Value investing

Why we are out of Westlife(Mcdonald’s)?

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Last week Westlife Development the master franchisee of McDonald’s in the south and west India declared their annual numbers. 

We analyzed the numbers and are not at all happy with them . its been years and years of losses and sales are marginally higher to around 900 crores. Marcet cap is around 4000 crore and we now getting nervous about potential returns from this stock.

We have accumulated this stock at around 160-175 and started selling it around 250 with last lot sold at 220 .

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Markets @Euphoric Levels… We at Shikharcapital sitting like lame ducks .. why ? why ? why ?

So for last one month markets are flirting at 9000 level to 9300 level and we are booking profits bit by bit.

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We have booked some profits in Adani , Rain , Westlife , Escorts , Dewan housing etc and sitting on 15 % cash as of now. Some of the profits booked from small and mid cap like associated alcohol etc are plowed back into Reliance and Tata Motors.

So, it’s tough times as — “I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy. –Warren Buffett”

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Markets @9000/- and we have nothing to do ….!!WRONG!!

So markets crossed 9000 and we at Shikhar capital have nothing to do except waiting………………………………………………….

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For  killing time we are exploring company’s which are out of flavor or which wee have booked good profits. To name a few we are completely out from Associated alcohol, (more…)

@9000 we ran away … whats up with Shikhar Capital???

“It takes character to sit with all that cash and to do nothing.I didn’t get top where I am by going after mediocre opportunities.”

Charles T. Munger, Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger

“We both, Warren Buffett and I, insist on a lot of time being available almost every day to just sit and think. That is very uncommon in American business. We read and think.” – Charlie Munger

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We had got into 10% cash, booked some profits in Mid-cap names like Adani, Rain,  Reliance etc. and now we have cash and have nothing to do.

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Can Imagica create the magic for shareholders??

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We are big fans of theme parks but the problem in India is either they are too expensive like wonderla holidays or the quality of theme park is way below the standards (Let’s not name the small theme parks with the shitty crowd and stuff). 

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Market @ 9000/- What’s Shikhar Capital is doing???Booking profits and running !!

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So market still stares at 9000/- levels and our earlier targets of 9400-9600 are still intact.

However, again the mid cap and small cap stocks are hitting roughs and whenever stocks like Lycos starts hitting upper circuit we get skeptical. Stocks like Delta corp are up 70 % from Demonetisation and Brexit low. How come they are commanding such (more…)

Market commentary- Nifty @ 9000, UP elections and Global market views!!!

So Nifty is knocking at 9000/– Historic moment indeed. Fantastic volatility, first the lows of 6800 during last Jan ’16 – Feb’ 16, Then it went to highs of 8800, after that, it again went down to 8000 due to demonetisation & Trump(On same day ) and after that, a straight forward bullish march to 9000/-

We at Shikhar capital were lucky enough to get these lows and highs correct even though we don’t speculate. But since we are low on capital we have to churn our portfolios to get some more juice. If capital allows we would love to keep our portfolio intact for years together.

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Nifty @9000 Market commentary!!!

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So, Nifty at the doorsteps of  9000, all the bears are hiding and bulls are on the rampage , so the tide is getting higher.The D mart IPO of 18000 Crores  is one of the biggest and going to suck liquidity but who cares. 2008 bull market ended with Reliance power IPO, but before that DLF IPO (IPO price 1000  right now at 145 ) and Big Bazaar IPO (IPO price 1000 if I am correct and now n number of companies with god knows the complexity of valuations huh….). So are we on the cusp of the end of this run … we at SHIKHAR CAPITAL don’t think so….. (more…)

What we in India can learn from Berkshire Hathways newsletter 2016-17

So the annual newsletter of Berkshire Hathway is out and has all the wisdom needed for a value investor

 (http://berkshirehathaway.com/letters/2016ltr.pdf)

 

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Since Indian markets are at their higher end of valuations and all the stock recommendations from Shikhar capita are doing pretty well, it’s become very difficult to recommend new stocks, However

we decided to decode warren Buffett’s annual newsletter and how we read it … (more…)

What’s happening with TATA MOTORS? A compelling buy at 450/- ??

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So,after a long time markets are above 8800. And again the cigar butt stocks are going to the stratosphere. It’s becoming really difficult to recommend stocks when the stock market are at the higher end of valuations, BTW we still believe we are on to 9600/- soon. At this point of time, we at SHIKHAR CAPITAL are  “All In” as they say in Poker, With top recommendations include Westlife and Jubilant food works.

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