A long term pick!!! Glodyne Technoserve

This was one stock that I picked up a couple of years back. At that time it was called Paradyne Infosystems. Now the company has changed its name to Glodyne Technoserve. Well the good part is that i picked it up around Rs 70 odd but the bad part is I sold it off at Rs 140 odd...today the stock after 3 years is 750!!! (now with the split it is quoting around 390!!!

And going strong. . .

The good thing about the stock is as follows:

1) A high growth company, from 87 Cr in revenues in 2006 to more than 450 Cr in 2009.

2) A very lowPE: 5.86

3) A good dividend yield: > 10%

4) ROE: > 50%

Going forward this stock looks interesting and still looks cheap. . .

Risk Reward

Its just been 6 months since march lows of 7500 on sensex and all seems forgotten! Just as there was all round gloom then, there is huge euphoria now. . .however perhaps the only saving grace is that still the panwalla near us has not started to give advice on stocks (which had happ at 21,000). Anyhow coming back to the markets, markets seem to be happy as ever. . .with individual stocks doing well. . .

I had bought Cummins back at 334, could not stay away from the markets, so had the good fortune to ride the 10% wave yesterday. Though I squared my positions today. . .Now I am looking for some less strenuous trade. . .

I have a hypothesis though. . . . . .in October sometimes, markets see a huge sell off. . .it happened last year, it happened in 2005. . .I am not saying it will happen this year also. . .but what if it does. . .I am planning on a strategy to ride it profitably, if it happens again. . .however a word of caution it is 2 times more difficult to make money shorting. . .rather than going long. . .anyways lets see if there can be a profitable trade somewhere. . . Also I am looking at the banking sector that has suddenly caught the fancy of the investors, specially the public sector banks. . .wonder why now!!! guess they deserved their due to for a long time . . .e.g. most of them were trading at a PE of around 4-5. with dividend yields of around 5%!!!

interesting times ahead. . .risk reward though does not feel right currently to go blind long. . .will post as soon as I get into some position. . .I just remembered the famous quote today. . ."be fearful when others are greedy and greedy when others fearful". . .

NHPC IPO

Glad I did not invest in the nhpc IPO, since now it is trading below its issue price . . . Pls read my article I had written on the NHPC IPO. on 8th august. . .It seemed to be overly priced sp considering power is a dicey affair.

I am not trading now, squared my positions on Cummins and markets went up instead of coming down. Hence need to reassess where I went wrong... will do some paper trading till then or if I get hold of some real gem. Will keep you guys updated. . .