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You are the Mr. Dependable of Fin Influencers, a true Mr. Dravid. Your research and strategy are rock solid, showing us that the stock market isn't gambling but a process.
straight forward, no nonsense wealth of knowledge, please keep doing your hard work Shankar Nath, we are here to support. Thanks you so much for making so simple video which actually converts the knowledge to strategy !! Hats Off !!!
Stumbled upon your channel accidentally and I should say its been an enlightening accident. All your contents are insightful and in layman's language. Thank you so much Sir.
This is the 3rd time I'm watching your video and you definitely stand out from others being honest and sharing your gem of a research..Thankyou for the valuable information😌
Shankar Sir, First of all, great video and thank you for sharing your knowledge with us. One Question, What should be the ideal holding period of a share which has preferential allotment? Is there any number of days/weeks/months you came up with during your Analysis?
Thank you for the kind words, Mayank ji. I'm glad you liked this video. With re: your query -- there is no ideal holding period. The preferential allotment data gives you a solid reason to enter. Post that, you should track the company & its prospects from time to time. Surely, read the earnings transcript
Hi! Can you please advise on how to access data for the exact date when a company issues preferential shares? We often receive this information late, which means share prices may have already increased significantly. Any tips on how to find this data more promptly would be greatly appreciated. Thanks!
Hello. Yes, I mentioned that in the video .. 1. pls setup a "google alert" or 2. use the bucket feature on Sovrenn or 3. filter on screener. I myself do this, it's very effective
Great Content as always ! I have a doubt - as i start my first job , I am thinking to opt out of PF and route that money towards NPS. Will it be a good strategy ?
Thank you. Kindly enquire with the company's Investor Relations department for participation requirements on preferential basis. Contact details should be available in the company's website or annual report
@@shankarnath Thank you. ( A little follow up : For the data study 2, did you consider all the preferential allotments done by all the SMEs (or) only the one tracked by Souvrenn ? If it is the former then the result is unbiased if not it is biased since you have considered only the ones tracked by a third part service) Great work, Thank you.
Hi Shankar, till when should we hold the stocks that announce a pref. allotment? as a thumb rule - is there any % return or timeframe we should target? MFs are long term safer bets, but active investing is risky, especially in micro, small and mid-cap. Pls lemme know.
Hello. Nope, there is no thumbrule on % return or timeframe. My own view is -- if the business is good, marquee investors are into it then why not hold it for as long as the business remains good & other investors are invested in it
Thanks! Sorry, I don't work with advisors currently so I wont know. Please connect with others who have used them over reddit and/or twitter. One can search for them on Linkedin
Thanks! Any reason you'd want to set a timeline for exit? I ask this for reason that if marquee investors/promoters are staying put in the stock, then I'll say you should too. If they quit, then probably there's a case (a strong case) to exit that security
@@shankarnath Thank you for the reply. There is no particular reason to exit for me. Is there a better way to know if the investors/promoters have exited the stock apart from the news?
Hi, i have taken this video a bit more seriously and started testing this. When i look at the past 1Yr returns of these stocks, they were rather jaw dropping. Is there a way to find these a bit earlier?
Yes, when you read company transcripts -- you'll get a sense that this company will need a preferential allotment soon. E.g. in my newsletter -- the post on Zaggle -- if an acquisition comes through, I'm sure they'll need to do a QIP. Reading will help you identify such scenarios. Even the latest version (I'll release today or tomorrow) on Sky Gold has a similar overture
on 25th Jan'24 Adani green price was 1665 aprox.But here the issue price is 1481 as you said. I don't understand this. how to buy in such a discount price?
U backtest for a few years only where there is a strong bull run. Can u please post an article of backtesting this preferential investment in the strong bear markets.
Instead of change in share price, better to check for Earnings and free cash flow growth of the said companies in last 3 years. Because price can be easily pumped. 2ndly, for companies with low free float, on the day of announcement we see an upper circuit and it is difficult to take position due to continuous UC for 5-6 session, so it is better to factor this. Otherwise, good try for a new method.
Hi. There is no defined methodology of holding so use what's comfortable to you. I keep track of my holdings every quarter and assess if I should hold them or not. It's worked for me but your approach might be different. You can look at technical indicators like RSI and moving averages to get a read out of the exit startegy
@shankarnath sir, +1 to this question.. if I understood correctly, we could invest in open stock of the company on the day when that company's board approved the preferential stock allotments, right?
Kindly enquire with the company's Investor Relations department for participation requirements on preferential basis. Contact details should be available in the company's website or annual report
Hello sir.. is preferential allotment same as warrants issued by a company? I learned from another educator that a company issuing warrants can give good returns.. but I couldn't find out how to track which company is giving out warrants. Tia 😊
@@shankarnath thank you for the reply sir. I do understand that we can read them on the announcements by checking the individual company, I was just wondering if there was a search available for the same so we can know which all companies have announced warrants.
This comment is NOT relate to this video - hopefully Mr Shankar Nath knows me through my regular comments and will answer these questions - I have 2 questions which I am not sure whether the web has responses for - Q1: How does a new ETF come into existence? In an IPO a specific number of shares are issued - where as in a ETF the collection amount is not known? So how is total number of shares (of the ETF) and share capital decided? If an amount - Say X is collected - then does this share capital amount remain the same always? How is the ETF listing price decided? Q2: If there is a FoF of an ETF - what happens if a large redemption happens at the fund house but the ETF volumes do not stack up? Thanks Sir!
