How much is Conviction and Confidence worth?

Hi friends, here’s a small story I’d like to share with you.

Over a year ago, JainMatrix Investments (JM) did a research and found an interesting investment opportunity. It was a mid cap firm. JM then went ahead and created a detailed 9 page equity research report and shared it with its subscribers. They projected a target price with a 50% gain in 2 years. They were convinced that this was an excellent firm, with good prospects. In the next 6 months, the share did well, it appreciated 60%, and seemed to justify the recommendation. The target price was achieved, but JM continued to be positive about the firm and retained a BUY on it.

Then things changed suddenly. There was a ‘bad news’ article about the firm in the papers. It contained unconfirmed but serious allegations. Suddenly there was uncertainty around the firm. The share price started falling. Market pundits all said they were unsure about the firm. Every action of the firm became suspect. Management interviews and press releases were cast aside by investors. Within weeks, the share price plunged 65%. In such a situation most investors would buckle under the pressure. Mutual funds cannot allow such losses on investments. HNI investors in the firm panicked. FPIs demanded investor calls and worried about everything. Naturally everyone was worried.
In share market parlance, this is called a Falling Knife.

At JM, the approach is to analyse such situations from the fundamentals and find the facts out of the news flow. The recent quarterly results of the firm were excellent. The stated 3 year vision was taking shape. There is normally no reason to disbelieve management statements and official press releases. Most of the rumors were vague, difficult to disprove and causing more controversy. Its possible that share market operators may have grasped this opportunity to drive down the price. But this can only be done for a short period of time.

It requires a lot of character to stand up to a Falling Knife. But the analyst at JM was sure. So JM advised their subscribers to hold on and not be swayed by the price movements and controversy.

jainmatrix investments

After the 65% fall, the share stabilized. It then started rising again. The JM subscribers, who were invested and took our advice, saw their notional losses disappear. The brave ones actually took advantage of the fall and saw a nice profit in a few weeks.

This brings me to my question,

How much is Conviction and Confidence worth to an investor in the stock markets?

Any answers, my friends?

Feel free to add your comments, below, to this post.

Regards,

Punit Jain, founder JainMatrix Investments.
PS – This note has been created as marketing and educational content to help investors. No security is mentioned here. Such a situation can arise many times in the stock markets.

DISCLAIMER

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. JM has been publishing equity research reports since Nov 2012.

This note has been created as educational content to help investors. No security is mentioned here. Such situations can arise many times in the stock markets. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com.

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Launch of the JainMatrix Satellite Model Portfolio – A ValuePack

Dear Readers,

We are glad to announce we cross 5 years since we started our Investment Service.
On this occasion, we are proud to launch a new service – The Satellite Model Portfolio.


JainMatrix Investments has had super success with the LC and MSC Model Portfolios over the last 5 years. Our experience of researching over 100 firms in the last 3 years has thrown up a number of exciting stock finds.
Given the recent environment changes, we re-evaluated these firms (outside of LC and MSC) and picked the best opportunity 7 firms in terms of projected stock performance to create the Satellite Model Portfolio.

This has the following characteristics:

  1. It has 7 High Quality Investment Ideas with a 2 to 2.5 year Investment Horizon.
  2. This is an independent, Multi-Cap Portfolio with firms from different sectors.
  3. This Opportunistic portfolio is chosen on the basis of deep fundamental research and High Conviction by the JainMatrix Research Analyst.

As Subscribers, you will receive the list of 7 stocks with 2.5 years Target prices and introduction notes outlining them and providing the key reasons why we like them. We will also monitor and maintain this Portfolio and guide you on your Investment in it.

In addition Subscribers will receive

  • Exclusive access to high quality investment reports, including
    1. Market Trends and event notes
    2. IPO/ FPO/ OFS/ NFO reports based on opportunities.
    3. Periodic updates on the Satellite Model Portfolio with any change in stocks if required.
  • The subscription will be initiated with a welcome call for introductions and Service detailing.
  • Email and WhatsApp based queries can be addressed to JainMatrix Investments on the recommended stocks, portfolios and Investment Decisions
  • The Satellite Model Portfolio Service is a ValuePack subscription for 1 year
  • Pricing can be checked on Pricing and Payment Options page.
  • Its an independent ValuePack offering for new investors. For bigger investors it can be the satellite portfolio with innovative new ideas.

