to lose your sleep with a small loss , I think then stock market is not for them.
Be ready for entire investment get wiped off.....I have experianced that.My whole investment was wiped off and had a huge debt.But I decicded to fight with it and overcame that and paid all my debts.
Acussing someone for your failure will take you nowhere.Learn from the mistake you have made.If Mayank has made a loss due to me, then that is a mistake of his and  what he needs to learn from this is,he should stop following me.....It is very simple RULE.
Where you are making loss, you need to stop that thing doing.....
I donno what Mayank is trying to writing Loss Making recomendation!

But I would like my readers to comment how Rs 6 loss in ABG Shipyard can erode all profits of Mayank portfolio?


  1. i agree with u rajeev, and have seen you writting on your every reco to do the DD(due diligence) before buying, so one should do it. and not keep cribbing about one's loss as it is part and parcel of the game as rajeev said, also if one has bought what ever rajeev has reco. he definitely has outperformed the markets on the whole, so one should thank rajeev for the efforts he is putting in without any personal gains to maintiain this blog.


  2. Dear Mr Rajeev

    Can you please suggest regarding ankit metal and power cmp is 29 mcap is 95.34 its book value is 42.8 and yearly sale value is Rs 635, promotor stake is 65%, Planing to issue right issue shortly.

  3. "If it is so then it means that you have put more weightage on these two then others.That is not my fault. "

    Most likely this could be the case..... its like greed thing, most of the calls from here are getting quick attention and new high quickly(even though they are long term pick) and we think to get more profit by investing all money in one script for short time instead of spreading wealth across multiple sector/script. I stil hold ABG, and essar but same time, had a good profit in aegis, more than double in few months only, i am very hopefull for both the script in long term, things can change any time and we never know....

  4. Dear Rajeev,

    Simply Leave him.One reader has written in this blog last week about human nature that thirst for more and more.When u reccommend ,one naturally calculate the profit in future.If ABG is doubled,then profit will be 100%.But These 100 percentage is depended on one's investment.If one buy only 1 share,he can just get Rs.255.If u buy 100,then it would be Rs.25500.So why cant buy 1000 to earn lakhs....All gentlemen in stock market might have suffered the similar pain due to growth calculations with increaing numbers.If incresing nubers can fly over the sky ,sure there is risk of burning wings and hence also a risk of vertical flop .
    My eyes are still sticked with the follwing lines.
    "My whole investment was wiped off and had a huge debt.But I decicded to fight with it and overcame that and paid all my debts."
    If u dont mind and having a free time please tell us that story and how u broke that trap of market.only if u dont mind......

  5. KK,
    What should I say about it.It is a long story which I can't elaborate here.
    Maybe sometime , my mood is good, my mind is at peace, I am not restless and I have time to write without any disturbance,I will write but can't promise on anything.
    But let me write it to all here , preservance is THY name to be successful in stock market.The day you get frustarated with your pick, your are a LOSER.
    The key is to have a very very cood mind.Just like a cool pot of water....pani ka thanda need to have that much of coolness and calmness and have capacity to hold your picks for 2-3 or even 4-5 yrs.....the day one lose patience, you are in for a drubbing.The stock will run exactly the next day and you will curse yourself....
    and much back I have written , which I am again writing.
    "Even 100-200 shares are enough to pay debts or make a turnaround.If the stock one has picked is a multibagger then even 100-200 shares are enough."
    So buy even 100-200 shares of any potential multibagger one knows which is going to be a multibagger, even I do not know.So try to buy anything one feel like a multibagger.
    But calculation is a must.Planning is a must.You need to capitalize on your gains.That is why I always write, sell 50% as soon as stock doubles.That is the best thing to do.

  6. nirash,
    Ankit Metal seems to be a good pick....

  7. dear rajeevbhai

    hope mayankbhai is reading this

    if you have purchased all shares of rajeevbhais recommendation,you must be more than 200% profit by now in totality,so just stop crying and be a man and talk some sense not nonsense.good day

  8. Dear Rajeev

    People must understand the period of consolidation for stocks, which can be long drawn and many times very frustrating. It is the process of change of hands of the stock from the weak hands to the smart hands. Generally, the stock moves after that consolidation is completed. So, the one who is looking for short term gain and/or afraid of the loss will get out of the stock during that consolidation phase to regret later. I think that is what has happened to this person. The best way for him is to get out in case he does'nt have conviction to continue with the picks and move on with something where he is comfortable with instead of posting teasers.

  9. Dear Rajeev ,
    I think mr Mayank is only requesting you to understand and suggest a solution to his problem ... I think you are overreacting in a very hyper active and sensitive manner . Pls try to stay calm and accept negative views too with a pinch of salt .. Personally i dont think Mr Mayank has accused you of anything .. he just wants ur opinion about how to select the right stock from among all ur suggestions ...

  10. Dear Rajeevbhai,

    Need your view on a scrip named Trend Electronics. It is a 10 paid-up share having a cmp of around 90. But the revenue of this company for this quarter(june10) alone is 462 crores and for the 9 months ending 30/6/10 is 1045 crores. But the MCap is just meagre 66 crores. Promoters hold a stake of 48% while FIIand DIIs hold 7%. Company pays dividend too.

