Dear Sir,
Is it alembic limited or alembic pharma
Aurobindo was one of the first ANDA applicants to submit a substantially complete ANDA with a paragraph IV certification for CRESTOR® (rosuvastatin calcium), therefore, Aurobindo is eligible for 180 days of generic drug shared exclusivity. The product is launched in the US market.
link to Aurobindo pharm’s press release of 20th July 2016
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Swapnil …Any update from Torrent Pharma? They have also generic version of Crestor but any news about final FDA approval?
check Torrent pharma thread for recent update shared by management in ConCall regarding Crestor
Hitesh bhai
This is a broader question on your investing strategy. I know you are someone who are not averse to trading and you use techno-fundas to pick stocks using pricing patterns. You have probably become much more of a value investor over time.
Do you still maintain a momentum portfolio or a trading portfolio where there are some stocks with strict targets/stop losses. this maybe based on charts + valuation.
I wanted to allocate a small portion of portfolio (<5% of total portfolio) for momentum investing and I wanted to hear about your experience current/past on such kind of investing.
My approach here is
- apply first level of fundamental analysis - business quality should be high with good growth prospects. also choose mid to high market cap stocks to ensure liquidity and easy exit.
- Valuation typically is not cheap and that stops me from taking a very big positions in the value /long term portfolio. But I will still avoid very high priced stocks
- Look at the charts to identify the trend - I would want to invest in stocks with strong momentum ideally making 52week or all time highs
- Identify stop losses based on trends and charting based on critical support levels and my appetite for losses
- one of the things I am still debating is whether we need to keep targets based on trends or valuations. I am leaning towards no and staying long as long as I do not see a trend reversal. If I continue to see momentum I am happy to stay invested even if valuations get a little high as fundamentally I like these business for their quality.
I know the risks involved here and I am probably not making the best use of my time but more I learn and read I feel that I need to be open to different kinds of learning. In my experience I have found that averaging up based on fundamental growth in business is a good way to build position in a stock. So in a way I am trying to ride the momentum anyway but on a longer time frame with my full portfolio.
I think there is some value in giving credit to the market and the fact that market recognizes the value and prospect of a business and it is good idea to make money with the market on a good business
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Nnaik
I do go for some trading/opportunistic bets as and when I feel confident about them.
There could be another way to go about what you suggest. That is to look for a lot of stocks making new highs or 52 week highs and try to figure out why these stocks would keep going up. If I can make out the triggers with confidence then I would be glad to buy these kind of stocks. But I always have it in the back of my mind that these are trading/opportunistic bets and I dont mix them with my long term bets. Except in the happy circumstance that I have got into a really great business accidentally trying to go for opportunistic or trading bet. (case in point being Canfin which began as an undervalued opportunistic play but the company continued to surprise me with its results with the consequence that I continue to hold it.)
Having stop losses is a tricky thing. I think its always prudent to have a rough idea about the kind of returns you want from these kind of bets and once desired returns are achieved, get out or atleast have a calibrated exit strategy at various levels.
These kind of bets should be likened to high asset turns.
regards
hitesh.
10 Likes
Hitesh bhai
Torrent Pharma Q1 result is disappointing more than expected. What is your inputs on today’s result? Will it be good to hold for long term growth story?
@hitesh2710 Hi Hitesh,
How do see the valuation of the overall market after the current run-up? Are you fully invested?
Thanks.
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Hi HItesh,
thats interesting. i too follow the same and it has worked. btw of late i have seen a lot of smallish companies (<500cr mcap) give interview on business channels. i always wonder why they invite such companies. ( its not that they are very innovative or doing something different). even the interviewers act as if they are probing the management.
sir why are they raising debt when they have so much of cash ?
Hitesh Bhai,
For trading or opportunistic bets, do you feel that finding out which sector is in flavor is also important? I have seen that in the current rally the 3rd or 4th player in the MFI sector have also given fabulous returns.
My point is if you are getting a stock on one hand which is a sector leader but that sector is not a market favorite and on the other hand if you are getting a stock which is the fourth best player in a sector which is market favorite, which one should you go for?
Regards,
Rajarshi
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@whipsaw, The run up in the market has stretched the valuations to some extent. I dont follow the Nifty PE model bcos I dont want to be biased by these things as my main focus is on companies that I own and try to follow their valuations and business progress. I am fully invested and that has been the case since a long time and has worked. Only thing is that when sharp market corrections come about one feels left out when a lot of bargains are out there and one doesnt have any money to deploy.
@hnk_so, I have put up the views on Torrent Pharma thread. In fact I have been positively surprised with the results bcos the main molecule in USA abilify has suffered severe price erosion (although it still could be a good molecule for the likes of torrent) and inspite of that the base business seems doing quite well.
@rajarshi, Fully agree with you. For trading opportunistic bets, one can have a top down approach and find out which sectors are in demand and find the stocks with best risk reward. I just had a look at auto sector charts and it seems it could be an interesting play for next few months. My guess is that the benefits of good monsoon and increased spends due to pay commission would spur vehicle esp two wheeler demand.
18 Likes
Hiteshbhai - what are your views on Kirloskar Electric? To me this looks like a turnaround candidate.
tbhavesh,
I dont have any idea on kirloskar electric and not tracking it.
Hitesh Sir,
Correct me if I am wrong, I have observed that you do not have any IT related stock in your portfolio. Any particular reasons for avoiding the sector? Is it just a circle of competence thing?
I am finding lots undervalued companies in IT sector. Wanted to know your opinion on HCL tech , L & T infotech and mainly on Infinite Computer Solutions which is available at PE of 6-7.
Regards,
Alphin
Alphin,
I used to refrain earlier from investing in IT related stocks mainly bcos of lack of knowledge of sector.
I have often bought software stocks in past but not with great conviction.
Recently bought sonata software.
Things I like about the company are:
Consistent growth since past 3 years.
High div payout ratio in excess of 50%. For fy 16, co paid div of Rs 9 which at current price translates into div yield of 6%.
Good return ratios and clean balance sheet. Valuations not too expensive at 10 PE trailing.
Q1 fy 17 topline growth has been good but net profit has been flat largely due to one offs like currency loss, etc.
Technically the stock is stuck in a range of 130-180 and a strong breakout on either side can provide a good move.
15 Likes
Wow. 10 pe stock at 6% div yield in this market. and that too consistent div payout in the recent years.
need to study more on this. thanks hitesh for the reference. will do some homework on this company. i am wondering if market something knows something we dont?
btw i am listening to the con call. one guy asked if they will maintain the 50% div policy. the management declined to comment on that saying they will answer in the next quarter
Promoter holding is low: 30.96%.
Hitesh Bhai,
Do you still own Page? What is your view on latest quarterly result? I am at loss on what to make out of robust top line growth but pressure on margin, especially considering its valuations.
I had exited page some time back due to stretched valuations. In the latest quarterly results topline growth is encouraging. But I feel it might still take more time to catch up with valuations and hence stock could remain range bound.
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