Tempting Opportunities
Recap of My Week
I am trying to think back to what I did from Monday to Thursday. I barely remember anything except for going to work everyday. I am quite tired in the evenings when I am working full time compared to when I was in college full time. Though I like what I am doing (most the time), sitting and staring at a computer for over 8 hours a day takes a toll. To cope with this, I started doing a 10 minute relaxation routine right after coming back from work. This routine is quite effective. It acts as a mental separation between work and my evenings. Check out the routine here!
Tempting Opportunities
I use a stock screener to find growth companies that are undervalued. I actually found KPIT Technologies, my first investment, through this screener. Now, I found another company called Shilpi Cables in this screener. The price of the company is quite cheap which is very tempting for me. I have a habit of looking for what’s on sale in the market and this company hits the bullseye. However, the company may be facing bankruptcy and is highly debt-ridden. I do not believe the company will go bankrupt but they definitely have a lot of debt. The price is so cheap that the downside is quite low. The upside is quite uncertain. The management seems okay, profit margins are quite low, growth in revenue is not in line with growth in net profit (which shows a low quality of growth). I am tempted to make a call on this but I cannot make up my mind wholeheartedly. It is a bad company that is extremely undervalued. Warren Buffet uses an analogy that an investor is a baseball player playing a game where there are no strikes. One can wait for the perfect pitch because only those we hit matter, not the pitches we miss. I am going to choose not to invest in this company. This is a tough decision though.
Tip of the Week
I was introduced to the world of investing by reading Intelligent Investor by Ben Graham and a biography on Warren Buffett. This was almost two years ago. However, I did not start investing until I read a small guide on Fundamental Analysis. My tip is to check out this guide! I kick started my stock research from the tips in this guide. This is a great place to start if you are looking to get your feet wet as an individual investor.
