It has been a long time. I can easily sense the buoyant mood among investors and traders after the elections. Of course, I too have thoroughly enjoyed the ride back to 15000 levels. I’ve been looking to sell some stocks which seem overpriced to me. But could’nt find any. Just waiting on the sidelines.
The one stock which I wanted to own some time back was Satyam. I believe Mahindras to be a conservative group. Definitely they can bring restore Satyam to its glory. The matter is TIME !!! (traders excuse). The easiest way to beat all those fund managers and the index alike is to outwait them after making a pick at bargain price (You better know why it is selling at a bargain). In the case of Satyam, we all know why it has been beaten down. So did I buy it? Not yet. Waiting (as usual) for better price point.

Markets seem to have some life in them after this weeks bounce. Banking stocks have been hammered. I've been looking at SBI very closely. This march is what's been keeping from buying, nevertheless I have made up my mind and will take the plunge. The interest rates are heading south. The spread is in favour of banks. The captain of the industry is definitely my bet!!

What the index has been telling me is that it is those two or three stocks which have been holding the index value from disintegrating further. Like all the retail investors, the fall in the mid cap stock values too have been dragging my portfolio value lower. However I have still been buying into my existing portfolio, the only comforting factor being that the quantity available for the sum that is deployed now is far more than what was available six months ago. I have been taking solace from the fact that I do have one or two out performers in my portfolio which have not fallen much. In fact I sold one of my stocks which was trading within a 10 -15% range from the 52 week high. I felt it was fully valued at the current price and the same money could fetch me better bargains in some businesses I have been closely tracking……………
I sold a “lubricants” company which fetched me handsome dividends. But the rise in the stock price (not that I am complaining) makes the yield percentage a little less attractive. Further, auto industry facing recession, I felt I would be better off selling this company and buying another. I added two of my existing stocks. One is “Indian hotels” and the other being “Voltas”. I am a little skeptical about “Voltas” as it is an infrastructure related business. But its huge cash flows and robust order book along with cheap valuations further enticed me into buying into the stock. Also the thought that one should have an infrastructure business for an emerging economy like India egged me further. Also, having bought the same stock at much higher levels gives me another compelling reason to buy the same. As for the hotel stock, it has been my constant favorite. This is one industry which has entry barriers due to the high real estate requirements. Also the shift of the younger generation towards spending and having more holidays, eat-outs, parties also adds to the “appeal” of the business model. The fact that both the companies managed by the conservative “Tatas” too had its say! Anyway, I will know only after a year or two if my investments paid off! So like everybody else I too am in the waiting!!