Hi Mahesh,
I am following your blog and your answers for a long time.
You do good analysis and I really appreciate your helping nature.
I wanted your views on the following stocks:
1. MMTC
2. NMDC
I had bought shares of MMTC on July 9th at Rs.90.
Today the price is Rs.72
So, I have made a loss of 20%.
So, I wanted to know your view, whether to hold this for more time to get to profit or sell it at cmp?
And how is NMDC?
Is it good to sell MMTC and buy NMDC instead?
Please share your views.
Regards,
Narendra Kumar SS
1. NMDC is a 1 rupee face value mining company.
2.Year high for NMDC is 196.15 and Year low 106.75 stock traded @174.55.
3.Promoters hold 80% share of NMDC and FII hold 6.96% DII hold 10.74% so only 2.80% stocks is hold by general public, It is good because generally stock with low general public holdings is perform better.
4.When i see results of company than i wonder that net revenue of company in Jun 2014 quarter 3476.73 cr and net profit is 1915.01 cr. how a company earn more then 50 % profit on their sells? net profit margin on NMDC is very high 55.08 In Dec 2012 net profit margein is 63.13% , So i think margins are already in downtrend and when pressure on margins come due to salary hike or depreciation than stock of NMDC is beaten down badly.
5. If you read my book and remember my concepts of yearly net revenue per share than Net revenue per share per year for NMDC is 30.41 only so i think fair value for NMDC is 30.
6.When NMDC traded above 252 then I warn my investor that NMDC will be down below 180 and one of my blog reader put comment that I do not give bad views on such companies but after my view price of NMDC fall and touch 92.65 in 2013 read this past store here
NMDC Fundamental Analysis
7.Market prove my theory many time read my past article on Rei agro and Sks Microfinance to knew that how market prove my price estimate.
http://sharegenius.blogspot.in/2012/05/rei-agro-ltd-review-part-2.html
http://sharegenius.blogspot.in/2011/05/sks-micro-finance-ltd.html
8. So i think price below 30 is good for enter in NMDC.
9. One more wonderful thing for all new investors that price of NMDC is 12 in 2001 and 16150 in 2008, So every price is possible in stock market read my book for more detail about price changing theory in stock market.
10. Finally I think you may hold MMTC and average out your holdings at every 30 % of price fall from your buying price, then you may get a profitable exit I am also wonder that you count loss just in one month..Please become a long term investor as I always recommended to my followers.
11. I have no any share of NMDC.
मेरे एक फोलावर श्री विपिन अग्रवाल ने भी स्विंग ट्रेड की सहायता से जीता
जीरोधा का 60 डे विनिंग ट्रेडर का अवार्ड Swing Trading Zerodha
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विधार्थियों ...
5 years ago
Sir, please guide me about Avance Tech. I already have 9900 shares @ 0.26.
ReplyDeletePoor due to low promoters holding 0.88 % only
DeleteSir, Please advice at what level I can buy and what is the future target of " MT EDUCARE" for 4-5 year time horizon.Since it has great potential education area, good management and invester friendly company.
ReplyDeletePappu Kumar
level below 50 is a good long term buy because net sale per share is near 50
Deletewhat is the target for nmdc in long term
ReplyDeleteMy view is not positive for NMDC and I still maintain my earlier view which I given in above article. I am a registered research analyst and as SEBI regulation research analyst not give target without giving price data of earlier year so I cannot give target here.
Delete