Is NHPC a stock to invested for 2 years?

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Topic: Is NHPC a stock to invested for 2 years?

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Roughrider
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Topic: Is NHPC a stock to invested for 2 years?
Posted: 10/Dec/2009 at 5:33pm

Dear friends,

I would like to get your opinion on NHPC for 2 years horizon.My entry is at 35/-share.Will it be winner in the long run?

Edited by Roughrider - 10/Dec/2009 at 5:45pm

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deepinsight
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Posted: 10/Dec/2009 at 5:41pm

Why dont you explain the investment thesis and explain your expectation - others can jump in and discuss.

Price is normally a function of the fundamentals & valuations.

"Investing is simple, but not easy." - Warren Buffet

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hit2710
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Posted: 10/Dec/2009 at 5:51pm

Originally posted by Roughrider

Dear friends,

I would like to get your opinion on NHPC for 2 years horizon.My entry is at 35/-share.Will it be winner in the long run?

There are two aspects to answer to your query:

1. Technically, the stock seems to have established a firm support in the 30-32 range and as and when some good news comes about there is likely to be a good spurt in prices because till now all the weak hands have moved out of the stock during the few sharp corrections experienced after the listing of the NHPC scrip.

2. Fundamentally, it remains to be seen what earnings it shows.

But a bigger factor could be the hidden holding of NHPC in some other govt enterprises, and if it has some holding, it adds more value to an already good stock.

I think if your horizon is two year, it will definitely be better than a bank FD.

Edited by hit2710 - 10/Dec/2009 at 5:52pm

Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.

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Roughrider
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Posted: 10/Dec/2009 at 6:01pm

Thank you sir for your giving your view on NHPC.I had lost lot in the stock market on believing the tips and brokerage firms.Last one year I am doing on line and 50% of my loss, I could recover.I am hopeful i will sooner or later in the green.BUT NO MORE LISTENING TO TIPS!IT OFTEN DIPS!

Thank you friend.

Roough&Tough

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Hitesh Shah
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Posted: 10/Dec/2009 at 6:36pm

I don't know why, especially for NHPC, a stock's potential returns are compared with those of FDs.

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hit2710
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Posted: 10/Dec/2009 at 7:02pm

Originally posted by Roughrider

I had lost lot in the stock market on believing the tips and brokerage firms.Last one year I am doing on line and 50% of my loss, I could recover.I am hopeful i will sooner or later in the green.BUT NO MORE LISTENING TO TIPS!IT OFTEN DIPS!

For me also borrowed ideas do not seem to work. It has been my observation that when brokerages etc come out with their recommendations, the stock is in the last leg of upmove and then if you are not nimble footed, you are stuck with the stock.

Whereas ideas found by ourselves are done at a much earlier stage of the bull run in the stock and hence give much better returns.

Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.

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subu76
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Posted: 10/Dec/2009 at 7:17pm

I guess another point is it's hard to hold such stocks with conviction during rough times which are bound to crop up.

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subu76
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Joined: 25/Feb/2008
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Posted: 10/Dec/2009 at 7:20pm

Originally posted by Roughrider

Thank you sir for your giving your view on NHPC.I had lost lot in the stock market on believing the tips and brokerage firms.Last one year I am doing on line and 50% of my loss, I could recover.I am hopeful i will sooner or later in the green.BUT NO MORE LISTENING TO TIPS!IT OFTEN DIPS!

Thank you friend.

Hi Roughrider,

I can identify with your scenario very well.

Offering some unsolicited advice....

One idea which has worked for me (atleast that's what I think right now) is:

1. Assign a number to the company (market cap, P/E, cash flow multiple) what ever by studying about the company.

2. Then look into the company's real market data.....

3. never look at the data first as that will influence you.

4. If the company sells at a discount to your calculation then buy it if you feel like. If not...note down the number for use later.

Also, write down your assumptions somewhere.

It looks painful but after some time you'll really enjoy the exercise.

This sort of analysis will really help you buy companies when there prices go down 50% from your purchase price...at the least it will stop you from doing panic selling.

Do remember that in any given year the price of a stock falls 30% from it's highs and rises 50% from it's lows.. (atleast a lot of stocks do this)

Edited by subu76 - 10/Dec/2009 at 7:26pm

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