Whenever the receptionist in our office wears a pink dupatta, equity markets go up by at least 50 points. I have no clue whether you would buy shares based on something like this.

However, now I am being offered shares of Talwalkar (the fitness people) priced at a price-earning ratio of 44.

The logic?

Subra, itna gyan mat laga…simple theory hai. ‘The trend is your friend’. The trend that is being hawked to me is ‘These days (i guess it must be last few months) many shares are getting listed. Those companies which do not have any peer comparison are going up quite a bit.

Take a look at Mahindra Holiday Resorts, Cox and Kings, Jubilant Foods,….now Talwalkar which has no peer in the space will fall in the same line. So tal….will open at a premium.

Amazing sales technique. Am I applying? No idea. Have the forms, will decided on ASBA terms that is all…LOL.

Let me now share some broad themes that I have liked over the past 4-5 months. I have not been comfortable with the market levels nor the theories saying ‘Liquidity is driving the market’. So I started looking for companies which fell much more than what was warranted and had not yet recovered, companies which had made mistakes but corrected – but the market was refusing to accept the change in management stand. Fairly obvious these were not shares that were very visible to the media (thankfully).

The 3 companies that I found and bought were Essel packaging (bought at 41), Cholamandalam Investment and Finance (bought from 34 to 69), Themis Medicare (bought at 180). One more theory was to shift from auto to auto components – so went and added some Pricol (from 14 onwards), Shivam autotech (bought from Rs. 88)…funded partly by selling Ashok Leyland and Hero Honda. Why? Europe and US auto industry doing very well….

So far no regrets….!!

Companies where I have no clue what is happening but still in my portfolio (in somebody else’ s portfolio, I would have screamed!!), are Deccan Gold, Kerala Ayurveda, Crest Animation, Mukand Engineering, – however I keep selling these shares at a particular price and buying it back if it comes down. For example sold Kerala Ayurveda (partially) today ….may get a chance to buy it back.

Please note that at the time of writing I have all these shares in various quantities…but could sell, buy back, do delivery based ‘shorting’…so please do not copy what I am doing. This is just a ‘vishesh tippani’ that I am doing. Could be completely wrong – have gone wrong ENOUGH  no. of times in the past.