In an earlier post I had mentioned that 3 shares fell into a theme for me – good companies went into bad times (eps was down), realised its mistakes and took corrective action.

The 3 shares were Essel Packaging, Cholamandalam Finance and Themis Medicare. I have no clue WHY, but Themis Medicare went up from my cost of 182 to 301 yesterday. I have no clue why this happened. So I sold yesterday – the price target has MORE than may go down again. L O L.

Cholamandalam went from my start price (of 40 to 64) to 120 today. Here I know what is happening – mistakes have been corrected, right pricing of management teams has happened, mutual fund business has been sold off….2 changes I am expecting : 1) increase in EPS from 7 to about 12-13; ii) change in P/e ratio from 11 to about 22. This share has the potential to bec0me a 2-bagger EVEN from here. However when I said about this to a friend, he compared it to RELIANCE CAPITAL..and said that Rel cap is superior (far superior) to this…LOL good that I did not listen to him 🙂

In case of Essel Propack they did a bad acquisition in Europe, made losses. Then took corrective action, share price has not yet recovered…am still waiting for the big gains. However have some small gains – my recent cost is about 40-42…so not bad.

So 1 theme 3 companies – one played out too fast, one playing out perhaps not so fast – still far, far ahead of the market, one making me wait – but I clearly have a 36 month view, at the least so not really worried, just sharing.

Needless to say I have no interest in Themis…and decent quantities of shares in the other 2…: Declaration of interest.

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