Jun 7, 2018

What to buy after deep correction in small Cap stocks?

I had all small Cap stocks prior to correction. Few I sold at loss and few are still with me. After correction, I still have small caps only.

Sanwaria Consumer,
Himalaya Foods International,
Thirumalai Chemicals,
Vikas EcoTech.

KSE Ltd,
Avantel LTd,
Dhunseri Petro,
Ashapura Intimate Fashion,
White Organics.

Sanwaria, White Organics, and Himalaya Foods are bought due to Patanjali and consumer facing stocks. Sanwaria Consumer sold at heavy loss due to news about its many things not matching up. Also, Sanwaria as given wrong result data at the start of April but given Audited result at the end of May. Also, promoters selling in past two quarters has taken my confidence at this blood bath market. Himalaya Foods also sold due to many not satisfied with its promoters commentary. I was threatened in this tough market which has started from end of Jan or start of Feb, 2018. But Himalaya was showing very strong upward trend on price chart. Not taking about technical analysis but general view.

Vikas Ecotech also sold due to management. Number was not as per liking but every time they say some positive things.

Thirumalai Sold due to higher Crude Oil price. Crude oil prediction is very though and it is tied to that. Even after high oil, its result for Mar, 2018 was very good. Market was expecting more than that. But very good doing company.


In recent past many goof-ups has taken a toll on market especially in small cap. PSU Banks one after another giving reason to sell Indian market as this shows corruption and mismanagement at very high scale.

Vakrangee and PC Jeweller problem and then one after another Auditors related problem or problems companies have and promoters denied to hide has created very bad sentiment in market.

SEBI Additional Surveillance Measures (ASM) list has created another wrong sentiment for the market especially for small Cap. List was out before SEBI has published in market. Few operators taken advantage of it and created pressure on it to sell on high. It is a cheating and retail investors who are threatened from loss from Jan 2018 are forced to sell who were still holding it.

Sanwaria Consumer was also put in ASM. As the list was leaked so Sanwaria was on Lower Circuit from few days before list came into public.

Thirumalai Chemical has recovered very fast. and it is not having problem regarding management and promoters. But it depends on Oil price.

Worth checking this for buying this strong correction.