Value Investors

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…)

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…)

Jet airways – Could it fly high?

Should you buy Jet Airways at 375/- 

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One of the toughest businesses in the world is airlines. Risks are too high and profit forecasts always go for a toss. There are long talks by Warren Buffett and Charlie Munger on why airlines are the bad business and their stocks even worst. (more…)

Dominos – Another consumption stock !!

Jubilant food works is the master franchisee of Domino’s in India 

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 Business- Selling world best pizzas to the second largest populated country.

It’s one of the Best business at the right time and right place, Dominos have now more than 1000 outlets in India.  Selling millions of Pizzas daily. One of the key USP of dominos is it covers a large area by making more business in delivering the pizzas then selling in their joints.It helps them to cover a very wide area. 

 

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So what is there after Budget, Elections & Some new Stock recommendations!!

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Hi all,

Thanks for the overwhelming response to the last post !!!! your  tweets were really heartwarming !!

So today’s four point agenda of the post are

1) Budget

2) Elections

3) Some update on recommended socks 

4) New Stock recommendations

I know the order should be upside down so I will keep it short…. (more…)