These are crazy times in the stock markets – there’s the drama unfolding around Adani group companies, there’s even more drama in bond markets [here] and uncharacteristically, Deepak Shenoy has more to say on what not to buy [here and here] then what to buy.
While we discuss all of these on our slack community, there’s more that we want to share in this newsletter. Read On.
(Pro tip: If you want to WhatsApp any article to your friend just click the ‘➕’ next to it and share)
Markets this week 🚦
Metal stocks snapped and turned ~6% negative. Telecom and Agriculture based sectors stayed afloat in a market that went “the yo-yo way” during the week. Finally, the CNX 500 closed 1.2% down as compared to last week.
Capitalmind Wealth Letter May 2021 🍀
Deepak Shenoy writes a letter for Capitalmind Wealth clients sharing his thoughts about the month gone by. In this edition, he explores –
- how the second wave of Covid-19 has changed things
- how things may unfurl in future
- where do the newer opportunities lie
Read: Wealth Letter May 2021: Clutching at Straws in the Second Wave ➕
With great discount comes great dilution! 🎭
Recently, JSW Ispat went through a bankruptcy resolution and took a massive equity dilution.
We answer:
- Why? Why would a promoter attempt to sell shares at a price 40% lower than the market price?
- Is it a steal at this price?
- The hidden problem that makes this company terribly unattractive even at Rs. 35!
Read: The Hidden Problem in JSW Ispat’s Offer For Sale ➕
Stock Markets love this cocktail! 🍸
Shaky Economy, Singing Markets, and Shiny IPOs – a cocktail that’s served very often in the world of stock markets. A lot of times, it leaves retail investors shaken as well as stirred.
Will this time be different? Are these companies worth buying into or holding on to when they list? Soumeet Sarkar decodes this for us.
[Premium Read] Dodla Dairy IPO: Will it nourish investors? ➕
[Premium Read] Sona Comstar: Largest Auto-components’ IPO ➕
A 360° analysis of Mahanagar Gas ⭐️
The city gas distribution industry is the best business in the entire oil and gas space. And there are reasons for it: limited regulation, low penetration, business model aligned with government policies, and higher competitive fuel prices.
But does that mean an investor should lap up all the city gas distribution stocks?
[Premium Read] Mahanagar Gas: Stands out among City Gas Distributors ➕
[Premium] The School of Slack 😎
We bring you the most insightful discussions from our slack community
- Introducing – Office Hours with Capitalmind Team. One hour on Zoom session with CM team for QnA on CM products and more [link]
- (If and) When crude turns $100, where will you turn? [link]
- Now Playing: Drama of the Debt Markets feat. the RBI [link]
- Did you know you can nominate someone to inherit your email account as well? Yes, you can, and you must consider doing it [link]
- Aaj ki Adani khabar: We discuss different aspects related to the Adani group of companies [Impact on Debt Markets][How Momentum PF is dealing with it][Can of worms?]
Links we Like✨
In this section, we bring you interesting links from across the internet
- Harry Markowitz, who gave us the Markowitz model – a portfolio optimisation model that assists in the selection of the most efficient portfolio, talks about asset allocation, diversification and explores a simple-yet-optimal way to invest for the long term. [What Harry Markowitz Meant]
- Vivek Raju, from simplanations.in, explains the basic life cycle of an IPO in a very lucid way. [#14 What happens in an IPO? – Part 1]
- Success in capital markets depends largely on two things – Survival and Managing Risks. Voss Capital shares insights on survival when they review a book that deals with human survival and endurance stories. [Everyday Survival]
- Since the investor community in India suddenly got interested in Chess this last week 😉 – here’s an article linking business strategy to the moves of a Chess game. [Seizing The Middle: Chess Strategy in Business]
Join, probably, the best investment community in India.
(To help you take the plunge to premium, use code ‘ CMCOFFEE’ on the checkout page to avail a special discount of 15%)
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