After having successfully tested the concept of Magic Formula in the context of Indian markets, I am convinced of the philosophy and along with a group of friends have started digging deeper in to the list filtered by magic formula. More often than not, the original list contains in itself, a few multibaggers that need to be identified ahead of the surge in stock prices. I cannot predict where the stock market is headed, in fact no one can and hence it is important to stay invested in fundamentally strong companies.
We are putting in efforts to have this initial list of Magic Formula filtered and analysed further to arrive at a potential list of the best two or three bets from the list on a monthly basis. I do not know, what our success rate would be since a lot of the price movements are governed by emotions and not rational thinking. To be able to do a good job with the analysis, we indeed have to put in extra efforts and would like to get compensated for this efforts.
We are mooting over the possibility of starting a paid yearly subscription and would like to know the opinion of the readers of this blog. My existing blog will continue in the present format and I will continue to publish the list of magic formula as I have been doing in the past.
The following will be made available for the paid subscription:
1. Detailed analysis of some companies from the magic formula list that is worth investing in. The holding period will be a minimum of 1 year for such stocks.
2. We will suggest two stocks on a weekly basis for trading calls where the holding period is no more than one month. These will be pure technical calls based on price movement and technical indicators, support, resistance and price patterns. Fundamentals of the company will have no bearing on these scrips and are purely short term. (luck and hope !!!)
3. Investment opinions on some large cap that are available at reasonable valuations due to negative sentiments in the market. I will include the scrips from sensex in this.
We are still looking at the various options and viability of such services. If you are interested, please do write to investologic