Take advantage of the Fall of the markets of Feb-Mar 2018 and invest in this high potential Satellite Model Portfolio. 

JainMatrix Investments is a boutique Investment Advisory firm for Indian stock markets. Our original equity research identifies investment target firms with high conviction, and the easy to read reports make investing simple. The research process is thorough, and the opinions independent, honest and direct. And sharply focused on investment returns and wealth building for the long term. Our subscribers trust us to provide stock entry and exit calls, tracking, guidance and personal support.
We have provided excellent advisory services for over 5 years; Our Investment Service (Core Portfolio) has fetched outstanding results over this period. (See Track Record).

Here’s to your Happy and profitable investing.

Regards,
Punit Jain 
JainMatrix InvestmentsBangalore

DISCLAIMER

This service and related documents have been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. These documents are not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Punit Jain is a registered Research Analyst (SEBI Registration No. INH200002747) under SEBI (Research Analysts) Regulations, 2014. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com.

 

JainMatrix Investments – Track Record

 

One year record – 63% for MSC model portfolio

Dear Investor,                                                                                                             27th Dec 2017

JainMatrix Investments is a premium Investment Service for Indian equity. We build wealth through in-depth equity research and Model Portfolio appreciation over the long term. It is the best way to get great returns, lower costs and yet be in control of your own portfolio. We simplify investing for individuals. Investors trust our advisory services for stock picks, tracking and personalized support. JainMatrix is run by Punit Jain, a SEBI registered Research Analyst.

We created two Model Portfolios 5 years ago, with our best picks at that time. We have since been managing the Large Cap (LC) and Mid and Small Cap (MSC) Model Portfolios. We remove under-performers and replace them with promising new picks, to give investors a solid core portfolio of equity assets to replicate in their personal holdings.

Today 5 years later, we share with you an update of the Track Record for the JainMatrix Model Portfolios. ..

..

PERFORMANCE TRACKER

See the compilation of performance of the Model portfolios. See Table and Graphs. JainMatrix Investments, track record
Recipients of this tracker should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well.  ..
JainMatrix Investments, Track Record
..

PERFORMANCE DESCRIPTION

The market has been positive since Jan 2017. Broadly in line with this, JainMatrix Investments  Model Portfolios continue to do well against their stated objectives.
  • We have a portfolio universe of 70 tracked stocks, the finest firms found through our equity research over 4.8 years.
  • From this universe, we created 2 focused portfolios of 6-8 shares each – a Large Cap and a Mid & Small Cap portfolio.

Mid and Small Cap Model Portfolio – MSC

  • JainMatrix InvestmentsThe objective of MSC is to simply outperform over a 1 year plus period by investing in growth or turnaround firms with solid fundamentals and excellent managements.
  • The JainMatrix MSC Multi-bagger Model Portfolio gave 57.5% annualized returns over 58 months, compared to S&P BSE Smallcap of 36.1% (the best performing including CNX Midcap and S&P BSE Midcap) over same period. It outperformed by 21.4% annualized.
  • Our Portfolio has themes of Auto & Auto Ancillary, exports, Infrastructure and Consumption.

Large Cap Model Portfolio – LC

  • The objective of LC is to preserve capital and outperform the Nifty by 2-5% a year by investing for 2 year plus periods in firms with solid fundamentals and excellent managements.
  • The JainMatrix LC Retirement Model Portfolio gave 16.6% annualized returns over 60 months since inception, compared to Nifty with 15.8% over the same period. It outperformed by 0.8% annualized. Performance has been better in the last 1 year.
  • The 6-8 LC shares here represent growth or value leaders from 6-8 high potential sectors.

Ours is a 100% equity approach, so investors should allocate to other asset classes with inputs from a good adviser/ financial planner. However if the investment climate turns sharply negative, we reserve the right to exit equity.

Other Valuable Research – IPOs, Stock Ideas, Sector and Trend reports

  • In addition to the Model Portfolios, we also present new stock ideas from listed and IPO firms and reports that identify sectoral trends.
  • Our IPO reports have had a good success rate and help identify winners and avoid overpriced or under-rated IPO firms. Subscribers also receive valuable Listing Day – buying range advise on IPO picks, so that they can take large positions, as allotments in good offerings may be limited to 1-2 lots.
  • Our sectoral and economy notes help develop long term thinking after events like demonetization, budgets, etc.

