‘Stocks For The Long Term’

Letters to the Editor.

The Sudden Fall In Some Stocks

Kindly answer these for me: 

(1) Why do stocks that are doing well suddenly fall by more than 50 per cent?
(2) What are the basics for evaluating any bank? 
(3) You are also requested to publish a more detailed report on the Top Performing MF schemes over the last one year in all categories.

- Hiteshkumar Parekh

Reply –

(1) You have to keep in mind one thing that the recent fall that is witnessed in certain stocks are mainly a part of the Mid-Cap space. Here, we need to mention that the Mid-Cap space is very volatile and the recent fall in the stocks is due to certain reasons which the SEBI is investigating.

(2) For looking at a bank you have to keep certain things in mind like the Net Interest Margin (NIM), Non-Performing Assets (NPAs), Provision Coverage Ratio (PCR), and the Capital Adequacy Ratio (CAR). These are the major parameters that you need to keep in mind. 

(3) Thanks for the suggestion. We will certainly consider your proposal.

‘Stocks For The Long Term’

I have been reading DSIJ for the last few years and it has really helped me in a number of ways. I recently bought a few shares recommended in the magazine - Aditya Birla Nuvo, Torrent Cables, Glenmark Pharma and Symphony.

I would like to request your team to work on the theme - 'Stocks For The Long Term’ - with a horizon of 15 - 20 years of holding, which can be bought on a regular basis like SIPs and will create wealth for investors over the longer term.

- Mahesh Kamble

Reply -

Thank you for the suggestion. We will certainly consider this proposition.

Detailed Analysis

As always, both the recommendations in your magazine were accompanied by a detailed analysis which made for an interesting read. Unfortunately, I have not been able to buy into both due to cyclical fiscal tightening of the year-end months and the limited exit/profit booking opportunities over the past few months. At the moment, my money is invested in CEBBCO, HSIL, Amara Raja, Torrent Cables, DCB, Symphony, Colgate, Shalimar, Havells etc.

Hoping for a good budget from the FM to give a direction to the market and year-end bonuses to resume investing and profit booking again.

- Sharad