ValuePickr Portfolio


(Syntharz) #61

I am able to understand difference between “A”,“B” and “A+” category from Valuation threads but I could not get any reference/explanation for “B+” category. Can someone please point me to discussion thread where “B+” category is explained.

Thanks

Syntharz


(ashaggarwal) #62

Current markets have confused lot of us what to do with stocks at these high valuations. request if Donald/ Hitesh/ Ayush can give their views - especially about valuepicker stocks.


(Jagadish) #63

Hi Hitesh,

As rightly predicted by you NBCC has already doubled. Need your opinion if it is going to be long term bet due to the following events:

1.http://www.financialexpress.com/news/enhanced-autonomy-for-eil-nbcc-with-navratna-status/1263940

2). http://www.4-traders.com/NATIONAL-BUILDING-CONSTRU-10508016/news/National-Building-Construction--NBCC-TO-BEGIN-WORK-IN-100-CITIES-18562779/

3). http://www.4-traders.com/NATIONAL-BUILDING-CONSTRU-10508016/news/National-Building-Construction--NBCC-PLANS-GLOBAL-EXPANSION-EYES-100-SMART-CITIES-PROPOSAL-18620398/

Positives on NBCC:

1). With NBCC having Navaratna status, greater autonomy from operational and financial standpoint. Hopefully, some negative aspect of PSU will be taken off.

2). Its asset light business(commission based) model with assured margin of 15%. Warren buffet quote: âI try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.â

3). NBCC is planning global expansion in countries likeOman,Botswana, Sri Lanka,BangladeshandMyanmar.

4). Debt free company.

Negatives on NBCC:

1). It remains PSU, vulnerable to Govts interference. Ofcourse, with Navaratna status, it is less affected.

2.Less efficient compared to Private companies.

Disclosure: Invested from 150 levels and Positively biased,


(shanid) #64

Dear Donald,

Muthoot capital is not included in valuepickr public portfolio June 2014, it is a work in progress or any specific reasons ?


(Donald Francis) #65

Shanid,

Personally I am invested from 87-90 levels, however this was from a time where our homework wasn’t completed - and it should be termed as an aggressive bet!

Today the homework is completed - we need to see Management walk the talk - execute on the ground for a few quarters, before we can be completely confident. We found Management to be very transparent and sincere in what they are doing.

But the stock ran up way too fast - some 20% if I remember correctly within 2-3 days of publishing Management Q&A - and we did not find enough Margin of Safety to recommend from those levels - this thing was entirely avoidable if we were careful enough to publish the Reccos within the same weekend as the Management Q&A.

Lesson learnt - but a costly one at the cost of the community. We will make sure we don’t repeat the same mistakes whenever next we are seriously considering a Recco!

For the VP Public Portfolio - Margin of Safety comes first. Everything else is secondary. There is a lot of responsibility that goes with that TRUST - we have to work harder to maintain that trust.

Hope folks will understand.


(Donald Francis) #66

Shanid,

Personally I am invested from 87-90 levels, however this was from a time where our homework wasn’t completed - and it should be termed as an aggressive bet!

Today the homework is completed - we need to see Management walk the talk - execute on the ground for a few quarters, before we can be completely confident. We found Management to be very transparent and sincere in what they are doing.

But the stock ran up way too fast - some 20% if I remember correctly within 2-3 days of publishing Management Q&A - and we did not find enough Margin of Safety to recommend from those levels - this thing was entirely avoidable if we were careful enough to publish the Reccos within the same weekend as the Management Q&A.

Lesson learnt - but a costly one at the cost of the community. We will make sure we don’t repeat the same mistakes whenever next we are seriously considering a Recco!

For the VP Public Portfolio - Margin of Safety comes first. Everything else is secondary. There is a lot of responsibility that goes with that TRUST - we have to work harder to maintain that trust.

Hope folks will understand.


(shanid) #67

Dear Donald,

It clarifies…thank you.