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Wednesday, March 18, 2015

Time to sell Eveready Industries and book profits.

Dear Readers,

This is a probably a good time to book profits in Eveready Industries for those who hold the stock from long time, or those who have bought the same in a momentum driven rally from last year.

The charts are cracking now, and stock reached a nice high of 291 Rs and is trading at Rs 269 today. Candles on daily charts are clearly losing momentum now. In a quick panic, when short term and medium term investors exit, the stock can easily lose 50 Rs from here and land at Rs 220-240 in a day or two of panic selling.

Well, some might say the best time was to sell at Rs 291, but no-one can predict the exact top. When the rally starts losing steam, its often a good time to book profits and lock in whatever best you can extract from markets.

Pls remember that markers work on fear and greed only. Rest all is theory. Fear in 2013 timeframe drove Eveready to lows of Rs 20 per stock, and now greed driving it to crazy highs of 291 with P/E ratios of more than 146.

A P/E ratio of 146 means, that even if company distributes all its profits to you every year, it will take 146 years for you to recover your investment.

So why wait for 146 years, sell today and book your profits now.
All the Best.

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