Companies cannot multiply their revenues overnight. You need to invest in companies which you think have the market share or will gain market share and you can make money off your investments.
When I was in discussion with one of the reader of the blog this question popped up and I have answered it partly in Know your risk and investment profile but still there is one more aspect to it. In that I discussed about the level of shares as the strategy for investment but today I would suggest the time horizon you should have when investing in stocks. This is just my personal opinion.
When you are investing in any company you actually believe in the strategies and growth of the company and companies take time to grow. Companies cannot multiply their revenues overnight. You need to invest in companies which you think have the market share or will gain market share and you can make money off your investments.
If you believe in this strategy, you would not think about offloading your investment when they start cracking but you would try to make more investment into that company.
Share your at least one stock which you have an investment for a long long term. Mine is Dish TV currently.
Ok. But people says investors can expect a higher price soon after it is listed in the secondary market. There is a possibility to sell shares soon after it is listed. Right? Doest it make sense Shabir? Doo you expect any loss out of this IPO even if I am ready to sell soon after it is listed in the stock exchanges?
Yes you can make a loss even if you sell as soon as it gets listed. There is nothing as guaranteed returns in equity market
Hello Shabir,
I am here to ask your opinion about upcoming COAL INDIA IPO. I heard its price band is some where between 225-250. Is it correct?
Do you have any idea about this company? Is it worth subscribing? Any idea about how much one need to pay with the application.
Regards
Slah
Slah, In the current market state I can safely say that IPOs are best avoided. Market is in a state of its own and not fundamental is going to work. It is getting higher and higher and so it is better to remain in a zone where you can exit if the correction starts crippling in. IPO’s need you to remain invested for few days.
Mine is Suzlon Energy… I have been accumulating it from the last 3-4 months… and have now averaged at 78… The current level looks good to me but i see brighter returns over the next 6 months… What are your comments on this Shabbir…
I have no investment in it but it looks ok to me.
so what companies fall in this area… also which are the other suppliers to power units and infra firms to build such power units would also be in the limelight with huge book orders …
I prefer OptoCircuit but I do not have huge investment in them but some to start with.
Shabbir what are your views on the below ? answered by Bharat Shah.. what companies is he referring to… that are part of the power sector…
So how would you energy because if you look at direct energy players in India, there are very limited companies available, both in large cap and in midcap?
Yeah, there are not so many of them but it is not as if there are so few. On the generation side you have players, on distribution side you have got some players, then energy infrastructure related, you have got a few players as well as energy equipment suppliers we have got few players and then there are energy ancillaries. So it is not always small, it is probably you seem to imply.
There are a fair number of entities around and I am sure the size of the ones that we have would get much bigger over a period of time than what they are today and to that extend the opportunity for investing in them is not constrained or anything. In fact there are plenty of them in my opinion.
Very true. Like I also mentioned in few posts that instead of power sector you can concentrate on cables as that would also grow when power make major moves.
I think Suzlon is a great pick for a long term horizon.. say one year and it is gonna reap great returns… Buy it at the current levels to see 100 in less than 6 months and if crosses those levels the next target is 115+. I myself some 200 odd shares at the level of 76. It is slowly trying to cross those levels 🙂
But some how this market looks over priced and over hyped to me … i do not think it would sustain at these levels for long… What r ur views
I dont think it would go below the lowest range of 4200 to 4500 though 4800 looks stretched.
Dear Shabbir,
Most often i look at scrips and after all the research evaluate that they are good to buy. Unfortunately they are the ones which suffer the most.. eg. I picked OBC for 277 odd and today it is far below even though there was so much hype of it reaching 300 + levels….And Dena ripped me off totally…
I am now looking at
GVK Power and Infra
Gammon Infra – as u suggested
Suzlon Energy
Can u tell me if there are worth buying at this levels for a span of 2-3 years when the Infra book will be at its peak.
Is opto a buy @ these levels or shld i wait for a correction…
Thanks
Melwyn
I never buy for hypes. I sell for hypes and out of the 3 I like GVK but not suzlon at current levels.
Opto is a good one but best buy should be under 200