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MR TED
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   Posted: 24/Apr/2011 at 12:21pm |
Originally posted by basant
But as I sold my cyclicals like Voltamp, BlueStar, Thermax etc I kept buying Page right till 600 so that was high PE. I will buy a 30 PE stock as long as I am convinced of the growth. Also Zydus was a 25 PE trailing stock when I added aggressively.
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Thanks Basantji for a very practical explaination on the matter. Basantji, you always say that we should stay awaay from cyclicals and commodities stocks, then why such cyclicals are present in TED 11 stocks? I presume that TED 11 is a long term portfolio and not for in at lows and exit at highs of the cycle. Also, regarding Zydus, what was the price range at which you were aggressively adding?
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subu76
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Posted: 24/Apr/2011 at 1:37pm |
Originally posted by basant
Page at Rs 350 was a 15 PE stock on trailing earnings which was high considering other stocks at that time, But as I sold my cyclicals like Voltamp, BlueStar, Thermax etc I kept buying Page right till 600 so that was high PE. I will buy a 30 PE stock as long as I am convinced of the growth. Also Zydus was a 25 PE trailing stock when I added aggressively.
Titan was high PE always but relatively I have found it easier to hold a high PE stock then to buy one.
Most of my money has been made by buying low PE stocks and then waiting for the market to take notice and make it a high PE stock. |
Wah Basant Sir....thank you for the detailed post. Clarity of thought is the key to making "non bounce" money from stocks and you've oodles of it
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rinkumalpani
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Posted: 24/Apr/2011 at 4:46pm |
Originally posted by basant
Page at Rs 350 was a 15 PE stock on trailing earnings which was high considering other stocks at that time, But as I sold my cyclicals like Voltamp, BlueStar, Thermax etc I kept buying Page right till 600 so that was high PE. I will buy a 30 PE stock as long as I am convinced of the growth. Also Zydus was a 25 PE trailing stock when I added aggressively.
Titan was high PE always but relatively I have found it easier to hold a high PE stock then to buy one.
Most of my money has been made by buying low PE stocks and then waiting for the market to take notice and make it a high PE stock. Once it becomes high PE then I normally wait because I already have a position which because of my concentrated portfolio is dominant but there are a few companies that I would have bought even if the PE were high had I not have had a big position.
Remember money is lost because a company that we own stops growing at historic rates so in that case a 20 PE can beocme a 10 PE and a 30 PE can beocme a 15 PE. The trick is to identify the speed(growth) breakers which we sometimes succeed(TV18) and sometimes don't (Pantaloon). |
few questions basantji
1.) How did you decipher that it was time to move out of bluestar,voltamp.?
2.) If the prices fall would you again buy these co.s(which you have named cyclicals)...and what would be required parameters?
3.) at the very beginning of one of the thread,i read that cyclicals should not be a part of long term portfolio..if you consider voltamp, bluestar etc to be cyclical, then why are they still in TEDXI ...
4.) in a recent post, i remember u mentioning that you might be picking up cyclicals in the next opportunity....guess we are still waiting for the sectorial cue..
thanks..
Edited by rinkumalpani - 24/Apr/2011 at 4:51pm
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basant
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Posted: 24/Apr/2011 at 5:37pm |
1) No scientific answer, I looked to make 3-4 times in quick time and buy something that had moved 75% with that money. With cyclicals I always look to move out after making quick money because the longer you hold them more the chances of reversion to the mean.
2)Haven't given it a close thought yet.
3) Remember TED XI is not a sectoral fund nor it is Basant's XI it is a standard benchmark of some companies from almost all sectors. If we have beaten all MFs and Indices with a TED XI think what a TED Super5 would have done. So while I may hold a few of the TED XI names, my personal portfolio need to be completely the same as TED XI because I am ok with putting all my money in one sector at times not so much for a portfolio that is visible to the common man.
4)Will share it at the appropriate time.
Originally posted by rinkumalpani
Originally posted by basant
Page at Rs 350 was a 15 PE stock on trailing earnings which was high considering other stocks at that time, But as I sold my cyclicals like Voltamp, BlueStar, Thermax etc I kept buying Page right till 600 so that was high PE. I will buy a 30 PE stock as long as I am convinced of the growth. Also Zydus was a 25 PE trailing stock when I added aggressively.
Titan was high PE always but relatively I have found it easier to hold a high PE stock then to buy one.
Most of my money has been made by buying low PE stocks and then waiting for the market to take notice and make it a high PE stock. Once it becomes high PE then I normally wait because I already have a position which because of my concentrated portfolio is dominant but there are a few companies that I would have bought even if the PE were high had I not have had a big position.
Remember money is lost because a company that we own stops growing at historic rates so in that case a 20 PE can beocme a 10 PE and a 30 PE can beocme a 15 PE. The trick is to identify the speed(growth) breakers which we sometimes succeed(TV18) and sometimes don't (Pantaloon). |
few questions basantji
1.) How did you decipher that it was time to move out of bluestar,voltamp.?
2.) If the prices fall would you again buy these co.s(which you have named cyclicals)...and what would be required parameters?
3.) at the very beginning of one of the thread,i read that cyclicals should not be a part of long term portfolio..if you consider voltamp, bluestar etc to be cyclical, then why are they still in TEDXI ...
4.) in a recent post, i remember u mentioning that you might be picking up cyclicals in the next opportunity....guess we are still waiting for the sectorial cue..
thanks.. |
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rinkumalpani
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Posted: 24/Apr/2011 at 5:49pm |
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thanks basantji..would be eagerly waiting for the cue...
..by the way..do you agree with the point that domestic appliances co.s like hawkins might also be coined cyclical(personally i doubt that)..
..and do have a look at co.s in indian bulk drug sector...interesting long term chart patterns there..
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nikhil090
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Posted: 24/Apr/2011 at 6:08pm |
basantji,
While the last 2 years have been fantastic for stocks like page, hawkins and titan, what about fresh allocations. As a salaried employee I keep on getting salary every month out of which I want to make some allocations for the stock I do like.
Are the stocks in TED11, a buy or hold at current prices?
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MR TED
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Joined: 26/Jul/2010
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Posted: 24/Apr/2011 at 8:15pm |
Originally posted by nikhil090
basantji,
While the last 2 years have been fantastic for stocks like page, hawkins and titan, what about fresh allocations. As a salaried employee I keep on getting salary every month out of which I want to make some allocations for the stock I do like.
Are the stocks in TED11, a buy or hold at current prices? |
Guess unless we do something about this, this question will soon be the maximum post in TED 
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jagbir
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Joined: 17/Apr/2010
Location: India
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Posts: 331
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Posted: 24/Apr/2011 at 8:44pm |
Originally posted by MR TED
Originally posted by nikhil090
basantji,
While the last 2 years have been fantastic for stocks like page, hawkins and titan, what about fresh allocations. As a salaried employee I keep on getting salary every month out of which I want to make some allocations for the stock I do like.
Are the stocks in TED11, a buy or hold at current prices? |
Guess unless we do something about this, this question will soon be the maximum post in TED |
Agree 
I'm also on the same boat, on the month beginning after salary sms, I quickly allocate the money to be invested, but find it hard in which stock! 
I wish while reviewing TED X11 quarterly, Basantji would add another field giving hint like which are favorable stocks for addition around current price etc.
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I find that the harder I work, the more luck I seem to have.
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