Both PFC and REC appear strong on charts and fundamentally remain reasonably priced considering the valuations. They appear strong on the charts.
@Kailasa_Tiwari I don’t track Hemisphere properties.
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I haven’t been tracking PG electroplast. So not much idea about it. The stock seems to be in a strong uptrend.
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Dear Hiteshji @hitesh2710,
You mentioned usually you remain fully invested. So when you need money released for new investments, how do you usually make exits ?
Do you usually make partial exits making more stocks on your PF or do you exit from some where you don’t see too much upside fully to keep the number of invested stock in control. Typically how many positions you keep. Would you be able to reveal what would be your highest holding and lowest holding in terms of PF% without mentioning which one is it. These would help people like me who is trying to evolve a style over the years especially in terms exiting good stocks in bullish times for better stocks.
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Hi Hitesh ji… Hope u r doing well…Again same question in dilemma whether one should sell or hold Mazagon dock given its 6 fold rise in 1 year…at cmp everything looks priced in…Thanks
Hi Hitesh Sir,
What is your view on Mrs. Bectors Food and Talbros Automotive Components. Both the stocks are near ATH and making new high. Showing good strength in volatile market as well. Thanks
Hello Hitesh Sir,
Your views on Vimta Labs & Windlas Biotech…one promising microcap in medical research and the other in CDMO…
Regards
In a concentrated portfolio investment style, getting capital for fresh ideas is a difficult thing. Exits are mostly based on either targets getting achieved, or stop losses getting triggered. Stop loss can be in form of price stop or time stop. As you said, if I find that a stock does not move in the desired direction inspite of giving it enough time, I often start lightening positions in those names gradually and that is what provides capital for a new idea. Other times its from selling an over stretched position.
Typically in my personal portfolio, I hold around 8-10 stocks. But if I play a sectoral theme and have a basket approach, then I consider the 3-4 positions as a single entity for the sake of simplicity. If I consider these positions seperately, total would at times be 12-15 at max.
Regarding allocation, at the time of entry I usually go max 20% based on purchase price. Usual starting postion for medium to long term techno funda positions is around 7-10%, whereas pure technical short term bets allocation is around 5%. Around 50-70% allocation is towards first 5 medium to long term ideas. Rest is in rotating sectoral/technical bets and this depends upon market strength. As of now my highest holding is in HBL power and lowest is around 3-4% in small psu banking space where I have created a basket based more on technical picture. The latter technical basket has clear cut entry, stop loss and targets defined. I do this before hand but many a times modify my strategy based on the price moves.
@siyaram7 My views on exits in stocks that have gone up a lot has been discussed in the 52 weeks high thread in response to a question related to ITC. I won’t like to go into individual stocks and give recommendations to buy/sell. I have discussed what I feel can be an objective strategy, but could be wrong.
@MUKESL5C I don’t track bectors, talbros.
@Shakti_Srivastava I dont track vimta ( used to track it but not tracking it anymore after exiting it) or windlas.
@rjs391 I don’t track Atul ltd. I feel chemical sector is the one sector that was a fancy of markets not so long ago and as mentioned many times before, once a sector loses its fancy, it takes a long time, many a times many years before it makes a comeback. ( my views and I could be wrong, and don’t consider this as a recommendation, only as a view based on experience. )
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Hallo Hitesh Sir,
I am a silent Follower of ur 2 threads; this one n 52 week high… I really appreciate you sharing ur wisdom patiently answering questions. God bless you! I just wanted to write to appreciate ur efforts 
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True. I also saw consistency in replies
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Hitesh Sir…can we know what factors triggered your exit from Vimta Labs …
Regards
Hitesh ji, what could be the proxy for chemical sectors ? Like we are seeing in infra, auto, steel & wires.
@hitesh2710 ji…Thankyou for all your guidance we are very grateful for your advice and guidance… I would be helpful if you can share your view on below queries
What’s your view on momentum investing and it is good time to do momentum investing as we are in bull run now and
How do yoy see smallcase for momentum investing and
what things should one be careful about
What’s your past experience into this
Thanks and stay safe:pray:
[quote=“hitesh2710, post:7154, topic:658”]
As of now my highest holding is in HBL power
[/quote]…
Hi Hiteshbhai, Over the years, I have been investing , relying only on fundamental analysis. But after reading your analysis based on charts in this thread vis a vis a few of my big losers, I am convinced that I need to learn some basics of charts . Now , relating to HBL Power Systems , I took a small positions sometime back. I am convinced that fundamentals and market for the products are good. But I am sceptical of high return at this juncture because of below reasons : 1) Top management is not aggressive enough for growth.(Present Chairman
is 77 years old & couldn’t see any succession plan. 2) Majority shares owned by Barclays Wealth Trusties Pvt Limited (51.27%) - Is that a PE fund or something else?
