HNI investors - attracting retail investors?

By Research Desk
about 4 years ago

In a Bull market, investors get blind or desperate to lap up an idea or tip, without checking or caring of the fundamentals or valuation of that stock, just on herd mentality. In the past, we have seen that with Harshad Mehta & Ketan Parekh stocks. We are not naming many other such prominent investors, where  stock invested by them, either have destroyed wealth or have not performed. Few such stocks were Suzlon, Educomp,  Everonn Education, Manpasand, A2Z Infra, Pipavav Shipyard, Sharp India, Provogue, Talwalkars and Future Capital to name few ones.

Now it is seen revival of the same old theme, where stocks like Eveready, Gati, Religare (just to name few ones), are seen in limelight. We are not saying that some of them are not investment worthy, but valuations in case of many of such stocks are seen hitting roof, which may become like PE investmet in due course (with success in 1 out of 100 hitting Bull's Eye).

On the other hand, few such real turnaround gems were not liked by the so called visionary investors, at low price or at an early stage. Case in point is CG Power, which was thrased by an Anchor of a Business Channel, till it was rulling at Rs. 40, but now seeing value by same Anchor, on share having moved to Rs. 60. These type of stocks are also seen many, few of which were given as buy calls by us, to our paid members in the past.

Message of the story is that such stocks need days, weeks and months of research, which is not difficult, but impossible, if 360 degree anaylsis is not made on those stocks.
Conversely, it is easy to give a buy call on HDFC, HDFC Bank, Asian Paints, HUL and Dabur but difficult to find such Hidden Gems, which is not a child's play.

This is not a buy or sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.

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