Turnaround Stock – India
Indian stock market is at high & question that all of investor and advisor are facing is strategy or how to approach the market. With this we though of presenting few trunaround stock idea which may be useful for our reader. With market and economic activity pics up, there will be a lot of turnaround stocks / story , but one need to carefully analyze it & should take exposure according to his risk profile.
Few Idea for Investor (click here to read)
I am uploading few such idea based on March 2014 Result. This is only NSE stocks wth price more than Rs 15. HDFC Securities has created a auto search option & one can do his own analysis & pick & chose before investing the link is – http://www.hdfcsec.com/stockscreener/Positive-TurnAround.aspx
Second one from economic times recent article & came out with two stocks
The third one is from Ambit securities & was published in the month of January. Few stocks such as Ashok Lyland has already run up and others are more or less at par.
What is Turnaround & turnaround stocks
As per Investopeipedia – Possible characteristics of a troubled company in need of a turnaround include revenues that do not cover costs, an inability to pay creditors, layoffs, salary cuts for officers and a significant decline in stock price. Poor management and/or social, technological and competitive changes may have caused the products or services the company sells to be perceived as subpar by consumers. A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company.
Why turnaround stocks
Why you invest your hard-earned money in these turnaround stocks. Few answer are –
The tunaround stocks have very high profit potential can be found among temporarily out-of-favor sector or companies. It is more like a contrarian style. These company are generally poised for a rebound
But turnaround stock investment investment is risky. Not every distressed investing situation is going to result in a glowing success story, which is why it is imperative to invest wisely. It is not always a good idea to try to pick up distressed stocks in hope of a quick rebound. But it is not always a bad bad idea to completely rule them out. These stocks stocks run into short-term trouble & it is advisable to keep these worst performing stocks in our radder.
Finally, these stocks should be small part of the portfolio. These are the stocks which give high return with higher risk. The allocation to such stocks is entirely depends on the investors “risk profile”
“A pessimist sees the difficulty in every opportunity;
an optimist sees the opportunity in every difficulty.”
~ Winston S. Churchill
This is an update & as always it is not investment advise. One may add me in einfomet in twitter or linkedin id. Any feedback should be send to Bonpriya@gmail.com
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