Sign up for the JainMatrix Investment Service to take the right decisions, whatever the event, in your investing journey. ..

SUBSCRIBE NOW TO GET THE BEST INVESTMENT SERVICE

CLICK – OFFERING 

JAINMATRIX KNOWLEDGE BASE 

  • See useful investment reports on the RECENT RESEARCH REPORTS panel on the right. Or from the SEE REPORTS tab on the Menu on top.
  • Search for companies/ sectors of your interest in Search box also on the right panel.
  • Visit, follow and like us on JainMatrix FB and JainMatrix Twitter

DO YOU FIND THIS SITE USEFUL?

  • Visit the Investment Service offering page to find how you can get more.
  • Register Now to get our Free reports and much more, on the top right of this page, or by filling this Signup Form CLICK.

DISCLAIMERS

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. Punit Jain is a registered Research Analyst and compliant with SEBI (Research Analysts) Regulations, 2014. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com.

JainMatrix Makes Two Announcements

Dear Investors,

In this festive season, I would like to make two announcements, which hopefully are adding to the happiness quotient of the people involved:

I) We update our Track Record

We have had the Best All Round Performance So Far by JainMatrix Investments. In numbers, our Mid and Small Cap Model Portfolio gave 26% compounded annual returns over 4.5 years. And our Large Cap Model Portfolio gave 13.2% cagr over same period. See more details on link –

Track Record Update Sept 2017

Here’s hoping we can keep up this performance in future, in good times and bad.

2) Stock Market Awareness Initiative AT CARGILL INDIA

JainMatrix Investments conducted a Wealth and Stock Market Awareness Presentation for employees of an IT / Business services company in Bangalore. The 1.5 hour session was meant to expose employees to some of the savings and wealth concepts and basics of stock market to new investors, as well as touch upon some advanced concepts for experienced investors.

This initiative is a attempt to share learnings, help people develop the right attitude towards equity and stock markets, and also address the typical myths and misconceptions they have.

See some snaps from there:

jainmatrix Investments, Cargill jainmatrix Investments, Cargill jainmatrix Investments, Cargill

I’d like to thank Cargill India folks for their warm reception.

Here’s to your happy investing,

Punit Jain

DISCLAIMERS

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. Punit Jain is a registered Research Analyst and compliant with SEBI (Research Analysts) Regulations, 2014. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com.

A Recent Conversation with a Subscriber

I was speaking last week to a Subscriber of our Investment Service.  The conversation went like this:

  • Me: Mr ABC, how are you?
  • ABC: Fine, Punit
  • Me: Great. Mr ABC, its been one year since you signed up for our service. How has been your experience?
  • ABC: Good, good. I would like to find out about company DEF and company GHI from your Model Portfolios.
  • Me: Sure, I will give you an update about company DEF  …..(discussion)….  and company GHI …(discussion)………
  • Me: I can also see that your portfolio is doing quite well, it is up 28% overall in the last year. Congrats.
  • ABC: Yes it has done well. In fact I must tell you,  it is the first time in my investment experience that a company recommended to me, that I bought, has appreciated 100% within the last year. I refer to the company LMN. Good job.
  • Me: Thank you sir. Yes LMN has done well.
  • ABC: What do you think about LMN now?
  • Me: It is still a BUY even at these levels, the 2 year outlook from here is very good. It will continue to appreciate. Don’t worry that it has risen too much.
  • ABC: I am really happy with the service.
  • Me: Ok ………. let me see your portfolio …… But sir, you can see stock PQR, it is not doing so well. It is down 25% from your purchase price.
  • ABC: No, no. I am not worried about PQR. In fact I have recently bought more of PQR at these lower levels, it is still to be updated in the portfolio.
  • Me: OK. What about stock STU. This is down 19% in your portfolio from your buying price.
  • ABC: No, no problem, it will come back. In fact I expected at least 3-4 of your recommended portfolio to tank and fall sharply, as normally happens with most equity portfolios but happy to note no such problem here.
  • Me: Excellent sir. So why don’t you renew the subscription for another year?
  • ABC: Sure, I am renewing and you will get the fees by tomorrow.
  • Me: Thank you.

