Satya's Weblog

I was thinking if ASM list tells anything about quality of management? Does it say anything about financials?

Securities in ASM is checked after 2 months. If all criteria discussed does not meet then it will be out of ASM list.

My study confirms that financials and promoters quality is not included under ASM list. ASM list is totally based on market movement of securities.

So, overall you can think securities behavior under ASM may be jerky. I was invested in Indian Metals and Ferro Alloys and it was very jerky. Many days it showed me 5% gain during market hours but next I used to find no gain.

At this COVID time, think little more before investing in ASM stocks as market won't give value to these stocks so soon.

More on Additional Surveillance Measure (ASM)

Corona is hurting PVR and INOX but there is something that may be benefiting these multiplexes also. Single screen owner may not have resources to tide over this lockdown like biggies who run multiplexes in many cities. This may kill many single screen which can transfer some viewers to Multiplexes thought single screen charge very less per movie.

From 7,031 single-screen theatres in 2016, the country by 2019 was left with 6,327 single screens.

PVR and INOX screens are adding screens aggressively but still the screen density has gone down. https://t.co/DcCtrFLiHt

— Satya Pra (@sa8ypr) May 19, 2020

PVR and INOX kinds of stocks you need to keep in radar. If it correct too much you can think of loading in your portfolio. Currently, it has not gained like many others from March 24, 2020 price.

Alembic Pharmaceuticals Ltd is a good stock to check from Pharma industry. Available at a very attractive valuation. More fear of Corona and spread means more value to Pharma companies. So, load few pharma stocks.
Alembic Pharma is trading at CMP: Rs 874.
Careful there is one stock named Alembic Ltd too. I only talked about Alembic Pharma.



You can also check IOL Chemicals. Available at very cheap PE but has gained recently. Any bad news can make it down but it does not look like a dangerous stock at this valuation. CMP: Rs 380.


Caplin Point Lab is trading at Rs 325 is also a good stock. It was having very high margin and profit early. After entering to USA market, its expenses has increased. So, it has lost some momentum but I think it is very cheap. Worth checking.

I have mentioned Sugar Stock to load after Corona virus bloodbath. That time Sugar stocks gained too as this was treated as consumption stocks. But, I read that 65% to 70% of sugar is used by industry. This way consumption of sugar cannot reach high level.

Wait for Sugar Stocks. It may take some time before Sugar Stocks starts gaining. Sugar stocks are good compared to many years back. But now it not the right time to stick to it.

Two kinds of alcohols are used in Hand Sanitizer - Isopropyl Alcohol (IPA) and Ethyl Alcohol/ENA. First one, IPA is preferred.

I was checking what else is used in Sanitizers and disinfectants after this post where I have mentioned Ethyl Alcohol.

We have bad luck in selecting companies for Isopropyl Alcohol as this is only produced by Deepak Fertilizers. The IPA was only 8% of total revenue in first nine months of FY20. Also, this company is not looking very good seeing other statements. Big part of isopropyl alcohol are imported. So, only Ethyl Alcohol based Sanitizer will give benefits to our companies in India which are generally produced by Sugar Companies.