Monday, August 15, 2016
Chandu 5th Profit Booking 23.26 % in Guj Sidhee Cement (Part 12 of Chandu Story)
This part is part 12 of Chandu story. New readers, please start it from part 1 here is the link for part 1 for new followers:-
In earlier parts of this story we see how Chandu earn decent profits in my previous four recommendations:- (Click on the link for more details)
Now you see my next 5th recommendation "Guj Sidhee Cement @ 23" which published on this blog on 02 June 2013, Read it here:-
As per my rule Chandu invests INR 5000 in Guj Sidhee Cement and buy 217 stocks of Guj Sidhee Cement, and he got 1/- per share dividend on 17.07.2013 (INR 217 as Dividend) after my recommendation this stock down 50% within two months and touch @12 on 31.07.2016
Why this stock down 50% after my recommendation: - In 2013 I am not a qualified research analyst. I am also a small investor like you and make same mistakes which you make.
I publish this recommendation without considering base price because I am greedy at that time, and I think that due to capital reduction this stock may give decent returns in short period ( read details in this link of Guj Sidhee Cement.)
Ok, So Chandu stock is down near 50%, but he was a strict follower of me and do not email or comment under my post like this:-
"Hi, Mr. Kaushik can I book my loss in Guj Sidhee Cement? because in this stock I lost my money withing one month and there is no movement so what to do now?"
These days I get this type of emails and comments for my Pratibha Industries recommendation:-
Download last three-year price of Guj Sidhee Cement here:-
This is the reason that why I do not invest more than 10% of monthly income in a single stock ( Chandu average monthly income is INR 50,000, so he invests INR 5000 in a single stock and increases 7.5% basic investment amount every year, read my book for details).
So Chandu enjoys his dividend of 1/- per share and holds Guj Sidhee Cement for one year because he wants the income tax free return.
After 1 Year :- On 3July 2014 Chandu see market price of Guj Sidhee Cement, It was 28.35, So Chandu was situated at 23.26% profits, Chandu booked this profit immediately because Chandu already sees 50% notional loss in this stock and not want to hold it for more time.
Honesty Comment: - If you download above last 3-year price history then you may see that Guj Sidhee touch 46.40 on 26 Aug 2014.
And I do not tell here that Chandu books his 100% profit in Guj Sidhee from 23 to 46.
Because honesty is the best policy and I knew that I have no logic to say why Chandu holds it after 23.26% profit on one-year holding, because this recommendation not gives on base price theory, net sale per share theory and book value basis.
My Recent Update:-
Next Part of this story will be published after 30 Days
If you understand Hindi then It is interesting to know that I have another Chandu story on Indian History Subject, Read it here: -Chandu Journey of Indian History