This is my first post on ValuePickr. Instead of a normal post like talking about my portfolio, I thought it would be useful to discuss ESM.
I have invested in some stocks that have been selected for ESM stage II.
For people who don’t know about ESM Stage II, you can read more about it at ESM.
The problem is once a stock enters ESM Stage II or Stage III I feel the amount of manipulation increases as trades are collected and in the case of Stage II, only 6 times prices are matched in a day.
This is quite unfair to people who bought before the framework was even introduced.
Do you see any merit in ESM Stage II and Stage III periodic auction trading?
So bad for existing investors and good for new entries?
Even my stock JWL is stuck in ASM and it is doing a lot of harm. Titagarh on the other hand has rallied 30pc since the time I bought Jupiter.
If the growth in the stock is believed to be long-term, then it provides a good entry point as sooner or later it will exit ESM then it will perhaps catch up.
However, if the reason for growth is a temporary trigger, then investors who have invested because of the trigger may miss the boat.
