Tuesday, May 10, 2011

Kaleidoscope Films...A case Study......

I am tracking this stock since long and hence I decided to write today on this.
It is in Media sector and nothing to boast on sales and profit .It's FV is 1 and hence at Rs 38 , it is Rs 380 on 10 FV.
But still the stock has made a high of Rs 42 recently and still at 38 even today.
Now let us go back and see from where it came from and where it reached.
In 2006 it was 82 paise around july , means .82 and then it went up to make a high of Rs 5.80 in 2007 in Jan and then again it went down to 2.81 in Oct 2007 and then again made a high of 8.40 in Jan 2008 and then again went down to 38 paisa in Dec 2008 and then for the 7-8 months in 2009 it remained below Rs 1 around 90 paisa untill almost July 2009 and then slowly and steadily moved up from below one rupee to Rs 42.........
The point to note here is from 39 paisa to 5.80 and then again 2.80 and then to 8.40 and then again to 98 paisa and then the BULL RUN.......so investors were twice deceived to throwaway the penny stock and take exit from it.......
Isn't that a great run.......from July 2009 at 98 paisa to rupees 42 in Apr 2011.Means in almost over one a half year the stock has become a 42 bagger!
So sometimes even penny stocks which we feel is now no good and keeps on going lower and lower gives  excellent return.
The point I am trying to make is even if someone has bought a penny stock and it keeps on going down and down , one needs to hold on with it because we never know when such stocks will start making move and give mutiple returns.
A stock quoting at 40 paisa in 2006 is giving 100 times return in 2011.5 yrs.....is what one should be holding....and one can hold in thousands or even lacs shares ....at 1 rupee or 40 paisa.....
That is market.No one knows what is going to happen next.What is there in store for any stock.
Remember my one sentence always......
Untill the stock is not cornered by players it will never run.There should be paucity of floating stock and there shouldn't be any sellers.So, for cornering shares it can take 2 yrs, 3 yrs even 4 yrs as we saw in Kaleidoscope Films.
And when the run starts there is no looking back.It is all boasting that I bought this stock after looking the credentials and I made money.Untill you are lucky to make money one will never make a big money in stock market.
That's it.....



  1. sir.
    i wanted to know about the relative effect of increasing oil pries (crude) on the fmcg companies like amar remedies. is there raw material comprises crude as well

  2. gud one... I have one such stocks Cals refineries i am having it for last six months..it is range bond also i have read many people writing about it that its not good stock but i am still holding it as for long term as it is very cheap and now its much to lose in it and offcourse if their project starts it can give me super returns..

  3. Dear Gautam,
    I do not track Amar Remedies and hence no view but if the raw material is related directly to oil price then yes, if the crude price going up then it can have impact on bottomline.
    But it depends on the demand of the product and if the demand is good then Co will be able to pass on the price rise to the customer and hence in that case meeting the management makes sense......

  4. Sanjana,
    I agree here with you.Hold on to Cals Ref makes sense.At 40 paisa nothing to lose.....hold as if you have invested in a 5 yrs KVP....

  5. Dear Rajeev

    Pharma major Venus Remedies today said it will commercially launch its new drug, `Trois`, for treatment of arthritis in June or July to tackle what is predicted to become the "biggest epidemic" in India by 2013 with a $672 million market for rheumatoid arthritis drugs.It also said that it was carrying out research on developing innovative drugs for treating viral diseases and immune system enhancing medicines."We will launch `Trois` in the month of June or July," the company`s Joint Managing Director-cum-Director Research Manu Chaudhary said today."This nano technology-based product, Trois, has many advantages, as it has got 178% faster penetration that leads to quick onset of action resulting in enhanced bioavailability, reduction in pain and inflammation associated with arthritis," Chaudhary said.This technology is fully developed and the patent for this technology has already been filed and grants are expected soon, she said.According to a survey, nearly 70% of people above 65 years of age are suffering from arthritis in India and it would become the biggest epidemic of the country by 2013.The rheumatoid arthritis drug market in India will be more than double by 2013, growing from $296 million in 2008 to $672 million in 2013.About 1% of the world`s population has rheumatoid arthritis. Its market is expected to exceed $23.12 billion by 2015.Arthritis is one of the most chronic health problems in the world and one of the USA`s most common causes of disability. An estimated 46 million adults in the United States that have arthritis and related conditions could benefit from `Trois`.

    Good going for venus remedies a lot of news flows. currently trading at Rs 203/- PE below 4 Full year EPS 53.


    Vishnu R Nair

  6. Dear Rajeev do you track PSL I dont know why it is not miving up even after good fundamentals

  7. kuashal,
    Market behaviours are strange.....stock looking no good gives a multibagger return and ignores good stock...