Saturday, July 1, 2017

Announcing re-opening of paid subscriptions to my Monthly Investment Newsletter

I am pleased to announce the re-opening of paid subscriptions to my monthly investment newsletter for a 3 weeks period from Jul 1-21, 2017. A limited number of subscriptions are being offered to blog visitors, blog followers, blog subscribers and twitter followers – on a first-come first-served basis – to enable me to provide personalised attention and guidance to each subscriber.

If you are interested in subscribing, please send an email at the earliest for details.

The newsletter has completed 90 issues, with its share of hits and misses. Sensex and Nifty touched lifetime highs in June, 2017 and have been in a consolidation-cum-correction phase during which small-cap and mid-cap stocks have faced sell-offs – affecting overall performance. It is gratifying that subscribers have still kept faith in my stock picking abilities.

Those who have been regularly following my blog posts know what kind of stocks to select, and what type of stocks to avoid. The guiding principle is to choose well-managed, financially prudent companies that generate cash from operations, have manageable debt, give steady (rather than spectacular) returns and have growth prospects.

Non-subscribers may be interested to know how the recommended (mostly mid-cap and small-cap) stocks have fared during the past 18 months. Without revealing the names of the stocks (it won’t be fair to my subscribers to do so), here is a brief summary of performance as on Jun 30, ‘17:

  • 12 stocks gained more than 25%, of which 4 gained between 25-49%; 4 gained between 50-99%; 3 gained more than 100%; 1 gained more than 200%
  • Of the balance 6 stocks, 2 gained between 10-24%, 3 gained between 0-9% and 1 gave nil gain
That may not seem all that great, but remember that the stock market has been in a consolidation-cum-correction phase from which it is yet to recover fully - thanks to FII selling. So, here is a different perspective on the above performance:

By blindly investing (not recommended - you should always do your own due diligence) Rs 20,000 in each month's recommended stock and holding on till Jun 30 '17, a subscriber would be sitting on gains of close to Rs 134,000 (37.2%) –outperforming the Sensex (19.7%), Nifty (19.2%), BSE Mid-cap index (32.9%), BSE Small-cap index (31.4%) and Bank Fixed Deposit (12%).

What is important to understand is that most of these stocks were not ‘cheap’ valuation-wise – fundamentally strong stocks rarely are - and some had already run up a lot when they were recommended.

If you wish to add fundamentally strong mid-cap and small-cap stocks with growth potential to your portfolio, why wait? Just subscribe to my Monthly Investment newsletter. Send me an email (at soon – subscriptions will close on Jul 21, 2017.

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