Its nice to have such happy conversations ……. :-)

Punit Jain

Equity Investment Made Easy by JainMatrix – July 2017

Dear Investors,

This is a very exciting period in the Indian stock markets. We at JainMatrix Investments are tracking events and empowering equity investors through our reports:

  • We had signaled euphoria in March this year and predicted positivity based on several macroeconomic and political developments. Read our article Investment Notes –Euphoria. We are optimistic on the long term story of Indian equities, and these are often accompanied by short term corrections.

jainmatrix investments

  • We had recommended Avenue Supermarts IPO in March as a Buy and it did exceedingly well. Currently the stock price is up 208% from the IPO pricing within 4 months of listing. The flip side of course was that only a few lucky people got shares on IPO allotment.
  • Next in Apr 2017, we researched a small cap stock, Vikas Ecotech. It is up 3.3% in a span of 3 months after over a 10% correction. We believe this gives our investors an excellent entry opportunity. Also the management plans to split/ demerge the business. We continue to be positive on Vikas.
  • The S Chand IPO was tricky. We were always positive. There was high demand for this with overall subscription of the IPO at roughly 60 times. However on listing day, it listed flat leading to losses for HNIs who had taken leveraged positions. So it fell sharply after listing.
  • We published a report on HUDCO IPO in May 2017. We had advised investors to avoid the issue. However it has done well. In June, we were positive on the ERIS Lifesciences IPO and had recommended an avoid for AU SFB IPO.
  • We note that there are murmurs of price manipulations in IPOs. Here is an article highlighting the problems in recent primary market. Click on the LINK to know more. Our advice is to ignore short term and IPO listing gains, and apply and buy fundamentally strong companies with 1-2 years of holding period.
  • In May 2017, we published our Eicher Motors report for all readers. A year ago, we had first reported on Eicher Motors for our premium subscribers only, and the stock has been up 55.9% in this period.
  • Similarly we made our Indigo Airways (Interglobe Aviation) report public in May 2017. Our recent call was a HOLD. But the share is up 16.5% in 2 months largely due to the fall in crude prices.
  • Meanwhile we continue to provide an excellent performance for premium subscribers on our Model Portfolios. We updated our Track Record on 31st May, and reported that the large cap portfolio has delivered a 12.5% CAGR return since inception as against Sensex at 11.4%. Also we reported that our mid and small cap portfolio has delivered a 23.8% CAGR return since inception as against the 19.4% CAGR by the S&P BSE Small Cap.
  • At JainMatrix, we want to make equity investments easier for visitors and subscribers of this website. We have also created an Investor Education section for your benefit.
  • This website jainmatrix.com has been created to be a valuable resource for the investor. There are now over 100 reports and articles here which assess equity fundamentals, analyze events, comment on sector performance and educate the Investor. To use this resource best, find the Company or Sector of your interest from the Search Boxes, or use the drop down Menus for guidance.

If Time is Money for you, it will give us pleasure to add you to our select group of Subscribers.
I hope you find these reports useful, rewarding and informative.
Regards,
Punit Jain
Bangalore
JainMatrix Investments

DISCLAIMER

This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Punit Jain may have personal holdings in many of the firms mentioned here – read individual reports for separate disclosures. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an Investment Advisor. Punit Jain is a registered Research Analyst under SEBI (Research Analysts) Regulations, 2014. JM has been publishing equity research reports since Nov 2012. Any questions should be directed to the director of JainMatrix Investments at punit.jain@jainmatrix.com.

Stock Market Awareness Presentation by JainMatrix

Last week, JainMatrix Investments conducted a Stock Market Awareness Presentation for employees of an IT services company in Bangalore. The one hour session was meant to expose some of the basics of the stock market to new investors, as well as touch upon some advanced concepts to more experienced investors.

This initiative is a small attempt to help people develop the right attitude towards equity and stock markets. I have also tried to address the typical myths and misconceptions they have.

See some snaps from there: jainmatrix investment, equity awareness

In the conference room with the audience

With Mr Sudev Alampalli, the India Operations Head (center) of Snuvik Technologies, Ms Reena Serrao, a colleague (left) and me. 

Regards,

Punit Jain