Recent smallcap & midcap correction

Ayush,

I feel, hard core Value investors like you need not be worried about hourly order cancellation. Probably it will keep out swing/positional traders or part time investors, but I feel it is positive in the long run. Stock may dip temporarily and value guys can take position then. It is boon for full time investors. But one thing I can’t fathom is how a panel of veryeminentpeople in mathematics, statistics, stock markets, accountancy, meet and just declare a stock as illiquid based on just volumes. The panel seems to contain even very well distinguished IIM professor as well. Only consoling point is after 2 quarters of ill-liquidity the stock is automatically declared a liquid one(wow)? I feel these rules can’t stand in long term, unless some thought is put into it and tweaked. Let’s wait and watch.

@srinivasan : If the stocks had fallentemporarily then it would have not been a problem. The issue is - due to the complexity of new rule - the space has got even more illiquid…hardly any trades are happening now. Even for people like me who are full time into markets and have access to the terminal every time, we can’t buy…as there are hardly any buyers and sellers left in these stocks!

Have a look at this very relevant post -http://zeenut.blogspot.in/2013/04/periodic-call-auctions-for-illiquid.html

Guys, please read the above post and do protest.

Ayush

Well, i have no hopes with present mindset of people running the show at top.I had written letter to Mr.Wadhawan ,with copy to sebi chairman ,copy to my friends to take up the matter.However got reply from Mr. Wadhawan that there is no point in sending the same matter again & again from public to them.They want something new.

Maybe final step is to write to the FM ?

This mess should have been sorted out well before it went up to his level, but maybe we can try. FM’s email id is :

fm@finance.nic.in Link: mailto:fm@finance.nic.in

Also we can try 1 level higher than Mr Wadhawan :

Shri Prabodh Saxena
Joint Secretary (ABC),
Ministry of Finance
Department of Economic Affairs
Room No. 40-B
New Delhi - 110001(India)
Telephone No: 91-11-2309 3558
FAX No. - 2309 4453
Email: prabodh.saxena@nic.in Link: mailto:prabodh%5Bdot%5Dsaxena%5Bat%5Dnic%5Bdot%5Din

Have just written to FM & Mr Saxena.

Let’s hope for the best.

Urge ValuePickrs to also write in. Remember that more scrips will go into this list every quarter …today some % of us are facing the music, in 2-3-4 quarters most of uswill be dancing to the same music.

Many of us will become “mini” Warren Buffets , holding our stocks forever & ever - but without WB’s wealth to see us through .

Pity the person who needs money desperately & needs to sell any ofthese scrips. I only hope & pray that i might never be in thissituation.

If this madness does not end soon, many investors will quit thestock markets for good.

Is it possible to generate a petition where all who are against this new call auction can sign and same can be forwarded to SEBI or FM.

We can use change.org to create a petition and then everybody who wants to sign can sign and we can send it to SEBI or FM.

http://www.change.org/start-a-petition

Ayush and others,

What I noticed is, even though volumes have shrunk, the price of stocks have not collapsed much at all,at leastthe stocks I own. So the market is still vastly very efficient. Probably too much of trading might be gone, but efficiency is not gone completely. Though I do not endorse this sort of method to arrive at ill-liquid stocks, I was able to place buy orders and make decent quantity purchases. Not sold any of thoseill-liquidstocks and not in a hurry to sell anything, I can’t comment about sales getting triggered properly. Obviously, we can still see the top 5 orders, and match the sales accordingly, if we aredesperate to get out.Surely I believe this rule will be thrown out pretty soon orat leastwill be tweaked in a major way.

Members may kindly see this letter that ANMI ( Association of National Exchanges Members of India ) has sent to SEBI :
http://www.anmi.in/admin/anmiatworkfiles/Letter%20to%20SEBI%20-%20Call%20Auction%20of%20Illiquid%20Scrips.pdf

I would also like to make a suggestion, which came up on another board - that we should write to the company’s whose stocks we hold & which are in the illiquid list, asking the managements to do something about this, as the new system has adverse consequences for the companies too.We should urge them to take up the matter through their respective industry associations - CII, FICCI, ASSOCHAM etc.

If successful, this will open up another pressure point on SEBI, and they will not be able to give the industry associations short shrift that they have been giving us.

Urge ValuePickrs not to give up the fight.

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hi hitesh

i think it is nilkamal in the plastics saw the shareholding idfc already holds nilkamal though it has not performed

would like to know ur views on wimplast the latest results r quite good but the stock is not performing

thank u

prashant shah

I believe he was talking about Munjal Auto Industries and Wimplast as 2 potential wealth creators.

Yes auto.

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prashant,

wimplast has shown good topline growth. .But i guess with weak rupee and high crude prices, net profit margin has been affected to some extent… Even inspite of that the net profit figures are good. Expansion seems to be bearing fruits now. and debt seems negligible.

I think around 310-320, stock does look attractive for medium to long term investment.

Any long term views about CUMMINS INDIA KSB PUMPS NUCLUES SOFTWARE KPIT CUMMINS & Thinksoft Global services in current market scenario.

Does anyone knows which names Kenneth bhai owns in this fund?

theyave

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Closing Date

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  2. **_ a 08, Nifty was up 6 times and BSE times. **** RoE _

14.1%

  1. Between aa2008 a 13aa, ** _ Small 45%. _** RoE 4.9% **

  2. hascreated ** Small lead **

  3. **_ aIDFC _

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Like

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Dropbox - IDFC Equity Opportunities Fund.pdf - Simplify your life](Dropbox - IDFC Equity Opportunities Fund.pdf - Simplify your life)

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Kenneth is a very good stock picker and has impeccable track record. His fund (IDFC Premier Equity) was early investor in companies like Kaveri Seeds (holds since IPO), Page Industries, Blue Dart, Bata among others. He still holds them and other stocks in IDFC Premier Equity include Indusind Bank, Asian Paints, United Spirits, Trent, Bosch, P&G Hygiene, Arvind, GAIL, MRF, Container Corp, Shriram Transport Finance, Torrent Power among others.

A good stock picker, who can not give sensex beating performance for 1/2/3-yr time, is a “good-for-nothing” guy for me. Investment is 50% picking stocks at right valuation, and 50% allocating fund in correct stocks.

1 Like

subash yaar

For how long have you been investing?

Kenneth is a very good stock picker and has impeccable track record. His fund (IDFC Premier Equity) was early investor in companies like Kaveri Seeds (holds since IPO), Page Industries, Blue Dart, Bata among others. He still holds them and other stocks in IDFC Premier Equity include Indusind Bank, Asian Paints, United Spirits, Trent, Bosch, P&G Hygiene, Arvind, GAIL, MRF, Container Corp, Shriram Transport Finance, Torrent Power among others.

Excel bhai,

How does it matters?

I am sure that you would have read the quote by Keynes baba

That the market may stay irrational longer than you may stay solvent

Considering the nature of the market even big and wise ones would have had bad patches running into years

Excel bhai,

How does it matters?

subash yaar

This site (http://goo.gl/6W5yS0) says avoid Chromatic since the CS and CO officers are not staying in the company.

Hello sir , can some through some lite on ELANTAS BECK fundamental.