Nowadays my mail box flooded with mails requesting to express
opinion on Concurrent India Infrastructure Ltd after recent
developments in the company. I really wonder ,how a small
company which changed its name and line of business recently
getting this much attention from investment fraternity.
On the other side I am really afraid because of my past experience
about over publicised companies in the past .
Anyway I would like to express my view on mid-small caps
generally and not on any company specifically.
1) I strongly believes that , It is the commitment of any
good management to come out with an explanation about facts
to its share holders,if there is any strong allegations about any company.
2) If any company spending much time and energy for publicity
and announcement ,such companies should be treated with caution.
If any company is working really well and growing steadily
investors will eventually find it out and it will get deserved
valuation in long term – promoters should concentrate in
business rather than publicity .
3)If any company announcing business deals only with unknown
counter
counter
parties and parties outside the country ,such companies should be
treated care fully. In the case of deals with companies outside the home
country , it is not very easy to verify the facts ,which increase the chance
of foul play. Especially, if the company is very small and no previous
credentials of large project execution ,it is not very easy to get large
contracts anywhere.
4) If any company announcing only the beginning of various
projects and silent on its completion , it is difficult to swallow such
claims as such
5) If a company or promoter group lost its glory due to serious
allegations and no effective efforts from promoters to clarify their side ,
such company’s will underperform even if they declare excellent results later.
This is because investors will sceptical about the results ,
whether it is genuine or fabricated.
6) In a bull market Small and midcaps are moving not only because
of fundamentals , anything possible if the parties behind any company
is smart enough and their pockets are deep ,but such up move may
not last longer.
7) IT IS STOCK MARKET - EVEN SMART GUYS MAY BE CHEATED BY SMARTER ONES AND BOTH BY SMARTEST ONES.
7) IT IS STOCK MARKET - EVEN SMART GUYS MAY BE CHEATED BY SMARTER ONES AND BOTH BY SMARTEST ONES.
This is my general view on small and mid cap investing and not specific to any company.
Dear Valuepick sir,
ReplyDeletewonderfull lessons for retail investors. I have watched Compact disc, some of my friends even forced me to buy it because of high EPS, but i rejcted thinking even if it is high EPS why promoter holding is dam low and no dividend albeit it is profit making company etc.
All the publicity stock never keep on run, look stocks like how indus ind, yes bank, mcnally bharat, hind dorr, FDC ltd, moving in good way and funda sound stock too. :)
When stock become public then its best time to offload the stock :).
Thank you
Thank you
is it the same person arun blog
ReplyDeleteArun the Stick Guru
ReplyDeleteHi Anony
ReplyDeleteI could not understand your question ,pls explain