X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Are the Occasional Stock Spikes Post Microcap Millionaires Recommendations a Deal Breaker? - Views on News from Equitymaster
Microcap Millionaires
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • Apr 5, 2017 - Are the Occasional Stock Spikes Post Microcap Millionaires Recommendations a Deal Breaker?

Are the Occasional Stock Spikes Post Microcap Millionaires Recommendations a Deal Breaker?
Apr 5, 2017

When we recommended Goldiam International last month, the stock's price shot up 20% the day after recommendation. This ruffled a few Microcap Millionaires subscribers.

As you already know, considering the nature of this service, there are going to be many stocks of smaller market capitalisation and lower than average liquidity. This makes such situations inevitable in some cases.

However, there's a few things you should remember about this phenomenon.

For starters, since there are many factors influencing the stock price at any given time, it is hard to zero in on the exact reason for spurts in volume/price in a given instance.

While at times it could be due to the buying by MCM subscribers after our recommendation, there could also be other unrelated and external factors that may coincide with our recommendation. It is near impossible to separate the influence of the two.

Further, it is only in the minority of the cases where the fluctuations either way are substantial.

We did some number crunching to see what the returns from our 27 closed positions so far would look like if the closing price on the next day after recommendation were used instead of the price on the day of recommendation as we customarily do.

Here's what the results look like:

Closed Position Returns from recommendation day's price Returns as per closing price the day after recommendation
Aries Agro 73% 50%
Bharat Bijlee 51% 47%
Birla Corp 135% 111%
Century Enka 110% 104%
Globus Spiritis -20% -24%
Graphite India 71% 67%
GSFC 6% 3%
Gujarat Alkalies & Chemicals 10% 6%
Gujarat Ambuja Exports 91% 82%
Gujarat Industries Power Ltd 34% 24%
HCL Infosys 12% 11%
HIL 170% 147%
IFGL Refractories 126% 124%
Kakatiya Cements 107% 82%
Kanoria Chemicals 146% 127%
Lloyd Electric 176% 154%
Mangalam Cement 100% 90%
NALCO 59% 56%
NALCO 76% 73%
Navin Fluorine 170% 144%
Peninsula Land -39% -39%
SAIL -36% -34%
Swelect Energy 72% 51%
Technocraft Industries 150% 116%
Technofab Engineering 44% 20%
Titagarh Wagons 545% 604%
Venus Remedies -58% -59%
Average return 88.2% 79.1%
To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report.
  2. Equitymaster has financial interest in Goldiam International.
  3. Equitymaster's investment in the subject company is as per the guidelines prescribed by the Board of Directors of the Company. The investment is however made solely for building track record of its services.
  4. Equitymaster's Associates and Research Analyst or his/her relative doesn't have any financial interest in the subject company.
  5. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  6. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the subscriber could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the subscriber could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the subscriber should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the subscriber could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Aug 18, 2017 (Close)

MARKET STATS