Do you consider yourself a good investor?
Well, over the years we have seen that several good investors park their surplus funds in short term opportunities like de-merger, buy-back, de-listing, merger, rights issue, etc for decent gains in a period of 3-4 months (on average).
Major portion of their corpus remains invested in high quality stocks for long/medium term investment; however surplus funds get parked in Special situation opportunities for better rate of return in short term with seemingly low risk.
In line with the same philosophy we also keep looking for such opportunities and have released our new Special situation opportunity for our Alpha +/Alpha + & Model portfolio members and would like to share with you details on the same.
In case you missed out on last Special situation opportunity which delivered 32% return in 2 months, you shouldn’t miss out on the latest pick and make the most of it by subscribing to Alpha +/Alpha + & Model portfolio before 31st Mar’19. Register yourself HERE
Based on our scenario analysis, we have worked on four cases of valuations and found that there’s decent gain in 3 out of 4 cases and small loss in the fourth case. In fact, we have been conservative in assigning valuations and believe the upside can be more.
Some salient points about the opportunity are as below:
The company under consideration is a very well-managed company growing year on year, debt free with very low working capital requirement and strong return ratios.
It commands significant market share in its area of operations and is a tier 1 supplier to several of its customers.
On account of correction in small and mid cap stocks in the last 1 year, the stock is down around 50% from its peak and is thereby trading at very reasonable valuations.
With separation of businesses (the low margin one is getting separated) and company pursuing technological collaborations, we believe the stock offers a very good opportunity for value unlocking with de-merger acting as one of the triggers.
In case you missed out on several good opportunities of the past, you shouldn’t miss out on the latest pick and make the most of it by subscribing to Alpha +/Alpha + & Model portfolio before 31st Mar’19.
Register yourself HERE On subscribing to Alpha +/Alpha + & Model Portfolio you will get access to both Investment and Special situation opportunities.
Disclaimer: This is not an investment advice. The performance data quoted at www.katalystwealth.com represents past performance and does not guarantee future results.