3) MP has sharply risen in a very short period and it has reached ATH- Is it not risky to take large exposure at this juncture, after considering charts and fundamentals?
I appreciate if you please share your thoughts, knowledge and guidance in this regard. I also appreciate comments from other senior members. I am sure a lot of readers will be benefited from that. Samir Ghosh. Disclos : I have investment in the stock .
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I had been holding vimta for a long time and did not see much in terms of my thesis of growth playing out inspite of the food testing lab starting off at Mumbai. And stock price remained range bound all throughout that time frame. So it was more of a time stop loss rather than any other reason. And I had found better options in terms of deploying that capital, wherein I added to my positions in HBL power when it used to trade between 85-110. Part of the thesis seemed to have played out well.
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Proxy to chemical sector can be plays like GMM Pfaudler and HLE Glasscoat. Both make vessels supplying to chemical and pharma space. I cannot think of any other pure play proxy to chemical space.
Having said that, since chemical sector itself is in the doldrums, I don’t know how well the proxy to the sector will do. Personally I feel there can be the odd bounces here and there in these sectors but sectoral moves seem to be difficult. Finding winners from these sectors will need hard work, digging into individual companies and trying to find specific companies that can benefit out of company specific tailwinds. And we have no idea how long those too will last.
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Momentum investing can be of two forms, fundamental momentum investing wherein a company is expected to show strong business growth leading to earnings showing strong momentum. In these cases, price often tends to follow earnings.
The other option is to look out for price momentum. Here focus is more on charts and taking a call based on technical parameters.
And yet another option is to look out for a combination of both which is techno funda investing. Here an attempt is to get a good entry point in a company expected to or having strong tailwinds.
Any time is a good time to do momentum investing, providing you know what you are doing. The main thing to be careful about is to do your own research and then only invest. Most of the times, momentum is seen across multiple sectors and stocks at the fag end of a bull market . Seasoned investors are good at exiting even with losses if the tide turns. But newbie and novice investors are not so good at playing this momentum game if markets turn for the worse. So anyone wanting to play momentum needs to learn about it and be mindful of its risks.
Personally I am a techno funda investor and have been following this for quite a while now, so feel comfortable playing this style.
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Hi Hitesh bhai, hope you are doing well. I saw you talk about GMM, HLE, have you looked into BEW engineering? They are in similar lines of business as the two you mentioned
Thank you for response sir, kilburn engineering is in similar business. Company is engaged in designing, manufacturing and commissioning customized equipment for critical applications in several industrial sectors like Chemical, Steel, Nuclear Power, Petrochemical and Food Processing etc
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HBL as a company has been discussed threadbare in the relevant thread on VP… And even after all the knowledge related to the company was shared, the stock price remained range bound from around 85-110 for many months. That was the time to first of all do our own research on the company and if there was conviction, build positions by accumulation. The price swings offered attractive price points multiple times to accumulate the stock.
Now the stock price has run up 60-70% within a few weeks. From here, for fresh entry, the price is not as attractive as it was when it was available when it was consolidating between 85-110.
Key learning from the whole post is that its very important to buy into good companies when price points are attractive. There is often a lot of frustration when you buy during times of consolidation because when stock price keeps moving in a tight range for many weeks and months, the conviction also keeps getting questioned and its often difficult to buy and if already bought, keep holding on. But one has to learn to overcome these kind of problems and if that’s done, and if your call is right and entry point is attractive, returns are exceptional.
Regarding your queries, we have to figure out what is absolutely relevant to this company and what is of lesser significance. Coming to your queries, 1. Regarding top management not aggressive for growth, this is a company that has been laying foundations for growth since many years and its only now that it has started experiencing tailwinds. 2. Regarding majority of shares owned by Barclays wealth, you can call the company and ask for shareholding structure and understand how it stands. 3. MP ( I assume this means market price) has runup strongly and as mentioned before, entry at 165 is not as attractive as entry at 85-110.
Investing in small caps is somewhat tricky. Usually picture is not totally clear at the beginning. It requires a lot of digging and scuttlebutt. We at VP are lucky that guy like @Anant keep sharing their ideas when there is a lot of juice left in the story. Our job of doing a lot of digging is already done when the write up is put up and further posts keep coming up. The colloborative nature of research provides all the details on the relevant thread. So it is our job to go through the thread atleast once and preferably more than once to get an idea about the business and understand relevant points about it.
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