The rally in Cimmco has fizzled out badly at least for now. We are sure many of the retailers have fell into the trap as stock has rallied more than 50% in a span of 5-6 trading days. Our humble advise to retail investor is not to take a toll by running after his every buy. We have a sneaking suspicion that he might have exited many of the stock partially to realize the profit and keep the CARG of his firm at a higher rate.
In fact Porinju himself gave warning to his followers not to follow bulk deals and be price sensitive. Investor should suss out the netegrity of the reasons behind the buying to gain confidence to keep the stocks for long term. But the fact of the matter is that all short term traders dumped their stocks to poor investors above Rs.110.
In August 2016, Porinju confirmed thatSelan Exploration, his latest buy, is one of the core portfolio holdings of his PMS for a long period.
“This is one of my core portfolio holdings and an under performer in last two years. That unexpected decline happened perhaps because of the steep decline in crude oil prices. But it is a clean company with cash on balance sheet, which is available at a throwaway price. We continue to hold the stock,” ~ Porinju Veliyath
Now lets check what happened with Selan Exploration over these days. How many of you noticed that promoters have continuously selling Selan stocks in open market?? How many of you noticed that Porinju bought Selan from Promoters in today’s deal??.
One last thing before we put and end to this post. As per September 2016 share holdings pattern Equity Intelligence was holding a whooping 5.07% stake in Selan with more than 8 lakh shares. But to our surprise, it was missing in the December 2016 shareholding pattern!!. And to add our insinuations, poor retailers holding went up from approx 64 lakhs to 80 lakhs during this period.
NB: All these are based on public data available and we reserve our rights to be 100 wrong😑