Recently I got a promotional mail from PersonalFn which recommended Hidden Treasure service (Small cap recommendation service) from Equitymaster. They were talking about the three top performers (only three) of their recos in last 3 years. They also acknowledged their failure on MIC electronics. As usual they are trying to market their services by luring the investors citing 5 to10 fold returns that some of the Small caps bring you over longer term.
Being a Life time Wealth Alliance member of Equitymaster I knew Hidden Treasure service is one of the worst failures among EQM services. Their success rate in the last 2 years is nothing to talk about. Only 3-4 recos made in year 2009-10 have given good returns. Most of the recos in 2010 and 2011 have performed between +5% to -80%
I have lost close to a lakh in INR (booked losses) by investing in some of their Recos like MIC Electronics, Bartronics, Allied Digital, C and C Constructions, Anant Raj Industries, Deccan Chronicle, Lakshmi Energy and few more. People who invest in stocks on a regular basis would know how badly these stock prices went down in last one year... I learnt another round of lessons in the Stock market by paying a heavy price.
Folks, be careful and don't blindly follow recommendation reports on Mid/Small Cap companies even if they are from paid services like Equitymaster. I do have doubts if they are a truly independent and neutral stock research firm without any vested interests. Always do you own research wrt Valuations, Promoter Pledging, Promoter holding, Overall Business environment, Debt to Equity ration (most important), FCCB liabilities, % interest costs / profits etc.
Make your own decisions on Buy / Sell. Be responsible. Be disciplined. You will be a winner.
All the best.
My Equitymaster review in Mouthshut.com
http://www.mouthshut.com/review/EquityMaster-com-review-nspurrrpon
Being a Life time Wealth Alliance member of Equitymaster I knew Hidden Treasure service is one of the worst failures among EQM services. Their success rate in the last 2 years is nothing to talk about. Only 3-4 recos made in year 2009-10 have given good returns. Most of the recos in 2010 and 2011 have performed between +5% to -80%
I have lost close to a lakh in INR (booked losses) by investing in some of their Recos like MIC Electronics, Bartronics, Allied Digital, C and C Constructions, Anant Raj Industries, Deccan Chronicle, Lakshmi Energy and few more. People who invest in stocks on a regular basis would know how badly these stock prices went down in last one year... I learnt another round of lessons in the Stock market by paying a heavy price.
Folks, be careful and don't blindly follow recommendation reports on Mid/Small Cap companies even if they are from paid services like Equitymaster. I do have doubts if they are a truly independent and neutral stock research firm without any vested interests. Always do you own research wrt Valuations, Promoter Pledging, Promoter holding, Overall Business environment, Debt to Equity ration (most important), FCCB liabilities, % interest costs / profits etc.
Make your own decisions on Buy / Sell. Be responsible. Be disciplined. You will be a winner.
All the best.
My Equitymaster review in Mouthshut.com
http://www.mouthshut.com/review/EquityMaster-com-review-nspurrrpon
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