    How is the scrip to invest on medium to long term basis ??


  11. Rajubhai
    due to heavy rain this year i think hydropower related scrip benifited.i hold jp hydro,and indsil hydro.
    can i add more at cmp or u sujjest some other hydro power scrip at cmp
    thamks in advance

  12. viplav,
    Read both the queries properly.He says he is in loss in my picks and the loss is so big that it hass ate all his profit of his other pick.
    He is accussing me , man.......He wrote me 2 both of them properly.Either my English is poor that I can't understand what mayank queires is or Mayank English is poor.....How can ABG with Rs 6 loss can become a huge LOSS?Viplav u need to make me understand that?

  13. mech,
    I do not track Trend so no view...

  14. Hello Rajiv Sir,
    I was expecting this to be an interactive two-way blog , and not to be one way, not sure why you would think that I was accusing you of my loss, I was not accusing you for either loss or profit, If you check Sical logistics which was recommended on April 19th 2010, around 96 Rs, today it is 66, which is a considerably big loss as I had 1K+ Qty invested into it. But that loss is not due to you, and I never said that you made me loss, I wanted guidance on how to do portfolio re-balancing on avoiding incidences of ending up picking losing recos, i.e. how much to spread across different pics when one have limited money to allocate.
    Please read again "My question is more about , why I end up taking your pics, which are loss making, and due to that fear, lose picking the winning picks.. Regards "
    My focus is more on problem then person.

    Also regarding two posts, it was because my first post did not immediately reflected on the blog, so I thought if there was any issue, hence I written second post. I have no intention to harm you in any way, all I was seeking from you was a genuine guidance , hence my humble request is please don't feel tht I am accusing you for loss, I am more likely asking for strategy of cutting the losses and picking the winning recos. But if you still feel that I am accusing then it was some mis-understanding at your part,hope I cleared that.
    My request don't take pain to write a separate post for such questions, LOSS as a word implies negative meaning , but does not necessarily mean negative intention of the person who asks questions on Loss making recos.


  15. Rajeev,

    Some point in time, we become greedy.

    I too had become greedy and tried earn much from stocks.

    This made me to go in Gambling mode. I invested all my money in only two scrips. Finally, I lost 50%

    Investing all money in only one stock works only in case where the investor is equally knowledgeable about market and company as a Promoter does.

    In all other cases, it is equivalent to Gambling.

    Many of us (at least Me) invest in company considering hardly 5% to 10% of the fundamental details available.

    In such cases, I strongly feel that averaging the profits/losses is the best option.

    Please consider this.

    Many investors follow cost averaging, by selling a portion once stock reaches 25 to 50% higher price.

    But finally, it is the confidence in Self Study/Observations and ability to time the profits determine your portfolio growth.

    Please avoid blaming others for your mistakes/fate.


  16. Mayank,
    Let me write it here, if you feel that what you wanted to say I didn't understand properly then you need to write me at my id.....
    But when you write Sical and ABG is the culprit for your loss then it is not the proper way to write.
    I give calls here on my own understanding and one needs to buy on his own.The profit and loss are both his, I never ask for any renumeration for any call I give.
    But that now I understand exactly what you mean to say,well...I can't advise on that....see BPL Ltd which I recomended at 36 is now depends on your luck as well.
    Mayank ,even though my writing sometimes becomes harsh , believe me, I have no grunt for anyone.
    Anyone after writing me stuff which I donot like, I may react the otherway but that is for the timebeing.....but only when someone keeps on teasing me or irritating me on same topic I get disturb.
    Mayank,you are welcome to ask me anything and if I feel like I have answer I will definately reply.....

  17. Sumeet Industries.. CMP 28... Multibagger in Making....from


    I came across Sumeet Industries recently… and found it very interesting story…. It has all guts to emerge as a potential multibagger in years to come…… I believe still the company is in nascent stage…. Good Things has started to come out now….

    Market Cap : 115 Crores

    Turnover : 370 Crores… ( 3 times from MCAP)

    66% of Stocks are in strong hands…

    The company started as a yarn manufacturing unit and has now grown in a huge conglomerate with various businesses with an annual turn over of Rs. 1200 million (USD 27 million).

    See the recent announcements at bseindia website… they are quite interesting….

    Sumeet Industries Ltd to Invest 530 Crores in the Green Field Project of 200000 tons per annum of new continous Poly Condensation (CP) Plant in next two years and further expansion in the production capacity of POY and FDY by 47000 TPA and another 26 MW Gas Based Genset Captive Plant.

    Chairman Said that company is getting overwhelming response in the quality of POY/FDY produced from recently commissioned project and full results of this project will reflect in this year balance sheet. They are expecting to achieve turnover of 700 Crores in this financial year…. It means Just double from current turnover…. There are futher new mega expansion programs yet to be announced.,…..

    In the first phase of expansion production capacity of POY and FDY will be increased from 53000 TPA to 100000 TPA(Just double) and setting up another 6MW Gas Based power Plant with total project cost of 130 Crores…. After completion of this expansion the total turnover of company will be increased by Rs200 Crores and EBIDTA by 40 Crores….

