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.