Tough time ahead for MandY Holdings - Department D

Effective from March 09, SEBI increased lot sizes by almost 4 times, hence the margin in same proportion. With a small capital of 1.3 Lakhs we were able to buy/short two lots at once with worst case averaging limit of 4-5 lots. But now, that option is no longer available. Either we need to increase our capital to 4-5 lakhs or increase our expertise to do more correct analysis and risk evaluation. The first option is very difficult hence we are proceeding with the second one. Alternatively, there is an option of using department D when we predict bullish short term trend. We can buy few shares which we can average instead of taking risk of full lot. But in case of short sell, we have to take risk. Probably, SEBI also wants the same thing - more equity traders (investors) than f&o (traders).

We love challenges, we'll come out with solution and move ahead.

To our current and future aspirant shareholders, we are happy to announce that we did our first trade with new lots today. Bought reliance lot at 1264 and sold at 1280 earning 4800 rs. Although it reached intra-day high of 1297 due to heavy buying in last 15 minutes, we are happy with our small first gain. MandY Holdings has earned 17% profit on the investment of Rs. 1,20,000 in 6 weeks time.

Half Life of Knowledge

Once we learn something, we never forget that completely. But it decays if we do not refresh it. Like radioactive element, it is never destroyed by it reduces in exponential pattern.

I found an interesting concept - Half Life of Knowledge. Sharing presentation slides on the same. It discusses theorotical compuer science in relation to this topic.

The research has been done by one of my professor in IIT Bombay - H. V. Sahasrabuddhe. Here is the link for his homepage. You may find some more interesting topics like Computational Musicology.

MandY Holdings - first month

Today, MandY Holdings has completed one month. Here is the balance sheet ...

MandY Holdings Pvt. Ltd.

Balance Sheet 18-Jan to 17-Feb

Date Description Amount
20-Jan-09 NIFTY-Short (2754-2713)*100 4073
2-Feb-09 NIFTY-Short (2799-2751)*100 4800
2-Feb-09 UTV-Buy (223-229)*300 1600
5-Feb-09 RIL-Short (1301-1275)*150 1950
16-Feb-09 NIFTY-Short (2935-2908)*50 1350
16-Feb-09 NIFTY-Short (2850-2830)*150 3000
17-Feb-09 NIFTY-Short (2850-2757)*50 4650
TOTAL 21243

Date Description Amount
19-Jan-09 Account Opening 650
24-Jan-09 RNRL-Buy (51.90-49)*3576 10371
26-Jan-09 UTV-Buy (252.93-249.38) 1066
28-Feb-09 Service tax 252.68
28-Feb-09 Other Charges 224.85
28-Feb-09 STT 361
TOTAL 12925.53

Total Investment : Rs. 1,20,000

Total Profit : Rs. 8497.47 (+ 7.08%)
- not audited by PWC

We are currently in learning phase hence the 7 % gain in one month is very good.

One major loss faced was from RNRL lot. I couldn't guess the price movement due to covering hence lost 10K plus in that deal. Otherwise I could have had more than 15% monthly gain. After that, faced biggest tension when I short sold 5 Nifty lots with 2850 average price and it reached 2950 on 14th Feb (Happy Valentine day). I was 25,000 down and my entire investment was locked hence there was no scope for averaging. I was pretty sure that market will come down by Feb end at least. Thankfully, budget did the magic and I baught back 4 lots with 7,600 rs. gain. Still holding short one lot.

The overall future for MandY holding is positive. Till now 7 calls were positive and 2 negative. Two more are yet to be realized. Assuming 50-50 in that, 72% correct calls is a good sign for my research and intelligence(or pure luck).

Currently, we are investing only in Department D, hence  hence we can have gains (and looses) irrespective of market going up or down. Point to note, almost all gains are from short sell and I lost heavily in two buy trades. We'll publish our next balance sheet by march end, by which we are expecting 25% profit.

Department E has invested a small amount rs. 6,150 in HCL Technologies. Currently the stock value is 109 rs. with 670 rs loss. But this investment is made with a target of 500 rs share value in 3-4 years. No plans to invest in equities before Q1-09.

Department Zero predicts Sensex will remain in 8500 to 10000 range. If it falls below 8500, it may drop down to 7000. Indian market will see some stability after September and start recovery from 2010.

Best Ever Valentine Proposal

Check this one ....

Happy Valentine Day !!!!

Orkut Speed Issue

From last few months I am experiencing poor performance on Orkut. Surprisingly, the performance is far better on Chrome than on firefox or IE. I accept chrome is slightly faster than firefox 3.1 but speed difference is considerable on Orkut.

Is anyone else getting same results ? Has google started dirty tricks to push their chrome browser ?

Feeling the Market Heat !!!!

Market went 283 points up today with nifty jumped 79 points. On friday I short sold Nifty at 2814 under the feeling that market will come down. That too with little over confidence ... 3 lots i.e. 150 shares :)

Today, the first time, I experienced the real heat of market. Still managed to keep my head cool and short another 2 lots at 2914 with reserved funds of MandY Holding. Lets see whether my call is correct or not. Currently I am 250 shares short at average price 2852.

Gabbar Singh's Orkut Profile

Gabbar Singh's Orkut Profile :)

(click to enlarge)

Credits goes to my friend Kuldeep. He should transfer credits to his source by keeeping comission ;)

Pink Slips

Yesterday, I experienced the worst ever effect of Pink Slips. Our company laid off 40 people from various departments. We tried our best but couldn't keep ourselves away from global slowdown. Fortunately, even during booming time, we never hired people like other companies hence the effect was small. But loosing job all of a sudden is not easy for anyone.

All of a sudden the company atmosphere changed from every day's joyful culture to a silent one. Fortunately, there was no layoff from my team. Being a Team Leader, I was encouraging my team members and other employees but at the same time there was a fear of loosing my own job as well. Fortunately nothing  like that happened. I am still on Indiagames payroll.

In the evening I got a call from my sister, who recently joined Mastek after completing her engineering. Her company put 12% of their workforce on virtual bench. Virtual bench means an employee gets a full year leave and salary is reduced to 20%. My sister was part of that.

Thinking positively, I believe its a time for consolidation. One must evaluate himself. Consider this downturn as opportunity than problem and find your own path. In the booming time every idea is great, every one is genius. But as you can see now, most of them failed. One who can think of great idea in current time is great. hence believe on yourself, prove yourself and let others follow you.

Vamos Rafa

He did it again. 

Vamos Rafa !!!!!