KEI Industries Ltd - A consistent performer over the last decade

Stock Opportunities Not-so-Hidden Gems
129

Hi

There is no fixed Rule for this.

1.Some people put trailing stoploss ( say 10-15 percent from 52 week high)

  1. Some follow 10 week ema

  2. Some follow Vstop- the intervel is tighned to 2, 1.5 like that

  3. Some people take away their investment and leave the remaining like free shares ( as ling as company is growing). There are people who made 100’baggers like this by leaving the free shares like this for years together

So in nut shell, it all depends on ones risk appetite etc

130

Hi
There is no fixed Rule for this.
1.Some people put trailing stoploss ( say 10-15 percent from 52 week high)
2. Some follow 10 week ema
3. Some follow Vstop- the intervel is tighned to 2, 1.5 like that
4. Some people take away their investment and leave the remaining like free shares ( as ling as company is growing). There are people who made 100’baggers like this by leaving the free shares like this for years together

So in nut shell, it all depends on ones risk appetite etc

2 Likes
131
  1. Keeping trailing stop loss at 15% from 52 week high( or recent high) makes more sense, so your gains doesnt wipe out if stock price starts its downward journey furiously.
  2. 10 week EMA will be too early to exit. Stan weinstein suggest 30 week EMA, but our entry itself is at very high level or stock price is hovering 30% or 40% above its 30 week EMA, then its too much.
  3. V-STOP ,i am unsure of, as its derived indicator, if you are already following price and volume, you are anyways dealing with direct data, i suppose.
  4. Taking out capital and leaving profit to compound , is a psychology bias of treating your own capital and profit differently. Thats a wrong way of looking at money. If my capital is 1 crore and it gets eroded by 30% , I am supposed to be more sad while if my profit of 1 cr getting eroded by same amount should not make me sad as that money is not mine, its market money. This thinking itself has a big flaw. I consider all money, whether my own money or my profit , same and treat then with same attitude. All is my money whether my initial capital or profit. I ought to protect my all money at any cost.
3 Likes
132

V stop works very well in consolidation phase…you can back test with your stocks by applying.
Anyways as i said, every thing depends on each individual investor way of handling things…no specific rule to follow.
But as we always believe market is supreme…raid it as long as it gives returns , instead of exiting just based on over valuation from fundamental angle

133

Off-topic but since you mentioned about MarketSmith India, wanted to check if you find that subscription useful? If yes, how so? I was contemplating taking it but thought will check with someone who has used it before and get some feedback? Thanks.

134

I find it useful. I generally use it to keep track of sector rotation, investible companies and get insight into a company’s fundamental data, particularly EPS growth rate, sales growth, alpha and beta. Although this data is also available from Screener, but quarterly EPS and sales growth is not available. You will have to use an Excel template for getting data not available as default in Screener. So MarketSmith is a convenience.

135

Do u use their RS score to.invest? Have you invested in their idea list? How much it is correct ? Profitable?

136

I recently got their subscription.

Their RS rating, EPS strength, price strength and buyer demand all seems proprietary. I do not have any insight as to how they are calculating it, but it seems to work. Their pattern recognition algos are good, although they do have a list of stocks with failed patterns.

They do have two things that may be of interest- Growth list of 50 stocks generated algorithmically which can be a list for stock picks for trading and their model portfolio, which per their data has consistently generated a good alpha. So far, I am not using any of their suggestions, as my portfolio is doing better everyday than theirs. They send a notification about how much their portfolio went up or down everyday.

I am going to re-read William O Neil’s book to see if I missed anything and scour internet to see if I can garner any insight into how they are generating their proprietary ratings and numbers.

1 Like
137

KEI Correcting from 5000 levels to 4200 now, Fundamentals not changing!! what is the reason for this sharp fall? any takers please.

138

It has gone under very high PE re-rating…Now that is rationalising.

1 Like
139

I have been waiting for this kind of correction in this stock. I invested in this stock like two years ago at 960 levels and believe be I have been praying every single day since then and regretting that I didn’t buy more.

If the Fundamentals are not changing at it just a price correction, I would love to buy this stock at a rational price. It is not trading at 70PE which is a 40% premium to Polycab which is a leader in this segment. Assuming a benchmark of 50PE for this stock, since sales growth and profit growth is 15-20%, I am keen to buy this stock around 3000 level. Any price below that is a bonus.

2 Likes