X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 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.
Betting on Turnarounds, Consumption Boom Myth, and More... - Views on News from Equitymaster
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
The Equitymaster Research Digest

Betting on Turnarounds, Consumption Boom Myth, and More...
Nov 24, 2015

Currently, 2,563 companies trade on the BSE. But are you, the investor, truly spoilt for choice?

I have been in the profession of screening stocks for more than a decade, and I have never had this luxury. I have always been on a team that errs on the side of caution. Companies without respectable track records get automatically filtered out. Meaning a vast majority of the listed companies never made it to our recommendations. And the vast majority of today's listed companies won't either. So the universe of stocks to invest in remains limited.

But one thing has changed. And that's our ability to bet on turnarounds.

Does that mean in the past we didn't bet on business with turnaround prospects? Of course not. Our first ever recommendation on Titan Industries in Februray 2004 was a classic turnaround bet.

Titan was then predominantly a watchmaker struggling to diversify. The company had problems in managing debt levels due to its working capital cycle. And despite its strong brand power, Titan was unable to leverage its distribution network. We saw the company's brave foray into branded jewellery (the first player to do so) as a game changer. This along with the balance sheet restructuring was enough for us to bet on the company's turnaround.

To Read the Full Story, Subscribe or Sign In


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS