Thursday, January 27, 2011

GOVIND RUBBER - BOOK LOSS

I have recommended buy on Govind Rubber @ Rs.17 in July 2010.After touching a high of Rs.26 (an appreciation of  50%) ,currently it is trading around Rs.15/- ( about 12% below the  recommended price). Even if  the company belongs to a good business group and planning to diversify into Bicycle and Agricultural farm sprayers , considering the sharp rise of its prime raw material (Natural Rubber) ,company may face margin pressure in near future. Considering this fact one  may consider an EXIT from this counter and re-think when some change in situation..

3 comments :

  1. Why should we book loss...Look mr. it is our hard earned money and we cannot lose it simply. let me tell you all your picks are falling down and shall we book loss in all these picks, please dont give foolish advices and instead be positive and give positive replies suggesting to hold for long term. Please take back your words to book loss.

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  2. Above message is a good example ,why retail investors are loosing big money in Stock markets. Unwillingness to book loss and shift to better opportunities even if they are aware there is some factors which may affect company's fundamentals negatively.I strongly believes that guts to book loss is more important than book profit to make money from here and nothing wrong in it.

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  3. value pick, never mind the above comment.but can you please extend your services by suggesting what all we should exit and what all we should accumulate.

    hope you will not mind that.

    ReplyDelete

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