I wrote about the TRAPP framework which helps us make sense of why and how the market differentiates between stocks or asset classes, even. Today i want to talk about a technical aspect that leads to super-performance. What do you think is the biggest contributor to a stock’s out-performance? Most would say earnings. Some sophisticated investors would say it’s the delta in the earnings. While both earnings power and the delta in earnings are very important, what really defines if you make a good investment or a superlative one?
Don't you think that by following this strategy we need to keep hoping onto stocks which isn't a flavour of the town or lately market has started to like it. Whereas, if execution and earnings of the company is in place then they won't be able to hide it from market for too long.
So the dilemma is which is more preferable,
1. Compounding return on those stocks which are known to market.
On US based formulations pharma business, they have same price from 2015 , and recently they have runned up 100% or so, do you think if catalyst is still there, it would be right to bet on that.. ?
Curious if there are tools that help you keep an eye on these evidences, which you drill into. Care to share some of these tools. Thanks for the learning.
The most powerful catalyst for stocks
Don't you think that by following this strategy we need to keep hoping onto stocks which isn't a flavour of the town or lately market has started to like it. Whereas, if execution and earnings of the company is in place then they won't be able to hide it from market for too long.
So the dilemma is which is more preferable,
1. Compounding return on those stocks which are known to market.
2. ATH+ Neglect
Want to pick your brain on the above.
On US based formulations pharma business, they have same price from 2015 , and recently they have runned up 100% or so, do you think if catalyst is still there, it would be right to bet on that.. ?
Suzlon Energy (https://www.tradingview.com/x/Wzllxt4p/)
Nice article and can't agree more on this.. great job 👍
ACRYSIL also fit in this. 6 yeras of NEGECT (please see bse chart for this.) + IKEA JV
PRAJ INDUSTRIES can come in this category. 14 Year of NEGLECT + NEW ATH + Ethenol story (strong order book)
Interesting framework and evidences.
Curious if there are tools that help you keep an eye on these evidences, which you drill into. Care to share some of these tools. Thanks for the learning.
Hi Prabhakar, fantastic insight. Is there any tool or way to scan for such multi year 3-4 or 7-8 year breakouts? Thank you
Bharti airtel just given a breakout after long period of neglect.
One can say this about ITC too today. Time will tell.
Good point. Even Laurus lab went no where for 4 years since it's ipo in 2016. Now nearly 6-7 times in last 1 year