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π Market Kya Lagta Hai
Nifty 50 π’ +1.86%
Midcap 150 π’ +4.48%
Smallcap 250 π’ +4.55%
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Sectors in Focus
Major Corporate Developments This Week
- BEML secured order worth Rs. 250 cr from northern coal fields for dump trucks
- Aurionpro: Approved Issue of Bonus Shares in the ratio of 1: 1
- Zydus Life signed exclusive licensing & supply agreement with MSN for Cabozantinib tablets for US market
- Shyam Metaliks: Approved CAPEX of RS 700cr for production of flat rolled aluminum products
- RBL Bank: Company receives RBI's approval for Quant Money Managers Ltd acquisition
- IndiGo: Company plans to expand regional network with order of 100 smaller planes
- Siemens India: Company announces capex of over Rs 1,000 crore for expansion of operations
- Big Bloc Construction: Company announces temporary shutdown of Umargam plant for 45-60 days
- Cipla: Promoter Group looking to sell upto 2.53% stake in Cipla via block deal, offer size at βΉ2,637 cr.
- Anant Raj: Axis MF bought 26 lakh shares (0.76% stake)
- Vedanta: Cairn Oil & Gas's Reserves and Resources portfolio grows 19% year-on-year to 1.4 Bnboe. Vedanta to consider raising funds via issue of equity shares via FPO, rights issue or other ways on May 16
- Shriram Finance: Company to sell its housing finance arm to Warburg Pincus for βΉ4,630 crore
- Cochin Shipyard: Company bags order in the range of βΉ500-1000 cr from a European client for Hybrid SOVs
- Coromandel Intl: Company to acquire an additional 6.99% stake in Dhaksha Unmanned Sys for βΉ150 cr
- RVNL: Company gets LoA for an order worth Rs 239 crore from Southern Railway
- Electro steel castings: Company approved capacity enhancement of di pipe production plant to 6.5 LTPA, Companyβs capacity enhancement at investment of 640m rupees
- Infosys: Company completes acquisition of leading semiconductor design services provider
- KPI Green Energy: Companyβs board approves raising up to βΉ1,000 crore via QIP
- Reliance Retail ties up with UK's ASOS to bring online fashion retailer to India
TechnoFunda Investing Quote from Legends -
Stanley Druckenmiller's quote encapsulates his investment philosophy that achieving superior long-term returns hinges on two key strategies: preserving capital and capitalizing on major opportunities ("home runs"). He emphasizes that when an investor has high conviction in a trade, it is crucial to aggressively pursue it, a concept he refers to as "going for the jugular". Druckenmiller highlights that this approach requires significant courage and the willingness to take on large, concentrated risks β likening this mentality to that of a "pig," which challenges the common adage that pigs get slaughtered in the market. By focusing on these high-conviction opportunities while safeguarding the initial capital, investors can achieve extraordinary returns.
π Book I'm Reading This Week
Much of what we experience in life results from a combination of skill and luck. The trick, of course, is figuring out just how many of our successes (and failures) can be attributed to eachβand how we can learn to tell the difference ahead of time. In most domains of life, skill and luck seem hopelessly entangled. Different levels of skill and varying degrees of good and bad luck are the realities that shape our livesβyet few of us are adept at accurately distinguishing between the two. In this provocative book, Michael Mauboussin helps to untangle these intricate strands to offer the structure needed to analyze the relative importance of skill and luck. He offers concrete suggestions for making these insights work to your advantage. Once we understand the extent to which skill and luck contribute to our achievements, we can learn to deal with them in making decisions. The Success Equation is a must-read for anyone seeking to make better decisionsβin business and in life.
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TechnoFunda 101 - Power Capsules
Learn technical as well as fundamental concept in a simple way
Decoding CAN SLIM: A Comprehensive Guide to William O'Neilβs Investment Strategy
What is CAN SLIM?
CAN SLIM is an acronym representing seven critical criteria that stocks need to meet to be considered strong investment candidates. Developed by William O'Neil, this strategy has gained popularity for its efficacy in identifying high-growth stocks.
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C - Current Earnings
It's no coincidence that the first two letters of the CAN SLIM Investing System both relate to earnings growth β the No.1 factor to consider when deciding what stocks to buy. Big, accelerating earnings-per-share (EPS) growth is what attracts the attention of the large institutional investors. Understand that 20%-25% quarterly earnings growth is the minimum benchmark. The very best stocks will typically have gains of 50% to 100% or more. The bigger, the better; so focus on companies with market-leading, explosive earnings growth.
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A - Annual Earnings
Annual Earnings growth is equally crucial. Stocks should exhibit significant annual earnings growth over the past five years. This sustained growth shows the companyβs ability to adapt and thrive over various market conditions, making it a safer investment. Here again, the 25% annual earnings growth is the minimum. The top stocks will often post even stronger increases.
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N - New Product or Service
The "N" represents something new like a new product, service, management, or even a new high in stock price. Innovation and novelty are key drivers of growth and profitability but also attract market attention, potentially leading to increased stock prices.
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S - Supply and Demand
Supply and Demand dynamics play a critical role in a stockβs performance. Stocks with fewer shares outstanding but higher demand are more likely to see their prices increase. Investors should look for companies with significant institutional ownership but still have room for additional investment.
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L - Leader or Laggard
Investing in leading stocks within leading sectors increases the chances of high returns. "Leaders" perform better than their peers and have superior relative price strength. Identifying these frontrunners and avoiding the laggards is crucial for a successful investment strategy.
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I - Institutional Sponsorship
Stocks with increasing institutional sponsorship (mutual funds, insurance companies, etc.) tend to perform better, as these institutions can drive up stock prices due to the large volumes of shares they buy. Look for stocks with strong and increasing institutional ownership.
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M - Market Direction
Lastly, understanding the overall market direction is imperative. O'Neil emphasizes the importance of buying stocks during market uptrends. Keeping track of market indices and employing market timing strategies ensures that you are investing under favorable market conditions.
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Conclusion
The CAN SLIM strategy by William J. O'Neil underscores the significance of earnings growth, market leadership, innovation, supply and demand dynamics, institutional sponsorship, and market conditions. By adhering to these principles, investors can make more informed decisions and potentially achieve better returns.
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ποΈ My Weekly Podcast For You
Keep Compounding...
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Vivek Mashrani, CFA
Founder, TechnoFunda Investing
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