It has been more than 2 years now after we started Famous Inc. And it brings me immense pleasure in learning that each one of us are willing to take it forward and are gaining further vigor in this J.
We have learnt many lessons in the past and these days we are learning another valuable lesson of having to book our profits.
In one of my previous analysis of each company that we were holding, it was found that BHEL is not growing with respect to sales or turnover but the stock prices were rocketing up. One year back BHEL was trading at around 1200 (though it was 2400 at that time, we are dividing it by 2 as it was split after that). As Srikanth has mentioned the profits of BHEL has grown by 16% that means the stock price also should have grown the same manner – that is around 1400.
But the stock had hit a high of 2900!! For that the company should have grown by more than 100% - that has not happened. So what we are seeing now with BHEL is very normal. That is why fundamentals are important. But if we would have sold BHEL at around 2900 we would have made more profits.
For how long will this carnage continue? Inflation is at around 7% and in US almost 80,000 jobs have been cut. There is no good news coming ahead. My suggestion is to sell all shares now and wait and watch for some time – probably for a month’s time.