    In the second phase of Expansion plan, new green field Project of 200000 TPA continous Poly condensation Plant (CP) will be setup to manufacture the Bright FDY Yarns, POY Yarns, Yarn Grade and Bottle Grade Pet Chips and setting up another 20MW Gas Based Power Plant with total project cost of 400 Crores… After completion of this project Company will achieve record turnover of 2500 Crores ………

    There will be issue of Equity shares up to an amount of 60 crores through QIP/ADR/GDRs…… and this is going to be very interesting…. I don’t know at which price they will place share but guess is that it will be much higher….

    Friends, this is just the beginning for this company to become a true multibagger….. it is showing all signs of a multibagger……

    Till now no big brokerage house is holding its
    stocks...... I am sure everybody will try to catch it after a timeframe of 6 months.. when the real results will start flowing in........ Just watch it..

  18. Dear Rajiv Sir,
    I was the silent observer until now, and it was my first post ever, I am sure I was not teasing you by writing many times on same topic,. I would have remain silent forever but I written this post as I felt the need to check with you strategy since even the market making new highs, shipping-logistics stocks are not running. so I wanted to cross check with you if I have to hold them or exit , or possibly could you guide on how to re balance portfolio based on your recos, to cut the losers and add more of winners. Regards.

  19. Nirash,
    Sumeet can become a multibagger.But I will not put my money there.There are scores of Tex Co in India so why not go with excellent management like Super Sales or Super Spinning, or Suryavanshi Spinnign, Loyal Tex etc....

  20. Mayank,
    It is difficlut for me to guide someone on his portfolio.I do not know his capacity nor I know what he is having and if I do that, then when will I do my own daily routine?and after that write here on my new picks?
    Mayank, that you have to decide.What I can say is, Sical and ABG has excellent fundamentals....

  21. Dear Rajeev,

    Your Recomendations about BPCL , HPCL and IOC are working very well . But still I wondering why Aban is not showing its colours as its losses is recovered by insurance company.

  22. TT, Learn to make out the difference between stocks.HP/BP are oilrefining and producing Cos while Aban is Oil Exploration Co.So you can't compare HP/BP with Aban llyod....

  23. Thank god there is better understanding now between the poor Mr Mayank and urself , Rajeev . All's well that ends well i suppose . I hope Mayank can make some money from ur reco's and feel a bit happy in the near future .Afterall , the world isnt gonna come to an end anytime soon ...

  24. Rajeev Sir,

    You are really our "Guru" in stock market. and you are certainly playing Guru's Role. Now it is up to student what to pick .

  25. Rajeev,
    liked very much the way ending up the issues with Mayank.I also considered his words were in negative moods.Anyway the words from him that time could not express his inner feelins.,although he could do this time with perfection.Approah of Mayank is also heart- touching .This article could have wound his ego,but he understood the importance of situation and accept a most appropriate way to address u.very good.
    Dear Mayank,I alredy felt what happened there when read ur first message.Please read my early post and reply of Rajeev.All gentlemen face the same problem in their sharemarket life.see Rajiv's experience he mentioned.Here u baught 1 K. (Sorry I couldnt understand what u actually mean-I suppose u has IK Share.).For a retail investor I think it was not a good idea.(I know u r not a big player with multiples of lakhs and millions.).Because if ur money is invested on one or two stocks u couldnt take instant actions with free mind.
    NOW SENSEX IS FLYING...but u makes nothing that disturbs u in deep. But, Sorry brother,dont think that way .Still midcaps and smallcaps couldnt achieve that momentum and our porfolios could not run with the sensex.After the peak of bull rally, a correction rally may be happened.But ur portfolio is not likely to be hit worsely that time.If u believe in that stocks wait with patience or slowly average .
    Dont take my words in negative meaning.
    I stucked even with some sensex shares for long.
    See write up of Prashanth.(I recall his one message that he was that time after India bull.)So dont patient for right time.I have same experiences with various stocks which are returning in its time .Please note dont play with the large qty.Because we would be helpless on sale when we get clear picture of bad news.

  26. Dear Rajeev

    although there is no negative global cues
    I feel this bull rally lacks some genuine approach.Dont FIIs value the Cos except some SENSEX leaders....!!Are they come here for just paying...?

  27. KK,
    That is the catch here.When still everyone feels like u r felling, market keeps climbing up and up.....and well,the reason they go for sensex stocks is because they can;t buy outside sensex per their guidelines....but m hearing that bse is going to increase the srips from 30 to better sensex valuation and better p/e will also get rated...

  28. Mayank/KK,
    It is a bad idea to invest whole amt at a time in any one stock unless it is going cheap.And with stocks which are quoting high, there is always a downward risk.Means a correction is always in offing, so better buy any stocks in SIP manner.
    Stock goes down vertically but never goes up vertically barring some exception.So one can always get a chance to buy lower.
    Mayank , if you don't feel writing good in English, you can alwats write me in Hindi..I am good in Hindi as well...