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Archive for the ‘Short Sell Ideas’ Category

Trouble in the air – Jet Airways and Kingfisher

Saturday, July 25, 2009 Leave a comment

Jet Airways (see Charts) has again started to bleed. It reported a 200 cr+ loss for the quarter. On top of that it is saddled with 15000+ crores of debt.

Its competitor Kingfisher has not paid dues worth 900 crores to the oil companies. Now Mr. Mallaya is doing the rounds of Govt. offices to bail himself out. (Read this)

Infact, airlines businesses never make money for the shareholders. Apart from some low cost airlines, the full service airlines have always been bleeding.

In case of  future oil price rise (which I feel is round the corner), Jet might be in further trouble. This is a good candidate for SHORT SELL on every rise. The stock has been languishing ever since falling from 1000+ levels.

This is again a case of “buy and hold” investors losing their money on false hopes and promises by the management.

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Mindtree and Sasken- How “buy and hold” guys lost money?

Monday, November 12, 2007 24 comments

Usually people ask me-” I am holding xyz. The stock is down 50%. Can I hold it? I am a long term investor and can wait for next 5 years!”

If you listen carefully- you will know this is just another case of “not booking losses”. The investor buys the stock on expectations that the stock shall go up and when the stock starts to go down he can’t adjust himself to the “new reality” and finds it difficult to sell the stock. By saying that he/she is “long term investor” he is merely putting up a reason to avoid losses.

Just look at two stocks -Sasken communications and Mindtree Consulting. If you remember when these stocks were listed, the companies were doing good and their issues were hugely oversubscribed . But both these stocks have been in the severe downtrend for last couple of months. Infact, if you remember I had advised one reader to sell Sasken while it was still at around 500 levels.And this had infuriated couple of readers! After all it was their darling stock. To me it was an expected behaviour as no one wants to believe that their stocks can actually go down! Who wants to buy a stock to take a “loss”?

Again this is a case of excellent managements and companies where the stocks have been underperforming. Infact Mindtree is below its IPO price! So if you are still holding these in the hope that they might recover some day, you might be in for some big surprise in the coming days.

Would you like to be a long term investor and hold this stock for next 3 years? Are you sure that these stocks won’t head to 100 or below? Are you sure that recession in US won’t affect these stocks in the telecom services industry? do you know that it took Infosys 7 years to regain its 1999-2000 price? Do you know that WIPRO stock holders who bought the stock at the peak of 2000 bubble are still sitting on loss?

Markets don’t care about future. Future is “unknown’ and “unseen”. It is best to remain in the “present”. Does’t everyone tell you to “live your life in the present”? Following trends is all about that! Those who can’t handle uncertainty can neither be good investors nor traders.

Mindtree and Sasken- How "buy and hold" guys lost money?

Monday, November 12, 2007 24 comments

Usually people ask me-” I am holding xyz. The stock is down 50%. Can I hold it? I am a long term investor and can wait for next 5 years!”

If you listen carefully- you will know this is just another case of “not booking losses”. The investor buys the stock on expectations that the stock shall go up and when the stock starts to go down he can’t adjust himself to the “new reality” and finds it difficult to sell the stock. By saying that he/she is “long term investor” he is merely putting up a reason to avoid losses.

Just look at two stocks -Sasken communications and Mindtree Consulting. If you remember when these stocks were listed, the companies were doing good and their issues were hugely oversubscribed . But both these stocks have been in the severe downtrend for last couple of months. Infact, if you remember I had advised one reader to sell Sasken while it was still at around 500 levels.And this had infuriated couple of readers! After all it was their darling stock. To me it was an expected behaviour as no one wants to believe that their stocks can actually go down! Who wants to buy a stock to take a “loss”?

Again this is a case of excellent managements and companies where the stocks have been underperforming. Infact Mindtree is below its IPO price! So if you are still holding these in the hope that they might recover some day, you might be in for some big surprise in the coming days.

Would you like to be a long term investor and hold this stock for next 3 years? Are you sure that these stocks won’t head to 100 or below? Are you sure that recession in US won’t affect these stocks in the telecom services industry? do you know that it took Infosys 7 years to regain its 1999-2000 price? Do you know that WIPRO stock holders who bought the stock at the peak of 2000 bubble are still sitting on loss?

Markets don’t care about future. Future is “unknown’ and “unseen”. It is best to remain in the “present”. Does’t everyone tell you to “live your life in the present”? Following trends is all about that! Those who can’t handle uncertainty can neither be good investors nor traders.

Short Sell- M&M

Sunday, August 5, 2007 2 comments

M&M is trading weak and close to breaking a long term support of 670. Below 670 it can easily slip to 640 and 610 levels. This might be a good short sell candidate.

Categories: Short Sell Ideas

Short Sell- Tech Mahindra

Friday, August 3, 2007 2 comments

Tech Mahindra another IT stock is hinging on its support of 1260-1270. The stock might fall further.

Short term traders can play countertrend around these levels while long term traders can go short when these levels break.Here is the chart:

techm.jpg

Categories: Short Sell Ideas

After Wipro’s fall -Are INFY and TCS next?

Thursday, August 2, 2007 7 comments

After Wipro cracked the 485 levels yesterday, next in line might be INFY and TCS. Both are very precariously placed around their long term supports and might crack soon. Here are the charts of the three biggies.

wipro.jpg infy.jpgtcs.jpg

Categories: Short Sell Ideas

After Wipro's fall -Are INFY and TCS next?

Thursday, August 2, 2007 7 comments

After Wipro cracked the 485 levels yesterday, next in line might be INFY and TCS. Both are very precariously placed around their long term supports and might crack soon. Here are the charts of the three biggies.

wipro.jpg infy.jpgtcs.jpg

Categories: Short Sell Ideas