Mayank Mehra CFA FRM | Sep 14, 2019 14:50
Many times as has happened in the past, panic and stress situations offer money making opportunities to the patient investors. We waited till we saw the economics turn around to call any stock or sector cheap, though we continue to wait while the economics continue to turn.
We had to absolutely call out that a truckload of PSUs were trading cheap. Scroll down to find a list of your favourite Monopoly PSU company offering a strong dividend yield along with an even stronger earnings yield. PSU companies have an often sticky dividend yield since their largest shareholder (THE GOVT) relies on them for budget decisions. Another opportunity that has made itself available recently is the bull run owing to government's strategic stake sale decisions like the one in BEML (NS:BEML) and BPCL recently.
Stocks that fit our firesale parameters:
We restrict ourselves from making any stock pick from the above list owing to restrictions in duty to our fiduciary clients.
The above list is aimed at compiling a list of stock in the PSU sector, which we expect have a high margin of safety (P/BV), have a sticky dividend/share over the years making the dividend yield reliable. Most companies have a solid moat and monopolistic businesses, namely-
to name a few
We strongly urge the audience to look at stocks where the govt/promoter holding is between 51% to 65% majorly because these stocks are less likely to have any Promoter holding offloading.
Me and my associates may have exposure to some or all of the scrips mentioned in the above list. The data presented should be used for educational grounds only and not be in any way treated as an investment recommendation.
Written By: Mayank Mehra CFA FRM
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