Thanks for the replies. Do you think BFL's cost structure may have changed from Q/E 31 March 2011 to the current period?[/quote]
Groups to watch during next five years
Agri Food - Businesses
Travel and tourism
IT and IT related
Diversified group (under this diversified companies in other groups including diversified plantations group and chemical based group also should be included)
Construction, mining, cable and ceramic
We can have few above average cash cows in above groups in the coming years.
Then we can have following type of group rally and group correction time to time during next five years. Even during last 10 quarters we had stock, group and sector oriented bull markets and correction time to time. Recently we had more than 50% correction for some stocks. Some stocks didn’t have any meaningful rally during last three quarters and they have stagnated and their correction is negligible. Some stocks had less than 10% correction. Some had correction of less than 20%
Market leaders and group leaders rally
Selected hotels rally
Food rally such as sugar rally, chicken rally, salt rally, soya rally, dairy products rally
Consumer staples rally including food
Rubber and palm oil rally
Small cap rally, mid and large cap rally
Chemical related rally
If we can identify some coming group rally or any other rally in advance we can accumulate stocks slowly and systematically.
During remaining quarters some companies can have easy access to raw materials due to increased production. Their cost can come down.
Some companies can have additional income due to by products; value added product and few diversified businesses
Finally we should stick to our strategy even when times are tough
The above statement is not meant to influence anyone\'s decision to buy/sell/hold/ rotate any stock or group.
Please do home work before take any decision