Points to be considered

Sintex Industries: CMP:190 Target Price:250, Return Expected after brokerage(Buy/Sell) 30%.
This was the post i had posted long back, I did get many queries why it's moving slow & no media taking about it & so on...Sometimes I believe as Investor we should believe in what we buy & once faith is injected patience comes along with it. I seen people switching after holding for months. Here is anlaysis drawn from Aam Aadmi's rational behavior.

Common Investor behavior:
A) Aam Aadmi buys based on Tips(20%), Media Channels talks(50%) & Broker recommedations(30%).
B) Annual reports are used for Window cleaning(10%), food processing(cleaning fish) (20%)& finally Khabbadi (75%)disposal.
C) Usually as common Investor behavior we buy stocks when it has already rallied 10-15% by slow accumulation & just another 10% is left for it to rise.
D) We then say yaar this stock is not moving & then again we switch.
E) We sell when stock rallies took quickly by 20-30% stating it's overvalued.
F) Aam Adami sell fundametally good companies & starts looking towards penny stocks which generally
boost there sales figures, EPS looks good & P/E looks too low & definetly tempting to Invest.


End result we just make 20% when economy is good & end losing 30%


Points to be considered
A) Decide why you want to Investment in Equities.
B) Decide how much you are willing to lose in worst case.
C) Decide when would you need cash back on your Investment.
D) Take advices from sensible Financial Advisor.
E) Do ask him questions why he is recommeding that company.
F) Let him give his view point & then ask challenging questions as follows
  a) What's RoCE  Return on Capital Employed.
  b) What's Cash flow per share for this Company.
  c) What's Sales Growth prospects for next 2years.
  d) What's Equity Debt Ratio.
  e) What's Diluted EPS of this company. 
  f) What's Adjusted Price/Earnings of this company.
  g) ROE for this company.

G) Have portfolio split into 2 segments Trading (10%)  & Long term (85%)
H) Usually whatever profit I make from Trading portfolio I invest it back in Long term.
E) In Long term portfolio have Investments based on your age group & risk Appetite.
I) First generation Companies have higher Risk reward ability, Second Generation Enterprenaurs have sustaining & slow growth ability & 3rd Generation Enterprenaurs (mere baap ka kya jatha hai attitude which ends up destroying the business).
F) Have maximum of 14 companies in ur portfolio beyond this point just invested in MF & don't crack your brains.
G) Before buying check how much has script advanced in last 1month/1week.
H) Media analysts have there hidden motives, it's not that they are wrong it's hidden agenda behind the way they speak. They fail to give 1 straight direction. They always give statements that tilts both North & South direction each time as they benefit from volality (Big money in Futures segment whichever side markets move).
I) Remeber Sensex & Nifty has been overvalued by 20%  during booming economy (greed) & 20% undervalued during  bad economy (panic) ever since we started trading in Futures market.
 
 
Sometimes I believe my article is not well drafted like head & tail goes missing or Head is seen in the stomach,Anyways I hope you will be still able to digest it....