Stock Ideas

[Suseeraj]

I have 50 Bought Shree cement @ Rs.1438. Day by Day it is coming down. Please anyone advice me, whether to Hold the stock or sell it.

[Ideas]

[suseeraj]

I am ready to wait. But what will be waiting time.

[Ideas]

Two years plus if this is not possible for you switch to SAIL or Gujarat NRE this stock again is moving up detailed report here
http://www.stockideas.org/component/option,com_hotproperty/task,view/id,2/Itemid,37/

[Guest]

[vijaythanvi]

I will interuput and will throw some of light on this matter, not advising to hold.sell or book losses.

In my previous post I wrote that don't repeat the mistake and so far here investor has not done any mistake by investing in Shree Cement, and I suggest to read Warren Buffet rule in which he mentioned there is two most importatnt rules in the market 1. Never loose money 2. Don't forget rule no. 1.

Shree Cement has not gone down due to fundamental crisis or speculation matter, if we look cement sector all peers companies, like ACC, Guj Ambuja etc., all shares has gone down in the same manner due to Govt.Policies but one thing is sure that Cement comodity is not week comodity, it is very hot comodity and no body can stop this sector from booming.

Recent devlopment happen (Govt.is going to give some tax benefit to this sector, still not so confimred), so I can tell this sector will bounce back sooner or later and fundamental stock will pick in the same manner in which way they have gone down.

Here guest has done right investment but in this market there is so many unkown short term ups and down comes, for that reason no need to panic.

Let me tell you one thing now we are visulising that Sail is good pick at this time but I can tell there is no suirty that tommorow anything will not come negative and will make down metal sector again, in this market if you have long term view and confidence (which generates due to strong business modle and company strength) then never sell your good investment due to panic.

On this stock can hold at least 6-12 months and then after if this stock don't give you any returen or doesn't cover you losses then of course long term postion should be wipe off and to be switched over or book losses.

For Shree Cement I don't think now more down side is expected becuase share is already discounted and came down very heavily where investor like to buy this share, so I think holding is better option rather than switch to other stock, I don't think any stock can give sure guarantee that it will give 100% returen.

For example here we book losses, for example Rs.10000 and we bought another script in hope that it will recover losses but that script has gone down by Rs.5000, what is the result losses become Rs15000 and which script first we sold that has gone up by same time Rs15000 (becuase that script is fundamently so strong and was down due to some short term reason), so what we did double mistake, I hope things got understood.

My mean is only that if we are holding such a good script then no need to panic for short term, if have short term starategy then thing is different.

I remember Dr.Reddy share before three years (approx) was on his peak, gone upto 1500-1600, people bought that share on that level and suddenly Dr.Reddy losses one case in USA and also same time result came continiously poor (three quarter) and share gone down to 750, now same thing was there but once result came very good share started to climb and came up again to 1200-1300 and then bonus came and investor got their value back with some good returen, so long holding didn't give any losses on this stock becuase company is so good, fundamentaly so strong, made come back.

So in Market some time happen, we invest in right stock but due to some reason it gives negative returen but if we have strong long term strategy then I don't think there should be panic.

And also when market came down more then 2000 points then natuarlly share will come down and same time if any wrong news and speculation works on that stock then that stock will underperome but that doesn't mean that that investment is wrong, investment is good in good company only time factor is there.

I hope market is now giving hint to march upwards and Shree Cement also can surprise (if Govt. propasal take place).

One more thing I want to highlight that cement companies agreed with Govt. that they will not raise prices for further 1 year, I think they might be have their also some conditions to the Govt. which is not coming out now, hope so it will come out and Cement sector will bounce back, you can visulaise one thing that after so many efforts cement companies has not rolled back their increased prices (after budget they raised) meanss they have strong side becuase there will be strong demand for this comodity and this sector will perform again.

[singhvi]

100 % agree with both reasonings but people come in to the market with 100 rs invest in one script on broker reccomendation.
no doubt broker reccomend good script but timing of entry is wrong investor get impatient and loose hope in market this happens for 90 % of non technical investors who have little knowledge of PE Ratio or growth factor they shy away from market for this reason.
i like to say here that only few people in india invest in stock market compared to america and that too people are non technical cannot read company performance themselves depend on broker reccomendation broker blindly reccomend script and vanish
for this reason already few people invest in stock market and that too shy away buying at wrong time
i want to say the investor must learn to study the stock before invest
like even if one buy bhendi or gobi we bargain and look for better deal
but when we buy stock worth lakh rupees we dont look into fundamental of company this is wrong
i mean to say in end is education of company performance study is necessary before entry in stock market

[vijaythanvi]

Dear Singhvi, You completed my meaning in better and very simple way,
point you highlited that in Inida people are not investing like America etc. is the main point and I am fully agreed with you.

I request you to be a registered member of this board, it is very simple, so you can track all your valubable comments,post and advices in this board and also you can post your recommendation etc on praticular share under your picks, I hope you will give us lot of benefit.