Everyone writes about successful stocks pick and how followers have made returns. I also did the same-thing when Intrasoft had given 10 times returns in a single year.
Earlier, discussed the following stocks in the blog. Followers did their own research, some invested, the majority ignored. The majority was right 😀. These investors and I stuck in these stocks even if we want to move on. Either price was low or liquidity was low. I apologize to the investors who are stuck and need some cash. These were not completely bad investments but not proved to be good yet. BTW, hope is still alive to prove critics wrong 😀
Stock
|
Date
|
Discussed
Price
|
C.P.
|
comments
|
Link
|
FOMENTO
RESORTS
|
Sep-2017
|
129
|
127(delisting
price 141)
|
Went to
low of 59 , provided averaging opportunity,
avg price around 100
|
|
BLUE CHIP
|
July-2016
|
85
|
85
|
No return
except for dividend
|
|
TechNVision
|
Oct-2015
|
45
|
225
|
What a
great return then why it is in this list? Because it is illiquid and may not even trade at 100.
|
FOMENTO RESORTS :
It provided a good opportunity to average down
when good news started flowing but the price was still low. I distinguished stocks in 3 categories.
- Crop Type stocks
- Tree Type Stock
- Gajarghaas Type Stocks
Crop type of stocks I don’t do averaging up but do averaging down
and Fomento was crop type of stock. But, I made an initial mistake on guessing the maturity
of this crop. I mean, I though expansion will complete in 1 to 1.5 years but it
took 2.5 years.
Now, Fomento has come up with delisting at the price of 141 . It
is a big relief for stuck investors. Since Covid19 has badly impacted the hotel
industry it is a good to deal.
However, we should also know that the story was just started
unfolding, expansion was completed, and the new hotel has started operations. Fomento Resorts & Hotels has executed a
Hotel Operating Agreement (HOA) with the Indian Hotels Company (IHCL) . IHCL is
carrying out the operations and marketing of the Hotels under its brands (IHCL SeleQtions like Taj)
.Still, delisting is good deal for stuck investors because they had capitalized
interest cost for the new hotel. The next few years might be challenging on profit
front due to interest cost.
BLUE CHIP :
Profit
is 3x from Fy17 but the price is almost the same as discussed price. Valuation has
shrunk. It is trading at just PE of 2.7. Not much appetite in the current market
for this type of stock. Investors are stuck can’t sell at this price and
liquidity is also low.
TECHNVISION VENTURES LTD
This stock was continually high on hope and very low on
delivery. If some other stocks delivered like this I could have said Bye …
Bye. But, this is concept stock and even if I want to sell I can’t. Last year, it did the large write-off, it is part and parcel
of the product company to write off. Even, every product of Google doesn’t get
successful, some goes in dustbin. I thought it will start new innings but this
year too posted a negative profit. I was disappointed.
FY2020
the result is bad, initially I was disappointed because they are winning big
customers but not able to convert those wins into profit. But, when I watched
webinar of Solix with Microsoft and another one with HCL technology. I realized
they are using pricing strategy as “Pay-as-you-Go” for SolixCloud, it means
they will not get huge payments upfront but it will be recurring payments like
our mobile bills .Secondly, they win these deals with some larger player.
So, they get a certain percentage of revenue
instead of the full amount. If they are getting recurring charges , then It means
existing investors will have to show more patience for the next 1-2 years as well.
If you
track this company closely then it continuously gives high doses of hopes.
Should we invest at this price, NO. Existing investors do not have any
choice than holding it.
Some updates on TechNVision which again gives high hope.
- They are working along with companies like HCL Technology and Microsoft
Joint Webinar of Solix and HCL technologies
https://www.youtube.com/watch?v=mNaf7QuU7e8&t=11s
- Founder and CEO Sai Gundavelli is very confident about product and hoping to get billion dollar revenue from it .It may be total revenue instead of yearly. It was very candid interview/podcast.
- HDR Inc a top 5 global design firm in the world has selected SOLIXCloud, software-as-a-service for legacy data decommissioning built on Microsoft Azure.
Emagia ( Another subsidiary of Technician) AI-based fintech
platforms for receivables and treasury, today announced Gia Docs AI, a
next-generation cognitive data capture service.
Finance staff can ask Gia in a chat or voice conversation to
read and extract information from invoices, remittances, checks, bank
statements, and lock-box files into neatly extracted data files in CSV formats.
“Our mission with Gia Docs AI is to take modern finance
organizations to the future of zero manual data extraction in the digital age,”
said Veena Gundavelli, Founder & CEO, Emagia.
- Large pharma company (40B). It claimed to reduce 80% costs of running and maintaining legacy systems.
Legacy Application Retirement on
cloud is a new area of growth. The company is a leading player in that segment.
Notable recent 25 customer
acquisitions across multiple industries are :
- Acco Brands, American manufacturer of office products
- AIG (American International Group), insurance and retirement provider, serving 87% of the Fortune Global 500
- Alberta Health Services, Canada’s largest health authority
- BAE Systems, world’s third-largest defense company
- BC Liquor Stores, top Canadian liquor retail distributor
- Catalent Inc., a global provider of drug delivery technology and development solutions
- Citigroup, 4th largest bank in the United States
- Cuyahoga County government
- Edelweiss, leading personal wealth advisor
- Experian, the world’s largest credit reporting agency
- GE Appliances, one of the largest appliance brands in the United States
- Health Care Service Corporation (HCSC), not-for-profit corporation health insurance company
- IFFCO Tokio General Insurance Company Limited, 3rd largest private general insurance company in India
- Iron Mountain, leading records management and information storage company
- Juniper Networks, leading networking hardware and infrastructure company
- LinkedIn, largest business social networking service
- Molson Coors, the world’s seventh largest brewer by volume
- SABIC (Saudi Arabia Basic Industries Corporation), largest public company in Saudi Arabia
- Santander Bank, national bank
- SONIFI Solutions, interactive content and connectivity solutions provider
- Stryker, Fortune 500 medical technologies firm
- Unilever, the world’s largest consumer goods company
- UnitedHealth Group, a largest healthcare company in the world by revenue
- Xylem Inc., leading water technology provider
- Zurich Insurance Group, Switzerland’s largest insurer