@@shankarnath I went thro the entire video - I don't think my specific questions are answered there - Can you please respond to my 2 specific queries - I have been looking for an answer to the first question for quite a long time :-(
@@sridharkalyanaraman6943 Oh, so question 1 is on the creation/redemption process. Here's a video by smallcase on it. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-jRFELRMU_hU.html
Hi After weeding out SME's,the returns for the last two years comes to about 35%.Still good but not as lucrative when SME's are also included.Since SME's have minimum lots consisting of 500 to 2000 shares,investing in those sme's by retailers are not easy.Comments please.
Yes, it can be. You'll need to compile that information i.e. stocks, issue price and the dates. The team at Sovrenn & I took a little over 2 days just to compile the recent information (106 stocks). If you're attempting it, I appreciate it if a copy can be sent to me aswell at hello@beginnersbuck.com
Good Video Shankar, i wasnt too keen when sovrenn guys used to tweet about this. But after you throwing your weight behind this, will definitely look at it.
Thank you! I've been trying Sovrenn for a month now & find the curation functionality really useful. The ideation bit is the toughest part esp. when it comes to small & microcaps -- for me, that's where Sovrenn is most useful.
Thank you very much, Ravi for your kind appreciation and gratuity 🙌 I'm happy you liked this presentation & am hopeful you'll look at preferential allotments with more intent
Great work shankar..its like you shifting thru coal and find a diamond methodology of investment..i have already invested using your momentum index video..will definitely evaluate sovreen and the pref allotment method..
Sir , its really a great view and very honest efforts in sharing knowledge , I have motivated lot with your knowledge sharing on stock market and started investing by copying few stocks that you mentioned in your videos, I do see a great returns which are beating index
Thank you so much .. I'm glad you like my work. Please see which of the strategies you are most comfortable with, experiment with it & then replicate over the long run.
I don't know but personally, if some investor is opting for preferential allotment during a bear market -- I'll jump right onto it. It's too big a hint for me not to miss out.
Very nice and informative investment strategy. I like this idea of investment which is quite different from other traditional investment ideas and thanks for the pointers to source such information easily. In your data analysis you considered data for last 2 years that is close to 100 ompanies and presented analysis by allocating Rs. 10000 appx to each and come up with annualized returns. Though for data analysis this is perfect but practical implemenation might be challenging as investing 10L rupees in 100 odds company (and this list will grow day by day needing more funds) and tracking it for any news/events seems unreallistic. Do you think adding some filters like promoters stake, consistent profit, good ROE/ROCE and selecting companies with good fundamental and financial health will make this idea more attractive and practically impletable by retailers? Your views?
Thanks! I have not made up my mind but I know this for a certainty -- the more one adds filters/criteria, the more it'll start looking like a traditional investing strategy. As a system, pref allotment has done a lot better than mcap indices. I don't see why this would be different in a bear market because the overriding principle is that "outside investors have seen something powerful & profitable in this company" -- which is why they are investing in it. For now, I'm leaning more towards the system and the data in front of me. The moment it fails, then we'll know the reasons for failure i.e. the causality
@@shankarnath Many thanks for your reply. I kind of agree with what you are saying. For now let me go ahead and start tracking pref allotment companies along with few other metrics that I mentioned and see the returns behaviour lets say over the next 6 months period to start with.
Hello sir , I have a doubt regarding momentum factor in my portfolio So basically I have 3 SIP running right now in equal abt in all 3(4) Nifty 50 Etf(30%) Nifty next 50 Etf (70%) ( did this after seeing your video long back ) Parag Parikh flexi cap Mutual fund Axis small cap Mutual fund Now as I saw recently parag Parikh mutual fund investments are almost 50% towards large cap correct me if Im wrong but I saw last month factsheet and last year June factsheet so it's almost 50% towards large cap , so my concern was my portfolio it bent towards more of a large cap fund And as I'm young 23 years old I was looking was maybe some little money or same amount of SIP in small cap but came across your Momentum strategy (which I had watched before 2 times but as I was already invested in 3 funds didn't want to curn much ) So my concern is shall I add momentum in my SIP or smallcap and if momentum which to add as nifty momentum 30 also comes with 70%large cap, so kindly guide me here sir
Good information,but how exits were structured in the calculation of returns was not discussed.Could you please explain how exit were factored in your studies?/how one can plan exits based on some criterion.
They weren't factored because I don't exit -- unless the reason why I bought the stock dissipates. Like growth rate, valuation comfort, debt, sector support etc. I don't use a scientific, precise measurement because that's never worked efficiently for me. Over years of doing this, the patterns get clearer
As a newbie, i am learning more in your videos compared to other youtubers. Keep growing. Can NRIs invest on preferential allotments? Which platforms support ? Thanks again.
Thank you. Kindly enquire with the company's Investor Relations department for participation requirements on preferential basis. Contact details should be available in the company's website or annual report
Kindly enquire with the company's Investor Relations department for participation requirements on preferential basis. Contact details should be available in the company's website or annual report
