What happened to Vivid Global?
It looks promising, but now I have very small (about 2%) investment interest in it. I may increase investment based on the performance of the company.
As the investment is insignificant and is a tracking position, not included in the above list.
I may increase or I may come out of the stock also, depending on the performance and relative opportunities.
Not getting enough conviction to increase the holding. This is the limitation with tiny caps.
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Hi Nagesh,
I would also like to mention that most of the companies are already trading @ high P/E and therefore offering no Margin of Safety. Further, what are chances of generation of higher returns by virtue of PE re-rating? I like many of these businesses, but would like to know your rationale on valuation front.
Three things that were talked about by Basanth Maheshwari are relevant here
1 If the investment is in a small cap or a not so popular mid cap then one should be more comfortable buying an initial allocation at the current price and then wait for the stock to deliver better earnings growth to add more.
2 It makes sense to buy a good business at the market price rather than a bad one at a discount.
3 The trick to buying most of the secular growth names is to pay a little more for what is worth today and hope to make good the difference through steady and consistent growth.
And another sentence from Basant ātrying to find best business at the lowest valuation is an excercise that remains unacomplished almost all the timeā is worth keeping in mind.
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Nagesh,
Very good companies identified. However as Jayesh mentioned, P/E for stocks are quite high and need to do exceptionally well to give reasonable returns. Very good stocks but may be not the right timing?
Regards,
Sharad
Hi Nagesh,
Iām novice in this aspect, yet I canāt be sure whether Symphony, Avanti, Tasty and Advanced Enzyme can be described as ānot widely recognisedā.
Itās no doubt that all of them are strong business, but I feel most of their positives are already priced in. In other words, market is expecting to deliver them to perform atleast 30% growth, failing which the stock might decline/remain sideline for sometime.
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Yes you are right to some extent, but these stocks were always seen with suspicion and had certain skepticism built into them.
The addressable market and sustainability of growth in Symphony was always always under estimated by the market. It was perceived that the company can not move up value chain as it would be competing with AC makers at the higher end of cooler market and of late the argument was about the entry of Voltas, Havells, Milton, Crompton, Orient etc. but the company proved its business model and performed consistently. I feel that the Centralized air cooling is big opportunity which is not priced in.
Avanti, though performed consistently it never commanded premium valuations as it is seen as a cyclical play susceptible to deceases and natural calamities. But the companyās track record over a long period speaks for its robustness despite the inherent drawbacks.
Tasty bite: The traded volumes in the counter are hardly few hundreds a day. Very recently only it was listed in NSE. It cannot be considered as widely recogized stock.
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hi, I am also new in share market, as per m analysis, yes the above mentioned point about advanced enzymes are spot on, it will be future multibagger. high chances, though I am not invested in it, only concern is last quarter of FY 16, it is trading at high volume, not sure, the reason, and I am personally waiting for some correction to happen.
can any senior please provide his views on why it is trading at such high priceā¦thanks in advance
Hi All,
I found Lypsa Gems in the thread interesting. The rationale or special condition is that management changed the strategy from selling volume driven low cost products to selling high margins products. This approach seems reflected in the recent Qtrly reports
Any views
Agree with your thought, I am also following up the Lypsa story. The promoters have increased their holding Q-O-Q
Last Jun Q it was 36.06 and this Sep Q from the shareholding declared it is 36.22
I have begin my journey into stock investing, can someone with more experience dismantle the annual report and let highlight any red flags would be greatly helpful.
Lypsa - They have reduced the debt again.
http://www.moneycontrol.com/stocks/reports/lypsa-gemsjewellery-updates-9587281.html
The stock falled again today and I couldnt find any reason behind this, any reasons guys?
Disclaimer : Tracking position
Lypsa gems will gain from here. It is just a start of a rally. Result after few days. It corrected and weak hand doesnāt own much.
But coming results is important to confirm past few quarters result as consistent.
Lypsa has started focusing on margin instead of just revenue. Past 4-5 quarters shows that. Hope this time too
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I looked at Lypsa story. Why is it available at such low valuations? The reasons were not difficult to find. The annual report of 17 says that directors did not recommend dividend because of lack of sufficient profits. The same company declares a bonus almost at the same time. Why?
The trade receivables are constantly more than 300 crores that is more than the annual sales of the company. More than that AR of 17 shows a sharp rise in trade receivable category of more than 6 months. No wonder the company is trading near its lows. One needs to be extremely cautious with such companies.
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I also read the annual report. Their Management Discussion and Analysis section has not been updated for a few years now. They are still talking about the economic situation in 2012-2013 !!
Hi for my knowledge purpose when the Trade receivable is high, does it not mean the company is expected to get that much money from his customers, if it was the Trade payable of 300 crores would be a sign of worry in my opinion.
Can you through your perspective on how to read/interpret this, I am learning the art of value investing and please do not mind if my questions sounds very naive.
Payables means I have othersā money. Receivables means others have my money, which they may decide to keep forever, and this happens. It is simpleā¦
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Thanks for the quick response 
First of all congrats for giving such a good portfolio.
How good is this portfolio at this point of time?
I analysed this portfolio. Technical part i am not that good. But I just saw the performance of this portfolio, it gave an excellent return for the past one year.
Is it worth buying this portfolio now for long term?