Friday, July 1, 2016

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 Jul 1-21, 2016. 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 78 issues, with its share of hits and misses. Sensex and Nifty had touched lifetime highs in March, 2015. The subsequent 12 months long correction brought down almost all selected stocks from their peaks – affecting overall 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 Jun 30, ‘16:

  • 8 stocks gained more than 25%, of which 4 gained between 25-50%; 3 gained between 50-100%; 1 gained more than 200%
  • Of the balance 10 stocks, 7 gained between 10-25%, 2 gained between 0-9% and 1 gave nil gain

That may not seem great, but remember that the market had been in a long down trend from which it hasn't yet recovered fully - thanks to FII selling that affected large-cap stocks the most. So, let me provide a different perspective on the above performance:

By blindly investing (not recommended - you should always do your own due diligence) Rs 20,000 in each month's recommended stock and holding on till Jun 30 '16, a subscriber would be sitting on gains of close to Rs 76,000 (21.1%) – outperforming the Sensex (- 8.6%), Nifty (-7%), BSE Mid-cap index (8.4%), BSE Small-cap index (3.8%) and Bank Fixed Deposit (9%).

What is important to understand is that most of these stocks were not ‘cheap’ valuation-wise – 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 Jul 21, 2016.

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