We have seen severe correction in broader indices since beginning of this year. Mid Cap Index is down by -19% from its high made January this year. Steep fall in small and mid cap stocks this year have shaken investors sentiments and created panic for many retail investors who invested in stocks last year or during this year. Such steep corrections do test our patience and conviction. We should not get worried by listening to negative news flows. Rising crude prices, global trader war, weakening rupee, debt crisis will not impact earnings of all companies.
We keep on suggesting our members to avoid timing the market and follow a discipline approach while investing in equities and consider such steep corrections as buying opportunities to add good quality stocks at lower levels. Also, keeping a long term view is equally important. Patience always pays! Many investors get panic while watching stocks prices falling by 15%, 20%, 30% in couple of days or weeks, but if company’s fundamentals are strong with high earning visibility and valuations are reasonable, same stock can deliver 2x – 3x returns or even more within period of 2 to 5 years.
Its important to know, whether you would be able to hold on your nerves and stay calm in case of panic sell off in markets. Bad sentiments will not last for ever, if economy is growing, the companies in which we have invested are making higher profits, we will see buying interest in those companies from investors sooner or later. Its time for long term investors (2-3 years) to start accumulating good quality stocks on dips which are becoming available at discounted price.
Considering recent correction in mid cap stocks, we have reviewed our past recommended Value Picks and short-listed 6 Value Picks stocks which offer good long term investment opportunity and have potential to give excellent returns on your investment during next 2 – 3 years.
We have released our "Special Report - 6 Value Picks Stocks to Buy / Accumulate" on 2nd Oct'18 and mailed it to our Value Picks & Wealth-Builder members.
While short listing these 6 stocks, we evaluated each company on the basis of I-B-M-V-E-D parameters (Industry, Business, Management, Valuations, Earnings & Debt Management) and rated every parameter using a rating scale – E,V,G,F,P (Excellent, Very Good, Good, Fair & Poor)
One of the important key to successful investing is to pick the right business at decent valuations. We finalized these 6 stocks with a long term view (2-3 years) and find them superior over other Value Picks stocks in terms of recent developments, valuations, earning visibility, debt management (Loan book growth, NPAs, Capital Adequacy & Other Imp Financial Ratio’s in case of NBFC / HFC) and integrity of promoters towards their business and interest of minority share holders.
These 6 Value Picks stocks have a market capital between 500 crore to 5000 crores and seen a price correction between 40% to 48% from their 52 week high without any major changes in business fundamentals. We believe these stocks will outperform giving much better returns compared to broader indices in medium to long term. Our members can add these stocks in their portfolio with long term view (2 to 3 years). We suggest our members to start investing in these 6 Value Picks stocks with initial allocation of 2% and increase allocation gradually to 4-5% in staggered way only in case stock prices of these companies falls by another 10% to 20% or more during ongoing market correction.
If you wish to receive our Special Report - 6 Value Picks Stocks to Buy / Accumulate, you can subscribe to our Value Picks or Wealth-Builder annual subscription. Click here to know more about our services and discounts available on our combo packs.
If you have patience and want to add extra power in your portfolio, start investing some portion of your savings in fundamentally strong mid cap companies - Value Picks.
The stocks we reveal through Hidden Gems & Value Picks are companies that either under-researched or not covered by other stock brokers and research firms. We keep on updating our members on our past recommendation suggesting them whether to hold / buy or sell stocks on the basis of company's performance and future outlook.
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Do contact us in case of any queries, we will be delighted to assist you.
Wish you happy & safe Investing.