Tuesday, January 1, 2019

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 Jan 1-21, 2019. 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 tomobugobu@yahoo.com at the earliest for details.

The newsletter has completed 108 issues, with its share of hits and misses. The stock market touched a lifetime high in Aug '18 but has been undergoing a correction since then. Sensex gained 5.9% and Nifty gained 3.15% during 2018.

Mid-cap and small-cap stocks faced the wrath of bears. The 4 months long market correction/consolidation since Sep '18 brought down most selected stocks from their peaks – affecting year-end performance. It is gratifying that subscribers have still kept faith in my stock picking abilities.

Those who have been regularly following my blog posts over the past few years may 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 low debt, give steady (rather than spectacular) returns and have growth prospects. 

Non-subscribers may be interested to know how the recommended 12 mid-cap and small-cap stocks have fared during the past 12 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 Dec 31, ‘18:

  • 4 stocks gained more than 20% from recommended levels, of which 1 gained 31% and 1 gained 78%
  • Of the balance 8 stocks, 2 gained between 15-20%, 2 gained between 10-15% and 4 gained between 1.5-6%
  • At close of Dec 31 '18, 4 stocks were in the green; 8 stocks were in the red - of which 6 are down less than 9% and should make up the deficit soon, and 2 are down between 23-26%
  • All 12 stocks touched higher levels after monthly recommendations
That may not appear all that great, but remember that the market has been correcting/consolidating for the past 4 months. To put it in perspective:  BSE Midcap index was down 13.4% and BSE Smallcap index was down 23.5% during 2018. That means 10 of the 12 recommended stocks have outperformed BSE Midcap and BSE Smallcap indices.

What is important to understand is that none of the recommended stocks were ‘cheap’ – fundamentally strong stocks rarely are - and some had already run up a lot when they were recommended.

The selected stocks are meant to be held for 2-3 years. Over the next 24 months, the laggards are expected to catch up with the leaders. Also, stop-loss levels are suggested every month so that small losses don't turn into big ones. 

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 mobugobu@yahoo.com) soon – subscriptions will close on Jan 21, 2019.

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