Hey Shivam,
Good point about the ilmenite situation! Yeah, those beach sand deposits are running low, which isn’t great news for Cochin Minerals. It sounds like they only have about 15-20 years left at this rate. But hey, they’re not just sitting around waiting for the sand to run out! They’re digging deep (literally) and exploring these new inland deposits in Tamil Nadu and Kerala. Could be a game-changer if they find enough there. Plus, they’re looking at these titaniferous magnetite ores, which have way more ilmenite in them.
It’s a tricky time for them, but I’m also excited to see them branch out into higher-value products like synthetic rutile and leucoxene. No more relying on just the regular stuff – they’re going all gourmet! And who knows, maybe these new products will make them less dependent on that ilmenite grade altogether. Fingers crossed!
Anyway, just wanted to say you’re on the money with that ilmenite observation. Keep those insights coming!
Best,
Karan
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Hey Lary,
Just wanted to chat about this crazy market, especially in the small and micro-cap space. It’s all frothy and bubbly like a latte art competition gone overboard, right? Makes me nervous when things get that hot and spicy. As they say, “Even ugly ducklings look like swans in a bull run,” and I don’t wanna be fooled by feathers!
Remember, I’m a “Ralph Wanger wannabe,” always on the hunt for growth stocks at fair prices. But in this market, it’s like finding a needle in a haystack wearing a price tag saying “50% off!” Two big hurdles pop up:
Will this growth last? Can these companies keep soaring like kites with helium rockets strapped on?
Where’s the fair price? Everything’s inflated like a birthday balloon! Bargains are rarer than a unicorn riding a T-Rex.
So, my crystal ball sees high inflation (think roller coaster prices but even crazier) and broken supply chains (like trying to order pizza delivered to Mars). That’s why I’m playing it safe in commodities, pharma/healthcare, utilities, and staples. Think boring stuff like sugar, medicine, and electricity – the essentials, you know? It’s tough finding exciting startups in utilities, but hidden gems lie waiting in pharma/API/CDMO land. If you’re curious, check out this gentleman called Sajal Kapoor – he is a rockstar in that space. And for commodities, keep an eye on green options, carbon black, and food (gotta eat, right?).
My article on the same - LLama Research on LinkedIn: #llamaresearch #investmentinsights #indiamarket #globaleconomy…
Anyway, feel free to hit me up outside the virtual world if you wanna explore this further, as I cannot name stocks anymore (Regulations).
Cheers,
Karan
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Thanks, Karan. This was really helpful.
What is ur view on saksoft.Is it a good buy for long term.Valuation wise it is not cheap.
Also, I reckon there’s a probe going on against CMRL. What is your take on that?
The corporate governance issue surrounding CMRL has been a topic of discussion for some time, and similar challenges are not uncommon in the microcap space. While this can raise concerns for some investors, others may prioritize potential growth and strong market positioning.
Previously, I made a similar observation with Associated Alcohol, where governance concerns ultimately impacted the valuation. However, it’s important to remember that each company’s situation is unique.
Cochin Minerals boasts a promising product line and niche market, potentially leading to attractive long-term prospects. However, the ongoing governance concerns remain a factor to consider. Optimizing operational efficiency, as you mentioned with the hypothetical OPM increase, could significantly improve profitability. Ultimately, you must carefully weigh the potential of the business against the identified risks before making your own decisions.
Hi Abhishek,
While the valuation seems a bit on the pricier side, it’s not entirely unreasonable. That could explain why the company hasn’t joined the recent tech rally. Considering current market conditions and my expectation of a lagging US slowdown after interest rate hikes, I’m currently focusing on sectors outside of IT.
Hi Karan, with JTL Industries management announcing they are debt free now and their recent implementation of DFT technology, do you consider to re-enter in the stock.
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