Sunday, January 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 Jan 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 tomobugobu@yahoo.com at the earliest for details.

The newsletter has completed 84 issues, with its share of hits and misses. The stock market touched a 52 weeks high in Sep, 2016 but the subsequent correction meant Sensex gained less than 2% and Nifty gained only 3% for the year. 

Many mid-cap and small-cap stocks made excellent gains - which made stock selection difficult as finding value became a challenge. The 4 months long correction since Sep '16 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 already 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 18 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 Dec 30, ‘16:
  • 9 stocks have gained more than 25%, of which 4 have gained between 25-50%; 3 have gained between 50-100%; 1 has gained 105%; 1 has gained nearly 200%
  • Of the balance 9 stocks, 2 have gained between 10-25%, 1 has gained between 0-9% and 6 have lost 2-18%
  • All 18 stocks had touched higher levels after my recommendations
That may not seem all that great, but remember that the market has been in a down trend for the past 4 months - thanks to FII selling. So, let me provide a different perspective on the above performance:

By blindly investing (not recommended) Rs 20,000 in each of the 18 stocks and holding on till Dec 30 ‘16, a subscriber would be sitting on gains of close to Rs 123,000 (34.1%) – comfortably outperforming the Sensex (-4.3%), Nifty (-2.3%), BSE Mid-cap index (12.6%), and BSE Small-cap index (8.3%).

What is important to understand is that none of these stocks were ‘cheap’ – 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 mobugobu@yahoo.com) soon – subscriptions will close on Jan 21, 2017.

No comments: