Sunday, December 31, 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, 2018. 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 96 issues, with its share of hits and misses. The stock market closed the year at a lifetime high. Sensex gained almost 28% and Nifty gained 28.6% during 2017, but both indices have been in consolidation mode during the past two months.

Many mid-cap and small-cap stocks made excellent gains - which made stock selection difficult as finding value became a challenge. The 2 months long market consolidation since Nov '17 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 29, ‘17:
  • 6 stocks have gained more than 25%, of which 2 have gained between 25-50%; 3 have gained between 50-99%; 1 has gained 100%
  • Of the balance 6 stocks, 2 have gained between 10-25%, 2 have gained between 0-9% and 2 have lost 3% & 34%
  • All 12 stocks had touched higher levels after monthly recommendations
That may not appear all that great, but remember that the market has been consolidating for the past 2 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 12 stocks and holding on till Dec 29 ‘17, a subscriber would be sitting on gains of nearly Rs 80,000 (33%) – outperforming Sensex (28%) and Nifty (28.6%).

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.

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 soon – subscriptions will close on Jan 21, 2018.

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