I
want to describe the four stocks I invested this December 2016 and why I did
so. But first let us see the four stocks:
Name of the Stock
|
Read Research Report
|
Download Research Report
|
Rural
Electrification Corporation
|
REC Research
Report |
|
Power
Finance Corporation
|
||
Great
Eastern Shipping Co. Ltd.
|
--
|
--
|
Shipping
Corporation of India Ltd.
|
All
the scrips listed in Portfolio 2K15 are good then why did I choose only these
four?
Name of the Stock
|
Price to Book Value (P2BV)
on 5th December 2016
|
Price to Earnings (PE) Ratio
|
Rural
Electrification Corporation
|
0.45
|
2.31
|
Power
Finance Corporation
|
0.48
|
5.32
|
Great
Eastern Shipping Co. Ltd.
|
0.65
|
11.58
|
Shipping
Corporation of India Ltd. (SCI)
|
0.39
|
30.45
|
Most
of the shares in our Portfolio 2K15 presently trading at high valuations. Only
these four are trading at very attractive P2BV ratios giving us an opportunity
to buy highly valuable assets at a discount.
SCI’s
PE Ratio is beyond the permitted 15m but as already mentioned in the research
report, SCI is a special situation case. The global shipping rates are at their
nadir. Once these pick-up the company will do very well and we may not get the
opportunity to buy the assets at a discount.