Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Example of Quantum Stock™ – Dharani Finance

with 5 comments

 Quantum Stock is just a theoretical idea. It does not imply one is better off investing in such a security at any point.

Azmath asked if Hawkins Cooker, Symphony do qualify as Quantum Stocks ™

More precisely he asked :

Let me take the liberty to take your trademarked word Quantum Stocks™🙂 The idea is pretty interesting, the mechanics of which may be allegorical to Quantum Mechanics, via Heisenberg’s uncertainty principle. The reason: we can not exactly predict the value of the stock. The moment we predict (in reality ‘invest’), the price of the stock moves because of low volume. Thats pretty interesting, and thats why I really appreciate your coined word.

Regarding external influence, I doubt. We can see the price per share history of such stocks during the past recession period. It has fallen considerably. Isn’t it?
————————————————————————————–

 Thanks, I know Azmath, you are a quantum investor too🙂.

The ones I did mention in previous post do not indeed qualify as Quantum Stock™, apologies for that. A Quantum Stock™ is one where correlation with index such as Sensex or Nifty is little or none.

While I broadly agree with you that all stocks mentioned in earlier post have indeed fallen, those are also the ones with very high and certain future returns. Even though they have been the best stocks from sure investment perspective, in fact that is where one should have bet one’s bottom dollar, for the sake of “theory” they are not quantum stocks.

For ex: Shoppers Stop was an excellent buy when it fell to 30 Rs (adjusted for split), now 320 Rs, it made very little sense to invest in Quantum Stocks™ because the certainty of bounce back is so high in front line stocks. I though took very slight advantage of Shoppers Stop, sold too soon. Therefore, we are not hung up on and limited in our investing horizons to just Quantum Stocks™🙂 when other deals with higher certainty are present.

Example of Quantum Stock™ is Dharani Finance  (DF)  :)

http://www.dharanitravels.org

There are a few other examples too but since I have not invested, left unnamed. In Dharani Finance the possibility of money going to ZERO is negligible, it provides car fleet to 5 star hotel owned by a group company. It has portfolio of 4 Crore Rs in equities and 1.5 Crores cash, more than its market cap of 3 Crores, paid dividend and was unaffected by 2008-09 crash. I don’t think management is interested in scaling operations just yet.

Dharani Finance  may have some short term potential since group company is expected to come up with a second 5 Star Hotel and car fleet requirement will double.

Regards

Disclosure: Not invested in DF.

Five year Chart below:

Crash of 2008-09 can barely be felt on blue line ( DF )

Written by amitdipsite

March 12, 2011 at 11:37 pm

Posted in Uncategorized

5 Responses

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  1. Sir
    Can you please evaluate Camlin Fine Chemicals Ltd?
    Thanks
    Prashob

    Prashob

    March 14, 2011 at 1:16 pm

  2. That was amazing! Thanks for mentioning my comment in your blog, definitely a privilege. Man, how could you find such a stock, with such a low volatility? I simply cant believe! It's totally unaffected by recession, I tried with the best of stock screener, but no. How on earth did u find it? I badly need the technique, and some more examples. Please mail me.

    Azmath

    March 15, 2011 at 5:32 pm

  3. Dear Azmath,

    The stock has market cap of 3 Crores and nobody is interested in this low market cap. Simply a case of un discovered stock and fear to invest in such companies.

    There is no technique friend, or a screener, I just go through one company after another, has taken a couple of years and I have still covered only 30-40% of them. Will let you know more as soon as I buy one.

    http://bseindia.com/about/list_comp.asp

    Regards

    Amit

    Amit Arora

    March 15, 2011 at 8:25 pm

  4. Hi Amit,

    Are you tracking this Dharani Finance Ltd. now? Or anything interesting evolving around your thesis of Quantum Stock™?

    Rahul Paliwal

    June 13, 2012 at 7:01 pm

  5. Hey Rahul,

    I am not tracking and never had an Iota of this Quantum

    Amit Arora

    June 15, 2012 at 11:39 pm


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